Lenders and CDCs will no longer have to review franchise documentation or undergo a pre-application franchise review by SBA. Effective January 1, 2018, SBA has a new SBA Franchise Directory of all franchise and other brands reviewed by SBA that are eligible for SBA financial assistance.
The Directory will only include business models that SBA determines are eligible under SBA’s affiliation rules and other eligibility criteria. If the Applicant’s brand meets the FTC definition of a franchise, it must be on the Directory in order to obtain SBA financing. Lenders and CDCs can rely on the Directory for determinations of affiliation and eligibility, which will speed up the approval process.
SBA started accepting new brands for placement on the Directory in December of 2017. Many franchises are listed already on the SBA Franchise Directory. To view the Directory or learn how to add a brand to the Directory, you can access this information on SBA’s website here.