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 © 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

CalExotics Expands 'Connect' Line

CalExotics has expanded its app-controlled Connect line with three new products, Explorer, Warming Wand, and Advanced Probe.

Harlie Hotwife Makes Her WIFEY Debut

Creator Harlie Hotwife stars with her husband Travis and Prince Yahshua in the latest release from Vixen Media Group studio imprint WIFEY.

Mandii Rose Makes Her Elegant Angel Debut

Mandii Rose stars with Charles Dera in her Elegant Angel debut, titled “Good in the Hands.”

Rachel Rampage Stars in Latest From Kink.com

Rachel Rampage stars with Marcelo in the latest installment of Kink.com's "Divine Bitches" series.

Avery Lust, Chanel Chance Star in Latest From TGirls.Porn

Avery Lust and Chanel Chance star in the latest release from Grooby paysite TGirls.Porn, titled "The New Faces."

Tiffani Madison Makes Her FreeUse Debut

Tiffani Madison stars alongside Dannny Steele and Enzo East in her debut scene for FreeUse, titled “The Breeding Law.”

Eva Angelina Makes Her Tushy Debut

Eva Angelina has made her debut for Vixen Media Group studio imprint Tushy.

FSC Talks Age Verification on Capitol Hill

The Free Speech Coalition (FSC) has published a blog post detailing the organization's talks on age verification on Capitol Hill in Washington.

Catherine Knight, Dolly Dyson Star in Latest From Blacked Raw

Catherine Knight stars with Dolly Dyson in the latest release from Vixen Media Group studio imprint Blacked Raw.

FTC Warns PayPal, Stripe, Visa, Mastercard Against Debanking

Federal Trade Commission Chairman Andrew Ferguson sent letters on Thursday to the CEOs of PayPal, Stripe, Visa and Mastercard, warning them against debanking practices — including denying access to services due to a customer’s lawful business activities.

Show More