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Settlement in the works between strip club owners and Small Business Administration over denial of COVID-19 relief funds

ALLENTOWN – A settlement is brewing between strip club owners in five states, including Pennsylvania, and the U.S. Small Business Administration, over claims that the SBA’s moral judgment about their businesses violated their constitutional rights and caused them to be deprived of receiving loans issued to restaurant and nightlife owners adversely affected by the COVID-19 pandemic. ....

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Strip club owners say Small Business Administration declared them 'prurient' and deprived them of COVID-19 relief funds


Fritzinger | Cozen O Connor
PHILADELPHIA – Strip club owners in five states, including Pennsylvania, have sued the U.S. Small Business Administration in federal court, claiming the SBA’s moral judgment about their businesses violated their constitutional rights and caused them to be deprived of receiving loans issued to restaurant and nightlife owners adversely affected by the COVID-19 pandemic.
MAG Enterprises, Inc. and Oasis On Essington, LLC of Philadelphia, Mag Pitt, LP of Pittsburgh, Mag Entertainment, LLC of Gloucester City, N.J., KWLT, LLC of Allentown, KWON, LLC of West Columbia, S.C., BT California, LLC, Gold Club-SF, LLC and S.A.W. Entertainment, LTD of San Francisco, Calif. and Kimmico, Inc. of Baltimore, Md. first filed suit in the U.S. District Court for the Eastern District of Pennsylvania on May 14, versus the U.S. Small Business Administration, its Administrator Isabel Casillas Guzman and the United States of America, all of ....

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