Statutory Authorization

THIS UNOFFICIAL COPY OF THE LEGISLATIVE TEXT ESTABLISHING THE SVOG IS TAKEN FROM
THE OFFICIAL VERSION OF PUBLIC LAW NO. 116-260 AND IS PROVIDED SOLELY FOR
INFORMATIONAL PURPOSES. NO LEGAL RELIANCE SHOULD BE BASED UPON THIS UNOFFICIAL
TEXT. FOR THE OFFICIAL VERSION OF PUBLIC LAW NO. 116-260, PLEASE SEE
https://www.congress.gov/116/bills/hr133/BILLS-116hr133enr.pdf
FY21 Omnibus Appropriation and COVID Relief Act (Public Law No. 116-260)
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Division N - ADDITIONAL CORONAVIRUS RESPONSE AND RELIEF
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Title III - Continuing the Paycheck Protection Program and Other Small Business Support (aka
the Economic Aid Act)
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SEC. 324. GRANTS FOR SHUTTERED VENUE OPERATORS.
CONTENTS
DEFINITIONS
ELIGIBLE PERSON OR ENTITY
EXCLUSION
CALCULATION OF FULL-TIME EMPLOYEES
MULTIPLE BUSINESS ENTITIES
EXCHANGE; ISSUER; SECURITY
LIVE VENUE OPERATOR OR PROMOTER, THEATRICAL PRODUCER, OR LIVE
PERFORMING ARTS ORGANIZATION OPERATOR
MOTION PICTURE THEATRE OPERATOR
NATIONAL SECURITIES EXCHANGE
NONPROFIT
RELEVANT MUSEUM
SEASONAL EMPLOYER
STATE
TALENT REPRESENTATIVE
AUTHORITY
ADMINISTRATION
CERTIFICATION OF NEED
INITIAL GRANTS
FIRST PRIORITY IN AWARDING GRANTS
SECOND PRIORITY IN AWARDING GRANTS
GRANTS AFTER PRIORITY PERIODS
LIMITS ON NUMBER OF INITIAL GRANTS TO AFFILIATES
SET-ASIDE FOR SMALL EMPLOYERS
SUPPLEMENTAL GRANTS
AMOUNT
INITIAL GRANTS
SUPPLEMENTAL GRANTS
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OVERALL MAXIMUMS
USE OF FUNDS
TIMING
ALLOWABLE EXPENSES
PROHIBITED EXPENSES
INCREASED OVERSIGHT OF SHUTTERED VENUE OPERATOR GRANTS
SHUTTERED VENUE OVERSIGHT AND AUDIT PLAN
SEC. 324. GRANTS FOR SHUTTERED VENUE OPERATORS.
(a) DEFINITIONS.—In this section:
(1) ELIGIBLE PERSON OR ENTITY.—
(A) IN GENERAL.—The term ‘‘eligible person or entity’’ means a live venue operator or
promoter, theatrical producer, or live performing arts organization operator, a relevant
museum operator, a motion picture theatre operator, or a talent representative that
meets the following requirements:
(i) The live venue operator or promoter, theatrical producer, or live performing arts
organization operator, the relevant museum operator, the motion picture theatre
operator, or the talent representative—
(I) was fully operational as a live venue operator or promoter, theatrical
producer, or live performing arts organization operator, a relevant museum
operator, a motion picture theatre operator, or a talent representative on
February 29, 2020; and
(II) has gross earned revenue during the first, second, third, or, only with respect
to an application submitted on or after January 1, 2021, fourth quarter in 2020
that demonstrates not less than a 25 percent reduction from the gross earned
revenue of the live venue operator or promoter, theatrical producer, or live
performing arts organization operator, the relevant museum operator, the
motion picture theatre operator, or the talent representative during the same
quarter in 2019.
(ii) As of the date of the grant under this section—
(I) the live venue operator or promoter, theatrical producer, or live performing
arts organization operator is or intends to resume organizing, promoting,
producing, managing, or hosting future live events described in paragraph
(3)(A)(i);

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(II) the motion picture theatre operator is open or intends to reopen for the
primary purpose of public exhibition of motion pictures;
(III) the relevant museum operator is open or intends to reopen; or
(IV) the talent representative is representing or managing artists and
entertainers.
