Key Takeaways
- E-2 investors frequently use franchises as their visa investment vehicle—March 2026 SBA rule creates a double-bind
- SBA 7(a) and 504 loans funded approximately 35% of all franchise acquisitions before March 2026
- Non-citizen franchise operators can access Bankable's revenue-based funding based on location revenue
- Bankable evaluates franchise unit performance, brand strength, and operator experience
- 48-hour decisions for franchise operators with $200K+ annual revenue per unit
Franchising has been one of the most important vehicles for immigrant entrepreneurship in the United States. The E-2 visa was explicitly designed with franchise investment in mind—buy a proven business model, invest substantially, and operate actively. SBA loans were integral to this pathway: franchise acquisition financing, unit expansion capital, and working capital for buildout-to-profitability phases.
The March 2026 SBA rule eliminated all of this for non-citizen franchise operators. An E-2 holder who purchased a Subway, Dunkin', or Anytime Fitness franchise with the expectation of SBA-backed expansion capital now has no SBA option. The same is true for H-1B holders, TN holders, and every other non-citizen franchise operator.
SBA vs. Alternatives: 2026 Comparison
| Option | Citizenship | Max Amount | Decision | Approval Rate |
|---|---|---|---|---|
| SBA 7(a) | 100% citizen (March 2026) | $5M | 30-90 days | Blocked for non-citizens |
| Traditional Banks | Usually required | Varies | 30-60 days | ~20% non-citizens |
| CDFIs | No | $250K | 2-4 weeks | 50-60% |
| Bankable | No requirement | $5M | 48 hours | 92% revenue-qualified |
The Franchise Capital Stack After March 2026
Non-citizen franchise operators need to reconstruct their capital planning without SBA. The realistic options:
Bankable Revenue-Based Tranche Funding
For established franchise units generating $200K+ annually, Bankable provides working capital and expansion capital based on unit revenue performance. We evaluate franchise-specific metrics: same-store sales trends, royalty payment history, and system brand strength. Apply here.
Franchisor Financing Programs
Some franchisors offer in-house financing or have preferred lender relationships with non-SBA lenders. Check with your franchisor's development team about alternatives to SBA financing.
Equipment Financing for Buildout
Restaurant and service franchise buildouts involve significant equipment. Equipment financing for commercial kitchen equipment, HVAC, and specialized franchise equipment is available without citizenship requirements.
Franchise Revenue and Bankable Eligibility
Franchise units with 12+ months of operation and $200K+ in annual revenue are strong Bankable candidates. Many franchise brands track franchisee performance closely—this operating history is exactly what Bankable's underwriting evaluates. Contact us at (786) 443-5511 or start your application online.
Frequently Asked Questions
Yes. Bankable provides revenue-based funding for franchise operators with 12+ months of operation and $200K+ annual revenue. No citizenship required.
E-2 investors used SBA 7(a) for franchise acquisition (including goodwill and working capital) and SBA 504 for franchise real estate purchases. Both are now blocked.
Yes. The E-2 visa program is separate from SBA lending. You can still use an E-2 visa to buy a franchise; you just can't use SBA loans to finance it. Bankable fills that gap.
Any franchise with documented unit-level revenue history works well. Restaurant, service, fitness, and retail franchise systems with consistent same-store sales are strong candidates.
Based on unit revenue. Operators with $200K annual unit revenue can access $30K-$80K. Multi-unit operators with $1M+ combined revenue can access $200K-$500K+.
Bankable's primary programs serve established business revenue. For new franchise unit acquisition with no operating history, discuss your specific situation with a Bankable analyst.
No. Bankable is a lender to the operating entity, not a party to your franchise agreement. We do not require franchisor approval.
Yes. Multi-unit operators are often strong candidates because their diversified unit revenue provides stronger total cash flow for underwriting.
3 months of business bank statements, EIN, and basic business information. Franchise agreement and unit revenue reports are helpful but not required.
Contact Bankable at (786) 443-5511 to discuss franchise acquisition financing. We evaluate these on a case-by-case basis based on the acquired unit's operating history.