NIVA Provides Update On SVOG Rescissions

In a memo to members, the National Independent Venue Association clarified the scope of Shuttered Venue Operator Grant recoupment actions being taken by the Small Business Administration.

NIVA says that the overwhelming majority of SVOG recipients — more than 91% — have closed out and the SBA told the industry group it has no intention of recouping those funds.

There are, however, 645 grantees, the SBA told NIVA, who are subject to involuntary recoupment. More than half of those identified had been non-responsive to earlier SBA communications. The remainder were identified as either having eligibility or overpayment issues.

“For those identified for recoupment that are NOT deemed unresponsive, paperwork is the most frequent cause of being identified for recoupment. Either requested paperwork has not been submitted or the paperwork submitted had insufficient information,” NIVA told its members.  “Other reasons include: not being responsive to an audit or having an audit finding, failure to meet post-award requirements, failure to file expense reports, failure to respond to monitoring requests, an entity has filed for bankruptcy and not closed out their SVOG grant, an entity has shuttered and not closed out their SVOG grant, and a determination by the SBA that entities were ineligible based on the criteria set forth in the law.”

The SBA emphasized to NIVA leadership that it would have limited and narrow reasons to go after funds from grantees who have already closed out.

“SBA has no current plans to pursue recoupment from any grantee who has closed out, which is 91.7% of SVOG grants. According to SBA, the only way that would change is if the SBA Inspector General were presented with any evidence of fraud committed by any SVOG grantees that have closed out,” NIVA told its members.