SBA franchise directory

Definition

The SBA's list of brands its lending will finance, where being absent ends the 7(a) route.

Why It Matters

Check it before writing the LOI, not after, because it is the difference between the ten-per-cent-down structure most buyers plan around and conventional financing at terms nobody modeled. Where a brand meets the FTC definition of a franchise the rule is absolute: it must be on the Directory to obtain SBA financing at all. If it is not on there, a lender can neither submit a non-delegated application nor approve one under its own delegated authority. Getting a brand added still runs through head office. Anyone may send SBA the agreement and the disclosure document for an eligibility determination, with the franchisor's contact details, but the franchisor must sign SBA's certification before the brand is listed. The listing moves, so check it again close to closing rather than trusting a screenshot from the spring.