Franchise Alert: SBA Extends Franchise Certification Deadline to June 30, 2026

The U.S. Small Business Administration (SBA) has extended the deadline (previously December 31, 2025) for franchise brands listed on the SBA Franchise Directory as of May 2023 to complete the new Franchisor Certification requirement to June 30, 2026.

Important consequence

If a franchisor does not complete certification by June 30, 2026, the SBA will:

• Remove the brand from the SBA Franchise Directory
• Render its franchisees ineligible for SBA-backed loans

Background

The SBA has reinstated the Franchise Directory as the central mechanism for determining eligibility for SBA financing.

Under the updated framework:

• The prior transactional addendum approach is being replaced with a one-time franchisor certification
• The certification confirms compliance with SBA eligibility standards and ongoing operational requirements

Until certification is completed:

• Franchisors and lenders must continue using any SBA-required addenda included in the SBA Franchise Directory
• All directory notes and conditions must be followed for loan approvals

Next Steps for Franchisors

• Confirm whether your brand is currently listed on the SBA Franchise Directory
• Determine whether your Franchisor Certification has already been submitted and accepted
• Obtain and review the new SBA Certification requirements
• Prepare and submit the Franchisor Certification to the SBA

Please refer directly to the SBA Franchise Directory government website for more detailed information and SBA rules and regulations. For more information, please reach out to Kimberly Kraemer.