AC
SBA 7(a) franchise lending portfolio
Arizona Capital Source
ELEVATED risk
- Total loans
- 25
- Loan volume
- $5.2M
- Avg loan size
- $207K
- Charge-off rate
- 17.6%
- vs 15.4% national avg
Defaults
3
Avg interest
9.37%
Franchises funded
24
Risk rating
ELEVATED
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Sourdough & Co / World of Sour | 2 | $400K | N/A |
| HouseMaster | 1 | $235K | 0.0% (low risk) |
| Papa Murphy's | 1 | $250K | 0.0% (low risk) |
| Kumon | 1 | $250K | 0.0% (low risk) |
| Board & Brush Creative Studios | 1 | $77K | 0.0% (low risk) |
| Mathnasium Learning Centers | 1 | $79K | 0.0% (low risk) |
| Culver's ButterBurgers & Froze | 1 | $150K | 0.0% (low risk) |
| Teriyaki Madness | 1 | $250K | 0.0% (low risk) |
| Flip Flop Shops | 1 | $150K | 100.0% (very high risk) |
| Right At Home | 1 | $150K | 0.0% (low risk) |
| Epic Wings/Epic Wings N Things | 1 | $250K | 0.0% (low risk) |
| D.p. Dough | 1 | $150K | 0.0% (low risk) |
| Dickey's Barbecue Pit | 1 | $250K | 0.0% (low risk) |
| Firehouse Subs | 1 | $250K | 0.0% (low risk) |
| Allstate Insurance | 1 | $224K | 0.0% (low risk) |
| AmeriCare | 1 | $140K | 100.0% (very high risk) |
| Daylight Donut Shop | 1 | $189K | 0.0% (low risk) |
| FunBox | 1 | $350K | N/A |
| Liquivida Lounge | 1 | $306K | N/A |
| Le Macaron French Pastries | 1 | $350K | N/A |
Lending volume by year
1'14
6'15
2'16
4'18
3'19
2'20
1'22
4'23
1'24
1'25
Arizona Capital Source charge-off rate by loan vintage
BrandNational avg
Geographic exposure
2517.6% (high risk)
Portfolio summary
Total funded$5.2M
Defaults3 of 25
Risk tierELEVATED
Avg rate9.37%
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 Arizona Capital Source originated?
- 25 loans totaling $5.2M. The portfolio carries a 17.6% charge-off rate, earning a “ELEVATED” 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 Arizona Capital Source fund the most?
- The “Top franchise exposures” table above lists the brands Arizona Capital Source has the largest concentration in. Click any brand to see its full FDD-disclosed financials, growth trajectory, and SBA loan performance across all lenders.