For SBA lenders
Short answer
No, businesses primarily engaged in activities related to adult entertainment or gambling are generally ineligible for SBA 7(a) loans.
SBA regulations specifically exclude certain types of businesses from participating in its loan programs. This includes businesses involved in gambling (e.g., casinos, racetracks, establishments deriving more than one-third of gross annual revenue from legal gambling activities) and businesses that present or sell products or services of a prurient sexual nature. These exclusions reflect public policy considerations.
A borrower applies for a 7(a) loan to acquire a business that operates adult entertainment venues. The lender would immediately identify this as an ineligible business type based on SBA regulations and decline the application.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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