{"ok":true,"canonical_url":"https://dealroom.so/glossary/franchise-eligibility-review","api_url":"https://dealroom.so/api/public/glossary/franchise-eligibility-review","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"franchise-eligibility-review","term":"Franchise Eligibility Review","group":"The loan itself","definition":"This is the SBA's process to confirm a franchise system is approved for 7(a) loans. If the franchise isn't on the SBA Franchise Directory, your loan process stops until it's reviewed.","what_it_means":"Before a lender can approve a 7(a) loan for a franchise business, the franchise agreement must be reviewed by the SBA to ensure it complies with SBA rules. Check the SBA Franchise Directory early in due diligence. If the franchise isn't listed or has an \"unreviewable\" status, budget extra time for the SBA to review their agreement, which can take weeks or months.","url":"https://dealroom.so/glossary/franchise-eligibility-review","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"franchise-directory","term":"Franchise Directory","url":"https://dealroom.so/glossary/franchise-directory"},{"slug":"franchise","term":"Franchise","url":"https://dealroom.so/glossary/franchise"},{"slug":"franchise-agreement","term":"Franchise agreement","url":"https://dealroom.so/glossary/franchise-agreement"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"What specific elements of a franchise agreement does the SBA review to determine eligibility?","url":"https://dealroom.so/for-lenders/questions/what-specific-elements-of-a-franchise-agreement-does-the-sba-review-to-determine-eligibili"},{"question":"What is the lender's process for submitting an unlisted franchise agreement for SBA eligibility review?","url":"https://dealroom.so/for-lenders/questions/what-is-the-lender-s-process-for-submitting-an-unlisted-franchise-agreement-for-sba-eligib"},{"question":"What are the specific eligibility requirements for a franchise agreement that lacks a formal review or listing on the SBA Franchise Directory?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-eligibility-requirements-for-a-franchise-agreement-that-lacks-a-form"},{"question":"What constitutes a \"material change\" to a franchise agreement that necessitates re-review by the SBA for eligibility?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-material-change-to-a-franchise-agreement-that-necessitates-re-review-by"},{"question":"What is the specific lender process for submitting an unlisted franchise agreement for SBA review and eligibility determination?","url":"https://dealroom.so/for-lenders/questions/what-is-the-specific-lender-process-for-submitting-an-unlisted-franchise-agreement-for-sba"},{"question":"What documentation is required from a franchisor for an unlisted franchise to be reviewed for 7(a) eligibility?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-from-a-franchisor-for-an-unlisted-franchise-to-be-reviewed-"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Franchise Eligibility Review","url":"https://dealroom.so/glossary/franchise-eligibility-review","source_type":"DealRoom Data"}}