WASHINGTON D.C. (CelebrityAccess) — On Thursday, the Small Business Administration hosted a webinar to provide information about economic aid for small and medium sized businesses in the entertainment world.
The webinar covered the details of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act which went into effect in December, and provides financial grants to eligible live venue operators or promoters, theatrical producers, live performing arts organization operators, cinema operators, museums, zoos, and other public-facing facilities.
The program, which was passed at the end of December, includes $15 billion for the grants that will be administered by the Small Business Administration’s Office of Disaster Assistance.
Eligible businesses and organizations may qualify for grants through the program that are equal to 45% of their gross earned revenue, up to a maximum grant of $10 million.
As well, $2 billion of the allotted $15 billion is reserved for eligible applications with up to 50 full-time employees.
To qualify, a business must have been in operation as of February 29th, 2020 and cannot have received a Paycheck Protection Program Loan on or after Dec. 27th.
The SBA is in the process of setting up the grant program and is not yet accepting applications and will be prioritized based on need and the financial impact of the pandemic on the applicant, with businesses with fewer than 50 employees who have suffered revenue losses of 90% or more first in line.
Grant funds can be used for a variety of business activities, including payroll, rent and utility payments, mortgage (excluding prepayment of principal), worker protection, payments to contractors, insurance payments, and advertising, production transportation, and capital expenditures related to producing a theatrical or live performing arts production.
The grants can also be used to make scheduled debt payments, excluding prepayment of principal, or indebtedness incurred in the ordinary course of business prior to 02-15-20.
Grantees will be required to keep records to ensure compliance with the terms of the grant, including employment records for the next four years, and all other records for the next three years.