New York Times Publishes Reuters Report Criticizing SBA's 'Prurient' Clause

New York Times Publishes Reuters Report Criticizing SBA's 'Prurient' Clause

PHILADELPHIA/WASHINGTON, D.C. — The New York Times has published a report by Reuters journalists surveying the confusing, discriminatory language about “prurient” businesses embedded in the Small Business Administration (SBA)’s loan applications for COVID-19 relief.

“Nearly four months since the launch of the loan initiative known as the Paycheck Protection Program (PPP),” the reporters wrote, “it is still unclear whether the SBA can make it rain” for the strip clubs and other adult-oriented business.

The report continues, stating that “the Trump administration has barred companies that ‘present live performances of a prurient sexual nature’ from participating. Clubs sued, and two federal judges rebuked the SBA for excluding the establishments from receiving the forgivable loans meant to protect jobs amid the health crisis.”

As XBIZ reported in March when the loans were first offered by the federal government, the “prurient” clause on the SBA loan application form replicates mid-1990s, Clinton-era 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.

Today's Reuters report describes the PPP as “a government loan program that has been plagued by criticism — duplicate loans, borrowers without clear financial need, inconsistent data,” and calls “the strip-club uncertainties” another example of “confusion surrounding an initiative that pushed hundreds of billions of dollars out the door.”

"The ball is in the SBA’s court right now," said Brad Shafer, attorney for a group of strip clubs who convinced a judge for the District Court of the Eastern District of Michigan to order the SBA to consider the clubs’ loan applications. "We still don’t know the end of this story."

Using loan data released by the SBA earlier this month, Reuters “identified 36 organizations representing dozens of strip clubs across the country that were approved for between $11.15 million and $27.95 million worth of loans from the small business pandemic aid program. Some of the businesses received the funds after the court decision; others got the money from banks despite the ban.”

“All totaled, these companies saved 2,548 jobs, according to the government data,” the report continued.

To read the Reuters article “Strip-Club Stimulus Reveals Lingering Uncertainties Over U.S. Small-Business Aid,” visit the New York Times.

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

Xgen Expands Bodywand Line With 2 New Vibes

Xgen Products has added two new bullet vibrators to its Bodywand collection.

Womanizer Introduces 'Snap' Micro Stimulator

Womanizer has debuted its new Snap stimulator, billed as the smallest pleasure product the company has released.

Product-Specific Local Store Locator Tool 'RetailCurrent' Launches

RetailCurrent, a tool that lets pleasure brands show online customers nearby brick-and-mortar stores with confirmed availability of specific products, has officially launched.

Blush Debuts 'M for Men' Male Sleeve Warmer

Blush has introduced its new M for Men sleeve warmer for male masturbators and strokers.

Orion Debuts 3 New Styles From 'Cottelli Party' Line

Orion Wholesale has expanded its Cottelli Party line with three new styles.

FSC Publishes Guidance on New UK Pornography Laws

The Free Speech Coalition (FSC) has published information for its members on the United Kingdom's recently passed pornography laws, which take effect next week.

Brazil Issues Guide to Digital Safety Compliance

Brazil’s National Data Protection Agency (ANPD) published on Wednesday a new guide outlining online providers’ child-protection responsibilities under the Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

Nalpac Releases 2026 Winter Catalog

Nalpac has released its 84-page 2026 winter catalog.

2027 XBIZ Exec Awards Nominees Announced for Pleasure Product and Retail Edition

XBIZ is pleased to announce the executive nominees for the pleasure product and retail industry edition of the 2027 XBIZ Awards, presented by Svakom and sister brand Kaotik Labs, set to take place on Saturday, Jan. 9, in conjunction with the XBIZ 2027 event series.

Arcom Issues Warnings to 3 Adult Sites Over Age Verification

French media regulator Arcom has issued formal notices to the operators of three adult websites that the agency says have failed to implement age verification as required under French law.

Show More