SBA Loans for Franchise Funding
Government-backed loans with longer terms and competitive rates. Al Lesko works directly with decision-makers at the largest SBA lenders — packaging your application personally so it actually gets approved.
At a Glance
7(a) Loan Amounts
Credit Score to Qualify
Longer Terms, Lower Payments
How SBA Loans Actually Work
(And Why the Lender Matters)
The Small Business Administration doesn't lend money directly. The SBA partners with banks and lending institutions that issue the loans — and the SBA guarantees a portion of each loan, which lowers the lender's risk and lets them approve borrowers who might not qualify for conventional financing.
This means which lender you apply with matters enormously. Every SBA lender has their own appetite for risk, preferred industries, and internal credit criteria. Fund My Franchise works directly with decision-makers at some of the largest SBA lenders — including Preferred Lender Partners (PLP) with delegated SBA authority — to match your profile to the lender most likely to approve it.
SBA 7(a)
Up to $5 Million
The 7(a) program is the SBA's flagship offering — the go-to choice for most franchise buyers who need substantial capital with longer repayment terms.
Key Benefits
- Up to $5 million loan amounts
- Amortizing terms — no balloon payments
- Longer repayment terms than conventional loans
- Competitive, government-capped interest rates
- 401(k) / ROBS funds count toward cash injection
Requirements
- 720+ credit score
- Business plan required
- 10–30% cash injection (equity stake)
- 10% minimum cash reserves post-close
- Collateral typically required
Use of Proceeds
- Open a new franchise location
- Acquire an existing business
- Operating capital after opening
- Expansion — second or third unit
- Equipment, build-out, and working capital
Short on cash for the required injection? A 401(k) / ROBS rollover counts toward your SBA cash injection — without taxes or early withdrawal penalties.
SBA Express
Built for New Franchise Startups
$80K to $350K, specifically intended for new franchise startups that don't require build-outs. The expedited subset of the 7(a) program — faster turnaround, SBA backing, smaller checks.
Program Benefits
- $80K–$350K loan amounts
- Designed for new franchise startups that don't require build-outs
- Faster turnaround than standard 7(a)
- No collateral required for amounts below $25,000
- Rates capped by SBA guidelines
- Simpler application process
Use of Proceeds
- New franchise startup costs (no build-out required)
- Working capital
- Inventory or supplies
- Initial equipment
Not eligible: refinancing existing debt or purchasing real estate.
Not sure which SBA program fits your franchise?
Most buyers combine SBA with at least one other funding source. Explore the pieces:
From First Call
to Funded
Free Consultation
A short call with Al Lesko — review your franchise, budget, credit, and what SBA program fits best.
Lender Matching
We work directly with decision-makers at top SBA lenders — including Preferred Lender Partners (PLP) who can approve loans internally without SBA review.
Packaging & Submission
Al handles your loan packaging, financial projections, and bank submissions personally. No hand-offs, no guesswork.
Close & Fund
Most SBA loans close within 60–90 days. Simpler deals can move faster; construction or real estate can take longer. We keep things moving as fast as your project allows.
SBA Loan
Questions Answered
Ready to See If an
SBA Loan Fits Your Franchise?
A free call with Al Lesko — review your situation, determine whether SBA 7(a) or Express is the right fit, and map out a realistic path to approval. No obligation, no credit impact.