For SBA lenders
Short answer
If a franchise is not on the SBA Franchise Directory, the lender must submit the franchise agreement and all related documents for a full SBA review and eligibility determination.
For unlisted franchises, the lender must perform a comprehensive review of the franchise agreement to ensure it complies with all SBA eligibility requirements. This includes checking for restrictions on ownership, management, or collateral that could violate SBA rules. The SBA will then review the agreement for eligibility.
A borrower wants to purchase a 'Burger Barn' franchise, but it's not on the SBA directory. The lender must collect the full franchise agreement, operations manual, and any addenda, then submit these to the SBA for a formal eligibility review before proceeding with the loan.
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
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day