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

Blush Debuts 'Dream Crush' Vibe

Blush has introduced the Dream Crush mini-vibrator from its Play With Me collection.

Vush, Kayla Jade Collab for Pleasure Product Collection

Sexual wellness brand Vush and performer Kayla Jade have partnered for a limited-edition line of pleasure products.

XBIZ Expo Debuts New '3D' Hybrid Show Format, Set for Jan. 8-12

XBIZ Expo, the premier business-to-business event exclusively for product manufacturers, retail buyers and the broader pleasure community, will return this January with a new hybrid format designed to give qualifying participants more ways to conduct business.

Doja Cat Gives Nod to Motorbunny

Doja Cat has given a nod to Motorbunny in a social media post.

Full Circle Debuts 'My Buddy' Anal Vibe Collection

Full Circle has introduced its new My Buddy collection of anal vibrators.

Lovense 'Gemini' Spotlighted on Wired.com

Lovense’s Gemini nipple clamps have been spotlighted on Wired.com.

Rocks Off Debuts 2 Rechargeable Bullet Vibes

Rocks Off has introduced two new rechargeable bullet vibrators.

Little Leaf Agency Expands to Spanish Market, Names Danni Llapart New PR Executive

Little Leaf Agency has expanded its territory to include the Spanish market and named Danni Llapart as its Barcelona-based PR executive.

ToyChats Taps Cam Jennings for Director of Business Development

Pleasure product review website ToyChats has hired industry veteran Cam Jennings as its new director of business development.

Onahole Debuts New 'Warm Mouth of a Swimsuit Girl' Stroker

Pleasure brand Onahole has introduced its new Warm Mouth of a Swimsuit Girl stroker.

Show More