The U.S. Small Business Administration (SBA) has referred $34 million in past-due Shuttered Venue Operators Grant (SVOG) awards to the U.S. Department of the Treasury for collection. According to the SBA, this marks the first time the federal government has taken this step for the SVOG program.
The referrals are part of SBA Administrator Kelly Loeffler’s ongoing efforts to recover pandemic-era funding that the agency says was awarded improperly or remains unpaid. The initial group of referrals includes outstanding principal, administrative costs, and accrued interest. The recipients did not resolve their repayment obligations through the SBA’s established debt-resolution process.
The SVOG program was established to provide emergency assistance to eligible live venue operators and promoters, theatrical producers, performing arts organizations, museums, movie theaters, and talent representatives. Congress authorized $16.25 billion for the program, with grants of up to $10 million available to eligible recipients.Â
The SBA Office of Inspector General later identified approximately $544 million in potentially improper SVOG payments. The report also found that 2,590 awards totaling approximately $4.8 billion remained open more than a year after they should have been closed.Â
Beginning in June 2025, the SBA sent rescission and demand letters to recipients identified as potentially owing funds. Recipients were given an opportunity to appeal the agency’s determination or establish repayment agreements before additional collection measures were pursued.Â
The SBA has recovered more than $50 million through voluntary and involuntary payments to date. As the agency continues reviewing SVOG awards and addressing unresolved repayment obligations, additional debts may be referred to the Treasury Department for collection when recipients do not repay amounts owed.Â
The referrals represent an additional collection step for recipients with unresolved SVOG obligations and reflect the SBA’s continued efforts to recover pandemic-era funds determined to be improperly awarded or outstanding.Â
Author:Â Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clients’ criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jennifer’s guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
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