The Small Business Administration is denying the funding because of the sexual nature of the business.By Paul Martino

PITTSBURGH (KDKA) — Cheerleaders, the exotic dance club in the Strip District, is one of 10 clubs in Pennsylvania suing to obtain Restaurant Revitalization Funds.

But as KDKA’s Paul Martino reports, the Small Business Administration is denying the funds because of the sexual nature of the business.

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(Photo Credit: KDKA)

The lawsuit says Cheerleaders Pittsburgh has to pay rent, utilities and payroll just like other restaurants that closed during the pandemic. But the SBA says it won’t pay sexually oriented businesses. Now they are in court.

An attorney for the Pittsburgh business claims Congress did not intend to exclude strip clubs from the relief funds. They’re asking the court to force the SBA to pay up.

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The lawyer says Congress only excludes businesses convicted of obscene acts, but Cheerleaders has never been convicted.

“None of my clients have had any adjudications of obscenity,” said attorney Brad Shafer. “None of the dancers who perform on my clients’ properties have had adjudication of any type of obscene performances.”

The judge asked the SBA to respond to the suit by July 2. The SBA isn’t commenting.

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In a similar lawsuit over PPP relief funds, the strip clubs prevailed.