Before you apply for financing, build a budget for both opening the franchise and operating it through the early months. Your investment range, available cash and borrowing needs are different parts of that plan.
What an SBA 7(a) loan can cover
The SBA’s 7(a) program provides guarantees to participating lenders. Eligible uses can include working capital, equipment, real estate and changes of ownership. The program’s maximum loan amount is $5 million. You apply through a lender, which reviews eligibility, repayment ability and the documentation needed for your transaction.
Review the official SBA 7(a) program overview before discussing a proposed loan with a lender.
Check the franchise and the borrower
SBA states that brands meeting the FTC definition of a franchise must be in its Franchise Directory to obtain SBA financing. Directory placement is not an endorsement or a guarantee of business success. Ask your lender to confirm the brand’s current listing and your ownership, residency and borrower eligibility under the rules that apply to your application.
See SBA’s franchise purchase and Franchise Directory guidance. Brand eligibility and approval of your individual loan require separate review.
Prepare for the lender conversation
- Bring the current FDD, proposed agreements and an itemized project budget.
- Separate opening expenses from working capital and personal living expenses.
- List your available cash, existing obligations and proposed ownership structure.
- Explain who will manage the business and how your projections were developed.
- Ask which costs can be financed, what cash contribution is required and what documentation is missing.
- Review guarantees, collateral, fees, repayment terms and conditions before signing.
Official sources reviewed October 15, 2026. This checklist does not quote a fixed down payment or promise approval. Your lender can evaluate the rules and terms for your proposed transaction.
If immigration planning is also part of your purchase, review our E-2 visa and franchise ownership questions with your immigration attorney. Visa eligibility and loan eligibility are separate decisions.