What is Shuttered Venue Operators Grant? Marshmello, Lil Wayne, Steve Aoki, and more reportedly accused of spending COVID relief fund on themselves

Music professionals like Lil Wayne, Chris Brown, Marshmello, and others have been accused of reportedly spending government-issued COVID relief funds on themselves. On Wednesday, December 18, 2024, Business Insider published a report alleging successful artists misused millions of dollars which were meant for struggling independent artists and venues during the pandemic.

According to the publication, these artists applied for and received the Shuttered Venue Operations Grant (SVOG). However, they used the money to pay themselves or spent it on personal luxuries.

SVOG was an economic aid program that provided assistance to eligible performing arts businesses affected by the COVID-19 pandemic.

It's aimed to help such businesses maintain their "ongoing operations." Donald Trump signed it into law in 2020, and it included over $16 billion in grants.

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Musical artists were initially not eligible for SVOG, but this was amended in 2021

The Business Insider article built on an August 2023 report by the publication that named several artists, including Post Malone and Chris Brown, who tapped into the SVOG program.

SVOG was one of U.S. Small Business Administration's Office of Disaster Assistance's various relief programs during the COVID-19 pandemic.

Per the its website, eligible parties would receive up to $10 million in grant given to "entities or operations."

These included live venues and operators, live venue promoters, theatrical producers, talent representatives, live performing arts organization operators, museums, and motion picture theaters.

Per a report by Variety, initially musicians were not explicitly eligible for SVOG. But the Small Business Administration amended this in 2021.

The Business Insider article also detailed the application process to receive the relief, which required the party to "make a good-faith statement" that the funds were required to maintain "ongoing operations" of the company.

Additionally, they also needed to show proof that their revenue has declined "by at least 25% between one quarter of 2019 and the same quarter of 2020."

However, the applicant's assets were not taken into account, and hence extremely wealthy artists allegedly applied.

Senator Gary Peters (Democrat, Michigan) described (to Business Insider) the conduct of the artists as "abuse of federal resources" and highlighted a need for proper oversight into such programs.

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Lil Wayne allegedly received $8.9 million in relief that he spent on luxuries

According to the publication, Lil Wayne and other artists obtained the SVOG grant through "loan-out companies," or businesses that organize artist tours. Citing "thousands of pages of accounting documents."

Business Insider detailed names of wealthy individuals who received the funds and what it was spent on.

Lil Wayne allegedly received a $8.9 million grant that was spent on luxury hotel stays, designer clothes ($460,000), and travel to and from nightclub gigs ($1.3 million) across the country.

Additionally, the money reportedly also went towards settling his debt to ex-manager Cortez Bryant (approx. $2.1 million) and commission to his then-manager Mack Maine (approx. $1.7 million).

The report claimed only $327,300 was reportedly spent on contractors working on Lil Wayne's show.

R&B artist Chris Brown was also named in the report. Per the publication, the singer's CBE Touring company received $10 million. Of the total figure, Brown allegedly pricked $5.1 million and even spent a reported $80,000 on his 33rd birthday party.

Marshmello was given $9.9 million in relief, which the music producer and DJ reportedly entirely took for himself.

Companies representing artists including Steve Aoki, Shinedown, Rae Sremmurd, and Alice In Chains, too, were named in the exposé.

Lil Wayne and other artists have not publicly reacted to the development.