Michigan Judge: These Are 'No Ordinary Times' to Discriminate Against Adult Businesses

Michigan Judge: These Are 'No Ordinary Times' to Discriminate Against Adult Businesses

FLINT, Mich. — An Eastern Michigan court decision on Monday established that local strip clubs should be eligible for the Payment Protection Program (PPP) administered by the Small Business Administration (SBA) as part of the U.S. Congress-approved COVID-19 relief package, regardless of the “prurient clause” included as part of the application.

According to the ruling by U.S. District Court for the Eastern District of Michigan Judge Matthew F. Leitman, Congress "provided temporary paycheck support to all Americans employed by all small businesses that satisfied the two eligibility requirements — even businesses that may have been disfavored during normal times."

Leitman entertained the SBA lawyers’ argument that “it would ordinarily be absurd to conclude that Congress meant to provide financial assistance to, among others, certain sexually oriented businesses."

“But,” the judge continued, ruling in favor of the strip clubs, “these are no ordinary times, and the PPP is no ordinary legislation.”

The “prurient” clause on the SBA 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.”

DV Diamond Club of Flint LLC and other 41 other strip clubs sued the SBA, alleging they were put in the position of being denied for PPP loans because of the “prurient clause.”

On Monday, Judge Leitman issued an injunction ordering the SBA “not exclude Plaintiffs from participating in the PPP on the ground that they present entertainment or sell products of a ‘prurient sexual nature.’”

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

Arcom-Targeted Sites Implement Age Verification in France

Five high-traffic adult websites based outside of France have implemented age verification as required under the nation’s Security and Regulation of the Digital Space (SREN) law, after receiving warnings from French media regulator Arcom.

Lovense 'Spinel' Vibrator Featured in Wired Review

Lovense's Spinel mini sex machine is featured in a new review on Wired.com.

Creative Conceptions Now Shipping Skins Sexual Health 'Kegels'

Creative Conceptions is now shipping the new Skins Sexual Health kegel balls.

Paradise to Host 'Happy Hour' Event at XBIZ Expo

Paradise Pleasure Products will host a special Happy Hour event during XBIZ Expo 2026.

Florida Attorney General Dismisses AV Suit Against Segpay

The Florida attorney general’s office on Monday agreed to dismiss claims against payment processor Segpay in a lawsuit over alleged noncompliance with the state’s age verification law.

Fleshlight, Ricky's Room Team Up to Launch New Product Line

Fleshlight and Ricky's Room have partnered to launch the new Fleshlight x Ricky's Room collection.

VVD Debuts 'Rider Desire Black' Sex Machine

Pleasure brand VVD has introduced its limited edition Rider Desire Black sex machine.

b-Vibe to Host 'Pottery & Sip' Event at XBIZ Expo

B-Vibe will host a “Mold Your Fantasy: A Pottery & Sip Experience” in partnership with Pot Studio LA during XBIZ Expo 2026.

FTC Weighs Reboot of 'Click to Cancel' Rulemaking Process

The Federal Trade Commission has invited public comments on a petition to renew trade regulation rulemaking concerning negative option plans, after a federal court previously vacated a “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions.

LELO Toys Featured on Netflix's 'Emily in Paris'

LELO's Sona 2 Cruise and Soraya Wave appear in episode seven of the latest season of Netflix's "Emily in Paris."

Show More