Franchise funding
The SBA loan built the unit. Now the unit needs working capital, a new oven or a refresh, and the SBA payment is just one more line on the statement.
✓ Merchant Fund Express starts with a soft credit pull. Terms depend on your business's revenue and history.
Updated October 21, 2026 · Merchant Fund Express
Yes, a franchise owner who financed the unit with an SBA loan can apply for more capital. Merchant Fund Express does not offer SBA loans, but it funds operating owners who already have one: the SBA payment is counted like any other obligation, alongside royalty and ad fund drafts, and the new payment is sized on what remains.
Many franchise owners opened their unit with an SBA-backed loan: the build-out, the franchise fee, the opening inventory, sometimes the building. Years later the unit is operating, the SBA payment comes out every month, and a new need shows up. A cooler fails. The franchisor schedules a refresh. A busy season needs more stock and staff. Going back to the SBA for a few thousand dollars of working capital rarely makes sense on timing alone.
That owner is exactly who Merchant Fund Express funds: already open, already carrying obligations, needing capital this month. For the general version of this question, see funding with an SBA loan.
The SBA payment is a fixed monthly obligation, and it is treated like one. It sits on the debt schedule next to the royalty and ad fund drafts, rent, equipment payments and any advance. Nothing about having an SBA loan disqualifies the unit; what matters is the room left after every one of those payments.
| Item | How it is read | What to show |
|---|---|---|
| SBA loan payment | Counted as a fixed monthly obligation | Loan statement showing payment and balance |
| Royalty and ad fund drafts | Counted as normal recurring costs | Visible on bank statements |
| Equipment leases or loans | Counted | Payment amount and term |
| Current advances | Counted as positions | Agreement and balance |
| Deposits | The base the payment is sized from | About 3 months of business bank statements |
A clean business debt schedule speeds this up.
That depends on your loan agreement, not on us. SBA-backed loan agreements often include terms about taking on additional debt, granting new liens on business assets, or selling assets the lender holds a lien on. Before you sign anything new:
Equipment financing secured by the equipment itself, or a structure tied to revenue, is often the cleaner fit next to an existing SBA lien, but your agreement decides.
| Need | Product | Note |
|---|---|---|
| Working capital for stock, payroll or a slow season | Working capital | Fast; sized after the SBA payment |
| A specific cooler, oven, lift or POS system | Equipment financing | Vendor quote; the equipment is the purpose |
| A franchisor-scheduled refresh | Remodel funding | Contractor bids and the brand-standard scope |
| Repeating timing gaps | Line of credit | Tier 1 standards; draw only what you need |
| Revenue that swings by season | Revenue-based financing | Tier 2; payments track revenue |
A hypothetical unit deposits $75,000 a month. The SBA loan payment is $3,800 a month; royalty and ad fund drafts are about $5,600 a month. A failed walk-in needs a $28,000 replacement.
| Line | Monthly figure |
|---|---|
| SBA payment | $3,800 |
| Royalty and ad fund | $5,600 |
| Fixed debits today | $9,400, about 12.5% of deposits |
| Equipment payment (illustrative, weekly) | $420 x 52 / 12 = $1,820 a month |
| Fixed debits after | $9,400 + $1,820 = $11,220, about 15.0% of deposits |
The new payment adds about 2.5 points of burden. With a long-standing SBA payment already built into the unit's budget, that is a manageable step for a unit with normal margins.
Figures in this example are illustrations of the arithmetic, not an offer, quote or approval. Real terms depend on the file and the funder.
No tax returns for a typical first review; full financials usually only above $250,000. Terms depend on the business's revenue and history. Merchant Fund Express gives a same-day decision on a complete file.
No. Merchant Fund Express funds operating businesses with working capital, lines of credit, term loans, revenue-based financing, MCAs and equipment financing. Owners who already have an SBA loan can apply for any of these.
No. The SBA payment is counted like any other obligation, and the new payment is sized on what is left.
Read your loan agreement. Some include terms on additional debt or new liens. When in doubt, ask your SBA lender or your accountant before signing.
Yes. Send the contractor bids and the scope; the review sizes a payment the unit can carry next to the SBA loan.
The application takes about 5 minutes. Same-day decision on a complete file; funding often the next business day.
Merchant Fund Express reviews your location's revenue, deposits and existing payments. Same-day decision on a complete file; funding often the next business day. About five minutes to apply.
