Why Is Federal COVID Relief for Indie Cinemas and Music Venues Taking So Long? Blame Past Fraudsters

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Entertainment lobbyists say extra measures to ensure relief funds go only to those in need have left thousands of venue owners waiting for weeks for aid

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More than a month after the Small Business Administration opened applications for a $15 billion grant program to provide relief for movie theaters and other entertainment venues crippled by COVID-19, barely any applicants have received money.

Lobbyists say that concern about fraud is the main reason why. When the Paycheck Protection Program was approved by Congress last year to provide immediate relief to businesses closed by the pandemic, headlines popped up of recipients who used millions in grants to buy luxury items like mansions and supercars. In the early weeks of his presidency, Joe Biden vowed to crack down on such fraud, and the grant program developed for shuttered entertainment venues was designed with that goal in mind.

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