7th Cir. Stays Preliminary Injunction Against SBA in Strip Clubs’ PPP Loan Action

MADISON, Wis. — A federal appellate panel has granted the Small Business Administration’s motion to stay a preliminary injunction enjoining it from denying erotic entertainment businesses eligibility for the second round of Paycheck Protection Program loans, pending resolution of the SBA’s appeal.

In a Sept. 15 order, the 7th Circuit U.S. Court of Appeals panel concluded the SBA is most likely to succeed on the merits of its appeal because the government is not attempting to regulate or suppress plaintiffs’ adult entertainment; rather, it has chosen not to subsidize their activity.

Camelot Banquet Rooms Inc., Downtown Juneau Investments LLC, Midrad …