A federal judge on Monday ruled that gentlemen’s clubs are entitled to receive emergency federal PPP aid aimed at helping small businesses suffering during the coronavirus pandemic.
US District Judge Matthew Reitman in Flint, Michigan issued a preliminary injunction that bars the Small Business Administration from excluding Paycheck Protection Program loans to businesses that present live performances or sell products of a “prurient sexual nature.”
Leitman also said other businesses such as banks, political lobbying firms and restricted private clubs cannot be excluded from the program by the SBA.
“Simply put, Congress did not pick winners and losers in the PPP,” Leitman wrote.
“It would ordinarily be absurd to conclude that Congress meant to provide financial assistance to, among others, certain sexually oriented businesses and private clubs that discriminate,” he added.
“But these are no ordinary times, and the PPP is no ordinary legislation.”
Emergency PPP aid was included in the $2.3 trillion coronavirus stimulus package.
The case was brought by strip clubs across the country that were forced to close as COVID-19, the disease caused by the coronavirus, began its spread.
While Leitman said his order was not a “nationwide injunction” covering all PPP applicants, it is a win for a variety of businesses, also including payday loan companies, that have sued over being excluded from the PPP, part of the $2.3 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act.