(iii) The venues at which the live venue operator or promoter, theatrical producer, or
live performing arts organization operator promotes, produces, manages, or hosts
events described in paragraph (3)(A)(i) or the artists and entertainers represented or
managed by the talent representative perform have the following characteristics:
(I) A defined performance and audience space.
(II) Mixing equipment, a public address system, and a lighting rig.
(III) Engages 1 or more individuals to carry out not less than 2 of the following
roles:
(aa) A sound engineer.
(bb) A booker.
(cc) A promoter.
(dd) A stage manager.
(ee) Security personnel.
(ff) A box office manager.
(IV) There is a paid ticket or cover charge to attend most performances and
artists are paid fairly and do not play for free or solely for tips, except for
fundraisers or similar charitable events.
(V) For a venue owned or operated by a nonprofit entity that produces free
events, the events are produced and managed primarily by paid employees, not
by volunteers.
(VI) Performances are marketed through listings in printed or electronic
publications, on websites, by mass email, or on social media.
(iv) A motion picture theatre or motion picture theatres operated by the motion
picture theatre operator have the following characteristics:
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(I) At least 1 auditorium that includes a motion picture screen and fixed audience
seating.
(II) A projection booth or space containing not less than 1 motion picture
projector.
(III) A paid ticket charge to attend exhibition of motion pictures.
(IV) Motion picture exhibitions are marketed through showtime listings in
printed or electronic publications, on websites, by mass mail, or on social media.
(v) The relevant museum or relevant museums for which the relevant museum
operator is seeking a grant under this section have the following characteristics:
(I) Serving as a relevant museum as its principal business activity.
(II) Indoor exhibition spaces that are a component of the principal business
activity and which have been subjected to pandemic-related occupancy
restrictions.
(III) At least 1 auditorium, theater, or performance or lecture hall with fixed
audience seating and regular programming.
(vi)(I) The live venue operator or promoter, theatrical producer, or live performing
arts organization operator, the relevant museum operator, the motion picture
theatre operator, or the talent representative does not have, or is not majority
owned or controlled by an entity with, any of the following characteristics:
(aa) Being an issuer, the securities of which are listed on a national securities
exchange.
(bb) Receiving more than 10 percent of gross revenue from Federal funding
during 2019, excluding amounts received by the live venue operator or
promoter, theatrical producer, or live performing arts organization operator,
the relevant museum operator, the motion picture theatre operator, or the
talent representative under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et seq.).
(II) The live venue operator or promoter, theatrical producer, or live performing
arts organization operator, the relevant museum operator, the motion picture
theatre operator, or the talent representative does not have, or is not majority
owned or controlled by an entity with, more than 2 of the following
characteristics:
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(aa) Owning or operating venues, relevant museums, motion picture
theatres, or talent agencies or talent management companies in more than 1
country.
(bb) Owning or operating venues, relevant museums, motion picture
theatres, or talent agencies or talent management companies in more than
10 States.
(cc) Employing more than 500 employees as of February 29, 2020,
determined on a full-time equivalent basis in accordance with subparagraph
(C).
(III) The live venue operator or promoter, theatrical producer, or live performing
arts organization operator, the relevant museum operator, the motion picture
theatre operator, or the talent representative has not received, on or after the
date of enactment of this Act, a loan guaranteed under paragraph (36) or (37) of
section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as amended and added
by this division.
(IV) For purposes of applying the characteristics described in subclauses (I), (II),
and (III) to an entity owned by a State or a political subdivision of a State, the
relevant entity—
(aa) shall be the live venue operator or promoter, theatrical producer, or live
performing arts organization operator, the relevant museum operator, the
motion picture theatre operator, or the talent representative; and
(bb) shall not include entities of the State or political subdivision other than
the live venue operator or promoter, theatrical producer, or live performing
arts organization operator, the relevant museum operator, the motion
picture theatre operator, or the talent representative.
