SBA 7(a) Q&A
Short answer
If a franchise is not on the SBA Franchise Directory, the franchisor must submit a complete franchise agreement and related documents to the SBA for review and listing before an SBA 7(a) loan can be approved for that franchise.
The SBA maintains a Franchise Directory of approved franchise systems. If a franchise is not listed, the franchisor, not the individual buyer, must submit their Franchise Agreement and all related addenda and disclosure documents to the SBA for review. The SBA reviews these documents to ensure there are no provisions that would limit the franchisee's ability to control the business or create an unacceptable affiliation, which would make the business ineligible for SBA financing. This process can take several weeks to months.
You identify a promising new franchise, 'Quick Bites Tacos,' but it's not on the SBA Directory. Before you can secure an SBA loan for your $400,000 acquisition, 'Quick Bites Tacos' franchisor must apply and be approved by the SBA to be listed on the directory.
Insider move
Lenders cannot proceed with an SBA loan for an unlisted franchise until the franchisor is approved. They will guide the buyer and franchisor on the process but emphasize that the approval timeline is outside their control.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
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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