New York ‘Gentlemen’s Club’ Loses Bid for PPP Loan Guarantee

A western New York “gentlemen’s club” lost its bid for a court-ordered PPP loan guarantee, with the Second Circuit holding the business is unlikely to succeed in challenging regulations that bar such establishments from receiving government-backed relief loans.

Pharaohs GC, Inc. is challenging Small Business Administration regulations that bar businesses presenting “live performances of a prurient sexual nature” from being eligible for the Paycheck Protection Program loans. The club alleges the restriction violates the Administrative Procedure Act and went against the First and Fifth Amendments, stating that nude dancing is a protected form of expression.

Pharaohs is seeking a preliminary ...