Report: Richest Musicians Snatched $200M in COVID Relief Grants
Federal COVID Relief Program Mismanaged, Benefiting Wealthy Entertainers
A federal COVID relief program aimed at supporting entertainment venues impacted by pandemic-related lockdowns has come under scrutiny for its poor management. An investigation by Insider revealed that hundreds of millions of dollars may have ended up in the hands of wealthy entertainers who did not actually need the money.
The report named some of the richest beneficiaries of the federal Shuttered Venue Operators Grant, including R&B musician Chris Brown and artist Post Malone. Despite their estimated net worths of around $50 million each, both received $10 million in federal grants.
Other wealthy entertainers also profited from the grant program, which was administered by the Small Business Administration (SBA). The SBA distributed a total of $14.5 billion in taxpayer money, which unlike loans from the Paycheck Protection Program, does not have to be repaid.
While the program was intended to support independent live venue operators, movie theaters, and cultural institutions, Insider found that many artists who did not demonstrate a genuine need also received significant amounts of money.
For example, a Los Angeles-based financial management firm, NKSFB, submitted grant requests for 97 clients, resulting in over a quarter of a billion dollars in taxpayer funds. The firm’s cut from successfully obtaining the grants remains undisclosed.
The program’s rules allowed recipients to pay up to 15 percent of the funds received to those who prepared their grant applications. However, the complex rules led to a high denial rate, with 30 percent of applications being rejected compared to a much lower rate for PPP loans.
Recognition and Defense
New York Senator Chuck Schumer, who sponsored the program, was honored by the Recording Academy for his role in passing the funding bill. The SBA defended the program, stating that it had helped save numerous entertainment venues and operators during the pandemic.
Despite criticisms, some individuals, like Meredith Lynsey Schade, who managed an off-off-Broadway theater company in 2020, defended the program, acknowledging the lack of oversight but emphasizing the urgent need for support during challenging times.
Overall, the mismanagement of the federal relief program has raised concerns about the allocation of taxpayer funds and the fairness of distribution among those truly in need.
I was so honored to be recognized at this year’s @RecordingAcad #GRAMMYsontheHill!
My love for music runs deep.
That’s why I made it my mission to pass the Save Our Stages Act, and I’ll keep up the work to support the music and performance industry. pic.twitter.com/z1OCg22RAU
— Chuck Schumer (@SenSchumer) April 27, 2023
The post World’s Richest Musicians Gobbled Up $200 Million in Taxpayer COVID Relief Grants: Report appeared first on The Western Journal.
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