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The loan is notable for its size: It's roughly 54 times the average loan made through the small business aid program. It's also notable for this: Strip clubs were specifically barred from the Paycheck Protection Program. RCI Hospitality, the owner of Rick's, received funding from the Paycheck program in early May, according to its quarterly financial statement filed with the U.

Securities and Exchange Commission. RCI doesn't say what that subsidiary does.

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The Paycheck Protection Program, run by the U. The PPP has drawn criticism for allowing larger companies, including publicly held enterprises, to use the initiative for funding while many other small businesses were initially shut out. The company said in the filing that none of its PPP loans will go toward funding its "adult nightclub" business.

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It's not clear from the filing how that would work. According to the company's filings, "Bombshell Girls, with their military-inspired uniforms, are a key attraction" of the restaurant chain. Loans from the Paycheck Protection Program are meant to cover two months of employee costs. In addition to the restaurants and strip clubs, RCI also runs conferences for the "adult nightclub industry," the trade publication Exotic Dancer, and an awards show. Rick's Cabaret has won the best club chain category in two of the past three years. At least a half a dozen strip club owners have sued the federal government to gain access to the Paycheck Protection Program.

But the ruling only applied to clubs in Michigan. RCI was not part of the suit. RCI reopened a of its strip clubs in Texas in mid-May. But last week, nine of those clubs were forced to close again after a resurgence of COVID cases in Texas and elsewhere paused local reopening plans.

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The company said in a press release last week it hopes to reopen its three locations in New York City this month. But New York City Mayor Bill DeBlasio on Wednesday said he was shelving plans to reopen indoor bars and restaurants in July under certain capacity limits, given the soaring rates of infections in other states that had reopened businesses. The watchdog nonprofit group able. In addition, RCI's most recent financial statement said the company was under investigation by the SEC and that the inquiry, which started last year, has turned into a formal investigation and is ongoing.

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No further details were available. The company on Tuesday reported it had recently cut employees, but didn't say how many or at which divisions.

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