SBA Grants Favoring Celebrities Under Scrutiny for COVID-19 Relief Spending

The COVID-19 relief program designed to support shuttered concert venues ended up paying over $200 million to successful musicians, with some celebrities such as Lil Wayne and others reportedly receiving millions for luxury expenses including private jets and high-end fashion. Records indicate that of the $216.6 million granted to clients of a Los Angeles business management firm, more than 70%—roughly $155 million—have been fully reviewed and closed, leaving around $61 million across a few grants still under scrutiny.

Congress allocated over $14 billion during the pandemic to assist arts organizations as audiences stayed home, yet recent reports highlight that these funds frequently benefitted high-profile entertainers rather than supporting essential staff salaries or benefits within the industry. Although the grants were legally permitted for “ordinary and necessary” expenses without any current allegations of illegal spending, mounting criticism has emerged from lawmakers who contend that the program favored the elite at the expense of small businesses.

SBA officials insist that the agency adhered to legal requirements with robust checks for fraud, while acknowledging that oversight processes may continue even after grants have been closed through a monitoring procedure. However, recent revelations, including confidential email exchanges and redacted information provided to Congressional staff following investigative reporting, suggest that the agency has operated with a notable level of secrecy, sparking a renewed call for comprehensive investigations and accountability from both current and former officials.