Photo credit: Magnus Lunay
The Small Business Administration (SBA) recently sent a wave of termination letters to Shuttered Venue Operators (SVOGs). A new update from the National Independent Venue Association (NIVA) suggests that over 91% of venues that received funding are in the clear.
According to Niva, the SBA has assured that 91.7% of SVOG grantees—those who have completed their paperwork and closed their grants—are not at risk of fraud. The agency emphasized that only in cases where the SBA Inspector General finds evidence of fraud would grants be subject to further review.
“The SBA has no current plans to seek recovery from any grantee that has closed, which is 91.7% of SVOG grants,” Niva told its members. “According to the SBA, the only way that would change is if the SBA Inspector General received any evidence of fraud committed by any SVOG grantee that has closed.”
Approximately 645 grantees are still under SBA scrutiny. More than half of them have not responded to SBA communications, while the remainder face issues ranging from incomplete or missing documentation to eligibility questions, audit findings, or failure to meet post-award requirements.
Niva clarifies that incomplete paperwork is the most common reason for recovery. Requested documentation was not submitted, or the documentation submitted lacked sufficient information. Other reasons sites may have received termination letters include failing to respond to an audit or having an audit finding, failing to meet post-award requirements, failing to file expense reports, failing to respond to monitoring requests, or an entity filing for bankruptcy but not closing its SVOG grant.
The SVOG program was initially designed to support independent venues, theaters, museums, and promoters. But it also drew attention to grants given to major touring companies and artists, including Chris Brown, Lil Wayne, and Marshmello. Reports surfaced of funds being used for luxury expenses, private flights, and bonuses. Despite the controversy, the SBA has closed its review of at least $155 million in grants given to high-profile artists and has no intention of pursuing these closed cases.
For the minority of small businesses still facing termination, immediate action is crucial . Recipients have 30 days to respond to the SBA by repaying the funds, establishing a repayment plan, or requesting reconsideration. Legal experts urge recipients to exercise their appeal rights to ensure all paperwork is completed.
