Lil Wayne could be in trouble with the Feds after Business Insider snitched on him.
BI used the Freedom of Information Act to obtain information about a $8.9 million COVID loan the Small Business Administration gave Wayne’s Young Money touring company in 2021.
According to SBA regulations, the loan recipient must run a “drug-free” business.
It is very unlikely Wayne runs any “drug-free” business, and BI alleges that the SBA didn’t properly vet Wayne and other pandemic loan recipients in the entertainment industry. (They also cited Post Malone.)
In response, the SBA conceded that its review of the loan was “fairly narrow” and that it didn’t cover “personal actions” of people such as Lil Wayne or “any drug use outside the period from March 2020 to June 2022.”
“The SBA’s process of monitoring and auditing of grant recipients is actively ongoing. To date, about $40 million has been returned from SVOG grantees and additional files have been referred for ongoing criminal investigation or civil recovery,” the agency added. “To date, none of the recoveries relate to the drug-free certification.”