The Velvet Lounge relocated in 2006 since the old venue was slated to be torn down to be replaced by condominiums. The new location is only a block away from the old venue.
Many prominent musicians have honed their jazz abilities by playing at the Velvet Lounge early in their careers, particularly in the Sunday night jam sessions. Over the years, the sessions have been hosted by various prominent Chicago musicians. The classic lineup of the early-mid 1990s featured trumpeter Billy Brimfield, saxophonist Art Taylor, pianist Jim Baker, bassist Mike Cristol, and drummer Ajaramu (Gerald Donovan). Since the early 1990s, the "Velvet Graduates" who have come up through the Velvet scene include tenor saxophonist David Boykin, baritone saxophonist Aaron Getsug, bassist Karl E. H. Seigfried, and drummer Isaiah Spencer.