Running afoul of the still-unclear SBA rules poses a potential hazard for lenders, who risk getting stuck with unforgiven loans on their books or litigation, lawyers said.
Some of the businesses received the funds after the court decision; others got the money from banks despite the ban. But nearly four months since the launch of the loan initiative known as the Paycheck Protection Program PPPit is still unclear whether the SBA can make it rain for them.
All totaled, these companies saved 2, jobs, according to the government data. July 17, PellChris Prentice.
Will the SBA allow clubs that have not won a court order to participate? His bank in Philadelphia denied the loan, citing SBA rules.
Lawrence said she is frustrated the SBA is squeezing her industry just as she is getting back on her feet and the stage. A spokeswoman for PNC declined to comment on specific loans, but said the bank sought to process all applications in accordance with SBA guidelines. And for those that received loans, either through court order or from banks that apparently took a broad interpretation of the law, will the government forgive the loans, as it does for other borrowers?
Clubs sued, and two federal judges rebuked the SBA for excluding the establishments from receiving the forgivable loans meant to protect jobs amid the health crisis. Under the PPP, the houses of worship received an exemption from the normal rules - the business of bare skin did not.
Lawrence lost her job in insurance during the pandemic and returned to her former profession as a dancer a few weeks ago. On a hot Friday afternoon in July, Jordan Lawrence got a few shout-outs from the audience as she fell into a split.
A representative of RCI declined to comment. So while empty stools are stacked on the bar inside, outside the dancers work an improvised stage.
Strip-club stimulus reveals lingering uncertainties over u.s. small-business aid
Reporting by M. PellChris Prentice 6 Min Read. After her big finish, she collected tips from men sipping drinks, her long blond ponytail tickling the dollar bills in her costume.
They were hit by state and local shutdown orders for the hospitality industry. Even though she had saved up for years, she struggled to pay her bills without her old job.
For a government loan program that has been plagued by criticism - duplicate loans, borrowers without clear financial need, inconsistent data - the strip-club uncertainties are yet another example of confusion surrounding an initiative that pushed hundreds of billions of dollars out the door.
Meehan owns three combination sports bar-strip clubs, all called Cheerleaders, in Philadelphia, Pittsburgh and Gloucester, New Jersey.
An SBA representative did not directly respond to questions about the discrepancies surrounding the loans. Meehan is not the only one faced with the muddle.