{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-if-my-desired-franchise-is-not-on-the-sba-s-approved-directory","api_url":"https://dealroom.so/api/public/questions/what-if-my-desired-franchise-is-not-on-the-sba-s-approved-directory","question":"What if my desired franchise is not on the SBA's approved directory?","topic":"Franchise financing","audience":"borrower","bot_mode":"buyer","short_answer":"If your desired franchise is not on the SBA's approved directory, it can still be eligible, but the lender must submit the franchise agreement to the SBA for review.","rule":"Franchises listed on the SBA Franchise Directory have already undergone SBA review, streamlining the application process. For unlisted franchises, the lender must submit the franchise agreement and related documents to the SBA's Franchise Review Unit. The SBA will then determine if the agreement meets its eligibility criteria, primarily ensuring the franchisee has sufficient control over the business.","example":"A buyer wants to acquire a coffee shop under a new franchise brand not on the directory. The lender prepares the loan application and also sends the full franchise agreement to the SBA for a separate review. This review process can add several weeks to the overall timeline.","what_lenders_check":"Lenders will ensure the franchise agreement does not contain any provisions that could impair the borrower's ability to repay the loan or that conflict with SBA regulations. This review is critical to confirm the business's eligibility for an SBA guaranty.","required_facts":["Unlisted franchise","SBA review","Franchise agreement","Eligibility criteria"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Loan Program Terms, Conditions, and Eligibility"],"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"},{"title":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"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's Franchise Directory","url":"https://dealroom.so/glossary/sba-s-franchise-directory"},{"term":"SBA Franchise Directory","url":"https://dealroom.so/glossary/sba-franchise-directory"},{"term":"Franchise Directory","url":"https://dealroom.so/glossary/franchise-directory"},{"term":"Claim on the SBA Guarantee","url":"https://dealroom.so/glossary/claim-on-the-sba-guarantee"},{"term":"Approved SBA Lender","url":"https://dealroom.so/glossary/approved-sba-lender"},{"term":"SBA-approved lender","url":"https://dealroom.so/glossary/sba-approved-lender"}],"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/sba-7a/questions/what-if-my-desired-franchise-is-not-on-the-sba-s-approved-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."]}