SBA to Launch Two CRE-Focused Relief Funds for Live Venues, Restaurant Aid

The US Small Business Administration will launch two CRE-focused relief funds—one as soon as this week—to help live venues, museums, movie theaters, and restaurants regain their footing following a devastating 2020. 

After a few delays, the SBA will open its $16.2 billion Shuttered Venue Operators Grant (SVOG) application portal for operators of live venues, live performing arts organizations, museums and movie theatres, as well as live venue promoters, theatrical producers and talent representatives to apply for relief funds. At least $2 billion is reserved for eligible SVOG applications with up to 50 full-time employees, and applicants may qualify for grants equal to 45% of their gross earned revenue, up to a maximum amount of $10 million for a single grant.

The first 14 days of SVOG awards will prioritize entities that posted revenue losses of 90% or more from April to December 2020, while days 15-28 will include those that suffered a 70% or greater loss during that time period. Awards will then include entities that suffered a 25% or greater revenue loss between one quarter of 2019 and the corresponding quarter of 2020.

“Concerts, plays, dance performances, movie premieres, museum exhibits—these are the lifeblood of culture and community, and often the anchor for travel, tourism and neighborhood food and retail stores. We know that for the stage and venue operators across the nation that help make this culture happen, the pandemic has been devastating. Too many have been forced to lower the final curtain on their businesses,” said SBA Administrator Isabella Casillas Guzman. “The SBA is committed to moving as quickly as possible to deliver this vital funding effectively and equitably—ensuring relief goes to those venue operators whose revenues have been most impacted by the pandemic.”

Also this week, Guzman announced more details around the Restaurant Revitalization Fund (RRF), a $28.6 billion initiative launched as part of President Joe Biden’s American Rescue Plan. The SBA will administer the funds “to the hardest-hit small restaurants,” the agency said in a statement.

Over the next two weeks, the SBA will create a seven-day pilot period for the RRF application portal using a pool of randomly selected existing PPP borrowers in priority groups. Following the pilot, the application portal will be opened to the public, with an exact launch date TBA. For the first 21 days that the program is open, the SBA will prioritize reviewing applications from small businesses owned by women, veterans, and socially and economically disadvantaged individuals, the agency said. 

 “With the launch of the Restaurant Revitalization Fund, we’re prioritizing funding to the hardest-hit small businesses—irreplaceable gathering places in our neighborhoods and communities that need a lifeline now to get back on their feet,” Guzman said. “And, thanks to clear directives from Congress, we’re rolling out this program to make sure that these businesses can meet payroll, purchase supplies, and get what they need in place to transition to today’s COVID-restricted marketplace.” 

Insiders from the hard-hit restaurant sector applauded the announcement.

“Local restaurants and bars are being served very good news today,” said Erika Polmar, executive director of the Independent Restaurant Coalition. “These guidelines were crafted by the SBA after conversations with independent restaurant and bar operators across the country. We are grateful to the SBA for their hard work to make this process as accessible as possible in a short period of time.”