Back in Center Stage: A grant program may ensure a robust return to normalcy for shuttered venues.

• Author: Simonelli, Isaac Stone
• Position: TOURISM - Shuttered Venue Operators Grant

No business in Alaska is more reliant on large group gatherings than live venues, movie theaters, museums, and live performing arts organizations. Given the nature of their business model, social distancing and capacity mandates put in place to protect the public during the pandemic have hit them particularly hard.

Recognizing the unique needs of this group of businesses, the Shuttered Venue Operators Grant (SVOG) program was established. It's set to provide more than $16 billion in grants to qualifying applicants. Which businesses qualify for the grants depends on a number of factors. In general, the grants are designed to provide vital assistance to live venue operators or promoters, theatrical producers, live performing arts organizations, museums, movie theaters, and talent representatives.

"As the length of the pandemic and economic impact increases, the need for additional funding becomes really critical," says Jeffrey Salzer, deputy district director of the Small Business Administration in Alaska.

"First and foremost, we're trying to get capital in the hands of our hardest hit small businesses," Salzer says, pointing to both the SVOG and the Restaurant Revitalization Fund.

SVOG applicants can qualify for up to 45 percent of their gross earned revenue, with the maximum amount available for a single grant award being $10 million.

Getting the Word Out

Priority groups are set up for the SVOG based on entities' needs, explains SBA regional communications officer Melanie Norton.

The first group are those that suffered 90 percent or greater gross revenue loss.

"We're really trying to focus on those entities that had the greatest revenue loss due to the pandemic," Norton says.

Both the Anchorage Symphony Orchestra and the Alaska Center for the Performing Arts applied for the grant, but, as of publication, didn't know if they'd received the funding.

Initially, other organizations that might have applied thought that, if they'd received Paycheck Protection Program (PPP) loans, they wouldn't qualify for the SVOG grant.

While that was originally true, updates to the rules allow entities that received PPP money to be awarded the SVOG--though the money received in the form of PPP would be subtracted from the awarded grant.

"It was something that they had to weigh really heavily because the first news that we got was that if you've already gotten the PPP, you're not going to qualify for Shuttered Venues Operator Grant," says Kodiak Chamber of Commerce Executive Director Sarah Phillips. "And the rules keep changing, and...