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PPP Rules Barring Strip Clubs Likely Don’t Violate Free Speech

Jan. 26, 2022, 7:18 PM

Small Business Administration rules barring strip clubs from receiving government-backed pandemic relief loans likely don’t violate First Amendment free speech protections, a Seventh Circuit panel ruled in overturning a lower court’s injunction.

A coalition of 23 businesses led by Milwaukee gentlemen’s club operator Camelot Banquet Rooms Inc. is objecting to SBA rules excluding business involved in activities of “obscene, pornographic, or prurient sexual nature” from the Paycheck Protection Program. The pandemic aid program, established in 2020, facilitated hundreds of billions of dollars in loans that can be forgiven if used for payroll and other eligible expenses.

The U.S. Court of ...

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