SBA regulations in place when the loans were requested specifically made them ineligible. The Courts should stay out of it, because changing those rules are the business of Congress.
The SBA says loans will not be made to businesses that appeal to "prurient interests." A federal district judge has issued an injunction barring the SBA from rejecting the application for the crisis loans. Camelot Banquet Rooms, Inc. v. U.S. Small Business Administration, U.S. District Court, Eastern District of Wisconsin, Case No. 20-C-0601. The government will appeal. The decision does not order the SBA to grant the loan, but stops the SBA from denying the club the opportunity to apply for the loan.
On paper, how is a Strip Club any different than a sports bar or Hooters? I can’t even recall the last time o went a club that didn’t have a full kitchen staff Providing a full food menu and waitresses.
They have payroll. They pay taxes. They contribute to the overall econ9mic ecosystem with rent, utilities, liquor supplies, office supplies, etc. Simply yes, if it is a legal business it should be eligible.
Yes they should. When I filled out the SBA loan application I couldn't believe they included language to exclude businesses of a sexual nature or appealing to prurient interests. Sounds like something written in the 1960s.
The hard part about the "clubs" vs a regular bar... is the whole payroll issue. Or the "independent contractor" vs employee aspect of dancing. Yes some have bouncers, bartenders, and waitresses. So they should be able to get some of the loans to help pay for the payroll and what not. But the paying of the entertainment is the hard part. I know of a salon owner who applied for the SBA and payroll/unemployment stuff and got denied on all three. They stated that since she was an owner she couldnt get unemployment. YET SHE PAYS IN ON UNEMPLOYMENT with her W2's. Which is BS by the goverment. Then she got denied the SBA because her "employees" were independent contractors....ie: rented chairs. So it kind of goes along that line with the clubs situation. Which again I think is BS....but it is the goverment guidlines.
Small little rant here..... But there are people who got the $1200 check that didn't need it....ie: retired people. Yet someone who owns a business and makes over $100K (single person) and was forced to shut down their doors because of this... wont get a check. Make perfect sense doesn't it...
This wasn't a shot at retired people but why should they get that check? I know someone will say because the market "tanked".... well that hurt anyone with investments. That is also the gamble with investing... it goes up and down. But retired people are still getting SS checks while some stopped getting income all together. Just things to think about how messed up this situation is.
->"I know of a salon owner who applied for the SBA and payroll/unemployment stuff and got denied on all three."
Maybe there's some details missing here, but the nail salon owner or its bank blew it in the application phase. Regardless of whether the salon operates as sole proprietorship or through some entity and regardless of whether all the salon's workers are independent contractors, and assuming the owner makes at least $100K per year off the business (whether by owner draw or payroll paychecks), the salon owner should have been successful in getting a forgiveable PPP loan in the amount of $20,833 and somewhat less if the annualized compensation is less than $100K.
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https://www.detroitnews.com/story/busine…
https://www.mlive.com/news/flint/2020/04…
Small little rant here..... But there are people who got the $1200 check that didn't need it....ie: retired people. Yet someone who owns a business and makes over $100K (single person) and was forced to shut down their doors because of this... wont get a check. Make perfect sense doesn't it...
This wasn't a shot at retired people but why should they get that check? I know someone will say because the market "tanked".... well that hurt anyone with investments. That is also the gamble with investing... it goes up and down. But retired people are still getting SS checks while some stopped getting income all together. Just things to think about how messed up this situation is.
Maybe there's some details missing here, but the nail salon owner or its bank blew it in the application phase. Regardless of whether the salon operates as sole proprietorship or through some entity and regardless of whether all the salon's workers are independent contractors, and assuming the owner makes at least $100K per year off the business (whether by owner draw or payroll paychecks), the salon owner should have been successful in getting a forgiveable PPP loan in the amount of $20,833 and somewhat less if the annualized compensation is less than $100K.