(B) EXCLUSION.—The term ‘‘eligible person or entity’’ shall not include a live venue
operator or promoter, theatrical producer, or live performing arts organization
operator, a relevant museum operator, a motion picture theatre operator, or a talent
representative that—
(i) presents live performances of a prurient sexual nature; or
(ii) derives, directly or indirectly, more than de minimis gross revenue through the
sale of products or services, or the presentation of any depictions or displays, of a
prurient sexual nature.
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(C) CALCULATION OF FULL-TIME EMPLOYEES.—For purposes of determining the
number of full-time equivalent employees under subparagraph (A)(vi)(II)(cc) of this
paragraph and under paragraph (2)(E)—
(i) any employee working not fewer than 30 hours per week shall be considered a
full-time employee; and
(ii) any employee working not fewer than 10 hours and fewer than 30 hours per
week shall be counted as one-half of a full-time employee.
(D) MULTIPLE BUSINESS ENTITIES.—Each business entity of an eligible person or entity
that also meets the requirements under subparagraph (A) and that is not described in
subparagraph (B) shall be treated by the Administrator as an independent, non-affiliated
entity for the purposes of this section.
(2) EXCHANGE; ISSUER; SECURITY.—The terms ‘‘exchange’’, ‘‘issuer’’, and ‘‘security’’ have
the meanings given those terms in section 3(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)).
(3) LIVE VENUE OPERATOR OR PROMOTER, THEATRICAL PRODUCER, OR LIVE
PERFORMING ARTS ORGANIZATION OPERATOR.—The term ‘‘live venue operator or
promoter, theatrical producer, or live performing arts organization operator’’—
(A) means—
(i) an individual or entity—
(I) that, as a principal business activity, organizes, promotes, produces, manages,
or hosts live concerts, comedy shows, theatrical productions, or other events by
performing artists for which—
(aa) a cover charge through ticketing or front door entrance fee is applied;
and
(bb) performers are paid in an amount that is based on a percentage of sales,
a guarantee (in writing or standard contract), or another mutually beneficial
formal agreement; and
(II) for which not less than 70 percent of the earned revenue of the individual or
entity is generated through, to the extent related to a live event described in
subclause (I), cover charges or ticket sales, production fees or production
reimbursements, nonprofit educational initiatives, or the sale of event
beverages, food, or merchandise; or
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(ii) an individual or entity that, as a principal business activity, makes available for
purchase by the public an average of not less than 60 days before the date of the
event tickets to events—
(I) described in clause (i)(I); and
(II) for which performers are paid in an amount that is based on a percentage of
sales, a guarantee (in writing or standard contract), or another mutually
beneficial formal agreement; and
(B) includes an individual or entity described in subparagraph (A) that—
(i) operates for profit;
(ii) is a nonprofit organization;
(iii) is government-owned; or
(iv) is a corporation, limited liability company, or partnership or operated as a sole
proprietorship.
(4) MOTION PICTURE THEATRE OPERATOR.—The term ‘‘motion picture theatre operator’’
means an individual or entity that—
(A) as the principal business activity of the individual or entity, owns or operates at least
1 place of public accommodation for the purpose of motion picture exhibition
for a fee; and
(B) includes an individual or entity described in subparagraph (A) that—
(i) operates for profit;
(ii) is a nonprofit organization;
(iii) is government-owned; or
(iv) is a corporation, limited liability company, or partnership or operated as a sole
proprietorship.
(5) NATIONAL SECURITIES EXCHANGE.—The term ‘‘national securities exchange’’ means an
exchange registered as a national securities exchange under section 6 of the Securities
Exchange Act of 1934 (15 U.S.C. 78f).

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(6) NONPROFIT.—The term ‘‘nonprofit’’, with respect to an organization, means that the
organization is exempt from taxation under section 501(a) of the Internal Revenue Code of
1986.
(7) RELEVANT MUSEUM.—The term ‘‘relevant museum’’—
(A) has the meaning given the term ‘‘museum’’ in section 273 of the Museum and
Library Services Act (20 U.S.C. 9172); and
(B) shall not include any entity that is organized as a for-profit entity.
(8) SEASONAL EMPLOYER.—The term ‘‘seasonal employer’’ has the meaning given that
term in subparagraph (A) of section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)), as
amended by this Act.
