SVOG Update: Just 5% Got Recoupment Letters, All Closeouts Safe

Blood pressures rose throughout the live music industry last week after news spread that some SBA SVOG recipients received involuntary recoupment notices. The letters gave grantees 30 days to return funds or dispute the claim.

Days of of silence from the SBA only added to concerns with stakeholders, trade groups and the media unable to reach officials over the July 4th holiday.

But anxiety levels dropped yesterday, when NIVA (National Independent Venue Association) shared an SVOG update and details of a meeting this week with the SBA.

SVOG Update: No Closed Out SVOG Grantees Affected

“No letters have been sent to SVOG grantees that have closed out and there are no plans to seek recoupment from closed out grantees,” NIVA said in a letter to members. “91.7% of SVOG grantees have closed out. Of the 13,019 SVOG grantees, SBA has 11,939 closed out.”

The funds were part of $16.25 billion in SBA Shuttered Venue Operating Grants (SVOG) awarded in 2021 aimed at helping closed music venues and companies during the pandemic.

NIVA said that the SBA shared that 645 recipients of SVOG grants have been identified for involuntary recoupment:

• 354 grantees, 57%, were identified because they are non-responsive
• 132 grantees, 21%, were identified because they have eligibility issues
• 159 grantees, 20%, were identified because they have overpayment issues or non-allowable expenditure issues

“The number of SVOG grantees identified for recoupment could grow slightly depending on how the last 4% or so of grantees,” NIVA told members, “those who have not been identified for recoupment AND have not closed out their grant, respond to requests for information from the SBA.”

Bruce Houghton