Seventh Circuit Rules That Government Need Not Support Nude Dancing Under The Paycheck Protection Program

Many types of businesses have lost revenue due to COVID-19. In response, the government enacted the Paycheck Protection Program, loaning money to help small businesses stay afloat. But Congress excluded certain businesses from this funding, including businesses that “present live performances of a prurient sexual nature.” 13 C.F.R. § 120.110(p). Challenging their exclusion, a group of businesses offering live, nude dancing argued in Camelot Banquet Rooms v. United States Small Business Administration that their omission was in violation of the First Amendment as an unconstitutional “attempt to suppress a dangerous idea.” The district court agreed and granted a preliminary injunction. However, in a decision issued in late January, the Seventh Circuit held that plaintiffs were unlikely to succeed on the merits and vacated the injunction.