WASHINGTON D.C. (VIP-NEWS) — US Venues and live event businesses that received federal pandemic relief through the Shuttered Venue Operators Grant (SVOG) program are now being asked to return the funds, in some cases in full, following a new wave of repayment letters from the U.S. Small Business Administration (SBA).
Michael T. Strickland, founder and chair of Bandit Lites and a key advocate for the original SVOG legislation, says more than 200 businesses have received these notices in recent days.
The SBA letters state that grants were either awarded in error or exceeded eligibility amounts, though recipients report the letters lack detailed explanations.
The SVOG program, which provided $16.25 billion to struggling live event venues, promoters, and related companies during the pandemic, was considered a lifeline for the industry. The sudden demand for repayment has come without warning, according to Strickland.“The SBA began sending out SVOG rescission notices as of June 23,”
Strickland said. “This was 100% without any prior knowledge or notice.”
Recipients have three options upon receiving a notice:
- Repay the full amount within 30 days
- File a request for reconsideration via the SVOG Portal
- Request to pay in installments over three years
