California COVID Relief Grants Still Exclude 'Prurient' Businesses

California COVID Relief Grants Still Exclude 'Prurient' Businesses

SACRAMENTO — The California Office of the Small Business Advocate (CalOSBA) yesterday began distributing the sixth and final round of COVID relief business grants, but the application still includes a “prurient clause” which discourages adult businesses from applying.

According to the CalOSBA website, this funding round offers eligible grant awards of $5,000 to $25,000 and is intended for “current waitlisted small businesses and/or nonprofits not selected in [earlier rounds] and new applicants that meet eligibility criteria.”

But the “eligibility criteria” CalOSBA includes a copy of the “prurient clause” found in the federal SBA loan application, a disqualification intended against adult businesses.

Under “Ineligible Businesses,” CalOSBA lists “businesses of a prurient sexual nature, including businesses which present live performances of a prurient sexual nature and businesses which 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.”

An Antiquated, Discriminatory Term

As XBIZ has been reporting, the “prurient” clause on the SBA loan replicates mid-1990s language designed to discriminate against sexually oriented businesses.

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. Several 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.

Last year, several sexually oriented businesses across the country sued the SBA for discrimination based on the “prurient clause.”

XBIZ has repeatedly contacted the CalOSBA public information officer about the federal language on the State form, but we have not received a response.

Businesses that do not consider themselves “prurient” are encouraged to apply here until Tuesday at 5 p.m. (PDT). Notifications of the awarded grants will begin Friday, May 7.

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

Hankey's Toys Introduces 'Big Pop Mushroom,' 'Xtra-Small Series IV' Dildos

Hankey's Toys has debuted its Big Pop Mushroom dildo and the new Xtra-Small Series IV line of dildos.

Brent Aldon, Erik Vasquez to Co-Host Retail Edition of 2026 XBIZ Honors at Avalon Hollywood

Aneros Director of Sales and Marketing Brent Aldon and Sliquid VP of Marketing Erik Vasquez will co-host the 2026 XBIZ Honors, set for Jan. 11 at Avalon Hollywood in Los Angeles.

Kiiroo Introduces New Argenta Stroker

Kiiroo has debuted the new Feel Argenta stroker sleeve from its FeelStar line.

Howl Launches New 'Ambassador' Referral Program

Wellness brand Howl has launched its Ambassador referral sales program.

Womanizer Unveils 'Next Duo' Vibrating Air Pulse Massager

Womanizer has introduced its Next Duo vibrating air pulse massager.

Orion Debuts 'Double Vibrator' From Couples Choice Line

Orion Wholesale has introduced the Double Vibrator from its Couples Choice line.

Orion Debuts 1st Christmas Collection From Cottelli Lingerie Line

Orion Wholesale has introduced the first Christmas Collection from its Cottelli Lingerie line.

Honey Play Box Introduces 'Vibrosa' Egg Vibe

Honey Play Box is debuting its new Vibrosa app-controlled egg vibrator.

ProDx Health Joins The Play as New Testing Partner, Launches 'Play Safe' Kit

ProDx Health has joined lifestyle organization Play LA as its new testing partner and marked the partnership with the launch of its Play Safe kit.

Cliterature Introduces Pleasure Products Collection

Cliterature has expanded its collection with new vibes, all packaged in the brand's book-shaped boxes.

Show More