A federal appeals court on Wednesday cleared a path for adult nightclubs to seek government-backed coronavirus relief loans, dealing a setback to the Trump administration in its bid to block those businesses from receiving assistance.
The U.S. Justice Department had asked the U.S. Court of Appeals for the Seventh Circuit to block a trial judge’s decision requiring the U.S. Small Business Administration to deem adult nightclubs eligible for coronavirus relief loans. After agreeing to stay the lower court’s decision earlier this month, a three-judge panel on Wednesday denied the Justice Department’s request to stave off the ruling.
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