SBA loan basics
Short answer
No, businesses primarily engaged in gambling activities, such as casinos, racetracks, or lottery businesses, are generally not eligible for SBA 7(a) loans.
The SBA has a list of ineligible businesses, and those deriving more than one-third of their gross annual revenue from gambling are typically excluded. This also applies to businesses involved in illegal activities or those that are passive in nature.
A small neighborhood arcade that also operates a few slot machines and has 40% of its revenue from gambling would likely be deemed ineligible for an SBA 7(a) loan due to exceeding the one-third gambling revenue threshold.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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