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 © 2024 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

Pipedream Expands 'Anal Fantasy Elite' Collection

Pipedream Products has expanded its Anal Fantasy Elite collection with two new stimulators.

Orion Expands 'Couples Choice' Line With New '2 in 1' Vibe

Orion Wholesale has added the 2 in 1 Vibrator + Butt Plug to its Couples Choice collection of pleasure products.

Lovense Unveils 'Mission 2' Long Distance Vibe

Lovense has introduced the new Mission 2 vibrating suction cup dildo to its long-distance collection.

Male Power Debuts 'Pack & Play' Collection

Male Power has introduced its new Pack & Play collection of men's underwear.

Orion Debuts New Styles From Cottelli Lingerie

Orion Wholesale is now shipping new styles from its Cottelli Curves plus-size lingerie line.

Sportsheets Unveils Rebranded 'Edge' Line, 9 New Products

Sportsheets has debuted its reimagined Edge line featuring nine new products.

Our Erotic Journey's James Guo Profiled on Wired.com

James Guo, founder of pleasure brand Our Erotic Journey (OEJ), is profiled in a new feature on Wired.com titled "The Toymaker Who Wants to Be the Next Willy Wonka of Sex Tech."

Williams Trading Unveils 'Christmas Giftables' Catalog

Williams Trading Co. has released this year's edition of its "Christmas Giftables" digital catalog.

Magic Silk Debuts 'Leather + Lace' Collection

Magic Silk has introduced its new Leather + Lace lingerie collection.

Fleshy to Launch Interactive Cam Site 'Eromote'

Male pleasure brand Fleshy has announced that it will launch an interactive, bidirectional cam site next month called Eromote.

Show More