Music artists including Post Malone, Chris Brown and LeAnn Rimes have reportedly made millions of dollars in initiatives intended to help venues and musicians during the COVID-19 pandemic.
Post Malone, Chris Brown, LeAnn Rimes and Nickelback were some of the artists part of the Shuttered Venue Operators Grant launched in 2021. Overseen by the Small Business Administration (SBA), the grant was strategically devised to serve as a lifeline for live entertainment enterprises that were severely impacted by pandemic-related restrictions.
The program disbursed a substantial $14.5 billion to a range of establishments such as movie theaters, ballet companies, performing arts venues, and talent agencies, in addition to individual artists.
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In contrast to the Paycheck Protection Program, which offered loans, eligible applicants for this initiative could access up to $10 million in non-repayable funds to offset lost revenues.
Revealed: How mega-rich musicians including Post Malone and Chris Brown bagged up to $10M in Covid emergency grants https://t.co/oNG819cGDp pic.twitter.com/TZkbnUdsXj
— Daily Mail US (@DailyMail) August 18, 2023
An in-depth inquiry conducted by Insider revealed that certain limited liability companies associated with high-profile acts capitalized on this opportunity. Both Post Malone and Chris Brown were reportedly among the notable artists to secure the maximum payout of $10 million each.
While the exact utilization of these funds remains undisclosed, there is no evidence to suggest that these substantial disbursements to high-profile artists violated any laws. The financial aid, in theory, could have been allocated to compensate lighting and sound technicians, costumers, drivers, security personnel and other contracted professionals who faced job losses due to the cancellation of tours and live events.
However, the regulations did not stipulate that corporations or limited liability entities were obliged to utilize the funds for specific workers. Recipients were within their rights to allocate the funds towards pre-existing mortgage payments, taxes, payroll expenses and even personal compensation.
The investigation notes that the single asset-management firm NKSFB, played a role in securing an impressive combined total of $260 million in grants on behalf of 97 artists, venues, and managers, also including Post Malone, metal band Korn, and Steve Aoki.
💥SELL OUTS & LIARS: How mega-rich musicians including Post Malone, Chris Brown, LeAnn Rimes and Nickelback bagged up to $10M in Covid emergency grants they didn't have to pay back💥https://t.co/w5WJqCfQhF pic.twitter.com/8Ear4XnXZs
— Rayme Treudeau© (@Rayme_Treudeau) August 18, 2023
An SBA representative highlighted that the program played a pivotal role in safeguarding numerous entertainment establishments and operators throughout the pandemic. The spokesperson underscored that nearly 50% of the grant funds were directed towards businesses with less than five full-time employees, emphasizing the support extended to the “smallest of small businesses.”
This development comes amid ongoing government efforts to ascertain the extent of fraudulent claims tied to pandemic-era aid.
However, the agency’s oversight body has downplayed the possibility of widespread fraud concerning the Shuttered Venue Program, estimating that fraudulent grants constituted less than 1% of the total disbursements.
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