Glossary · The loan itself
Franchise Eligibility Review
In short
This is the SBA's process to confirm a franchise system is approved for 7(a) loans. If the franchise isn't on the SBA Franchise Directory, your loan process stops until it's reviewed.
What it means in a deal
Before a lender can approve a 7(a) loan for a franchise business, the franchise agreement must be reviewed by the SBA to ensure it complies with SBA rules. Check the SBA Franchise Directory early in due diligence. If the franchise isn't listed or has an "unreviewable" status, budget extra time for the SBA to review their agreement, which can take weeks or months.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Franchise Eligibility Review
- What specific elements of a franchise agreement does the SBA review to determine eligibility?
- What is the lender's process for submitting an unlisted franchise agreement for SBA eligibility review?
- What are the specific eligibility requirements for a franchise agreement that lacks a formal review or listing on the SBA Franchise Directory?
- What constitutes a "material change" to a franchise agreement that necessitates re-review by the SBA for eligibility?
- What is the specific lender process for submitting an unlisted franchise agreement for SBA review and eligibility determination?
- What documentation is required from a franchisor for an unlisted franchise to be reviewed for 7(a) eligibility?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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