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FranchiseVerdict

SBA 7(a) franchise lending portfolio

Business Lenders, LLC

Risk rating: High Risk
Total loans
401
Loan volume
$115.1M
Avg loan size
$287K
Charge-off rate
32.5%
vs 16.0% national

Charged off

130

Avg interest

N/A

Franchises funded

111

Risk rating

High Risk

Top franchise exposures

FranchiseLoansVolumeCharge-off %
UPS Store80$12.6M8.8% (good)
Lady Of America29$3.3M44.8% (high risk)
Quiznos28$4.3M57.1% (high risk)
United Check Cashing,inc.18$2.5M27.8% (high risk)
Matco Tools (rent Tools)17$1.9M88.2% (high risk)
Cottman Transmission17$2.5M35.3% (high risk)
Petland12$8.8M66.7% (high risk)
Cold Stone Creamery, Inc.10$3.6M20.0% (high risk)
Alphagraphics, Printshops Of T9$3.7MN/A
Domino's Pizza8$772KN/A
Subway Sandwich Shop7$1.5MN/A
Days Inn7$8.1MN/A
Merlin's Muffler7$1.7MN/A
Travelodge6$5.8MN/A
Cash Converters5$680KN/A
Interim Healthcare5$5.9MN/A
Bassett's Original Turkey (res4$540KN/A
King Bear Auto Service4$433KN/A

SBA 7(a) · charge-off rate by approval year

Business Lenders, LLC: above all franchise loans in 7 of 12 rated years

Business Lenders, LLC: above all franchise loans in 7 of 12 rated yearsBusiness Lenders, LLC charge-off rate by loan vintage. 13 approval years, 1996 to 2008; the 12 with at least 10 resolved loans are plotted, against all franchise loans approved the same year. Their rates run from 0.0% to 60.6%.

Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (too few to judge). Their numbers are in the table.

Show the numbers by year
YearResolvedCharged offRate
199660Too few
19971100.0%
1998301136.7%
199936822.2%
2000501530.0%
2001332060.6%
2002432353.5%
2003371745.9%
200436822.2%
200531412.9%
200620315.0%
2007401537.5%
200824625.0%

Dashed line: all franchise 7(a) loans approved the same year.

Source and method
SBA 7(a) FOIA loan records. Rate: charged-off loans over resolved loans (paid in full plus charged off) for loans approved that year; it moves as loans are resolved.

Geographic exposure

3729.7% (high risk)
3441.2% (high risk)
3354.5% (high risk)
3215.6% (elevated)
3259.4% (high risk)
2714.8% (average)
2533.3% (high risk)
2416.7% (elevated)
1711.8% (average)
1637.5% (high risk)

Portfolio summary

Total funded$115.1M
Charged off130 of 401
Risk tierHigh Risk

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 Business Lenders, LLC originated?
401 loans totaling $115.1M. The portfolio carries a 32.5% charge-off rate, earning a “High Risk” risk rating.
What is the charge-off rate and why does it matter?
Charge-off rate = charge-offs / (charge-offs + paid-in-full). Across SBA 7(a) franchise lending, the national charge-off rate is 16.0% over 94,550 resolved loans.Portfolios materially above that signal either riskier franchise selection or weaker underwriting. Business Lenders, LLC's rate of 32.5% is above the national rate.
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 Business Lenders, LLC fund the most?
The “Top franchise exposures” table above lists the brands Business Lenders, LLC has the largest concentration in. Click any brand to see its full FDD-disclosed financials, growth trajectory, and SBA loan performance across all lenders.