BO
SBA 7(a) franchise lending portfolio
Bank of the Southwest
CRITICAL risk
- Total loans
- 16
- Loan volume
- $3.7M
- Avg loan size
- $234K
- Charge-off rate
- 20.0%
- vs 15.4% national avg
Defaults
3
Avg interest
5.50%
Franchises funded
15
Risk rating
CRITICAL
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Thrifty Rent-A-Car | 2 | $314K | 0.0% (low risk) |
| Schlotzsky's Sandwich Shop | 1 | $140K | 0.0% (low risk) |
| K Bob's Steakhouse | 1 | $208K | 100.0% (very high risk) |
| Toyota (dealers) | 1 | $350K | 0.0% (low risk) |
| World Inspection Network | 1 | $68K | 100.0% (very high risk) |
| Ace Hardware | 1 | $40K | 0.0% (low risk) |
| Captain D's | 1 | $125K | 0.0% (low risk) |
| Radio Shack | 1 | $135K | 0.0% (low risk) |
| Subway Sandwich Shop | 1 | $155K | 0.0% (low risk) |
| Papa Murphy's Take & Bake Pizz | 1 | $215K | 0.0% (low risk) |
| H & R Block | 1 | $75K | 100.0% (very high risk) |
| Budget Inn | 1 | $416K | 0.0% (low risk) |
| Housemaster | 1 | $108K | 0.0% (low risk) |
| Bee Hive Homes | 1 | $1.2M | N/A |
| The UPS Store (f/k/a Mail Box | 1 | $200K | 0.0% (low risk) |
Lending volume by year
1'94
2'95
1'96
1'97
2'99
2'02
2'03
1'07
1'08
1'14
1'17
1'21
Geographic exposure
Portfolio summary
Total funded$3.7M
Defaults3 of 16
Risk tierCRITICAL
Avg rate5.50%
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 Bank of the Southwest originated?
- 16 loans totaling $3.7M. The portfolio carries a 20.0% charge-off rate, earning a “CRITICAL” 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 Bank of the Southwest fund the most?
- The “Top franchise exposures” table above lists the brands Bank of the Southwest has the largest concentration in. Click any brand to see its full FDD-disclosed financials, growth trajectory, and SBA loan performance across all lenders.