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

Pervz to Debut New Limited Series 'Power Corrupts'

Pervz has announced the launch of its new six-scene limited series, "Power Corrupts."

Sandra Makes Her WIFEY Debut

Creator Sandra stars with her husband Ivan and Isiah Maxwell in the latest release from Vixen Media Group studio imprint WIFEY.

Gia Palomino Makes Adult Debut in Angelo Godshack's 'Rough Love 6'

Gia Palomino makes her adult debut and headlines Angelo Godshack’s latest Evil Angel directorial, “Rough Love 6.”

2026 XBIZ Miami Conference Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for XBIZ Miami, set to take place May 11-14 at the Goodtime Hotel in South Beach.

Court of International Trade Rejects Trump 'Replacement' Tariffs

The U.S. Court of International Trade on Thursday ruled that President Trump’s 10% global tariff under the Trade Act of 1974, imposed after the Supreme Court invalidated the administration’s broad “Liberation Day” tariff regime, is illegal — but stopped short of a nationwide injunction against the tariff.

Blush Announces Executive Appointments

Blush has announced three new executive appointments across its organization.

Bellesa Plus Wraps Shooting on New Reality Series

Bellesa Plus has wrapped production on the first episode of its new reality series, “The Bellesa Challenge.”

Eva Maxim, Emma Rose Lead Latest From TransAngels

Eva Maxim and multi-XMAs winner Emma Rose star in the latest release from TransAngels, titled "Stuck on Top."

Williams Trading Launches 2026 'Pride' Promo, Summer Catalog

Williams Trading has launched its 2026 Summer Pride promotion and catalog.

Andi Avalon Returns to MILFY

Andi Avalon has made her return to Vixen Media Group studio imprint MILFY alongside Derek Savage and Isiah Maxwell in the studio’s latest scene.

Show More