Glossary · The loan itself
In short
The SBA has specific rules for how franchise businesses can qualify for 7(a) loans. It's not just about the business itself, but the franchise agreement's terms.
The SBA must approve the franchise agreement. Check the SBA Franchise Directory to see if the franchise is already approved. If not, the agreement needs to be reviewed to ensure it doesn't give the franchisor "control" in a way that makes the franchisee ineligible.
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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