SBA Loan Changes: What Franchisees Need to Know--and How ApplePie Can Help

By: ApplePie Capital
Published: June 4th, 2025

As the Small Business Administration (SBA) rolls out new rules and tightens its credit policies, franchisees nationwide face new loan fees, stricter ownership rules, and slower processing times. ApplePie Capital—recognized for its franchise-specific lending solutions—breaks down what these updates mean for your growth plans and offers a reliable alternative to SBA financing for qualified brands and franchisees.

SBA Rule Changes Already in Effect

• Upfront Fees Are Back
  • 3–3.5% fee on loans over $150,000 and terms beyond 12 months (previously 0%).
• Ownership Verification
  • Lenders must confirm at least 81% domestic ownership
  • Foreign owners are now ineligible.
• Longer Turnaround
  •  SBA staffing cuts are delaying approvals—even through Preferred Lenders.

Current Update: Franchise Directory Reinstated

• The SBA has reintroduced its Franchise Directory, which is now required for franchisees to access SBA-backed financing. If your brand is not listed, you won’t be eligible for an SBA loan.

What’s on the Horizon

• Higher Equity Injections
  • New requirements for both acquisitions and start-ups may reduce available liquidity.
• Tougher Underwriting
  • Loans between $250,000 and $500,000 will face more detailed credit reviews.
• “Small Loan” Redefined
  • Threshold dropping from $500,000 to $350,000 or less, tightening standards for smaller financings.

“The SBA is reverting to stricter standards to safeguard the program—unfortunately, that means more cost and complexity for everyday franchisees,” explains Randy Jones, Chief Revenue Officer and Lending Solutions at ApplePie Capital.

Impacts on Franchisees

• Higher Borrowing Costs: Reintroduced fees directly increase your out-of-pocket expense.
• Longer Wait Times: Plan for extended lead times, even with your preferred lender network.
• Qualification Hurdles: New ownership and equity rules may affect your eligibility.

These shifts underscore the importance of exploring alternative financing options that prioritize speed, certainty, and franchise expertise.

The ApplePie Core Loan®: A Franchise-Friendly Alternative

To help franchisees navigate this evolving landscape, ApplePie Capital offers the Core Loan, a conventional product built specifically for franchises:

• Fixed Rates & Terms up to 10 Years
• No Personal Collateral Required
• Simple Online Application
• Approval Without SBA Franchise Directory Listing

“With SBA lenders facing growing uncertainty, the ApplePie Core Loan offers a stable, franchise-friendly lending solution designed to move at your pace,” adds Jones.

Next Steps for Franchisees

Assess your financing strategy and request a no-cost consultation. ApplePie franchise finance specialists can evaluate your goals and recommend the best path forward.

About ApplePie Capital

ApplePie Capital is dedicated exclusively to franchisees and franchisors, providing tailored financing solutions that simplify access to capital and support long-term growth.

For more information, please visit applepiecapital.com/franchisees or contact our team for a personalized consultation at loans@applepiecapitalc.com. If you are ready to get started click here.

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