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FranchiseVerdict

SBA 7(a) franchise lending portfolio

1st Source Bank

EXCELLENT risk
Total loans
170
Loan volume
$40.0M
Avg loan size
$235K
Charge-off rate
4.4%
vs 15.4% national avg

Defaults

6

Avg interest

6.46%

Franchises funded

91

Risk rating

EXCELLENT

Top franchise exposures

FranchiseLoansVolumeDefault %
Little Caesar Pizza11$2.4M0.0% (low risk)
Wings Etc.9$2.4M0.0% (low risk)
Premier Rental Purchase7$2.1M0.0% (low risk)
USA Insulation6$293KN/A
Dairy Queen5$1.6M0.0% (low risk)
Curves For Women4$313K0.0% (low risk)
Penn Station, Inc.3$1.1M0.0% (low risk)
Gloria Jean's Coffee Bean3$640K0.0% (low risk)
Subway Sandwich Shop3$410K0.0% (low risk)
Subway3$60K0.0% (low risk)
Jimmy John's3$793K0.0% (low risk)
State Farm Insurance3$115K0.0% (low risk)
Jackson Hewitt Tax Service3$367K0.0% (low risk)
Bin There...Dump That3$227K0.0% (low risk)
Firehouse Subs3$804KN/A
Biggby Coffee3$715K0.0% (low risk)
Super Wash2$836K0.0% (low risk)
Glass Doctor2$462K0.0% (low risk)
Anytime Fitness2$398K0.0% (low risk)
Extra Innings Training Centers2$310K50.0% (very high risk)

1st Source Bank charge-off rate by loan vintage

BrandNational avg
1st Source Bank charge-off rate by loan vintage. Showing 17 vintages from 1999 to 2021. Rates range from 0.0% to 25.0%.0%5%10%15%20%25%'99'07'10'13'16'19'21

Geographic exposure

1414.6% (low risk)
274.2% (low risk)
20.0% (low risk)

Portfolio summary

Total funded$40.0M
Defaults6 of 170
Risk tierEXCELLENT
Avg rate6.46%

Source: SBA 7(a) FOIA loan-level data, aggregated by FranchiseVerdict

Charge-off rate = charge-offs / (charge-offs + paid-in-full). Active, exempt, and cancelled loans are excluded. Risk ratings: Excellent (<5%), Good (5-10%), Average (10-15%), Elevated (15-20%), High Risk (>20%).

Frequently asked questions

How many SBA 7(a) franchise loans has 1st Source Bank originated?
170 loans totaling $40.0M. The portfolio carries a 4.4% charge-off rate, earning a “EXCELLENT” risk rating.
What is the charge-off rate and why does it matter?
Charge-off rate = charge-offs / (charge-offs + paid-in-full). For SBA 7(a) franchise lending, the national average runs 5–8%. Portfolios materially above that signal either riskier franchise selection or weaker underwriting.
Where does this lending data come from?
SBA 7(a) loan records released under the Freedom of Information Act. Each record carries approval date, amount, lender, business type, NAICS code, location, and outcome. See methodology.
Which franchise brands does 1st Source Bank fund the most?
The “Top franchise exposures” table above lists the brands 1st Source Bank has the largest concentration in. Click any brand to see its full FDD-disclosed financials, growth trajectory, and SBA loan performance across all lenders.