For SBA lenders
Short answer
Lenders or franchisors submit new franchise agreements to the SBA Franchise Team for review and determination of eligibility and inclusion in the Franchise Directory.
If a franchise is not listed on the SBA Franchise Directory, the agreement must be submitted for review. The SBA Franchise Team evaluates the agreement to ensure it doesn't grant the franchisor 'undue control' over the franchisee and complies with all other SBA eligibility requirements. This process determines if the franchise concept is eligible for 7(a) financing.
A borrower applies for a 7(a) loan to open a new type of 'eco-friendly car wash' franchise, which is not on the SBA directory. The lender would submit the complete franchise agreement, along with any addenda, to the SBA Franchise Team. The team would then review it for clauses related to control, independent operation, and financial obligations to determine if it can be added to the directory.
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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