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

Pornhub Awards Fiesta: A Night of Music, Dancing and Camaraderie

The eighth annual Pornhub Awards transformed Los Candiles Night Club in Glassell Park into a celebration of glamour, glitter, fashion and fame Wednesday night, as performers, creators and industry insiders toasted the year’s winners and danced late into the night while Diplo and Midnight Mary kept the party pulsing from behind the decks.

Morari Debuts 'MOR' Male Enhancement Patch

Sexual wellness brand Morari, Inc. has launched its new male enhancement patch, MOR.

Carmen Valentina Stars in Latest From Elegant Angel

Carmen Valentina stars with reigning and three-time XMAs Male Performer of the Year Vince Karter in the latest release from Elegant Angel, titled "The Cure for Priapism."

Ukrainian Parliament Rejects Porn Decriminalization Bill

The Verkhovna Rada, Ukraine’s parliament, on Thursday voted against passage of a bill that would have decriminalized the creation and distribution of pornography in that country — an activity that currently carries a prison sentence of three to five years.

Cherie DeVille Leads New Gangbang From Brazzers

Cherie DeVille stars in a new gangbang from Brazzers, titled “Cherie’s Pool Party Parfait.”

Ivy Ireland Fronts Latest From Bellesa Plus

Ivy Ireland stars with Small Hands in the latest release from Bellesa Plus, titled “The Breakup.”

Svakom Products Featured in Norwegian Public Sexual Health Program

Norway’s national welfare administration (NAV) has added two of Svakom’s pleasure products to its sexual health program.

FSC Launches Pride Fundraising Drive

The Free Speech Coalition (FSC) has launched its Pride Fundraising Drive to support its efforts on behalf of the LGBTQ+ community.

Orion Debuts 'Rabbit Vibrator With Tickler' From Sweet Smile Line

Orion Wholesale has introduced the Rabbit Vibrator with G-Spot/Anal Tickler from its Sweet Smile line.

LELO Debuts 'Ina Thrust' Thrusting Vibrator

LELO has introduced its new Ina Thrust thrusting vibrator.

Show More