{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-determine-if-a-franchise-is-listed-on-the-sba-franchise-directory-for-ex","api_url":"https://dealroom.so/api/public/questions/how-does-a-lender-determine-if-a-franchise-is-listed-on-the-sba-franchise-directory-for-ex","question":"How does a lender determine if a franchise is listed on the SBA Franchise Directory for expedited processing?","topic":"Franchise Eligibility","audience":"lender","bot_mode":"lender","short_answer":"A lender determines if a franchise is listed on the SBA Franchise Directory by searching the current online directory, which indicates if the franchise agreement has been pre-approved by the SBA.","rule":"The SBA maintains an online Franchise Directory of franchise systems whose agreements have been reviewed and determined to meet SBA eligibility requirements. If a franchise is listed, lenders can proceed with an expedited eligibility review for the franchise agreement itself. If not listed, the lender must submit the franchise agreement to SBA for a full review.","example":"A borrower applies for a loan to acquire a 'Burger Joint' franchise. The lender accesses the SBA Franchise Directory online, searches for 'Burger Joint,' and finds it listed with an 'FDD Addendum' note. This indicates the franchise is pre-approved, expediting the lender's review of the franchise agreement.","what_lenders_check":"Lenders must always consult the most current SBA Franchise Directory to confirm a franchise's status. Relying on outdated information or failing to check the directory can lead to delays or issues with eligibility if the franchise agreement has not been pre-approved or has changed, potentially jeopardizing the guaranty.","required_facts":["SBA Franchise Directory","Expedited processing","Franchise agreement","Pre-approval","Online search"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","7(a) Loan Program Terms, Conditions, and Eligibility","SBA Document Search"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"},{"title":"SBA Document Search","url":"https://www.sba.gov/documents"}],"related_questions":[{"question":"What specific requirements apply to a franchise system for SBA 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/what-specific-requirements-apply-to-a-franchise-system-for-sba-7-a-loan-eligibility"},{"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":"How does the SBA define 'undue control' by a franchisor that could render a franchise ineligible for 7(a) financing?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-define-undue-control-by-a-franchisor-that-could-render-a-franchise-inelig"},{"question":"What issues in a franchise agreement typically lead to a determination of 'undue control' by the franchisor?","url":"https://dealroom.so/for-lenders/questions/what-issues-in-a-franchise-agreement-typically-lead-to-a-determination-of-undue-control-by"},{"question":"What process must a lender follow if a franchise applicant's agreement is not listed on the SBA Franchise Directory?","url":"https://dealroom.so/for-lenders/questions/what-process-must-a-lender-follow-if-a-franchise-applicant-s-agreement-is-not-listed-on-th"},{"question":"What specific provisions in a franchise agreement, if present, would render a franchise ineligible for 7(a) financing?","url":"https://dealroom.so/for-lenders/questions/what-specific-provisions-in-a-franchise-agreement-if-present-would-render-a-franchise-inel"}],"related_terms":[{"term":"SBA Franchise Directory","url":"https://dealroom.so/glossary/sba-franchise-directory"},{"term":"Franchise Directory","url":"https://dealroom.so/glossary/franchise-directory"},{"term":"SBA's Franchise Directory","url":"https://dealroom.so/glossary/sba-s-franchise-directory"},{"term":"Claim on the SBA Guarantee","url":"https://dealroom.so/glossary/claim-on-the-sba-guarantee"},{"term":"SBA lender","url":"https://dealroom.so/glossary/sba-lender"},{"term":"Call on the guaranty","url":"https://dealroom.so/glossary/call-on-the-guaranty"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-determine-if-a-franchise-is-listed-on-the-sba-franchise-directory-for-ex","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}