Judge: Wisconsin Strip Club Owners Eligible for SBA Loans

Judge: Wisconsin Strip Club Owners Eligible for SBA Loans

MILWAUKEE — A U.S. District Judge issued her opinion that four Wisconsin strip clubs should be eligible to receive COVID-19 emergency loans through the Small Business Administration's (SBA) Paycheck Protection Program.

On Friday, Judge Lynn Adelman issued a preliminary injunction in favor of the owners of four Silk Exotic Gentleman’s Clubs in Milwaukee and Middleton, according to the Wisconsin ABC affiliate.

The club owners objected to the “prurient” clause on the loan application form, which replicates mid-1990s language designed to discriminate against sexually oriented businesses.

The form compels applicants to declare that they do not “present live performances of a prurient sexual nature or derive directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature.”

The word “prurient” is an imprecise, obscure word that means “appealing to unhealthy sexual interests” and was used by the U.S. Supreme Court in a landmark 1973 ruling. Several members of the adult entertainment community and First Amendment lawyers have pointed out that people who do not consider their sexual expression “unhealthy” are exempt from application of the “prurient” clause.”

Judge Adelman, according to a news report by local paper the Journal Sentinel, concluded that “the plaintiffs would likely succeed in arguing that their business, while sexual in nature, is not prurient and that the regulation violates First Amendment and due process rights.”

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Blush Debuts 'M for Men' Male Sleeve Warmer

Blush has introduced its new M for Men sleeve warmer for male masturbators and strokers.

Orion Debuts 3 New Styles From 'Cottelli Party' Line

Orion Wholesale has expanded its Cottelli Party line with three new styles.

FSC Publishes Guidance on New UK Pornography Laws

The Free Speech Coalition (FSC) has published information for its members on the United Kingdom's recently passed pornography laws, which take effect next week.

Brazil Issues Guide to Digital Safety Compliance

Brazil’s National Data Protection Agency (ANPD) published on Wednesday a new guide outlining online providers’ child-protection responsibilities under the Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

Nalpac Releases 2026 Winter Catalog

Nalpac has released its 84-page 2026 winter catalog.

2027 XBIZ Exec Awards Nominees Announced for Pleasure Product and Retail Edition

XBIZ is pleased to announce the exec nominees for the pleasure product and retail industry edition of the 2027 XBIZ Awards, presented by Svakom and sister brand Kaotik Labs, set to take place on Saturday, Jan. 9, in conjunction with the XBIZ 2027 event series.

Arcom Issues Warnings to 3 Adult Sites Over Age Verification

French media regulator Arcom has issued formal notices to the operators of three adult websites that the agency says have failed to implement age verification as required under French law.

Full Circle Expands 'Pleasure Company' Vibe Collection

Full Circle has added six new vibrators to its Pleasure Company line.

Fleshlight, Penthouse Partner for New 'Pet' Collection

Fleshlight has partnered with Penthouse to release a collection of strokers based on the anatomy of 12 Penthouse Pets.

Svakom, Kaotik Labs Return as Presenting Sponsor of XBIZ Awards, Pleasure and Retail Edition

The pleasure industry’s biggest night is set to shine even brighter as Svakom and sister brand Kaotik Labs return as presenting sponsors of the 2027 XBIZ Awards, Pleasure & Retail Edition, taking place at Avalon Hollywood on Jan. 9.

Show More