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

Peachy Alice Fronts Latest From Immoral Productions

Peachy Alice stars in a new trilogy from Immoral Productions, alongside Charlie Dean, Matt Bird, and studio honcho “Porno Dan” Leal.

Blush Expands 'Aria' Collection With 4 New Vibes

Blush has introduced four upgraded versions of vibrators from its Aria collection.

Jessi Rae Signs Exclusive Contract With Vixen Media Group

Vixen Media Group (VMG) has signed Jessi Rae to an exclusive contract.

BranditScan Launches 'Referral Rush' Promo

BranditScan has launched its Referral Rush promotion for creators.

We-Vibe Debuts 'Melt 2' Vibrator, Air Pulse Massager

We-Vibe has introduced its new Melt 2 vibrator/air pulse massager.

Pure Taboo Debuts Bree Mills Thriller 'The Party's Over'

Hazel Moore stars with Liz Jordan and Hailey Rose in the latest thriller from Pure Taboo, titled “The Party’s Over.”

Athena Heart Stars in Latest From TeamSkeet

Athena Heart stars with Jason Sarcinelli, Axel Haze, and Nick Strokes in the latest release from TeamSkeet.

Violet Myers, Valentina Nappi Star in Latest From Brazzers

2025 XMAs Premium Social Creator of the Year Violet Myers stars with Valentina Nappi and Ricky Johnson in the latest release from Brazzers, titled “V and V Share a Big D.”

Full Circle Expands 'Savage Me' Line of Male Torsos

Full Circle has expanded its line of Savage Me male torsos.

2025 AltStar Awards Nominees Announced

Nominations have been announced for the 2025 AltStar Awards, aka the AltPorn Awards, presented by Bad Dragon.

Show More