Will significant gambling income slow down my SBA Loan?

May 09, 2024

by a searcher from Pomona College in South Kingstown, RI, USA

As I continue my self funded search, I still have a day job I'm also an advantage gambler and make significant additional income. I pay taxes on all the income and use a specialized CPA out of Vegas to prepare/file. That being said, I have a ton of ins and outs on my bank statements (almost all less thank $10k) from the gambling. When applying for an SBA loan, will this slow down the process or maybe even be a problem?

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Great question. As already stated by some above, it really depends on how much of your income is based on gambling. Many lenders worry there are un-reported losses and because of that just will not lend to people with heavy gambling winnings or losses. But if you are actually reporting income and are a "professional gambler" even if just a part time one, it should not end up being an issue. It also should not slow down the process. The key is to let lenders know up front and to work with lenders that can get comfortable from day one. We have not had an issue getting deals done for others in a similar position as you are in. We are.a Commercial Loan Brokerage shop with over 500 funding partners and over 60 SBA funding partners. We know how to underwrite and package deals to get them done. I am confident we can find a partner that could get something like this funded for you in an orderly fashion. If you need assistance you can reach me here or directly at redacted

Reply by a professional
from Boston College in Baltimore, MD, USA

From my experiences, details will matter. If gambling is your primary source of income, my expectation is that -- at best -- it will slow down the underwriting process substantially (my personal experience with a home loan in prior life where poker was sole source of income). Even if you have appropriate logs, 1099-W2Gs and have taken conservative positions on win/loss sessions, you are fighting against a visceral reaction that the underlying income is not projectable. If gambling is "just" significant source of supplemental income, it depends (client applying for commercial / non-SBA loan). In my client's case, the lender backed-out gambling income and underwriting only considered W-2 income. DM for more thoughts.

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