Chicago's Iconic Admiral Theatre Suing SBA Over 'Prurient' Clause

Chicago's Iconic Admiral Theatre Suing SBA Over 'Prurient' Clause

CHICAGO — A popular Chicago adult entertainment venue is suing the Small Business Administration (SBA) over the “prurient clause” in its loan application for pandemic relief.

The Admiral Theatre is a legendary venue currently operating as a strip club, whose facade bears the Larry Flynt quote, “The greatest right a nation can afford its people is the right to be left alone.”

The Admiral is suing the SBA and Secretary of the Treasury Steve Mnuchin alleging that its First Amendment rights are being violated because their loan application has been stalled.

The theater’s lawyers claim that the application for a PPP loan to help with their payroll is not being approved because of a clause preventing “prurient” businesses from receiving federal funds.

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

The form compels applicants to declare that they do 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.”

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.”

The Chicago theater’s lawyers allege that “all of the entertainment provided by the Admiral is non-obscene (and thus cannot be deemed prurient).”

“No entertainer performing at The Admiral has even been charged with, let alone convicted of, the crime of obscenity,” the lawsuit states.

According to the Chicago Sun-Times, “the Admiral provided a loan application to its bank on April 4, and the bank submitted the application to the SBA on April 15, the lawsuit states. The SBA hasn’t approved or denied the application as it is still determining the club’s eligibility.”

The lawsuit argues that in the event the theater is “unable to obtain PPP loans, it may lack the staff and/or funds to reopen following the COVID-19 pandemic, resulting in the permanent ruination of its business, the inability of Plaintiff to engaged in protected First Amendment activity, and the inability of Plaintiff’s staff, entertainers, and customers to continue engaging in or viewing protected First Amendment activity.”

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

X3 All-Stars Party Heats Up Hollywood Thursday Night

XBIZ is pleased to announce this year’s X3 All-Stars party, sponsored by Adult Time and Fleshlight, kicking off the 2026 X3 Expo.

Naughty America Launches AR Video Format 'Shows' on Real Girls Now Platform

Naughty America has launched "Shows," a new AR video format, on its Real Girls Now platform.

Alexis James Makes Her Kink.com Debut

Alexis James has made her Kink.com debut alongside Vince Karter in "Three Hole Domination."

Eris Jolie, Leah Hayes Front Latest From TransAngels

Eris Jolie and Leah Hayes star with Baxxx in the latest release from TransAngels, titled “Varsity Vixens.”

Olivia Del Rio Returns to Dorcel for 'PL4Y Vol. 2'

Olivia Del Rio stars in the new Dorcel title “PL4Y Vol. 2.”

Orion Debuts 'Rabbit With Thrust and G-Spot Stimulation' Vibe From Sweet Smile Line

Orion Wholesale has introduced the Rabbit Vibrator with Thrust Function and G-Spot Stimulation from its Sweet Smile line.

Glittering 2026 XBIZ Honors Spotlights Pleasure Industry

The 2026 XBIZ Honors, presented by Svakom and Kaotik Labs, lit up Avalon Hollywood on Sunday night, turning the iconic venue into a dazzling celebration of pleasure-industry excellence.

Eve Sweet Leads Dorcel's 'Couture No. 3'

Reigning Euro XMAs Female Performer of the Year Eve Sweet headlines the latest release from Dorcel, titled “Couture No. 3.”

Oh Collective Debuts 'Strawberry Matcha Date Night Chocolate' Gift Set

Oh Collective has introduced its new Strawberry Matcha Date Night Chocolate gift set.

AEBN Reveals Ariel Demure as Top Trans Star for 2025

AEBN has revealed its top 10 trans stars list for 2025, with reigning XMAs Trans Performer of the Year Ariel Demure landing atop the leaderboard.

Show More