SBA 7(a) Q&A
Short answer
Generally, there are no additional fees or costs specific to financing a franchise through an SBA 7(a) loan beyond the standard SBA guaranty fee and lender fees.
The fee structure for SBA 7(a) loans applies uniformly, regardless of whether the business is an independent entity or a franchise. The standard fees include the SBA guaranty fee, typically paid by the borrower, and the lender's packaging or closing fees, which are often financed.
Whether you are buying an independent coffee shop for $400,000 or a coffee franchise for the same amount, the SBA guaranty fee (e.g., 3.5% for loans up to $1M in FY2026) and typical lender fees would be the same, amounting to a few thousand dollars.
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
7(a) Fees Effective During Fiscal Year 2026
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.
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