{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-is-the-lender-s-process-for-submitting-an-unlisted-franchise-agreement-for-sba-eligib","api_url":"https://dealroom.so/api/public/questions/what-is-the-lender-s-process-for-submitting-an-unlisted-franchise-agreement-for-sba-eligib","question":"What is the lender's process for submitting an unlisted franchise agreement for SBA eligibility review?","topic":"Franchise Eligibility","audience":"lender","bot_mode":"lender","short_answer":"Lenders must submit the entire franchise agreement, along with any addenda or exhibits, to the SBA Franchise Team for review and determination of eligibility if it's not on the SBA Franchise Directory.","rule":"Franchises not listed on the SBA Franchise Directory must undergo an individual review. The lender is responsible for collecting and submitting all relevant franchise documents to the SBA, which will assess the agreement for clauses that could give the franchisor 'undue control' over the franchisee, making it ineligible for SBA financing.","example":"A borrower applies for a 7(a) loan to acquire a franchise that is not on the directory. The lender compiles the complete franchise agreement package and sends it to the SBA Franchise Team via the designated submission portal for an eligibility determination.","what_lenders_check":"Lenders must ensure the franchise agreement meets SBA eligibility criteria to secure the guaranty. Failing to submit an unlisted franchise for review, or submitting an ineligible agreement, could lead to a guaranty denial.","required_facts":["Unlisted franchise","Franchise agreement","SBA Franchise Team","Eligibility review","Undue control"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","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":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"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":"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"},{"question":"How does a lender confirm a franchise is listed on the SBA Franchise Directory?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-confirm-a-franchise-is-listed-on-the-sba-franchise-directory"}],"related_terms":[{"term":"Unlisted Franchise Agreement","url":"https://dealroom.so/glossary/unlisted-franchise-agreement"},{"term":"Franchise Eligibility Review","url":"https://dealroom.so/glossary/franchise-eligibility-review"},{"term":"SBA's Franchise Directory","url":"https://dealroom.so/glossary/sba-s-franchise-directory"},{"term":"Lender's Application for Guaranty","url":"https://dealroom.so/glossary/lender-s-application-for-guaranty"},{"term":"Franchise agreement","url":"https://dealroom.so/glossary/franchise-agreement"},{"term":"Franchise Review Portal","url":"https://dealroom.so/glossary/franchise-review-portal"}],"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/what-is-the-lender-s-process-for-submitting-an-unlisted-franchise-agreement-for-sba-eligib","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."]}