SBA Barred from Denying Loans to Gun Industry Businesses Under New 'Equal Shot Act'

The new Equal Shot Act of 2025 is straightforward: it tells the Small Business Administration (SBA) that it cannot reject an application for financial assistance—like loans or loan guarantees—just because the applicant is involved in the firearms industry. Essentially, if a gun manufacturer, retailer, or related business meets all the financial and structural requirements for an SBA loan, their connection to firearms cannot be the sole reason they get turned down.

The Fine Print on Fairness

This bill addresses a specific issue: perceived discrimination against the firearms sector when accessing federal financial programs. For the small business owner, this means that the SBA can no longer use internal rules or informal guidance to blacklist an entire industry. Think of it this way: if you run a small machine shop that makes parts for the aerospace industry, you can get an SBA loan. If you run the exact same size machine shop but you make parts for rifles, this bill ensures you have the same shot at that loan money, provided your business plan is solid. The core action is found in Section 2, which explicitly prohibits the SBA from creating any rule or practice that unfairly rejects a qualified applicant solely because they are a “firearm entity,” an affiliate, or a trade association.

Who Gets the Equal Shot?

Section 3 of the Act spends a lot of time defining exactly who counts as a “firearm entity,” and it casts a wide net. It includes businesses involved in manufacturing, selling, marketing, shipping, or even designing firearms and ammunition. Crucially, it also covers companies dealing with components and accessories—things like scopes, silencers, grips, and secure storage devices. This means the local gun shop, the small-batch holster maker, and the company that runs the local shooting range (defined as a “firearm entity affiliate”) are all protected by this mandate. This broad definition ensures that the whole ecosystem of the firearms industry, from the largest manufacturer to the smallest accessory vendor, must be treated equally when seeking federal assistance.

Real-World Impact on Capital

For businesses in the firearms sector, access to capital has sometimes been challenging, particularly if lenders or government agencies have internal policies limiting exposure to the industry. By mandating that the SBA disregard industry type as a factor in denial, the Equal Shot Act potentially unlocks new funding streams for small businesses in this sector. For example, a family-owned gunsmithing shop looking to upgrade expensive machinery, or a shooting range needing a loan to expand its facilities, should now find the SBA process more equitable. The bill doesn’t guarantee the loan; it just guarantees the application will be judged on its merits—like revenue, debt, and growth potential—and not on the product being sold. This is a significant move toward regulatory neutrality for a legally operating industry.