Your Adult Business Can Apply For SBA Disaster Loans

Earlier this week the adult industry turned it’s attention to the sex-negative prejudices built into the Small Business Administration’s Economic Injury Disaster Loan Program. The Loan Application states business that “present[s] live performances of a prurient sexual nature or derive[s] 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” are barred from applying.

First Amendment Violation

First Amendment attorney Lawrence Walters pointed out that the application uses the LEGAL definition of “prurient,” defined by case law means, a ‘shameful or morbid interest in sexuality.’ Walter explains adult businesses could rightly argue a healthy interest in human sexuality, not shameful or morbid or ‘prurient’ sexual interest. Walters believes that “…denying a loan based on the content of entertainment or speech would be unconstitutional.” Scholar and defense attorney Reed Lee thinks “well-advised adult business can legitimately check the box disclaiming prurience (because its wares are not ‘shameful or morbid’) and perhaps fly under the radar and get what others are getting by way of relief.”

Flying Under The Radar

While “flying under the radar” worries lawyers, it’s important to understand that every obscenity case involving “prurient” since the mid-1960s has been acquitted using this obscenity defense. First Amendment attorney J. Michael Murray states, “The adult industry takes the position that none of its materials would be of a prurient sexual nature…If the government were exclude adult businesses, we would argue that it’s unconstitutional under the First Amendment.”

Attorneys agree that adult businesses should discuss the Economic Injury Disaster Loan or the Payroll Protection Program applications with their attorneys so their business adheres to all the legal guidelines