{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-franchise-i-want-to-buy-is-not-listed-on-the-sba-directory","api_url":"https://dealroom.so/api/public/questions/what-happens-if-the-franchise-i-want-to-buy-is-not-listed-on-the-sba-directory","question":"What happens if the franchise I want to buy is not listed on the SBA directory?","topic":"Franchise Financing","audience":"borrower","bot_mode":"buyer","short_answer":"If a franchise is not on the SBA Franchise Directory, the lender must submit the franchise agreement to the SBA for review and eligibility determination, which can extend the application timeline.","rule":"The SBA maintains a Franchise Directory of eligible franchise systems. If a franchise is not listed, the lender must submit a copy of the franchise agreement and other required documents to the SBA for a direct review to determine its eligibility. The SBA will assess whether the agreement meets their standards, particularly regarding control, affiliation, and financial risk, before approving financing.","example":"You identify a promising emerging franchise brand that is not yet on the SBA directory. Your lender will need to send the full franchise agreement to the SBA for a thorough review. This process could add several weeks to your loan application timeline, as the SBA needs to evaluate the agreement's compliance with their rules.","what_lenders_check":"Lenders prefer franchises on the directory for streamlined processing. For unlisted franchises, they meticulously prepare the submission to SBA, ensuring all required documents are included and accurately reflect the franchise relationship. They manage borrower expectations regarding the potential for delays or even ineligibility.","required_facts":["Franchise not listed","SBA directory","SBA review required","Franchise agreement","Extended timeline"],"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":"How does the SBA evaluate the eligibility of a specific franchise system for 7(a) loans?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-evaluate-the-eligibility-of-a-specific-franchise-system-for-7-a-loans"},{"question":"What if the franchise I want to buy is not on the SBA's Franchise Directory?","url":"https://dealroom.so/sba-7a/questions/what-if-the-franchise-i-want-to-buy-is-not-on-the-sba-s-franchise-directory"},{"question":"Are there specific franchise fees or royalties that are ineligible for 7(a) loan financing?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-franchise-fees-or-royalties-that-are-ineligible-for-7-a-loan-financing"},{"question":"Does an SBA 7(a) loan cover the initial franchise fee and associated startup costs?","url":"https://dealroom.so/sba-7a/questions/does-an-sba-7-a-loan-cover-the-initial-franchise-fee-and-associated-startup-costs"}],"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":"Repair to the guaranty","url":"https://dealroom.so/glossary/repair-to-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/what-happens-if-the-franchise-i-want-to-buy-is-not-listed-on-the-sba-directory","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."]}