For SBA lenders
Short answer
If a franchise is not on the directory, the lender must submit the franchise agreement and all related documents directly to the SBA's Franchise Team for review and eligibility determination prior to loan approval.
SOP 50 10 requires all franchises to be listed on the SBA Franchise Directory or individually reviewed for eligibility. If a franchise is unlisted, the lender must upload a complete copy of the franchise agreement, disclosure documents, and any amendments to the SBA's Franchise Review Portal for a determination of its compliance with SBA eligibility requirements.
A lender receives an application for a franchise not found on the directory. They compile the franchise agreement, FDD, and any addenda, then submit them through the SBA's designated portal. The SBA team then reviews for requirements like equity injection rules and control of the business.
Insider move
Lenders must not proceed with loan approval until the SBA has confirmed the franchise's eligibility. Approving a loan for an ineligible franchise will result in a guaranty repair or denial.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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