{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-process-must-a-lender-follow-if-a-franchise-applicant-s-agreement-is-not-listed-on-th","api_url":"https://dealroom.so/api/public/questions/what-process-must-a-lender-follow-if-a-franchise-applicant-s-agreement-is-not-listed-on-th","question":"What process must a lender follow if a franchise applicant's agreement is not listed on the SBA Franchise Directory?","topic":"Franchise Eligibility","audience":"lender","bot_mode":"lender","short_answer":"If a franchise agreement is not on the SBA Franchise Directory, the lender must submit the franchise agreement and all related documents directly to the SBA for a formal review to determine eligibility before submitting the loan application.","rule":"For a franchise to be eligible for SBA financing, its agreement must be on the SBA Franchise Directory or receive individual approval from the SBA. The lender is responsible for submitting the complete franchise agreement package, including all addenda and exhibits, to the SBA's Office of Franchise and Business Opportunity for review and listing determination.","example":"A borrower applies for a 7(a) loan to purchase a new franchise. The lender checks the SBA Franchise Directory and finds it's not listed. The lender then compiles the franchise disclosure document (FDD) and all agreements and submits them to SBA for an eligibility review before processing the loan application to E-Tran.","what_lenders_check":"Lenders risk a guaranty denial if they disburse a loan to an ineligible franchise. Thoroughly checking the directory and following the SBA's submission process for unlisted franchises is critical to ensure eligibility.","required_facts":["Unlisted franchise","SBA directory","Formal review","Franchise agreement submission","Eligibility determination","Pre-application requirement"],"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 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":"What is the lender's process for submitting an unlisted franchise agreement for SBA eligibility review?","url":"https://dealroom.so/for-lenders/questions/what-is-the-lender-s-process-for-submitting-an-unlisted-franchise-agreement-for-sba-eligib"},{"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 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":"Applicant","url":"https://dealroom.so/glossary/applicant"},{"term":"Franchise agreement","url":"https://dealroom.so/glossary/franchise-agreement"},{"term":"Lender's Default","url":"https://dealroom.so/glossary/lender-s-default"},{"term":"Lender's Certificate","url":"https://dealroom.so/glossary/lender-s-certificate"},{"term":"Franchise Agreement Addendum","url":"https://dealroom.so/glossary/franchise-agreement-addendum"},{"term":"Unlisted Franchise Agreement","url":"https://dealroom.so/glossary/unlisted-franchise-agreement"}],"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-process-must-a-lender-follow-if-a-franchise-applicant-s-agreement-is-not-listed-on-th","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."]}