This is a half-truth. They can, but it is illegal for criminals to buy guns. But calling this a gun-show "loophole" is the same as calling it the "street corner loophole" that allows people to buy and sell drugs, even though this, too, is completely illegal. And there's the "unattended driver loophole" that allows drivers to exceed the speed limit, given that police officers aren't yet required to ride along with drivers in the passenger seat, to monitor compliance with the law.
Ah, NO THEY CAN'T.
UNLICENSEDdealers are THEMSELVES, ILLEGAL