FA
SBA 7(a) franchise lending portfolio
Farmers and Merchants Savings Bank
CRITICAL risk
- Total loans
- 14
- Loan volume
- $5.9M
- Avg loan size
- $424K
- Charge-off rate
- 23.1%
- vs 15.4% national avg
Defaults
3
Avg interest
5.75%
Franchises funded
10
Risk rating
CRITICAL
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Firehouse Subs | 2 | $602K | 0.0% (low risk) |
| Subway Sandwich Shop | 2 | $617K | 0.0% (low risk) |
| Milio's Sandwiches | 2 | $409K | 100.0% (very high risk) |
| Great Clips | 2 | $205K | 0.0% (low risk) |
| Formu-3 Weight Loss Center | 1 | $38K | 100.0% (very high risk) |
| Quiznos | 1 | $145K | 0.0% (low risk) |
| Godfather's Pizza | 1 | $75K | 0.0% (low risk) |
| Culligan Soft Water Service | 1 | $1.9M | 0.0% (low risk) |
| Healthsource Chiropractic | 1 | $149K | 0.0% (low risk) |
| Budget Blinds | 1 | $1.8M | N/A |
Lending volume by year
1'94
1'03
1'09
2'10
1'11
1'12
1'13
1'14
1'15
1'16
1'19
1'20
1'22
Geographic exposure
1423.1% (very high risk)
Portfolio summary
Total funded$5.9M
Defaults3 of 14
Risk tierCRITICAL
Avg rate5.75%
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 Farmers and Merchants Savings Bank originated?
- 14 loans totaling $5.9M. The portfolio carries a 23.1% 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 Farmers and Merchants Savings Bank fund the most?
- The “Top franchise exposures” table above lists the brands Farmers and Merchants Savings 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.