# Franchise Funding With an Existing SBA Loan

> Financed your franchise unit with an SBA loan years ago and now need working capital, equipment or a remodel? How the SBA payment is counted and what fits.

Source: https://mfebusinessloans.com/franchise-funding/existing-sba-loan/ (Merchant Fund Express, updated 2026-10-21)

## The short answer

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.

## Who is this page for?

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.

## How is the SBA payment read in the review?

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.

## Do I need my SBA lender's consent?

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:
Read your SBA loan agreement and any security agreement for clauses on additional debt or liens
Check whether your SBA lender filed a blanket lien on business assets
If anything is unclear, ask your SBA lender or your accountant or attorney
Tell Merchant Fund Express about the SBA loan up front so the structure is chosen with it in view
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.

## What fits next to an SBA loan?

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 |

## Worked example: SBA payment, royalties and new equipment

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.

## What should you send?

About 3 months of business bank statements for the entity that holds the unit
The most recent SBA loan statement (payment and balance)
A quote or bid if the money is for equipment or a remodel
A short list of every other obligation: advances, equipment payments, leases
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.

## Keep reading

Franchise funding hub: every franchise guide in one place
Funding with an SBA loan: the general guide for any business
When the SBA is too slow: speed and paperwork compared
Franchise equipment financing: for a specific piece of equipment
Franchise funding documents: the full document checklist

## Common questions

### Can I get an SBA loan here?

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.

### Will my SBA loan stop me from qualifying?

No. The SBA payment is counted like any other obligation, and the new payment is sized on what is left.

### Do I need permission from my SBA lender?

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.

### Can I fund a franchisor-scheduled refresh this way?

Yes. Send the contractor bids and the scope; the review sizes a payment the unit can carry next to the SBA loan.

### How long does it take?

The application takes about 5 minutes. Same-day decision on a complete file; funding often the next business day.

Apply with Merchant Fund Express: https://merchantfundexpress.com/current-application.html?utm_source=mfebusinessloans.com&utm_medium=franchise&utm_campaign=franchise-funding&utm_content=existing-sba-loan