For SBA lenders
Short answer
A new franchise model must submit its franchise agreement and all related documents to the SBA for review, demonstrating it meets specific eligibility criteria regarding control and independence.
For a franchise to be listed on the SBA Franchise Directory, the franchisor must submit its Franchise Disclosure Document (FDD), franchise agreement, and all related addenda to the SBA's Office of Franchise and Business Opportunity. The SBA reviews these documents to ensure the agreement does not grant the franchisor excessive control over the franchisee, compromising the franchisee's independent operation as a small business.
A new frozen yogurt franchise "Sweet Swirls" wants its franchisees to be eligible for SBA loans. The franchisor would submit its FDD and franchise agreement to the SBA for review, ensuring clauses related to operational control, purchasing, and marketing allow the franchisee sufficient independence.
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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