STORY FROM: COVID-19 Litigation Report

SBA Cannot Deny PPP Loans to Erotic Entertainment Businesses, Wis. Federal Judge Rules

MADISON, Wis. — The Small Business Administration cannot bar erotic entertainment businesses from obtaining loans under the Paycheck Protection Program because there is no governmental interest in doing so, a Wisconsin federal judge has ruled.

In a May 1 order, Judge Lynn Adelman of the U.S. District Court for the Eastern District of Wisconsin further held that the SBA unfairly singled out the businesses based upon the content of their speech, which is protected under the Free Speech Clause of the 1st Amendment.

The judge therefore preliminarily enjoined the SBA and lending banks from using SBA regulations in making eligibility ...

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