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

Final Defendant Sentenced in GirlsDoPorn Case

Former adult producer Doug Wiederhold, previously a business partner of GirlsDoPorn owner Michael Pratt, was sentenced on Friday in federal court to four years in prison for conspiracy to commit sex trafficking.

'Group C' to Debut 'Woodman Casting X' Board Game

Gaming company Group C will debut its new industry-themed board game, “Woodman Casting X — The Game,” later this year.

FTC Takes Another Step Toward New 'Click to Cancel' Rule

The Federal Trade Commission (FTC) is negotiating the latest procedural hurdle in its effort to renew rulemaking concerning negative option plans, after a federal court previously vacated a “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions.

Hankey's Toys Unveils 'Peak' Prostate Dildo

Mr. Hankey's Toys has debuted the Peak, its new P-spot-targeting prostate dildo.

Kheper Releases 'Ride My Dick' Tickets

Kheper Games has debuted its new "Ride My Dick" sex act novelty coupons.

SVibe Debuts 'Jovi Arc' Vibrating Cock Ring

SVibe has introduced the new remote-controlled Jovi Arc vibrating cock ring.

AV Bulletin: Health Warnings, VPNs and Exemptions

Since the Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been introduced around the United States, as well as at the federal level and in other countries. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Blush Introduces 2 New Vibrating Wands

Blush has debuted two new oscillating wand vibrators, Juno and Sage.

XBIZ Retail Retreat Miami Set for May 4-8

The summer edition of XBIZ Retreat will take place May 4-8, welcoming attendees back to the Grand Miami Beach Hotel’s oceanfront setting and marking the latest installment of the all-inclusive, invitation-only B2B retail event.

Orion Expands 'Beau Coeur' Collection

Orion Wholesale has introduced five new pleasure products from its Beau Coeur collection.

Show More