Glossary · The loan itself
In short
These are specific SBA rules that a franchise system must meet for its units to qualify for 7(a) financing. Your loan relies on the franchisor meeting these standards.
Not all franchises are eligible for SBA loans. The SBA requires a review of the Franchise agreement to ensure it doesn't contain terms that violate SBA rules, such as excessive control by the franchisor or unfair termination clauses. Check the SBA Franchise Directory to confirm the brand's eligibility status before committing.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
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