SBA 7(a) Q&A
Short answer
For new franchises, the franchisor must submit its Franchise Disclosure Document (FDD) and franchise agreement directly to the SBA for review and inclusion on the Franchise Directory.
If a franchise system is new and not yet listed, the franchisor needs to take the initiative to submit their FDD and standard franchise agreement to the SBA. The SBA will review these documents to ensure they meet eligibility standards and do not contain clauses that conflict with SBA loan program requirements. Once approved, it will be added to the directory.
If you want to acquire a unit of a brand-new franchise system, the franchisor must first work with the SBA to get their system approved and added to the directory before your loan application can proceed smoothly.
Lenders cannot move forward with a new franchise until it gains SBA approval and is listed. They will advise borrowers that the franchisor must initiate this process, as individual borrowers cannot submit franchise agreements for directory listing.
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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