It has been six months since Congress passed and former President Donald Trump signed the Shuttered Venue Operators Grant (SVOG) program into law, but only a handful of concert halls and other venues have received funds. Congresswoman Stephanie Bice has joined a bi-partisan group of House members who are calling on the Small Business Administration (SBA) to get the money flowing.
“Oklahoma’s venues have been waiting more than 6 months for the Shuttered Venue Operator Grant program to get off the ground and they can’t afford to wait any longer,” said Bice. “My constituents are ready to attend concerts or go to the movies in person, but many of these venues have exhausted their funds and can’t join in our state’s economic recovery. I’m very disappointed in the lack of response from the SBA.”
The SBA officially launched the program in April. About 400 grants have been approved as of June 14. More than 14,000 applications have been received by the agency.
In April, the program’s application website crashed and was down for nearly three weeks. Delays continue despite the fixes.
The group has sent a letter SBA Administrator Isabel Guzman encouraging immediate action.
You can read that letter below.
The Honorable Isabel Guzman
Administrator
US Small Business Administration
409 3rd St SW Washington, D.C. 20416
Dear Administrator Guzman,
We write today to urge the Small Business Administration to expedite the release of funds to beneficiaries of the Shuttered Venue Operators Grant (SVOG) program and provide answers to the questions below in a timely manner.
For over a year, we have consistently heard from venue operators about the unprecedented and unsustainable economic impacts the COVID-19 pandemic had on their small businesses. This community was relieved when the SVOG program was created in the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act in December of 2020 and additional funding was added as a part of the American Rescue Plan.
However, the rollout of this program and the release of funds is of great concern to us and many of our constituents. In addition to the initial crash of the application portal on April 8th and delay of the opening to April 28th, there has been a significant delay in the processing of applicants and awarding of funds. According to the Office of Disaster Assistance, as of June 14, the SBA has only approved 411 grants out of the over 14,000 applications submitted, and nearly half of the applications have not yet reached the review stage.
The slow pace is becoming increasingly untenable for the small businesses in our districts. Their banks have threatened to call in the full amount of small business loans, they do not have the funds to pay their landlords full rent, and they cannot retain staff. We are hearing from venue operators who are days away from closing their doors if these funds are not sent soon. These small businesses not only provide good jobs and contribute economically to our local communities, they contribute to the spirit and local culture as well. We must act now.
We understand the complexity and difficulty of managing a program of this size; however, we request the disbursement of funds be expedited immediately.
In addition, we respectfully request answers to the following questions are made available to all Members and staff:
- What is causing the delay of processing applications and disbursement of funds? Is further action by Congress needed to help you address these issues?
- Since the Priority 1 Tier deadline has passed, will funding be awarded retroactively to those who didn’t receive funding in the Priority 1 Tier?
- When can businesses expect to receive these funds? What plans are in place to communicate a likely timeline for disbursement of funding to afford small venue operators the opportunity to appropriately plan and respond to their individual needs?
- Would you and the SBA staff host a briefing for Members and staff on this program and the issues with its implementation?
Thank you and your staff for your hard work to implement the various SBA programs in response to the COVID-19 pandemic. We know you are committed to serving our small businesses and we look forward to working together to ensure these funds are distributed and these issues are addressed efficiently.
Sincerely,
