SBA 7(a) Q&A
Short answer
For a franchise acquisition, the lender needs a copy of the executed Franchise Agreement, the Franchise Disclosure Document (FDD), and verification of the franchise's eligibility on the SBA Franchise Directory.
Lenders must ensure the franchise system is eligible for SBA financing. This requires reviewing the Franchise Disclosure Document (FDD), which provides extensive information about the franchisor, and the specific Franchise Agreement. The lender will also check the SBA Franchise Directory to confirm the system's eligibility or submit the agreement for review if not listed.
When applying for an SBA loan to acquire a franchise, you would provide the lender with the current FDD (often hundreds of pages), the specific franchise agreement you signed, and ideally, confirmation that the franchise system is listed as eligible on the SBA's website.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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
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.
More on franchise financing
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day