SBA 7(a) Q&A
Short answer
If a franchise is not on the SBA Franchise Directory, the lender must submit the franchise agreement to the SBA for review and approval.
For non-listed franchises, the SBA needs to review the franchise agreement and any other relevant documents (e.g., disclosure document, operations manual) to determine if it meets SBA eligibility requirements. The SBA ensures the agreement does not contain provisions that restrict the franchisee's control or the SBA's ability to recover collateral.
If you are purchasing a unique, unlisted franchise for $800,000, your lender would gather all franchise documents and submit them to the SBA for a legal review. This process can add time to the overall loan approval timeline.
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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