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FranchiseVerdict

SBA 7(a) franchise lending portfolio

Commencement Bank

AVERAGE risk
Total loans
21
Loan volume
$7.6M
Avg loan size
$364K
Charge-off rate
12.5%
vs 15.4% national avg

Defaults

2

Avg interest

6.10%

Franchises funded

5

Risk rating

AVERAGE

Top franchise exposures

FranchiseLoansVolumeDefault %
Subway10$3.6M14.3% (elevated risk)
Subway Sandwich Shop8$2.6M14.3% (elevated risk)
Dairy Queen Grill & Chill/Texa1$289K0.0% (low risk)
Great Clips1$147K0.0% (low risk)
Big Chicken1$988KN/A

Geographic exposure

Washington
2112.5% (elevated risk)

Portfolio summary

Total funded$7.6M
Defaults2 of 21
Risk tierAVERAGE
Avg rate6.10%

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 Commencement Bank originated?
21 loans totaling $7.6M. The portfolio carries a 12.5% charge-off rate, earning a “AVERAGE” 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 Commencement Bank fund the most?
The “Top franchise exposures” table above lists the brands Commencement 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.