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IPFS News Link • Business/ Commerce

Strip Clubs Being Left Bare By Paycheck Protection Program

• https://www.zerohedge.com, by Tyler Durden

And like every other business in the "hospitality" industry, these clubs hoped the government's Paycheck Protection Program (PPP) would help them stay afloat during the shutdown. 

But a little known provision in the Trump administration's program that bans companies that "present live performances of a prurient sexual nature" from participating has stopped some clubs in their tracks. Several have sued and Federal judges have rebuked the SBA for excluding them, according to Reuters. 

It's the latest in a growing list of criticisms of the program, which has been rife with waste, fraud and abuse since its inception. Meanwhile, some legitimate businesses in the hospitality industry, like gentleman's clubs, can't get access to funds. It's still unclear if the SBA will even work with the clubs that have won court orders.

Brad Shafer, an attorney who convinced a federal judge in the U.S. District Court for the Eastern District of Michigan to issue a ruling in May ordering the SBA to work with more than 50 strip clubs, said: "The ball is in the SBA's court right now. We still don't know the end of this story."

Reuters was able to find 36 organizations that represented "dozens" of strip clubs across the country that were approved for between $11.15 million and $27.95 million from the program. Some businesses had to wait until after the court's decision to get their funding. 

John Meehan, who owns Cheerleaders strip clubs in New Jersey and Philadelphia, was denied by PNC for loans. He said: "I wasn't complaining, but I was scratching my head."


www.universityofreason.com/a/29887/KWADzukm