An adviser to Senator John Cornyn, a Republican from Texas and a sponsor of the proposal, said Mr. Cornyn had told the Small Business Administration of his concerns that the last-minute expansion of Congress would overwhelm the program with applicants and not enough money for it the venues that he and others wanted to benefit from.
A spokeswoman for the agency declined to comment on how long the money is expected to last. She said officials would “build the Shuttered Venue Operators Grant program from the ground floor and put in place front-end protections to ensure these important grants are given to those who the law is supposed to support.”
Once the program opens, applicants will fight for money.
Most recipients are eligible to raise 45 percent of their 2019 sales, up to $ 10 million. In the first 14 days, grants are only granted to people with a 90 percent or more loss in sales between April and December – for example, Ms. Tallent’s orange peel. After that, applicants with a loss of 70 percent or more have a priority window of 14 days. These two groups alone could run out of funding for the program before other applicants – those with losses of at least 25 percent – can take their turn.
As a result, most business owners face a tough decision: should they apply for a closed venue grant or apply for Paycheck Protection Program relief instead? This program reopened last month, so hard-hit companies can apply for a second unsuccessful loan.
Venues that received loan through the paycheck program last year can apply for the grant, but those applying for loan this year cannot. The Small Business Administration said in its advice to applicants that they must “make an informed business decision about which program will benefit them most and apply accordingly”.
Take Billy Bobs Texas, a Fort Worth honky tonk who received a $ 1.1 million loan from the Paycheck Protection Program in April. It closed in March and reopened in August, but its once lucrative corporate sales business has cratered. The famous bull arena is empty. Even so, smaller concerts are held here, where dinners are served and converted to accommodate a capacity of 2,500 people, versus the 6,000 that used to be.
“I feel like we’re changing our business model every week,” said Marty Travis, the general manager. He estimates sales in the final eight months of 2020 were down at least 50 percent year over year – enough to qualify for the venue grant, but not enough to put the club in either of the top two priority groups to divide. By the time you are allowed to apply, your money may be gone.
