Can I get an SBA loan to buy a Card Room?

Not to be wishy – washy, but it depends.

You can use an SBA loan to buy most businesses (and almost all types of commercial real estate), but there are some prohibited businesses.

Some ineligible businesses include:

  • Non-Profit Businesses (for profit subsidiaries are eligible)
  • Businesses primarily active in lending (banks, finance companies and factors)
  • Life Insurance companies
  • Businesses outside the US
  • Pyramid Sales Distribution Companies
  • Businesses obtaining more than one-third of gross revenue from legal gambling activities
  • Rental real estate
  • Private clubs or businesses that limit memberships (for reasons other than physical capacity)
  • Businesses that teach or counsel religion or religious beliefs.

So if your card room doesn’t earn more than one-third of gross revenue from gambling activities it may be eligible for an SBA loan. For example, this business would qualify if 50% of gross revenue came from the sale of drinks, and 25% came from food sales so only 25% of revenues came from gambling.

But if the business earns one-third or more of total revenue from gambling, you can’t buy it with an SBA loan.