February 24, 2025
The SBA is not going to be reclaiming over $155 million in COVID reduction funds given to celebrities.
The Small Enterprise Administration has no plans to reclaim over $155 million in COVID reduction grants awarded to profitable artists and entertainers.
Public data obtained by Enterprise Insider reveal that the federal authorities has not alleged any wrongdoing within the tens of millions of taxpayer {dollars} obtained by Lil Wayne, Marshmello, Chris Brown, Alice in Chains, and different artists.
The funds had been a part of the $14 billion Congress put aside to assist struggling arts teams throughout the COVID-19 pandemic. As an alternative, the celebs spent the cash on non-public jets, events, luxurious clothes, and multi-million greenback bonuses with little going to workers salaries or advantages.
Congress mentioned the grants may legally be used for “unusual and crucial” bills and is sparing the rich celebs from any wrongdoing. A few of the largest recipients of Shuttered Venue Operators Grants had been shoppers of NKSFB, a Los Angeles-based enterprise administration agency that claims to assist “the world’s main entertainers succeed financially.”
An e mail despatched in December 2024 to an SBA worker revealed that over $155 million of the $216.6 million in grants allotted to NKSFB shoppers—greater than 70%—had been “closed” after being totally reviewed. One other $61 million throughout 22 grants remains to be beneath evaluation.
Many grant recipients gained’t obtain additional communication from the SBA as soon as they full the closeout course of. Nevertheless, the company’s FAQ supplies point out {that a} post-closure “monitoring” course of, much like an audit, can nonetheless happen. Senator Joni Ernst (R-IA), who chairs the Senate Committee on Small Enterprise and Entrepreneurship, has shared her plans to proceed investigating any misuse of pandemic-related funds.
“Pandemic reduction applications had been designed to assist small companies hold their doorways open and their staff afloat throughout an extremely difficult time,” Ernst mentioned. “Sadly, the extra we study, the extra it’s clear that taxpayers footed the invoice for the extravagant existence of the wealthy and well-known.”
It’s unclear which particular NKSFB shoppers’ grants have been closed out and that are nonetheless open. The agency is unable to reveal particulars about its shoppers’ funds.
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