Sly McFly’s keeps music coming on Cannery Row.

On the Friday night after Christmas, local favorite the Minor Williams Band lets its soul flag fly – loudly – to the tune of Al Green’s R&B afrodisiac “Let’s Stay Together.” The dance floor pulsates with a diverse demo – equal parts middle-aged professionals, financially insecure twentysomethings, tourists and baby boomer regulars. Their backstories may differ, but their motivation to visit Sly’s doesn’t. It’s to boogie down to music from a live band.

From the stage, a couple of the bandmembers toss novelty props – Mardi Gras beads and oversized sunglasses – onto the dance floor, adding an interactive element to the energizing package. Following a breather, Williams goes into soul overload with an extended version of James Brown’s “Sex Machine.”

Like the aroma from a pizzeria seducing hungry passersby, the constant thread of classic jams – from Stevie Wonder’s “She’s a Bad Mama Jama” to Wild Cherry’s “Play That Funky Music” – helps keep Sly’s dance floor mostly full. It helps that the double doors at the main entrance are usually propped open most of the night, allowing the music to carry the full length of Cannery Row – and that the stage, with all its festivities, is visible from the sidewalk.

In an area where no other venue can say it hosted live music every night for even the last week or month, Sly’s has hosted live blues, funk, soul, R&B and classic rock seven nights a week the past 36 years. And they rarely charge a cover.

It’s a grueling feat for a relatively small operation – barkeep/musician Jimmy McDowell handles most of the booking of the bands – but Sly’s has made it their calling card.

Owner Jack Burnam thinks he can put his finger on the reason his team can score music every night from 9pm until roughly 1am: “We’re willing to pay bands,” he says.

From Soul City with Lisa Taylor to The Joint Chiefs to Burnin Vernon to the beloved White Album Ensemble, a little something to satisfy just about every musical taste eventually visits Sly’s, where two bars and full dinner menu available late help fuel the funk.

Cut Loose Band makes its Sly’s debut on Saturday and hopes to become a regular feature at the spot. The Bay Area group aims to stand apart from the ordinary cover outfits and rock tributes with intensified song choices.

“We don’t really do the dancy-funky stuff,” bassist Matt Donner says. “We do powerful poppy, punky rock and roll, and that’s the only thing that we do. We have a very tight, very concise, very powerful punk edge.”

Hence Cut Loose’s plate is piled high with songs like Green Day’s “Basket Case,” Weezer’s “Beverly Hills” and Mumford & Sons “Little Lion Man.”

“We play songs that make you want to shove your fist in the air and yell,” Donner explains. “But we’d probably play anything that a client wanted – with the exception of ‘Lady in Red’ – as long as it had balls.

“I want to play music that makes people feel something and that makes people get into it instantly,” he says. “That’s the whole point of the band.”

On pieces including The Strokes’ “Last Nite” and Prince’s “Purple Rain,” their interpretations are near-perfect. Constant practice helps keep the group sharp: Drummer Peter Thomas is a touring member of the Tumbleweed Wanderers, guitarist Dan Nervo splits his time between four bands, lead singer Dan Apczynski works through songs while manning his duties as a stay-at-home dad – and manages digital content for Acoustic Guitar magazine – and Donner is a music producer/music production trainer.

“[The Cut Loose] may be a side project but we treat it professionally,” Donner says. “We’re known for emotional accuracy more than anything else. We work really hard to make each of these songs translate the way you remember them so we spend a lot of time getting them dialed in.”

Aside from its eclectic repertoire and precision covers, the quartet can be known to get a little wild on stage.

“We jump around like fools because we want it to be a memorable experience in every way,” Donner says.

Currently, one of the group’s biggest crowd pleasers is Kings of Leon’s “Sex on Fire.” But Donner’s favorite part of the show is a three-song Ramones medley – “I Wanna Be Sedated,” “Judy is a Punk” and “Blitzkrieg Bop” – that usually closes out the second set.

“It’s full power and full madness,” Donner says. “We’ve seen mosh pits.”

Another song to listen for is The Romantics’ “What I like About You,” which is taken into completely new territory.

“I won’t give it away but there’s a surprise section in that song,” Donner says. “The thing about a cover band is the crowd loves it when they hear a song they know and love and they didn’t expect. That’s my favorite part of a show, when you can see that on an audience member’s face.”

THE CUT LOOSE BAND plays at 9pm Saturday, Jan. 4, at Sly McFly’s, 700 Cannery Row, Monterey. Free. 649-8050, www.slymcflys.net. Nightly music happens Sunday-Thursday at 8:30pm and Friday-Saturday at 9pm.