What is the maximum SBA 7(a) loan amount?

SBA 7(a) loans can be up to $5 million. Your actual loan size depends on the deal, your financials, and the lender.

Do I need a down payment for an SBA franchise loan?

Yes, lenders generally require a down payment, commonly called an equity injection. Many lenders expect around 10% or more of the project cost, and the exact amount varies by lender and deal.

Does my franchise need to be approved by the SBA?

Lenders typically confirm that the franchise brand and agreement meet SBA eligibility requirements before moving forward. We help you check this early so it does not surprise you mid-underwriting.

SBA franchise loans, matched to lenders that fund your brand

The SBA 7(a) program is one of the most common ways to finance a franchise. The SBA guarantees a portion of the loan, which lets participating lenders offer longer terms and lower down payments than many conventional options. Not every lender is active in every franchise concept, which is where a franchise loan broker comes in.

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What an SBA 7(a) franchise loan can finance

Build-out and leasehold improvements for a new franchise location
Equipment, signage, and opening inventory
Franchise fees and initial working capital
Purchase of an existing franchise unit or business
Refinancing eligible business debt

How the SBA 7(a) program works

7(a) loans are made by SBA-approved lenders, not by the SBA itself. Loans can go up to $5 million, and repayment terms can run up to 10 years for most business purposes and longer when real estate is involved. Each lender sets its own underwriting standards, so two lenders can reach different answers on the same file.

What lenders look at on a franchise deal

The franchise brand: unit performance and the franchisor's disclosure document (FDD)
Your experience, credit, and personal liquidity
Your down payment, often called the equity injection, which many lenders expect to be around 10% or more depending on the deal
Projected cash flow and debt service coverage for the new or existing units
Complete, well-organized documentation

Why a broker helps with SBA franchise financing

Lenders specialize. One may be very comfortable with quick-service restaurants and uncomfortable with salons or senior care. We match your concept, deal type, state, and loan size to lenders that fund that kind of deal, then package your file to underwriting standards before it goes out. You review anonymized offers side by side.

Frequently asked questions

What is the maximum SBA 7(a) loan amount?: SBA 7(a) loans can be up to $5 million. Your actual loan size depends on the deal, your financials, and the lender.
Do I need a down payment for an SBA franchise loan?: Yes, lenders generally require a down payment, commonly called an equity injection. Many lenders expect around 10% or more of the project cost, and the exact amount varies by lender and deal.
Does my franchise need to be approved by the SBA?: Lenders typically confirm that the franchise brand and agreement meet SBA eligibility requirements before moving forward. We help you check this early so it does not surprise you mid-underwriting.

More answers on our full FAQ, or see how the process works.

Related financing

Franchise acquisition financing

Financing to buy an existing franchise unit or business. What lenders require for a franchise resale, how SBA acquisition loans work, and how we match you to lenders.

Multi-unit franchise financing

Financing for multi-unit franchise operators and area developers. How lenders evaluate existing units and global cash flow, and how to fund your next locations.

Franchise equipment financing

Equipment financing for franchisees: new or used equipment, terms aligned to useful life, and faster timelines than many SBA loans. Matched to the right lender.

Branch Capital Group is a loan brokerage, not a lender. It does not make credit decisions or set loan terms; those come from the funding lender. Information on this page is general and educational, and program rules and lender requirements change.