(9) STATE.—The term ‘‘State’’ means—
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United States.
(10) TALENT REPRESENTATIVE.—The term ‘‘talent representative’’—
(A) means an agent or manager that—
(i) as not less than 70 percent of the operations of the agent or manager, is engaged
in representing or managing artists and entertainers;
(ii) books or represents musicians, comedians, actors, or similar performing artists
primarily at live events in venues or at festivals; and
(iii) represents performers described in clause (ii) that are paid in an amount that is
based on the number of tickets sold, or a similar basis; and (B) includes an agent or
manager described in subparagraph (A) that—
(i) operates for profit;
(ii) is a nonprofit organization;

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(iii) is government-owned; or
(iv) is a corporation, limited liability company, or partnership or operated as a sole
proprietorship.
(b) AUTHORITY.—
(1) IN GENERAL.—
(A) ADMINISTRATION.—The Associate Administrator for the Office of Disaster
Assistance of the Administration shall coordinate and formulate policies relating to the
administration of grants made under this section.
(B) CERTIFICATION OF NEED.—An eligible person or entity applying for a grant under
this section shall submit a good faith certification that the uncertainty of current
economic conditions makes necessary the grant to support the ongoing operations of
the eligible person or entity.
(2) INITIAL GRANTS.—
(A) IN GENERAL.—The Administrator may make initial grants to eligible persons or
entities in accordance with this section.
(B) INITIAL PRIORITIES FOR AWARDING GRANTS.—
(i) FIRST PRIORITY IN AWARDING GRANTS.—During the initial 14-day period during
which the Administrator awards grants under this paragraph, the Administrator shall
only award grants to an eligible person or entity with revenue, during the period
beginning on April 1, 2020 and ending on December 31, 2020, that is not more than
10 percent of the revenue of the eligible person or entity during the period
beginning on April 1, 2019 and ending on December 31, 2019, due to the COVID–19
pandemic.
(ii) SECOND PRIORITY IN AWARDING GRANTS.—During the 14-day period
immediately following the 14-day period described in clause (i), the Administrator
shall only award grants to an eligible person or entity with revenue, during the
period beginning on April 1, 2020 and ending on December 31, 2020, that is not
more than 30 percent of the revenue of the eligible person or entity during the
period beginning on April 1, 2019 and ending on December 31, 2019, due to the
COVID–19 pandemic.
(iii) DETERMINATION OF REVENUE.—For purposes of clauses (i) and (ii)—

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(I) any amounts received by an eligible person or entity under the CARES Act
(Public Law 116–136; 134 Stat. 281) or an amendment made by the CARES Act
shall not be counted as revenue of an eligible person or entity;
(II) the Administrator shall use an accrual method of accounting for determining
revenue; and
(III) the Administrator may use alternative methods to establish revenue losses
for an eligible person or entity that is a seasonal employer and that would be
adversely impacted if January, February, and March are excluded from the
calculation of year-over-year revenues.
(iv) LIMIT ON USE OF AMOUNTS FOR PRIORITY APPLICANTS.—The Administrator
may use not more than 80 percent of the amounts appropriated under section
323(d)(1)(H) of this Act to carry out this section to make initial grants under this
paragraph to eligible persons or entities described in clause (i) or (ii) of this
subparagraph that apply for a grant under this paragraph during the initial 28-day
period during which the Administrator awards grants under this paragraph.
(C) GRANTS AFTER PRIORITY PERIODS.—After the end of the initial 28-day period
during which the Administrator awards grants under this paragraph, the Administrator
may award an initial grant to any eligible person or entity.
(D) LIMITS ON NUMBER OF INITIAL GRANTS TO AFFILIATES.—Not more than 5 business
entities of an eligible person or entity that would be considered affiliates under the
affiliation rules of the Administration may receive a grant under this paragraph.
(E) SET-ASIDE FOR SMALL EMPLOYERS.—
(i) IN GENERAL.—Subject to clause (ii), not less than $2,000,000,000 of the total
amount of grants made available under this paragraph shall be awarded to
eligible persons or entities which employ not more than 50 full-time employees,
determined in accordance with subsection (a)(1)(C).
