FSC: SBA Loan Application 'Does Not Seem to Exclude' All Adult Businesses

FSC: SBA Loan Application 'Does Not Seem to Exclude' All Adult Businesses

LOS ANGELES — Adult industry trade group the Free Speech Coalition (FSC) has released a policy statement clarifying their position on the language in the Small Business Administration (SBA) disaster loan application “which might appear to specifically discriminate against adult businesses,” and on the confusing word “prurient” in particular.

Here’s the FSC statement:

Many FSC members have raised concerns about a provision in the new Small Business Administration’s Economic Injury Disaster Loan Program, which might appear to specifically discriminate against adult businesses.

In order to qualify for the SBA Loan, applicants are required to check several boxes, one of which requires them to attest that their business is not involved in performances or sales of a “prurient sexual nature":

“Applicant does not present live performances of a prurient sexual nature or derive directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature.”

Some have feared that adult businesses are entirely excluded from the loan program. While there have been no rulings on the matter, and thus we can not provide any definitive legal recommendations, the language may be narrower than first assumed.

Why? Because the word “prurient” has a specific meaning in the context of court rulings on obscenity. “Prurient” is defined as a “shameful or morbid interest in nudity, sex, or excretion,”  and has historically been used to identify “obscene” content that is not protected by the First Amendment. (In the past several decades, only a handful of works have been deemed prurient, and thus obscene.)

Most of our members would not define their work or the products they sell as “shameful” or “morbid,” but instead as natural and healthy.

We cannot advise whether or not a specific applicant should check that box — for that, we recommend speaking with an experienced First Amendment attorney. However, as it’s written, the loan application does not seem to exclude all adult businesses.

Please note: In the “Paycheck Protection Program," which is administered by banks, rather than the SBA, some banks are apparently disqualifying any “sexually oriented business.” That is not a requirement of the federal government but private discrimination by certain banks. It is unclear if there are legal avenues to address that private discrimination. For that, we’d also recommend you check with an experienced First Amendment attorney.

For more from the FSC, visit their webpage and follow the group on Twitter.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Nalpac, Entrenue Sign Distro Deal With Like A Kitten

Nalpac/Entrenue has inked a deal to distribute Like A Kitten pleasure products.

XBIZ Retreat Reloads Amsterdam Edition, Set for Sept. 2-5

XBIZ Retreat is making its anticipated return to Amsterdam, set for Sept. 2–5 at the chic Park Centraal Hotel.

AI Erotic Storytelling Platform 'AIEroticSmut' Launches

AIEroticSmut.com, a DIY erotic storytelling platform, has officially launched.

Angela White Stars in New Interactive Scene From Brazzers

Multi-XMAs winner Angela White stars with reigning and two-time XMAs Europas Male Performer of the Year Christian Clay in a new interactive release from Brazzers, titled “Taking Angela Back To Your Place.”

Marvin Love Directs 'Rich and Horny Weirdos' for Brazzers

Brazzers has released a new scene directed by Marvin Love, titled “Rich and Horny Weirdos.”

Julia James, Sage Hunter Topline 'Lesbian Sister In-Laws' Sequel

Julia James and Sage Hunter headline the latest release from Girlfriends Films, titled “Lesbian Sister In-Laws 2.”

Jade Greene Fronts Latest From TeamSkeet

Jade Greene stars with Nicky Rebel in the latest release from TeamSkeet.

Bree Mills Wraps Production on Pure Taboo Thriller 'Let Me In Too'

Adult Time has announced that production has wrapped on the Bree Mills thriller sequel "Let Me In Too."

Emma Rosie, Rebel Rhyder Topline Latest Volume of 'Hookup Hotshot: E-Girls'

Emma Rosie and Rebel Rhyder headline Brian Gozzling’s “Hookup Hotshot: E-Girls 28” from Evil Angel.

Fantasy Gifts NJ Unveils 'Shave Stix' With Product Launch Event

Sexual wellness retailer Fantasy Gifts NJ introduced its new Shave Stix during a special event at its Lumberton location on April 17.

Show More