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Iowa’s U.S. House Members Push to Release Critical Funds for Shuttered Venues

Hinson, Miller-Meeks, Axne, and Feenstra with their U.S. House colleagues urged immediate action to stabilize and improve a grant program that provides emergency assistance to venues unable to operate during the pandemic.

Iowa TorchbyIowa Torch
June 21, 2021
in Federal Government
Reading Time: 2 mins read
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From Left: U.S. Reps. Ashley Hinson, R-IA 01, Mariannette Miller-Meeks, R-IA 02, Cindy Axne, D-IA 03 and Randy Feenstra, R-IA 04.

WASHINGTON – U.S. Reps. Ashley Hinson, R-IA 01, Mariannette Miller-Meeks, R-IA 02, Cindy Axne, D-IA 03, and Randy Feenstra, R-IA 04, joined over 200 of their U.S. House colleagues in a bipartisan letter to Administrator Isabel Guzman of the Small Business Administration (SBA) urging immediate action to stabilize and improve the Shuttered Venue Operators Grant (SVOG) program, which provides emergency assistance grants to venues that were unable to operate during the COVID-19 pandemic.

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The rollout of the SVOG program has been plagued by technical challenges and persistent delays. Since launching the program in April, the SBA has approved roughly 400 grants as of June 14 – despite receiving more than 14,000 applications.

In their letter, Axne, Feenstra, Hinson, and Miller-Meeks and their colleagues requested a detailed explanation of ongoing issues with the program and demanded the SBA expedite the release of relief funding to struggling venues across the country.

“The slow pace is becoming increasingly untenable for the small businesses in our districts. Their banks have threatened to call in the full amount of small business loans, they do not have the funds to pay their landlords full rent, and they cannot retain staff,” the members wrote. “We are hearing from venue operators who are days away from closing their doors if these funds are not sent soon. These small businesses not only provide good jobs and contribute economically to our local communities, they contribute to the spirit and local culture as well. We must act now.”

The program, which is administered by the SBA’s Office of Disaster Assistance, was originally created as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act last December.

The program includes over $16 billion in grants to shuttered venues, and also received additional funding from the American Rescue Plan Act earlier this year. Eligible applicants may qualify for grants equal to 45 percent of their gross earned revenue, with the maximum amount available for a single grant award of $10 million.

On April 8, the program’s portal crashed, halting applications for nearly three weeks. Even after relaunching the application portal, there have been significant delays in the processing of applicants and the awarding of funds.

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According to the Office of Disaster Assistance, as of June 14, the SBA has only approved 411 grants out of the over 14,000 applications submitted, and nearly half of the applications have not yet reached the review stage.

The full text of the letter can be found below:

SBA Letter- Craig, Houlahan, Phillips, Williams
Tags: Ashley HinsonCindy AxneCOVID-19Isabel GuzmanMariannette Miller-MeeksRandy FeenstraU.S. House of RepresentativesU.S. Small Business Administration
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