(ii) TIME LIMIT.—Clause (i) shall not apply on and after the date that is 60 days after
the Administrator begins awarding grants under this section and, on and after such
date, amounts available for grants under this section may be used for grants under
this section to any eligible person or entity.
(3) SUPPLEMENTAL GRANTS.—
(A) IN GENERAL.—Subject to subparagraph (B), the Administrator may make a
supplemental grant in accordance with this section to an eligible person or entity that
receives a grant under paragraph (2) if, as of April 1, 2021, the revenues of the eligible
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person or entity for the most recent calendar quarter are not more than 30 percent of
the revenues of the eligible person or entity for the corresponding calendar quarter
during 2019 due to the COVID–19 pandemic.
(B) PROCESSING TIMELY INITIAL GRANT APPLICATIONS FIRST.—The Administrator may
not award a supplemental grant under subparagraph (A) until the Administrator has
completed processing (including determining whether to award a grant) each
application for an initial grant under paragraph (2) that is submitted by an eligible
person or entity on or before the date that is 60 days after the date on which the
Administrator begins accepting such applications.
(4) CERTIFICATION.—An eligible person or entity applying for a grant under this section that
is an eligible business described in the matter preceding subclause (I) of section
4003(c)(3)(D)(i) of the CARES Act (15 U.S.C. 9042(c)(3)(D)(i)), shall make a good-faith
certification described in subclauses (IX) and (X) of such section.
(c) AMOUNT.—
(1) INITIAL GRANTS.—
(A) IN GENERAL.—A grant under subsection (b)(2) shall be in the amount equal to the
lesser of—
(i)(I) for an eligible person or entity that was in operation on January 1, 2019, the
amount equal to 45 percent of the gross earned revenue of the eligible
person or entity during 2019; or
(II) for an eligible person or entity that began operations after January 1, 2019, the
amount equal to the product obtained by multiplying—
(aa) the average monthly gross earned revenue
for each full month during which the eligible person
or entity was in operation during 2019; by
(bb) 6; or
(ii) $10,000,000.
(B) APPLICATION TO RELEVANT MUSEUM OPERATORS.—A relevant museum operator
may not receive grants under subsection (b)(2) in a total amount that is more than
$10,000,000 with respect to all relevant museums operated by the relevant museum
operator.

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(2) SUPPLEMENTAL GRANTS.—A grant under subsection (b)(3) shall be in the amount equal
to 50 percent of the grant received by the eligible person or entity under subsection (b)(2).
(3) OVERALL MAXIMUMS.—The total amount of grants received under paragraphs (2) and
(3) of subsection (b) by an eligible person or entity shall be not more than $10,000,000.
(d) USE OF FUNDS.—
(1) TIMING.—
(A) EXPENSES INCURRED.—
(i) IN GENERAL.—Except as provided in clause (ii), amounts received under a grant
under this section may be used for costs incurred during the period beginning
on March 1, 2020, and ending on December 31, 2021.
(ii) EXTENSION FOR SUPPLEMENTAL GRANTS.—If an eligible person or entity
receives a grant under subsection (b)(3), amounts received under either grant under
this section may be used for costs incurred during the period beginning on March 1,
2020, and ending on June 30, 2022.
(B) EXPENDITURE.—
(i) IN GENERAL.—Except as provided in clause (ii), an eligible person or entity shall
return to the Administrator any amounts received under a grant under this section
that are not expended on or before the date that is 1 year after the date of
disbursement of the grant.
(ii) EXTENSION FOR SUPPLEMENTAL GRANTS.—If an eligible person or entity
receives a grant under subsection (b)(3), the eligible person or entity shall return to
the Administrator any amounts received under either grant under this section that
are not expended on or before the date that is 18 months after the date of
disbursement to the eligible person or entity of the grant under subsection (b)(2).
