SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can still finance the acquisition of a franchise not listed on the SBA Franchise Directory, but it will require additional review and a Franchise Addendum.
For a franchise not on the SBA Franchise Directory, the lender must submit the franchise agreement and all related documents directly to the SBA for review and approval. The SBA will then determine if the agreement meets their eligibility requirements, often requiring a "Franchise Addendum" to resolve any problematic clauses.
If you're buying a popular regional franchise not on the list, your lender will send the franchise agreement to the SBA. The SBA might identify a clause, like a franchisor's unilateral right to terminate without cause, requiring an addendum to comply with SBA rules.
Lenders are cautious with non-listed franchises because of the potential for ineligible terms in the franchise agreement. They need assurance that the SBA will guarantee the loan, which hinges on the franchise agreement's compliance with SBA requirements.
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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