SBA 7(a) Q&A
Short answer
Yes, you can still use an SBA 7(a) loan to acquire a franchise not on the SBA Franchise Directory, but it will require additional review of the franchise agreement by the lender.
Franchises not on the SBA Franchise Directory must undergo a review by the lender to ensure the franchise agreement does not contain any 'affiliation' or 'control' clauses that would make the small business ineligible under SBA rules. The lender must certify that the agreement is acceptable.
If you want to acquire a franchise not on the directory, your lender will send their legal counsel to review the franchise agreement's specific terms to confirm it doesn't violate SBA's affiliation and control guidelines.
Insider move
Lenders are diligent in reviewing off-directory franchise agreements to ensure they don't contain predatory clauses or excessive control by the franchisor that would effectively make the franchisee ineligible. This review adds time to the process.
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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