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Las Vegas strip clubs make case for federal coronavirus aid

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Like business operators throughout the Las Vegas Valley, Jason Mohney is trying to figure out how to support his employees amid the COVID-19 outbreak.

But unlike many, he’s facing a disadvantage in obtaining emergency funding from the federal government. Mohney is in the strip club business, which Congress lumps into a category of operations of a “prurient sexual nature” that have mostly been frozen out of the $2 trillion federal Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The distinction is discriminatory toward a class of workers who perform a legal and legitimate service for the public, Mohney said, which is why he filed a lawsuit last week against the Small Business Administration, SBA Administrator Jovita Carranza and Treasury Secretary Steven Mnuchin on behalf of his company, Little Darlings in Flint, Mich., which operates 200 exotic dance clubs in Las Vegas and several other cities.

"We haven't been denied, just not given fair or consistent opportunities," Mohney said, referencing some clubs that were told their loan wouldn't be forgiven. "Some other clubs have been flat-out denied."

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In an unexpected twist, not all Nevada businesses in the sexual realm had their applications denied. Madam Bella Cummins, who owns Bella’s Hacienda Ranch in Wells, said she received a call from the SBA on late last week notifying her that her application for around $70,000 had been approved. There was one problem — by then, the program had run out of money.