Key Takeaways
- SBA's March 2026 rule requires 100% US citizen/national ownership — eliminating L-1 holders from all SBA franchise loans
- Bankable funds franchise acquisitions based on the franchise system's revenue track record, not your visa status
- Franchise fees, build-out costs, equipment, and first-year working capital are all eligible uses
- Funding up to $2M with 48-hour approval decisions and no green card requirement
- Both L-1A executives and L-1B specialized knowledge holders qualify
Purchasing a franchise is one of the most structured pathways to US business ownership available to L-1 visa holders. You receive a proven system, brand recognition, and operational support — reducing many of the risks associated with starting from scratch. The challenge is funding. As of March 2026, the SBA has implemented a rule requiring 100% US citizen or national ownership for all SBA-backed loans, which directly eliminates the franchise financing route that many L-1 holders previously relied upon.
Bankable operates entirely outside the SBA system. Our underwriting evaluates the franchise brand's historical performance, the territory's market potential, and the applicant's business track record — not citizenship status, not green card timelines, not visa expiration dates. If the numbers work, we fund.
Why Franchises Work Well for L-1 Holders
L-1A visa holders — those transferred to the US in managerial or executive roles — are particularly well-positioned for franchise ownership. Many already operate multi-unit businesses in their home country and understand the operational systems that make franchises scalable. The franchisor's established brand and systems reduce execution risk, which is something lenders value when evaluating creditworthiness.
L-1B specialized knowledge holders bring technical expertise that can be applied to service-based franchise categories like IT support, healthcare staffing, or engineering consulting franchises. The breadth of the franchise model means there is almost certainly a category that aligns with your professional background.
What Bankable Funds in a Franchise Transaction
A complete franchise funding package typically covers: the initial franchise fee (commonly $30K–$75K), territory rights, build-out and leasehold improvements, equipment and fixtures, initial inventory, working capital reserve for months 1–6, and marketing fund contributions. Bankable can structure financing across all of these components in a single facility, eliminating the need to piece together multiple sources.
We have funded franchise locations across food service, fitness, home services, automotive, and healthcare categories. Each transaction is evaluated on the specific franchise's Item 19 earnings disclosures, the applicant's operational history, and the territory's demographic profile.
The SBA Franchise Loan Gap
Prior to March 2026, L-1 holders could access SBA 7(a) loans for franchise acquisitions if they had a permanent resident co-borrower or could demonstrate a path to permanent residency. The new rule eliminates this entirely. Bank franchise lending programs similarly require citizenship or permanent residency for most applicants. This leaves a significant gap — one that Bankable was specifically designed to fill.
Our overview of SBA alternatives explains how revenue-based financing compares to SBA products on rate, term, and qualification requirements. For most franchise scenarios, the difference in total cost is smaller than most applicants expect, particularly when SBA guarantee fees and collateral requirements are factored in.
Qualification Criteria for Franchise Funding
Bankable evaluates franchise acquisition requests on four core dimensions: (1) the franchise brand's track record and Item 19 disclosures, (2) the applicant's business management experience (domestic or international), (3) the territory's revenue potential based on population, competition, and comparable locations, and (4) the applicant's personal financial strength including US business bank statements if available. We do not require a Social Security Number beyond basic identity verification — an SSN suffices, and ITIN borrowers may also qualify on a case-by-case basis.
Start your process at our Bankability Score tool, which gives you a personalized assessment within minutes based on your specific situation.
Frequently Asked Questions
Yes. L-1 visa holders can legally own and operate franchise businesses in the United States. The main challenge since March 2026 is financing — SBA loans now require 100% US citizen ownership, but Bankable provides revenue-based franchise funding with no citizenship requirement.
Bankable funds franchise acquisitions from $50,000 to $2,000,000 depending on the franchise brand, territory, and your financial profile. Most single-unit franchise transactions fall in the $150K–$600K range when covering fees, build-out, equipment, and working capital.
We fund established franchise systems across food service, fitness, home services, healthcare, automotive, education, and professional services categories. The franchise must have a track record of at least 3 years and meaningful Item 19 earnings disclosures. We evaluate each brand individually.
Having a US business bank account strengthens your application significantly, but it is not always required. We primarily underwrite based on the franchise opportunity itself. If you are pre-purchase, we work with your personal financial statements, employment history, and the franchisor's performance data.
Initial approval decisions take 48 hours. Full funding for a franchise acquisition typically completes in 7–14 days, which accommodates the franchisor's validation and territory review process. We can issue a conditional commitment letter within 24 hours for urgent timelines.
Bankable's loans are made to the US business entity, not to you personally as a visa holder. The business's obligation to repay continues regardless of visa status changes. We strongly recommend maintaining valid immigration status throughout the loan term and factoring visa renewal timelines into your business planning.
Yes. Most franchise acquisitions are structured through a domestic LLC or corporation. Bankable lends to the business entity. The L-1 visa holder serves as the principal and personal guarantor but the loan is a business obligation.
Collateral requirements vary by transaction size and franchise category. For loans under $250K, we often require only a personal guarantee. Larger transactions may include business assets, equipment, or a lien on the franchise agreement. We do not require real estate collateral for most franchise deals.
For new locations, we underwrite based on the franchise brand's comparable unit performance rather than your own revenue history. We look at the Item 19 Average Unit Volume and apply a conservative ramp discount. Existing cash flow from other business ventures strengthens the application.
Banks require citizenship or permanent residency, typically 2–3 years of personal US tax returns, and often real estate collateral. Bankable evaluates franchise transactions on business merit, funds in 7–14 days versus 60–90 days for bank loans, and has no citizenship requirement. Our rates reflect the faster, more flexible underwriting.