SBA Drops Efforts To Recover $155M In COVID Relief Grants Given To Celebrities

The SBA will not be reclaiming over $155 million in COVID relief funds given to celebrities.

The Small Business Administration has no plans to reclaim over $155 million in COVID relief grants awarded to successful artists and entertainers.

Public records obtained by Business Insider reveal that the federal government has not alleged any wrongdoing in the millions of taxpayer dollars received by Lil Wayne, Marshmello, Chris Brown, Alice in Chains, and other artists.

The funds were part of the $14 billion Congress set aside to support struggling arts groups during the COVID-19 pandemic. Instead, the celebs spent the money on private jets, parties, luxury clothing, and multi-million dollar bonuses with little going to staff salaries or benefits.

Congress said the grants could legally be used for “ordinary and necessary” expenses and is sparing the wealthy celebs from any wrongdoing. Some of the largest recipients of Shuttered Venue Operators Grants were clients of NKSFB, a Los Angeles-based business management firm that claims to help “the world’s leading entertainers succeed financially.”

An email sent in December 2024 to an SBA employee revealed that over $155 million of the $216.6 million in grants allocated to NKSFB clients—more than 70%—had been “closed” after being fully reviewed. Another $61 million across 22 grants is still under review.

Many grant recipients won’t receive further communication from the SBA once they complete the closeout process. However, the agency’s FAQ materials indicate that a post-closure “monitoring” process, similar to an audit, can still occur. Senator Joni Ernst (R-IA), who chairs the Senate Committee on Small Business and Entrepreneurship, has shared her plans to continue investigating any misuse of pandemic-related funds.

“Pandemic relief programs were designed to help small businesses keep their doors open and their employees afloat during an incredibly challenging time,” Ernst said. “Unfortunately, the more we learn, the more it is clear that taxpayers footed the bill for the extravagant lifestyles of the rich and famous.”

It is unclear which specific NKSFB clients’ grants have been closed out and which are still open. The firm is unable to disclose details about its clients’ finances.