Music megastars including Post Malone, Chris Brown, LeAnn Rimes and Nickelback reportedly received millions of dollars from a taxpayer-funded program intended to help venues and musicians struggling during the Covid-19 pandemic.

The Shuttered Venue Operators Grant, introduced in 2021, was operated through the Small Business Administration (SBA) and was designed as a lifeline for live entertainment business which had been decimated by lockdowns. 

It doled out $14.5 billion to institutions such as movie theaters, ballets, performing arts venues and talent agents – as well as artists. 

In comparison to the Paycheck Protection Program, which offered a loan, qualified applicants were eligible for up to $10 million which they did not need to pay back, in replacement for lost revenue.

According to an Insider investigation, limited liability companies tied to arena-filling acts took advantage of this.

An asset-management firm reportedly received $10 million on behalf of singer Post Malone

R&B artist Chris Brown allegedly received the maximum $10 million grant, which did not need to be paid back

Singer Post Malone and R&B artist Chris Brown, who has an estimated net worth of around $50 million, were reportedly among the artists who received the maximum $10 million payout. 

Post Malone has an estimated net worth of at least $45 million, and owns various homes including a luxury $3 million compound in northern Utah with five bedrooms and seven bathrooms. 

Rapper Lil Wayne, meanwhile, reportedly received $8.9 million and singers LeAnn Rimes and Nickelback received $2 million each. 

While it is unclear how the money was used, there is no indication that these payments to big-name artists broke the law.

The aid could have been used to pay lighting and sound technicians, costumers, drivers, security personnel and other contractors left without work when tours or concerts had to be canceled. 

However there was no requirement for corporations and limited liability companies to use the money to keep these workers afloat. 

Recipients were legally able to spend it on existing mortgage payments, taxes and payroll – including paying themselves.  

In particular, the investigation found that one Los Angeles asset-management firm alone successfully managed to submit grants on behalf of 97 artists, venues and managers, including Post Malone, metal band Korn and electronic music star Steve Aoki. 

The firm, NKSFB, allegedly secured helped secure a combined $260 million in payouts.   

Singer songwriter LeAnn Rimes allegedly received $2 million in the Covid-19 grant

Rock band Nickelback reportedly received $2 million from the Shuttered Venue Program

In a statement to Insider, an SBA spokesperson said the Shuttered Venue Program ‘helped save thousands of entertainment venues and operators across the country during the Covid-19 pandemic.’

Nearly half the grant money went to businesses with fewer than five full-time employees, ‘the smallest of small businesses,’ the spokesperson added. 

It comes as the Government is still determining how much of pandemic-era aid went to fraudulent claims. 

Earlier this year, an SBA report revealed that $200 billion had been potentially squandered from COVID-19 relief programs.

The eye-watering sum amounts to approximately 17 percent of the $1.2 trillion dispersed by the SBA.

However the watchdog has rejected the likelihood of rampant fraud around the Shuttered Venue Program – estimating that less than 1 percent of grants dispersed were fraudulent.