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FranchiseVerdict

SBA 7(a) franchise lending portfolio

Customers Bank

AVERAGE risk
Total loans
233
Loan volume
$257.0M
Avg loan size
$1.1M
Charge-off rate
12.4%
vs 15.4% national avg

Defaults

11

Avg interest

6.61%

Franchises funded

91

Risk rating

AVERAGE

Top franchise exposures

FranchiseLoansVolumeDefault %
The Goddard School28$41.0M0.0% (low risk)
Primrose Schools14$36.5M0.0% (low risk)
Lords & Ladies14$4.3M0.0% (low risk)
Marco's Pizza13$5.2M0.0% (low risk)
Kiddie Academy10$15.5MN/A
Merry Maids9$5.4MN/A
Pet Supplies Plus8$6.2M0.0% (low risk)
American Family Care/AFC Urgen7$6.9MN/A
Super 8 by Wyndhan4$5.2MN/A
Yogi Bear's Jellystone Park Ca4$2.1M0.0% (low risk)
Massage Envy4$3.1M0.0% (low risk)
The Learning Experience4$1.3M0.0% (low risk)
Smoothie King4$2.4MN/A
Tint World4$1.9MN/A
Massage Envy3$1.5M0.0% (low risk)
Quality Inn by Choice Hotels /3$10.6M0.0% (low risk)
Days Inn by Wyndham3$8.3M0.0% (low risk)
Creative World School3$9.9M0.0% (low risk)
Scooter's Coffee3$3.9MN/A
Hand and Stone Massage and Fac3$1.4MN/A

Customers Bank charge-off rate by loan vintage

BrandNational avg
Customers Bank charge-off rate by loan vintage. Showing 10 vintages from 2002 to 2022. Rates range from 0.0% to 50.0%.0%5%10%15%20%25%30%35%40%45%50%'02'14'17'19'21'22

Geographic exposure

3611.1% (elevated risk)
2614.3% (elevated risk)
2040.0% (very high risk)
2025.0% (very high risk)
1814.3% (elevated risk)
130.0% (low risk)
90.0% (low risk)
80.0% (low risk)
7N/A
60.0% (low risk)

Portfolio summary

Total funded$257.0M
Defaults11 of 233
Risk tierAVERAGE
Avg rate6.61%

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 Customers Bank originated?
233 loans totaling $257.0M. The portfolio carries a 12.4% 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 Customers Bank fund the most?
The “Top franchise exposures” table above lists the brands Customers 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.