Malibu Entertainment, a company closely affiliated to Jay-Z's steaming platform Tidal, claimed a $2.1 million Paycheck Protection Program loan in April according to a new report from Variety.
Documents from the Small Business Administration and Treasury Department reveal that the loan — part of the federal government’s $2 trillion CARES Act — was approved on April 7 after Tidal was forced to furlough or lay off between 10 and 20% of its employees in the wake of the global pandemic. Later that month, it was reported that 15 furloughed employees had been fired.
Little information is available about Malibu Entertainment. Although it is a separate entity from Tidal, Variety reports that it falls under the same umbrella, and that Tidal employees’ paychecks come from Malibu Entertainment.
The FADER has reached out to a representative of Tidal for further comment.