For SBA lenders
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.
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.
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.
Insider move
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.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA Document Search
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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