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

Kiiroo Introduces New Argenta Stroker

Kiiroo has debuted the new Feel Argenta stroker sleeve from its FeelStar line.

Howl Launches New 'Ambassador' Referral Program

Wellness brand Howl has launched its Ambassador referral sales program.

Womanizer Unveils 'Next Duo' Vibrating Air Pulse Massager

Womanizer has introduced its Next Duo vibrating air pulse massager.

FSC: California's Device-Based AV Law Does Not Apply to Adult

The Free Speech Coalition (FSC) put out an advisory today explaining that California's new device-based age verification law does not apply to adult websites.

Orion Debuts 'Double Vibrator' From Couples Choice Line

Orion Wholesale has introduced the Double Vibrator from its Couples Choice line.

Orion Debuts 1st Christmas Collection From Cottelli Lingerie Line

Orion Wholesale has introduced the first Christmas Collection from its Cottelli Lingerie line.

Honey Play Box Introduces 'Vibrosa' Egg Vibe

Honey Play Box is debuting its new Vibrosa app-controlled egg vibrator.

ProDx Health Joins The Play as New Testing Partner, Launches 'Play Safe' Kit

ProDx Health has joined lifestyle organization Play LA as its new testing partner and marked the partnership with the launch of its Play Safe kit.

Cliterature Introduces Pleasure Products Collection

Cliterature has expanded its collection with new vibes, all packaged in the brand's book-shaped boxes.

Show More