Tennessee Swingers Club Received $30,000 in COVID Relief Fund Scheme

News Reporter

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A Tennessee venue which describes itself as an "upscale swingers club" received tens of thousands of taxpayers' dollars after applying for a COVID-19 business relief scheme, it has been revealed.

The Menages Inc. in Nashville was among those who received funding totaling hundreds of millions of dollars from the Supplemental Employer Recovery Grant (SERG) program, which was announced by Tennessee Governor Bill Lee in October.

As reported by WTVF, the venue received the maximum $30,000 from the scheme.

A searchable full list of SERG recipients reveals that the club, which caters for "people who share a common interest in exploring the erotic side of life with others," was awarded thousands more dollars than other businesses who were forced to close as a result of the pandemic.

"So this is where our money's going," House Democratic Caucus leader Rep. Vincent Dixie told WTVF.

"We definitely need more accountability. It's upsetting, it's appalling. The governor needs to fix this."

A spokesperson for the Tennessee Department of Finance and Administration said that it did not take morality into account when handing out the grant money, just assurance that the businesses were not engaging in any illegal activity.

In a statement to Newsweek, the department added the state required that the business proved they had a loss of income or other expenses which were directly related to the pandemic, and required "extensive" amounts of documentation as proof of financial loss.

The eligibility criteria for the SERG grants also included:

As of August 31, 2020, must be a Domestic Business in the State of Tennessee or a business formed in another state that primarily operates in Tennessee with at least one physical location in Tennessee.
Businesses could not be a subsidiary of a business with consolidated annual revenues in excess of $10 million.
Registration with the Secretary of State, registered with the Department of Revenue, or files a federal Schedule C as of August 31, 2020.
Operational since April 1, 2020, with the exception of temporary closures due to COVID-19 and able to show that the business had been in operation for that time period.
Proof of economic hardship due to COVID-19 related interruption of business or eligible direct business expenses due to COVID-19.
No illegal activity per local, state or federal laws or regulations, with federal compliance taking precedence over local or state compliance.
Businesses must not exist for the purpose of advancing partisan or other political activities, such as directly lobbying federal or state officials.
Must be a for-profit entity or a 501(c)(3) or 501(c)(19) not-for-profit entity.
Must not have already received the maximum award under the Supplemental Employer Recovery Grant Program.

The SERG scheme was announced by Governor Lee in October 2020. The funds were distributed on a first come, first serve basis and were capped at $30,000.

"Small businesses are the backbone of our economy and supporting them through these difficult times has been one of the core missions of the Financial Stimulus Accountability Group," Lee said in a statement at the time.

"The SERG program will provide further relief to small businesses, especially those who may not have been able to access previous federal and state relief funds."

Menages also received a further $40,000 from the Paycheck Protection Program (PPP), according to WTVH.

Despite receiving the grants, Menages is currently closed while it attempts to find a new location.

Menages has been contacted for comment.