For SBA lenders
Short answer
A franchise not on the SBA Franchise Directory can still be eligible if the lender submits the franchise agreement for SBA review and it meets SBA's eligibility criteria, primarily concerning control.
If a franchise is not listed on the SBA Franchise Directory, the lender must submit the complete franchise agreement, including all exhibits and amendments, to the SBA for review. The SBA will determine eligibility based on its control standards, ensuring the franchisee has the right to profit from the business and has sufficient operational independence from the franchisor.
A borrower wants to open a new "Gourmet Hot Dog" franchise, which is not on the SBA Directory. The lender collects the full franchise agreement and submits it to the SBA for a franchise eligibility determination. The SBA reviews the agreement to confirm the franchisee retains control over daily operations and management.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on franchise eligibility
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