{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/if-the-franchise-i-want-to-acquire-is-not-listed-on-the-sba-franchise-directory-can-it-sti","api_url":"https://dealroom.so/api/public/questions/if-the-franchise-i-want-to-acquire-is-not-listed-on-the-sba-franchise-directory-can-it-sti","question":"If the franchise I want to acquire is not listed on the SBA Franchise Directory, can it still be financed with a 7(a) loan?","topic":"Franchise financing","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, a franchise not on the SBA Franchise Directory can still be eligible for 7(a) financing, but the lender must review and submit the franchise agreement to the SBA for approval.","rule":"The SBA Franchise Directory lists franchises with pre-approved addenda, streamlining the process. If a franchise is not listed, the lender must submit the franchise agreement and any related documents to the SBA for a review to ensure it meets SBA's eligibility requirements, particularly regarding control and affiliation.","example":"A buyer wants to purchase a new, small franchise not yet on the directory. The lender gathers the franchise agreement and sends it to the SBA for a compliance review. If approved, the loan can proceed.","what_lenders_check":"Lenders need to ensure the franchise agreement does not contain any provisions that would make the business ineligible (e.g., undue control by the franchisor, prohibited business activities). This review process adds time to the application.","required_facts":["Not on directory","Franchise agreement review","SBA approval needed","Eligibility requirements","Control and affiliation"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"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 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"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":"Cancellation of the SBA guaranty","url":"https://dealroom.so/glossary/cancellation-of-the-sba-guaranty"},{"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":"2026-06-14","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-the-franchise-i-want-to-acquire-is-not-listed-on-the-sba-franchise-directory-can-it-sti","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."]}