September 27, 2021

Volume XI, Number 270

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September 27, 2021

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The Save Our Stages Act – Time for Eligible Businesses to Get Ready for Their Audition (Part 1 of 2)

Among the various bills that were amalgamated in the Consolidated Appropriations Act, 2021 (the omnibus appropriations and stimulus funding bill that was signed into law on December 27, 2020) was a modified version of the Save Our Stages Act (the “SOS Act”), a bill first introduced into the Senate by Sen. John Cornyn (TX) on July 22, 2020. The SOS Act can be found in Section 324 of the Economic Aid to Hard-Hit Small Business, Nonprofits, and Venues Act, which act comprises Title III of Division N of the Consolidated Appropriations Act, 2021.  The SOS Act establishes a new grant program (the “SOS Program”, also known as the “grant program for shuttered venue operators”) to be administered by the Small Business Administration (“SBA”) to aid certain financially distressed venue operators, event promoters or producers, and talent representatives.

While the SOS Program is not yet active as of the date of this posting (the SBA is currently developing its rules and regulatory framework), once live, it will provide an important lifeline to eligible recipients through one or more grants up to a total of $10 million per recipient (subject to caps based on a recipient’s historical revenue, fund availability limitations, and other conditions).

In order to assist potentially eligible businesses in getting the most out of the SOS Program, we are preparing a two-part article discussing the SOS framework and its key features. Those who wish to partake in the program should begin to prepare now as grants will be provided on a first-come, first-serve basis during very short windows and only to the extent the $15 billion of funds appropriated for the SOS Program remain available.

In this article, the first of our alerts on the SOS Program, we summarize the eligibility requirements of the SOS Program. In our next alert, we will address the grant making itself, including the grant application process, staged prioritization and timing of grant approvals, including possible supplemental grants, determination of maximum grant amounts, and authorized uses of grant proceeds. 

Read Part 2 on Issuance of Grants under SOS Act.

SOS Act

Click here to view the full PDF.

Copyright © 2021, Sheppard Mullin Richter & Hampton LLP.National Law Review, Volume XI, Number 11
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About this Author

William Ziegelbauer Corporate & Securities Sheppard Mullin New York, NY
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William Ziegelbauer is an associate in the Corporate and Securities Practice Group in the firm's New York office.

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 Peter Carson Finance & Bankruptcy attorney at Sheppard Mullin Law Firm San Francisco
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Peter Carson is a partner in the Finance & Bankruptcy Practice Group in the firm's San Francisco office.

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Peter's practice is focused on representing U.S. and foreign banks, commercial finance lenders, debt funds, and other institutional lenders. Peter represents these clients in all aspects of complex secured and unsecured debt financings, including acquisition, senior syndicated, asset-based, mezzanine, second lien, bridge, debtor-in possession, credit enhancement, private placement, leveraged lease and other financings,...

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Bijal Vira Corporate Finance Attorney Sheppard Mullin Law Firm
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Bijal Vira is a partner in the corporate and finance practice areas in the firm's New York office.

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Bijal's practice is focused on complex, private markets transactions, often involving investment funds (e.g., private equity, private credit, real estate, hedge funds, BDCs), assets managers, insurance companies and other forms of institutional capital in equity and credit investments. He is often engaged to advise clients in deals that involve regulated industries (e.g., healthcare, insurance), cross national borders, or that require novel...

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