Technical Glitches Mar Opening Applications For SVOG Funds

The U.S. Small Business Administration was forced to close applications for the Shuttered Venue Operators Grant program yesterday just hours after opening the program to applicants.

Mere hours after opening the applications on April 8, the SBA shared a statement on social media reading: “We are experiencing a technical issue with the Shuttered Venue Operators Grant application portal and are working as fast as possible to address it.”

Later the SBA said: “After launching the Shuttered Venue Operators Grant application portal, technical issues arose despite multiple successful tests. After working with our vendors to address the issues, the portal was shut down to ensure fair and equal access once it is reopened.”

Finally, on April 9 the SBA tweeted applications would not reopen over the weekend.

<blockquote class=”twitter-tweet”><p lang=”en” dir=”ltr”>UPDATE: The Shuttered Venue Operators Grant application portal remains temporarily suspended, and will through the weekend, while we work to resolve technical issues. When a reopening date is determined, we'll provide updates in advance so that applicants have time to prepare.</p>— SBA (@SBAgov) <a href=”https://twitter.com/SBAgov/status/1380635964146614282?ref_src=twsrc%5Etfw”>April 9, 2021</a></blockquote> <script async src=”https://platform.twitter.com/widgets.js” charset=”utf-8″></script>

The SBA went on today to say that the tech issues have been identified and, while applications remain closed for the time being, no applications were accepted or funds distributed yesterday.

The SVOG program was created after the passage of the Economic Aid to Hard Hit Small Businesses, Nonprofits and Venues Act by Congress in December that incorporated the Save Our Stages Act, appropriating $15 billion for the program.

While many live businesses were grateful for a potential lifeline from the government in the form of SVOG grants, many questions have remained about the grants in terms of who qualifies to receive them and when the funds will be available to flailing businesses.

“I think every company is worried about survival,” Scott Scovill, founder of MooTV told Pollstar in December. “The whole industry really is on the verge of collapsing. Most of the income from the concert industry comes from touring – venues are [an important] piece of that equation – but most of what makes this industry function is smaller companies that don’t have deep pockets. From the employees to the companies employing them, we are all a sinking ship right now.”

One does not need to look far to find voicings of frustration with SBA’s implementation of the SVOG program.

ONCEsomerville, representing a former event space in Somverville, Mass., wrote on Twitter: “Thank you @SBAgov Really recognizing that this is hard work you’re doing, and with real appreciation, please consider the anxiety we are feeling and at least give us 24 hours notice to completely reschedule our lives so we can be ready when the #hungergames resume. #saveourstages.”

The reference to #HungerGames may be interpreted as a commentary on the format of grant distribution, which may be distributed on a “first-come, first-serve” basis, which place even greater importance on being one of the first to submit an application.

Another Twitter user commented: “When will you be giving me permission to leave my office, let go of my keyboard and mouse? How much advance notice? 10 mins or 10 days? … Maybe it is a Survivor Challenge? Last one holding onto their keyboard and mouse will be the first ones able to apply.”

Regulations regarding the ability of SVOG applicants to also apply for Paycheck Protection Program loans were modified in the American Rescue Plan Act, signed into law by President Joe Biden earlier this month. The ARP Act also appropriated an additional $1.25 billion to the program.

Isabel Guzman was confirmed as SBA administrator in March and commented at the opening of the applications process yesterday: “We know that for stage and venue operators, the pandemic has been devastating. Too many have been forced to lower the final curtain on their businesses. Today, with $16.2B available through the Shuttered Venue Operators Grants, #HelpisHere.”