CHATSWORTH, Calif.—Forgivable Paycheck Protection Program (PPP) loans made available to adult business owners affected by the COVID-19 pandemic through a partnership between the Free Speech Coalition (FSC) and CDFI blueacorn are still up for grabs, FSC reps report, but the coffers are expected to soon get depleted.
Many in the adult industry didn’t apply for the first round of government PPP loans because the eligibility requirements excluded businesses with a “prurient sexual nature." But the FSC together with blueacorn launched an industry-specific tool in February to guide adult business operators through the process of applying for available loans of up to $25,000, which may be forgiven if spent on qualified expenses such as payroll, operations and rent.
The deadline to apply for the second round of PPP has been extended to May 31. But FSC CEO Michelle L. LeBlanc recently warned funds may run out this month.
“There was some confusion during the early days of the PPP loans,” Mike Stabile, communications director for the FSC said. “Many smaller adult businesses, particularly self-employed performers, crew and other independent contractors, did not realize they qualified for this money.”
Some legal experts believe the word "prurient" likely doesn’t apply to most adult businesses or workers. Many adult industry workers received loans in the first round of PPP. Stabile said the program rejected “a small number” of adult industry workers and that many are currently contesting the decision in court.
Stabile says the PPP is treating adult businesses similarly to mainstream businesses.
“If you can show lost income or financial distress due to COVID, you're able to apply and likely qualify for a loan,” Stabile said.
He believes this includes performers, cam models, crew, clip site creator/performers, and other freelancers or independent contractors.
Many in the adult industry lost substantial income during the pandemic. Yet many didn’t apply for relief because they thought they were excluded or heard some businesses had difficulty getting loans in the first round of PPP.
The federal government disproportionately provided economic relief to the wealthy and well-connected with the first round of PPP. In just one example, PPP provided companies owned by West Virginia Gov. Jim Justice and his family as much as $24 million.
“Most people just didn't realize that self-employed people and independent contractors qualified as businesses,” Stabile said. “No matter what industry you're in, if you're getting a 1099 form at the end of the year, you're likely a business,” Stabile said. “If you've lost income due to COVID, you likely qualify. We partnered with blueacorn, a loan facilitator, to help streamline the process. The response has been amazing. We've had hundreds of people approved for the loans, and the word has spread.”
Director/performer and Pervout.com owner Lance Hart was able to get a PPP loan, and created a video walkthrough of how he did it. “If you watch this video and then get thousands of dollars and then don’t have to pay the money back, you owe me a fucking hand job,” Hart wrote (emphasis his).
“If someone hasn't applied, and believes they might qualify, we encourage them to visit FSCPPP.com,” Stabile said.
