Tampa Area Adult Businesses File Lawsuit Challenging SBA's 'Prurient' Clause

Tampa Area Adult Businesses File Lawsuit Challenging SBA's 'Prurient' Clause

TAMPA, Fla. — A group of Tampa Bay, Florida adult businesses have filed a lawsuit challenging the “prurient” clause in the Small Business Administration’s loan application form, which can be interpreted to discriminate against sexually oriented businesses.

According to a Tampa Bay Times report, Fantasyland Adult Supercenter and Charlotte’s Cabaret in Tampa, Silks in Palm Harbor and Diamond Dolls in Clearwater, along with several other adult businesses in Florida, “are suing the Small Business Administration, its administrator and U.S. Treasury Secretary Steven Mnuchin in federal court in Tampa.”

The lawsuit, the report continues "calls the policy regarding adult businesses discriminatory and unconstitutional and says employees were 'engaged in First Amendment protected expression.'"

As XBIZ reported in March when the loans were first offered by the federal government, the “prurient” clause on the SBA loan application form replicates mid-1990s, Clinton-era language designed to discriminate against sexually oriented businesses.

The form compels applicants to declare that they do 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.”

The word “prurient” is an imprecise, obscure word that means “appealing to unhealthy sexual interests” and was used by the U.S. Supreme Court in a landmark 1973 ruling. Members of the adult entertainment community and First Amendment lawyers have pointed out that people who do not consider their sexual expression “unhealthy” are exempt from application of the “prurient” clause.

The Florida establishments suing the SBA had to close in March due to COVID-19 precautions, and asked the federal government for help through the SBA’s $660 billion Paycheck Protection Program.

Their applications, according to the Tampa Bay Times, were denied.

Their lawsuit contends that their businesses “appeal to a healthy interest in basic human sexuality.”

There are similar lawsuits pending in Michigan and Wisconsin, where judges granted preliminary injunctions in favor of the loan applicants.

The Florida lawsuit, the Tampa Bay Times continues, “similarly asks for an injunction and for the businesses to be considered for the loans on their merits.”

Copyright © 2026 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

Arizona Senate Removes 'Catch-22' Provision From Consent Bill

The Arizona State Senate has amended a bill that would impose new requirements for adult content uploaded online, removing a seemingly contradictory provision that could have effectively made it impossible for adult sites to operate in the state.

Svakom Featured on 'Naked Warm Up'

Svakom is featured in a new episode of “Naked Warm Up” on the Czech Republic's Óčko TV.

Orion Debuts 'RC Strapless Strap-On' Vibe From 'Javida' Line

Orion Wholesale has introduced the new RC Strapless Strap-On With Flicking Tongue vibrator from its Javida line.

Italian Court in Aylo Case Limits International Reach of AV Rules

An Italian administrative court has ruled that Italy’s recently-enacted age verification rules for adult content may not currently be enforced against sites based in other EU member states, pending further procedural action under the EU’s Directive on Electronic Commerce.

OCC, FDIC Prohibit Use of 'Reputation Risk' by Regulators

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) on Tuesday issued a final rule codifying the elimination of ‘reputation risk’ from their supervision of financial institutions.

Wisconsin Governor Vetoes Age Verification Bill

Gov. Tony Evers on Friday vetoed AB 105, an age verification bill that would have allowed anyone to sue adult content providers for damages over alleged failure to age-verify users in Wisconsin, with penalties of up to $10,000 per violation.

FSC Releases Statement on Wisconsin Governor Vetoing AV Bill

The Free Speech Coalition has released a statement on Wisconsin Governor Tony Evers' veto of the state's age verification legislation.

AV Bulletin: West Virginia Enacts AV Law, Ohio 'Innocence Act' Advances

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Woodhull Survey Reveals Concern Among Sex Educators Over AV Laws' Impact on Access

A national survey of sex educators by the Woodhull Freedom Foundation found that a majority of sex educators and sexual health professionals are concerned that age verification (AV) laws will negatively impact access to information and resources.

Metro Distributors Taps Nancy Cosimini for Sales Account Manager

Metro Distributors has hired industry veteran Nancy Cosimini as its newest sales account manager.

Show More