(2) ALLOWABLE EXPENSES.—
(A) DEFINITIONS.—In this paragraph—
(i) the terms ‘‘covered mortgage obligation’’, ‘‘covered rent obligation’’, ‘‘covered
utility payment’’, and ‘‘covered worker protection expenditure’’ have the meanings
given those terms in section 7A(a) of the Small Business Act, as redesignated,
transferred, and amended by this Act; and

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(ii) the term ‘‘payroll costs’’ has the meaning given that term in section 7(a)(36)(A) of
the Small Business Act (15 U.S.C. 636(a)(36)(A)).
(B) EXPENSES.—An eligible person or entity may use amounts received under a grant
under this section for—
(i) payroll costs;
(ii) payments on any covered rent obligation;
(iii) any covered utility payment;
(iv) scheduled payments of interest or principal on any covered mortgage obligation
(which shall not include any prepayment of principal on a covered mortgage
obligation);
(v) scheduled payments of interest or principal on any indebtedness or debt
instrument (which shall not include any prepayment of principal) incurred in
the ordinary course of business that is a liability of the eligible person or entity and
was incurred prior to February 15, 2020;
(vi) covered worker protection expenditures;
(vii) payments made to independent contractors, as reported on Form–1099 MISC,
not to exceed a total of $100,000 in annual compensation for any individual
employee of an independent contractor; and
(viii) other ordinary and necessary business expenses, including—
(I) maintenance expenses;
(II) administrative costs, including fees and licensing costs;
(III) State and local taxes and fees;
(IV) operating leases in effect as of February 15, 2020;
(V) payments required for insurance on any insurance policy; and
(VI) advertising, production transportation, and capital expenditures related to
producing a theatrical or live performing arts production, concert, exhibition, or
comedy show, except that a grant under this section may not be used primarily
for such expenditures.
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(3) PROHIBITED EXPENSES.—An eligible person or entity may not use amounts received
under a grant under this section—
(A) to purchase real estate;
(B) for payments of interest or principal on loans originated after February 15, 2020;
(C) to invest or re-lend funds;
(D) for contributions or expenditures to, or on behalf of, any political party, party
committee, or candidate for elective office; or
(E) for any other use as may be prohibited by the Administrator.
(e) INCREASED OVERSIGHT OF SHUTTERED VENUE OPERATOR GRANTS.—The Administrator
shall increase oversight of eligible persons and entities receiving grants under this section,
which may include the following:
(1) DOCUMENTATION.—Additional documentation requirements that are consistent with
the eligibility and other requirements under this section, including requiring an eligible
person or entity that receives a grant under this section to retain records that document
compliance with the requirements for grants under this section—
(A) with respect to employment records, for the 4-year period following receipt of the
grant; and
(B) with respect to other records, for the 3-year period following receipt of the grant.
(2) REVIEWS OF USE.—Reviews of the use of the grant proceeds by an eligible person or
entity to ensure compliance with requirements established under this section and by the
Administrator, including that the Administrator may—
(A) review and audit grants under this section; and
(B) in the case of fraud or other material noncompliance with respect to a grant under
this section—
(i) require repayment of misspent funds; or
(ii) pursue legal action to collect funds.
(f) SHUTTERED VENUE OVERSIGHT AND AUDIT PLAN.—

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(1) IN GENERAL.—Not later than 45 days after the date of enactment of this Act, the
Administrator shall submit to the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of Representatives an audit plan
that details—
(A) the policies and procedures of the Administrator for conducting oversight and audits
of grants under this section; and
(B) the metrics that the Administrator shall use to determine which grants under this
section will be audited pursuant to subsection (e).
(2) REPORTS.—Not later than 60 days after the date of enactment of this Act, and each
month thereafter until the date that is 1 year after the date on which all amounts made
available under section 323(d)(1)(H) of this Act have been expended, the Administrator shall
submit to the Committee on Small Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives a report on the oversight and
audit activities of the Administrator under this subsection, which shall include—
(A) the total number of initial grants approved and disbursed;
(B) the total amount of grants received by each eligible person or entity, including any
supplemental grants;
(C) the number of active investigations and audits of grants under this section;
(D) the number of completed reviews and audits of grants under this section, including a
description of any findings of fraud or other material noncompliance.
(E) any substantial changes made to the oversight and audit plan submitted under
paragraph (1).

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