Sen. Marshall, Colleagues Call for Oversight Hearing After Administration Fails to Disburse Funding for Struggling Businesses

Press Release

Today, U.S. Senator Roger Marshall, M.D. led his colleagues in sending a LETTER to Senate Committee on Small Business Chairman Ben Cardin (MD) and Ranking Member Rand Paul (KY) requesting a hearing to conduct oversight of the Small Business Administration' s (SBA) Shuttered Venue Operator Grant (SVOG) Program. The letter said in part,

"When Congress passed the Coronavirus Response and Relief Supplemental Appropriations Act in December 2020, more than $16 billion in grants to shuttered venues were included in the form of the Shuttered Venue Operators Grant program. Through SVOG, eligible entities could qualify for grants equal to 45% of their gross earned revenue, with a maximum award amount of $10 million available. This was welcome news to many theaters, music halls, museums and other live venue operators whose businesses were devastated by forced closures, stay-at-home orders, and other regulations meant to curb the spread of the COVID-19 virus. Despite Congress providing these much-needed funds in December to SBA, the agency has struggled to quickly implement the program and disburse this emergency relief… We respectfully request that the Senate Committee on Small Business and Entrepreneurship hold a hearing on the SVOG program, so that we can better understand how the Administration is working to address ongoing issues, manage constituent communications, and expeditiously disburse this--much-needed assistance to hurting small businesses."

FULL TEXT OF LETTER:

July 13, 2021

The Honorable Ben Cardin Chairman
Senate Committee on Small Business
428A Russell Senate Office Building
Washington, DC 20510

The Honorable Rand Paul Ranking Member
Senate Committee on Small Business
428A Russell Senate Office Building
Washington, DC 20510

Dear Chairman Cardin and Ranking Member Paul,

We write today to request a hearing in the Senate Committee on Small Business and Entrepreneurship to conduct oversight of the Small Business Administration's (SBA) Shuttered Venue Operator Grant (SVOG) Program.

When Congress passed the Coronavirus Response and Relief Supplemental Appropriations Act in December 2020, more than $16 billion in grants to shuttered venues were included in the form of the Shuttered Venue Operators Grant program. Through SVOG, eligible entities could qualify for grants equal to 45% of their gross earned revenue, with a maximum award amount of $10 million available. This was welcome news to many theaters, music halls, museums and other live venue operators whose businesses were devastated by forced closures, stay-at-home orders, and other regulations meant to curb the spread of the COVID-19 virus.

Despite Congress providing these much-needed funds in December to SBA, the agency has struggled to quickly implement the program and disburse this emergency relief. The agency first announced launch of the program in early April 2021, however within hours of the application portal going live it was taken offline to address widespread issues. It took approximately two weeks for the agency to address and resolve the portal's issues, and another month before SBA began making awards to qualified businesses.

It has now been nearly two months since the second launch of the program and six months since Congress appropriated funds for the Shuttered Venue Operators Grant, and SBA has disbursed only a fraction of awards to pending applicants. Furthermore, we're hearing from frustrated business owners who are struggling to navigate confusing and conflicting guidance issued by the agency, further slowing down an already sluggish processing of applications. While we applaud the steps being taken to ensure that only eligible entities receive assistance, SBA's lack of communication with grant applicants, failure to provide timely technical assistance, and lack of urgency in disbursing emergency funds has made the process overly burdensome for constituents who have been waiting for this assistance since December.

The Small Business Administration was created to assist small business owners and entrepreneurs. However, the roadblocks put in place by the agency hinder eligible small businesses from getting the relief they need through the Shuttered Venue Operators Grant program. This program was meant to be a lifeline, but with each passing day, eligible businesses

are forced to reevaluate decisions to bring staff back to work, choose between making utility payments or payroll on time, or potentially face the decision to close their doors permanently.

We respectfully request that the Senate Committee on Small Business and Entrepreneurship hold a hearing on the Shuttered Venue Operators Grant program, so that we can better understand how the Administration is working to address ongoing issues, manage constituent communications, and expeditiously disburse this--much-needed assistance to hurting small businesses.

Thank you for your time and consideration.

Sincerely,

Roger Marshall, M.D., United States Senator

James Risch, United States Senator

Josh Hawley, United States Senator

Todd Young, United States Senator

Marco Rubio, United States Senator

Tim Scott, United States Senator

John Kennedy, United States Senator

Joni Ernst, United States Senator

Source