A new revelation highlights the questionable use of Corona aid by prominent musicians. According to a report by “Business Insider” Lil Wayne and Chris Brown, among others, are said to have used funds from the US government’s COVID relief programs for questionable purposes.
The revelations relate to the Shuttered Venue Operators Grant (SVOG) program, which was launched during the pandemic to compensate for financial losses suffered by venues and cultural workers. According to the research, the musicians mentioned, including other well-known names, received millions of dollars – money that was apparently not used exclusively to save jobs or events.
Famous musicians in focus
Lil Wayne reportedly received $8.9 million. According to the reports, the funds were not primarily spent on tour costs or employees, but were partly used for personal projects. Chris Brown is also criticized. There are also indications that the money received did not always correspond to the official conditions of the SVOG program and could therefore have flowed to the rapper illegally. Another name that appears in the revelations is rapper Smokepurpp. According to documents, significant sums of money are said to have been spent on purposes such as studio renovations and other lifestyle expenses.
However, the allegations of abuse are not limited to the rap genre. There are also prominent examples of questionable money flows in the rock and metal scene. In previous reports, bands like Alice in Chains came under fire after it was announced that they had applied for several hundred thousand dollars in money from the PPP program (Paycheck Protection Program). Whether these sums were fully used to support tour staff or other pandemic-related absences remains unclear to this day.
According to the research, many artists and bands have taken a detour through so-called “loan-out companies”: these are companies that take care of the touring business. “Alice In Chains singer and guitarist Jerry Cantrell took $1.4 million in SVOG redistribution, awards show,” according to Business Insider. “The band’s drummer, Sean Kinney, received the same amount, and bassist Mike Inez accounts for half that amount, about $682,000. All in all, $3.4 million of the $4.1 million in wage subsidies distributed went to the three musicians at the top.” Particularly tasteless: Alice In Chains are said to have made $48 million from the sale of copyrights just a month before receiving the subsidy in their music catalogue.
How do these programs work?
The SVOG program was introduced as a lifeline for the entertainment industry. Independent venues, theaters and artists were eligible. The funds should only be used to cushion pandemic-related losses and maintain employment in the industry. Despite clear guidelines, however, there are always reports of funds being misused. While smaller artists and organizers often had difficulty obtaining funding at all, larger names with established structures benefited from the complexity of the programs.
The new revelations raise questions about how effective the programs’ controls were. While some musicians have not yet commented on the allegations, others have denied the allegations or claimed to have used the funds in accordance with the rules. Authorities are now examining numerous cases and could impose repayments or penalties in the future.