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There are more than just PPP loans in the Consolidated Appropriations Act of 2021. Live event operators will eligible for grants up to $10 million, which can be used for eligible expenses. At least $2 billion in grants are set aside for small employers. Small employers are defined as those with not more than 50 full-time employees.
Who Qualifies?
Generally, grants are available to individuals or entities, which do any of the following:
- Live Venue Operator or Promoter
- Theatrical Producer
- Live Performing Arts
- Museum Operator
- Motion Picture Operator
- Talent Representative
The business had to be fully operational on February 29, 2020, and had gross revenue that dropped at least 25% in 2020 over 2019. This is the same requirement for the second round of PPP loans and is calculated the same way. If your revenue for any quarter in 2020 was less than the same quarter in 2019 by at least 25%, you are eligible for the grants.
An additional point, which may be obvious, but is worth noting. The business has to be operating or intend to resume operations. In other words, if you have closed your business permanently, you are not eligible for the grants.
Amount of Grant
The amount of the initial grant is equal to 2 months average revenue during 2019, not to exceed 45% of revenue of the entity from April 1, 2019, to December 31, 2019. There is a priority of who gets the grants first, but basically, it is first come first served. I note this because the PPP loan program initially ran out of funds, so timely application is critical.
Supplemental grants in the amount of 50% of the initial grant can be made to businesses whose revenues for the first quarter of 2021 are down 30% or more from the first quarter of 2019. The total of the initial and supplemental grants cannot be more than $10 million.
Any grant money that is not spent by December 31, 2021, must be returned. This deadline is extended to June 30, 2022, if you receive a supplemental grant.
How You Can Use the Grant
These expenses include some of the same eligibles for PPP loans such as payroll, rent/mortgage, and utilities. Eligible expenses also include up to $100k per independent contractor, maintenance expenses, administrative costs, any type of insurance, and advertising. Grants cannot be spent on loans originated after February 15, 2020, real estate, or political lobbying.
