Redirect your inner command's stdin from /dev/null
:
svmatch $line </dev/null
Otherwise, svmatch is able to consume stdin (which, of course, is the list of remaining lines).
The other approach is to use a file descriptor other than the default of stdin:
#!/bin/sh
while IFS= read -r line <&3; do
svmatch "$line"
done 3<svr_input
...if using bash rather than /bin/sh
, you have some other options as well; for instance, bash 4.1 or newer can allocate a free file descriptor, rather than requiring a specific FD number to be hardcoded:
#!/bin/bash
while IFS= read -r -u "$fd_num" line; do
do-something-with "$line"
done {fd_num}<svr_input