Glossary · The loan itself
In short
This is the SBA's process to confirm a franchise system is approved for 7(a) loans. If the franchise isn't on the SBA Franchise Directory, your loan process stops until it's reviewed.
Before a lender can approve a 7(a) loan for a franchise business, the franchise agreement must be reviewed by the SBA to ensure it complies with SBA rules. Check the SBA Franchise Directory early in due diligence. If the franchise isn't listed or has an "unreviewable" status, budget extra time for the SBA to review their agreement, which can take weeks or months.
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.
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