SBA loans for escape rooms, golf simulators, trampoline parks and other recreation venues

What lenders check

Each lender sets its own checklist. SBA sets the basic eligibility tests.

A lender reviewing a loan to escape rooms, golf simulators, trampoline parks and other recreation venues looks at the business's numbers and these items for the trade:

• Which attraction earns the money, such as escape rooms, golf simulators, axe throwing or trampolines, and whether repeat visits last once the novelty fades
• Waiver process, injury claims history and liability coverage, since trampoline and axe-throwing venues can be hard to insure
• Zoning, building and fire-code clearance for crowd use of the space, since many warehouse and retail buildings are not permitted for assembly

Common uses of the money

Businesses like these use SBA loans for:

• Build-out of a leased warehouse or storefront with the rooms, bays, courts or trampolines the venue sells
• Specialized equipment such as golf simulators, laser tag systems, go-karts or escape room puzzles and controls
• A party room, concession counter and online booking system to capture birthdays and group events

Collateral

Simulators, karts and game systems secure the loan but resell for much less than new, while themed build-out adds little.

How much they borrow

66% of these loans were $500,000 or less, the range where SBA Express is available.

The median loan was $317,600, larger than the $150,300 median for all SBA 7(a) loans. Half of the loans fell between $100,000 and $777,100. The most common size band was $50,000 or less.

By business age, 25% had operated for more than 2 years and 13% for 2 years or less. 55% were startups opening with the loan, and 5.9% paid for a change of ownership.

How the money comes

24% of the loans went through SBA Express and 19% were lines of credit. The median term was 10 years.

Across all industries, 36% of loans went through SBA Express and 28% were lines of credit. Express counts here include Export Express.

The median term was 10 years (120 months). For working capital, SBA's maximum term is 10 years. For equipment, it is 10 years, or up to 15 years if the IRS asset class useful life supports it. Source: SOP 50 10 8.1: App. 17, Para. A.1 (p. 390); App. 17, Para. A.2 (p. 390).

Where the loans are

Texas had the most loans, 156 of 1,395 (11%).

Location is the state of the business, not of the lender.

These states have their own page for this industry, with at least 50 loans from October 1, 2019 to June 30, 2026.

• Illinois103 loans
• Virginia69 loans
• North Carolina68 loans

Compare every state on SBA loans by state.

How often these loans went bad

3.3% of 640 seasoned loans were charged off, close to the 3.6% rate for all SBA 7(a) loans.

21 of the 640 loans approved October 1, 2019 to September 30, 2022 were charged offcharged offThe lender wrote the loan off as a loss because it was not being repaid. by June 30, 2026. By dollars, 0.8% of the approved amount was charged off.

SBA size standard

NAICS 713990 has its own size standard.

For NAICS 713990, SBA's size standard is $9 million in average annual receipts. A business at or under the standard is small for SBA's purposes. To qualify, a business must fit the size standard for the applicant's primary industry in 13 CFR 121.201, measured in annual receipts or employees. SBA measures size on the date the application is accepted for SBA processing, or for delegated loans the date the lender approves the loan.

A business over the standard can still qualify under the alternative standard: tangible net worth of $20 million or less and average net income after federal income taxes of $6.5 million or less over the prior two fiscal years. Source: SOP 50 10 8.1: Sec. A, Ch. 1, Para. D.1 (p. 14); Sec. A, Ch. 1, Para. D.2 (p. 14); 13 CFR § 121.301(b)(2).