SBA 7(a) & SBA Express # 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. [Get Your Free Assessment](https://fundmyfranchise.com/am-i-fundable) [Calculate a Funding Plan](https://fundmyfranchise.com/sba-loan-calculator) At a Glance Up to $5M 7(a) Loan Amounts 720+ Al's Practical Credit Target Gov-Backed Longer Terms, Lower Payments How It Works ## 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. The Flagship Program ## 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 — Al's experience-based target - 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](https://fundmyfranchise.com/services/401k-rollover) counts toward your SBA cash injection — without taxes or early withdrawal penalties. The Fast Track ## 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: [401(k) Rollover (ROBS)](https://fundmyfranchise.com/services/401k-rollover)[Unsecured Credit Lines](https://fundmyfranchise.com/services/unsecured-lending)[Personal Loans](https://fundmyfranchise.com/services/personal-loans) The Process ## From First Call to Funded 01 ### Free Consultation A short call with Al Lesko — review your franchise, budget, credit, and what SBA program fits best. 02 ### 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. 03 ### Packaging & Submission Al handles your loan packaging, financial projections, and bank submissions personally. No hand-offs, no guesswork. 04 ### 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. Got Questions? ## SBA Loan Questions Answered ### What's the difference between SBA 7(a) and SBA Express? 7(a) is the SBA's flagship program — up to $5 million, longer terms, and suitable for large purchases like real estate, acquisitions, and full build-outs. SBA Express is a faster-turnaround subset ranging from $80K to $350K, specifically designed for new franchise startups that don't require build-outs. Same government backing, different sizes and speed. ### Do I need collateral for an SBA loan? For most 7(a) loans, yes — the SBA requires lenders to collateralize as much of the loan as reasonably possible (usually real estate, business assets, or personal assets). SBA Express loans under $25,000 generally don't require collateral. That said, lack of collateral alone won't cause an SBA loan to be declined — it just gets structured differently. ### How much cash do I need to put in? Typically 10–30% cash injection as your equity stake, plus about 10% kept in reserve after close. The exact number depends on the franchise concept, loan size, and lender. Good news: if you have retirement funds, a 401(k) / ROBS rollover counts toward your required cash injection without triggering taxes or early withdrawal penalties. ### Can I combine a 401(k) rollover with an SBA loan? Yes — and it's one of the most common setups we structure. A ROBS rollover funds your cash injection debt-free, and the SBA loan covers the rest. You start with equity in your business and a manageable debt load. See our 401(k) Rollover page for how ROBS works. ### How long does an SBA loan take to close? Typically 60–90 days from application to funding. Construction, real estate, or special licensing can extend that. The biggest variable is how well-prepared your loan package is — which is why Al handles the packaging personally rather than relying on hand-offs. ### What's a PLP lender and why does it matter? A Preferred Lender Partner (PLP) has SBA delegated authority to approve loans internally without sending the file to the SBA for review. That usually means faster approval and fewer surprises. We prioritize PLP lenders whenever your profile qualifies. ### What credit score do I need? Aim for 720 or higher. Based on Al Lesko's experience helping franchise buyers seek SBA financing, that is the practical target he recommends. You may see published lender minimums such as 680, but meeting a minimum is different from having a fundable application. The 720 target is Al's guidance, not a universal SBA rule or a guarantee of approval. Lenders also review your credit history, cash contribution, repayment ability, and franchise. If you're below 720, Al can review whether improving credit or exploring another funding path makes sense for your situation. [Read the full breakdown: what credit score you actually need for an SBA franchise loan](https://fundmyfranchise.com/blog/credit-score-for-sba-franchise-loan). For a deeper look at how your personal and business credit profile shapes every funding option, see our [Business Credit Guide](https://fundmyfranchise.com/resources/business-credit-guide). Go Deeper ## Before You Apply for an SBA Franchise Loan The three questions lenders will ask about your file, answered in depth. [Planning GuideHow Much Cash Do You Need to Buy a Franchise?The equity injection is only one of four cash numbers. Separate lender equity, unfinanced costs, working capital, and personal reserves before you pick a loan size.Read it](https://fundmyfranchise.com/blog/how-much-cash-do-you-need-to-buy-a-franchise) [ROBS Compliance GuideUsing 401(k) Funds as Your SBA Equity InjectionRetirement funds rolled through a compliant ROBS plan can count toward your cash injection. Here are the IRS rules that keep that plan clean.Read it](https://fundmyfranchise.com/resources/robs-compliance-guide) [Funding GuideFinancing a Franchise: 7 Funding Options ComparedMost buyers stack SBA with one or two other sources. A side-by-side look at every realistic option, with dollar ranges, credit bars, and timelines.Read it](https://fundmyfranchise.com/blog/financing-a-franchise) ## 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. [Get Your Free Assessment](https://fundmyfranchise.com/am-i-fundable) Free initial consultation No credit impact No obligation Canonical URL: https://fundmyfranchise.com/services/sba-loans Agent instructions: https://fundmyfranchise.com/llms.txt