California COVID Relief Grants Still Exclude 'Prurient' Businesses

California COVID Relief Grants Still Exclude 'Prurient' Businesses

SACRAMENTO — The California Office of the Small Business Advocate (CalOSBA) yesterday began distributing the sixth and final round of COVID relief business grants, but the application still includes a “prurient clause” which discourages adult businesses from applying.

According to the CalOSBA website, this funding round offers eligible grant awards of $5,000 to $25,000 and is intended for “current waitlisted small businesses and/or nonprofits not selected in [earlier rounds] and new applicants that meet eligibility criteria.”

But the “eligibility criteria” CalOSBA includes a copy of the “prurient clause” found in the federal SBA loan application, a disqualification intended against adult businesses.

Under “Ineligible Businesses,” CalOSBA lists “businesses of a prurient sexual nature, including businesses which present live performances of a prurient sexual nature and businesses which 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.”

An Antiquated, Discriminatory Term

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

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.

Last year, several sexually oriented businesses across the country sued the SBA for discrimination based on the “prurient clause.”

XBIZ has repeatedly contacted the CalOSBA public information officer about the federal language on the State form, but we have not received a response.

Businesses that do not consider themselves “prurient” are encouraged to apply here until Tuesday at 5 p.m. (PDT). Notifications of the awarded grants will begin Friday, May 7.

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

Liberator Names Lindsay Hargis Manager of Affiliate, Influencer and Strategic Partnerships

Liberator has appointed Lindsay Hargis as its new manager of affiliate, influencer and strategic partnerships.

Hankey's Toys Releases 'Roxas Caelum' Dildo

The Roxas Caelum dildo from Mr. Hankey's Toys has been unveiled.

Ghettoff Founder Nefertiti Mitchell Passes Away

Nefertiti "Neff" Mitchell, founder and CEO of adult retail store Ghettof, has passed away.

Nobü Adds to 'Essentials' Collection

Nobü is expanding its Essentials collection with three new pleasure products.

Orion Debuts 'Skull Masturbator' From Rebel Line

Orion Wholesale has released the Skull Masturbator from its Rebel collection.

Blush Launches 'UrSelf' Line

Blush has launched its UrSelf line of pleasure products.

Chalovelo Debuts 'MotoX1' Stroker

Pleasure brand Chalovelo has introduced its new MotoX1 Masturbator.

Dr. Carol Queen to Keynote 2026 XBIZ Expo Pleasure Products Trade Show

XBIZ is pleased to announce that Dr. Carol Queen, Good Vibrations staff sexologist, pleasure community historian, and curator of the Antique Vibrator Museum, will deliver the keynote address at the 2026 XBIZ Expo.

Orion Debuts 'Cuties' Vibrating Anal Plug Collection

Orion Wholesale has introduced its new Cuties Mini Butt Plug collection.

Lovehoney Group, Xgen Sign Licensing Agreement for 'Pleasure Air' Tech

Lovehoney Group has signed a licensing agreement with Xgen for the latter to use the former's patented Pleasure Air technology in its pleasure products.

Show More