{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/if-a-franchise-is-not-listed-on-the-sba-franchise-directory-can-i-still-use-an-sba-7-a-loa","api_url":"https://dealroom.so/api/public/questions/if-a-franchise-is-not-listed-on-the-sba-franchise-directory-can-i-still-use-an-sba-7-a-loa","question":"If a franchise is not listed on the SBA Franchise Directory, can I still use an SBA 7(a) loan to acquire it?","topic":"Franchise financing","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, you can still use an SBA 7(a) loan to acquire a franchise not on the SBA Franchise Directory, but it will require additional review of the franchise agreement by the lender.","rule":"Franchises not on the SBA Franchise Directory must undergo a review by the lender to ensure the franchise agreement does not contain any 'affiliation' or 'control' clauses that would make the small business ineligible under SBA rules. The lender must certify that the agreement is acceptable.","example":"If you want to acquire a franchise not on the directory, your lender will send their legal counsel to review the franchise agreement's specific terms to confirm it doesn't violate SBA's affiliation and control guidelines.","what_lenders_check":"Lenders are diligent in reviewing off-directory franchise agreements to ensure they don't contain predatory clauses or excessive control by the franchisor that would effectively make the franchisee ineligible. This review adds time to the process.","required_facts":["Not on directory","Franchise agreement review","Affiliation rules","Control clauses","Lender certification"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 121 - Small Business Size Regulations"],"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":"13 CFR Part 121 - Small Business Size Regulations","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-121"}],"related_questions":[{"question":"What due diligence does the lender perform to ensure a franchise is eligible for SBA 7(a) financing?","url":"https://dealroom.so/sba-7a/questions/what-due-diligence-does-the-lender-perform-to-ensure-a-franchise-is-eligible-for-sba-7-a-f"},{"question":"What are the requirements for a franchisor to be listed on the SBA Franchise Directory?","url":"https://dealroom.so/sba-7a/questions/what-are-the-requirements-for-a-franchisor-to-be-listed-on-the-sba-franchise-directory"},{"question":"What is the typical down payment (equity injection) percentage for a franchise acquisition?","url":"https://dealroom.so/sba-7a/questions/what-is-the-typical-down-payment-equity-injection-percentage-for-a-franchise-acquisition"},{"question":"Are there minimum operating history requirements for a franchise system to be eligible for SBA loans?","url":"https://dealroom.so/sba-7a/questions/are-there-minimum-operating-history-requirements-for-a-franchise-system-to-be-eligible-for"},{"question":"Does the franchisor's financial strength and stability impact my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/does-the-franchisor-s-financial-strength-and-stability-impact-my-sba-7-a-loan-approval"},{"question":"Can I use an SBA 7(a) loan to finance a franchise acquisition not listed on the SBA Franchise Directory?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-finance-a-franchise-acquisition-not-listed-on-the-sba-franchi"}],"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":"Call on the guaranty","url":"https://dealroom.so/glossary/call-on-the-guaranty"},{"term":"SBA Franchise Team","url":"https://dealroom.so/glossary/sba-franchise-team"}],"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":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/if-a-franchise-is-not-listed-on-the-sba-franchise-directory-can-i-still-use-an-sba-7-a-loa","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."]}