New Bill Bars SBA from Denying Loans to Gun Businesses Solely Based on Industry Ties

The Equal Shot Act of 2025 is short and to the point: it tells the Small Business Administration (SBA) that it can’t shut the door on loan applications just because the applicant is in the firearms industry. Specifically, Section 3 mandates that the SBA Administrator cannot establish any rule, practice, or guidance that unfairly rejects a qualified applicant simply because they are a “firearm entity,” an “affiliate,” or a “trade association.” This means if a gun manufacturer or a local shooting range meets all the standard business criteria for an SBA loan or loan guarantee, their industry connection can’t be the dealbreaker.

Who Gets the Equal Shot?

This bill casts a wide net when defining who qualifies for this protection. Section 2 defines a “firearm entity” as anyone involved in the design, manufacture, marketing, sale, or promotion of firearms, ammunition, or even their parts and accessories. We’re talking about everything from scopes and silencers to holsters and secure storage devices, according to the bill’s reference to Section 921. Even more broadly, a “firearm entity affiliate” includes places like sport shooting ranges or groups that teach firearm safety. Essentially, if you make, sell, or teach people how to use anything related to a gun, this bill is talking about you.

What This Means for Small Business Loans

For small business owners in the firearms sector—say, a local gunsmith or a small company designing innovative firearm storage solutions—this bill is designed to ensure they have the same access to capital as a bakery or a landscaping company. If the SBA has been hesitant to back loans for this industry due to perceived risk or political pressure, this Act removes that specific barrier. For example, a qualified small manufacturer looking to expand their production line could now apply for an SBA-backed loan without fear of being denied simply because their product is regulated.

The Real-World Impact on the SBA

While the goal is non-discrimination, this legislation puts the SBA in a tighter spot. The SBA’s job is to assess risk, and historically, some federal agencies have developed policies that treat certain industries differently. This bill prohibits the SBA from creating blanket policies that penalize the entire firearms sector. However, it doesn't stop the SBA from denying a loan based on poor credit, insufficient collateral, or a weak business plan—only the reason solely being the industry affiliation is off the table. For the rest of us, this is a reminder that federal financial programs are designed to support small businesses across the board, and this bill aims to make sure that rule applies equally, regardless of the product being sold.