Several prominent musicians, including Lil Wayne, Chris Brown, and Marshmello, are under scrutiny for allegedly misusing federal grants intended to support independent arts venues and organizations during the pandemic. A recent report claims that funds from the Shuttered Venue Operators Grant (SVOG) program were diverted to personal use, including private jets, designer goods, and extravagant parties.
What Happened to The Money?
The SVOG program, established in 2020 under the Trump administration, allocated over $16 billion in federal aid to arts groups and venues impacted by the COVID-19 pandemic. Eligible applicants could receive up to $10 million to cover “ordinary and necessary” business expenses, provided they demonstrated a revenue loss of at least 25% during one quarter in 2020 compared to the same period in 2019. Applicants were required to make a good-faith certification to the Small Business Administration (SBA) regarding their eligibility.
Despite the program’s intent, a Business Insider investigation alleges that some recipients used the funds for personal enrichment rather than supporting their operations. The musicians named in the report did not respond to requests for comment.
Lil Wayne, for instance, reportedly received $8.9 million through the program. According to the report, he spent $1.3 million on private jets, $460,000 on designer clothing, and $2.14 million to settle a debt with his former manager, Cortez Bryant. His representatives declined to comment on the allegations.
Chris Brown’s company, CBE Touring, was awarded the maximum $10 million grant. Records indicate that Brown used $5.1 million to pay himself and nearly $80,000 to host an opulent 33rd birthday party.
Marshmello, another high-profile recipient, received $9.9 million. Rather than reinvesting the funds into his company, the entirety of the grant reportedly went into his personal earnings. In 2019, Marshmello’s touring revenue exceeded $9.9 million, which apparently he used to form the basis of his justification for awarding himself the entire grant.
Steve Aoki, through his company DJ Kid Millionaire Touring, used $2.4 million for payroll, with $1.9 million allocated directly to himself. The rock band Shinedown split $2.5 million among three members from their $8.3 million grant, leaving just $650,000 for 15 touring employees. Meanwhile, Rae Sremmurd’s company, Sremm Touring, was awarded $7.7 million, a significant portion of which reportedly went to the duo.
The SVOG program initially excluded musicians from eligibility, focusing instead on venues and live performance organizations. However, the SBA revised its guidelines in late 2021 to include performers, a move that opened the door for many high-profile artists to apply.
Tax payers advocate groups and critics have argued that the misuse of these funds by wealthy musicians undermines the program’s mission. In total, the SVOG program disbursed grants to over 13,000 recipients nationwide, providing crucial financial relief to theaters, concert halls, and independent performance spaces grappling with the economic fallout of the pandemic.
