The Memphis nightclub where U.S. Immigration and Customs Enforcement (ICE) made more than 120 arrests on Sunday previously received two Payment Protection Program (PPP) loans during the COVID-19 pandemic, according to an online database containing more than 11 million PPP loan records.
Though U.S. Immigration and Customs Enforcement and pro-illegal alien activists in Memphis have described the establishment as a nightclub named El Corralón, the building where Operation Corral Light was conducted indicates it has been named Marisqueria El Corral since at least 2019.
Records made available to the public by the Tennessee Department of Health (THH) also seem to confirm that Marisqueria El Corral has received two health inspections, one for the restaurant portion of its business and a second for its alcohol sales, at least once per year since 2023.
According to a database of PPP loans, made publicly available by the U.S. Small Business Administration to the nonprofit ProPublica, the nightclub appears to have received two PPP loans in 2020.
The first loan of $32,300 was approved for Marisqueria El Corral on June 2, 2020, with Commerce Bank identified as the lender. At the time, the database shows the nightclub claimed it employed a total of 50 people, and listed “Snack and Nonalcoholic Beverage Bars” as the establishment’s industry.
Just 23 days later, Marisqueria El Corral was approved to receive a second loan of $45,065 on June 25, 2020. To qualify for this loan, the database shows the nightclub claimed to have 50 employees, but identified its industry as “Drinking Places (Alcoholic Beverages).
In total, the database shows Marisqueria El Corral received $77,365 in PPP loans. Both loans were later forgiven, according to the database.
Unlike the first loan, the second PPP loan for Marisqueria El Corral was notably approved through the lender MBE Capital Partners.
The former CEO and primary owner of MBE Capital Partners, Rafael Martinez, later pleaded guilty to conspiracy to commit wire fraud for a scheme that involved submitted false documents in order to gain access to the PPP program. After Martinez’s institution was admitted into the program under fraudulent pretenses, MBE Capital Partners ultimately issued about $823 million in PPP loans to more than 36,000 businesses.
While the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 did not prohibit businesses from receiving more than one PPP loan, the SBA announced a rule, effective April 15, 2020, which specifically declared “no eligible borrower may receive more than one PPP loan.” In fact, contemporary SBA policy specifically required companies to certify their business “has not and will not receive another loan under this program.”
The certification requirement was in place from February 15 through December 31, 2020.
The Tennessee Star contacted the SBA Office of the Inspector General (OIG) on Tuesday, seeking to confirm the accuracy of the public database showing Marisqueria El Corral received two PPP loans, but did not receive a response prior to press time.
The Star also contacted the Memphis Permits Office, who said that Marisqueria El Corral had applied for neither a dance license nor a beer license from the city.
Shelby County Health Department Public Information Officer Joan Carr told The Star that it “must file a public records request” in order to obtain its records that would reveal the owner of the establishment. Shelby County Clerk Dr. La Sonya Hall did not respond to an inquiry from The Star prior to press time.
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Tom Pappert is a 2025 recipient of the Dao Prize and the lead reporter for The Tennessee Star. He also reports for the Star News Network. Follow Tom on X. Email tips to [email protected].
