Amusement Arcades
713120
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SBA Loans for Amusement Arcades: Financing Growth in Family Entertainment
Introduction
Amusement arcades provide entertainment through coin-operated and electronic games, offering fun for families, teens, and tourists alike. Classified under NAICS 713120 – Amusement Arcades, this industry includes businesses that operate arcades with video games, pinball machines, claw machines, redemption games, and virtual reality setups. While demand for unique entertainment experiences continues to grow, arcade owners face financial challenges such as high equipment costs, facility leases, maintenance, and marketing competition from online and home gaming alternatives.
This is where SBA Loans for Amusement Arcades can provide valuable support. Backed by the U.S. Small Business Administration, SBA loans offer longer repayment terms, lower down payments, and government-backed guarantees. These loans help arcade operators purchase machines, expand facilities, invest in technology, and stabilize cash flow while competing in the fast-changing entertainment sector.
In this article, we’ll explore NAICS 713120, the financial challenges arcade operators face, how SBA loans provide solutions, and answers to frequently asked questions from entertainment business owners.
Industry Overview: NAICS 713120
Amusement Arcades (NAICS 713120) include businesses that provide:
- Coin-operated and electronic arcade games
- Pinball machines, claw machines, and redemption games
- Virtual reality gaming and simulation experiences
- Family entertainment centers with food and beverage options
- Party and group event hosting with arcade access
This industry is highly customer-driven and facility-dependent, requiring investment in equipment, leases, and upkeep.
Common Pain Points in Arcade Financing
From Reddit’s r/Entrepreneur, r/smallbusiness, and Quora discussions, arcade owners often highlight these challenges:
- High Equipment Costs – Arcade machines, VR setups, and redemption equipment are expensive to buy and maintain.
- Facility Expenses – Leases, utilities, and arcade buildouts create ongoing overhead.
- Changing Trends – Arcades must frequently refresh games to stay appealing.
- Competition – Home consoles, online gaming, and mobile apps compete for entertainment spending.
- Marketing Costs – Attracting families and group events requires constant local advertising.
How SBA Loans Help Arcade Operators
SBA financing provides affordable, flexible capital that helps arcade owners expand offerings, upgrade technology, and grow revenue streams.
SBA 7(a) Loan
- Best for: Working capital, payroll, marketing, or refinancing arcade debt
- Loan size: Up to $5 million
- Why it helps: Provides liquidity for staffing, rent, utility bills, and new machine purchases
SBA 504 Loan
- Best for: Facilities, major renovations, or long-term investments
- Loan size: Up to $5.5 million
- Why it helps: Ideal for purchasing or renovating arcade spaces, expanding family entertainment centers, or adding restaurants/bars
SBA Microloans
- Best for: Small or startup arcades
- Loan size: Up to $50,000
- Why it helps: Useful for buying a handful of arcade machines or launching local marketing campaigns
SBA Disaster Loans
- Best for: Arcades impacted by natural disasters or economic disruptions
- Loan size: Up to $2 million
- Why it helps: Provides recovery funds for damaged equipment, lost revenue, or facility repairs
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit arcade business with good personal credit (typically 650+)
- Prepare Financial Documents – Include tax returns, P&L statements, equipment lists, and lease agreements
- Find an SBA-Approved Lender – Some lenders specialize in hospitality and entertainment financing
- Submit Application – Provide a business plan highlighting arcade features, customer demographics, and revenue projections
- Underwriting & Approval – SBA guarantees reduce lender risk. Approval usually takes 30–90 days
FAQ: SBA Loans for Amusement Arcades
Why do banks often deny loans to arcades?
Banks may view arcades as risky due to high equipment costs, entertainment competition, and shifting consumer preferences. SBA guarantees reduce this risk and improve approval chances.
Can SBA loans finance arcade machines, VR setups, and facility renovations?
Yes. SBA 7(a) and 504 loans can fund arcade machines, gaming systems, buildouts, and expansions.
What down payment is required?
SBA loans typically require 10–20% down, compared to 25–30% for conventional entertainment financing.
Are startup arcades eligible?
Yes. Entrepreneurs with solid business plans and strong location strategies may qualify for SBA microloans or 7(a) financing.
What repayment terms are available?
- Working capital: Up to 7 years
- Equipment/facilities: Up to 10 years
- Real estate/buildings: Up to 25 years
Can SBA loans support marketing and event hosting?
Absolutely. Many arcades use SBA financing to run local advertising, host tournaments, and expand party/event packages.
Final Thoughts
The Amusement Arcade industry creates fun and social experiences but faces financial hurdles tied to equipment costs, competition, and changing trends. SBA Loans for Arcades provide affordable, flexible financing to stabilize operations, expand entertainment options, and attract new customers.
Whether you operate a small arcade or a full-scale family entertainment center, SBA financing can provide the resources you need. Connect with an SBA-approved lender today and explore your funding options under NAICS 713120.
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