FD
SBA 7(a) franchise lending portfolio
Federal Deposit Insurance Corporation
Risk rating: High Risk
- Total loans
- 256
- Loan volume
- $112.7M
- Avg loan size
- $440K
- Charge-off rate
- 20.1%
- vs 16.0% national
Charged off
49
Avg interest
5.71%
Franchises funded
152
Risk rating
High Risk
Top franchise exposures
| Franchise | Loans | Volume | Charge-off % |
|---|---|---|---|
| Great Clips | 12 | $1.0M | 0.0% (excellent) |
| Subway Sandwich Shop | 9 | $3.3M | N/A |
| Mountain Mike's Pizza | 6 | $1.2M | N/A |
| Econo Lodge Motel | 6 | $6.3M | N/A |
| Days Inn | 5 | $5.0M | N/A |
| Papyrus (retail Paper) | 4 | $478K | N/A |
| Chop Chop | 4 | $452K | N/A |
| Quiznos | 4 | $685K | N/A |
| Choice Hotels International In | 4 | $3.9M | N/A |
| Dunkin Donuts | 4 | $1.7M | N/A |
| Super 8 Motel | 4 | $6.0M | N/A |
| Big O Tires | 3 | $925K | N/A |
| Blimpie | 3 | $218K | N/A |
| Papa Murphy's Take & Bake Pizz | 3 | $525K | N/A |
| Best Western Inn | 3 | $3.4M | N/A |
| Cold Stone Creamery, Inc. | 3 | $768K | N/A |
| Cartridge World | 3 | $225K | N/A |
| Taco Maker | 3 | $495K | N/A |
| 1-800-Radiator | 3 | $548K | N/A |
| Martin's Bbq | 3 | $683K | N/A |
Lending volume by year
Show the numbers by year
| Fiscal year | Loans |
|---|---|
| FY1992 | 9 |
| FY1993 | 10 |
| FY1994 | 11 |
| FY1995 | 11 |
| FY1996 | 10 |
| FY1997 | 6 |
| FY1998 | 4 |
| FY1999 | 8 |
| FY2000 | 5 |
| FY2001 | 8 |
| FY2002 | 12 |
| FY2003 | 12 |
| FY2004 | 27 |
| FY2005 | 31 |
| FY2006 | 36 |
| FY2007 | 21 |
| FY2008 | 12 |
| FY2009 | 3 |
| FY2010 | 5 |
| FY2011 | 12 |
| FY2012 | 1 |
| FY2013 | 1 |
| FY2015 | 1 |
SBA 7(a) · charge-off rate by approval year
Federal Deposit Insurance Corporation: below all franchise loans in 6 of 11 rated years
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
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 1992 | 8 | 1 | Too few |
| 1993 | 10 | 1 | 10.0% |
| 1994 | 11 | 1 | 9.1% |
| 1995 | 11 | 0 | 0.0% |
| 1996 | 9 | 0 | Too few |
| 1997 | 5 | 0 | Too few |
| 1998 | 4 | 1 | Too few |
| 1999 | 8 | 2 | Too few |
| 2000 | 5 | 2 | Too few |
| 2001 | 8 | 5 | Too few |
| 2002 | 11 | 2 | 18.2% |
| 2003 | 11 | 0 | 0.0% |
| 2004 | 26 | 1 | 3.8% |
| 2005 | 29 | 3 | 10.3% |
| 2006 | 35 | 14 | 40.0% |
| 2007 | 19 | 8 | 42.1% |
| 2008 | 12 | 7 | 58.3% |
| 2010 | 5 | 1 | Too few |
| 2011 | 12 | 0 | 0.0% |
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
6517.5% (elevated)
639.5% (good)
2347.4% (high risk)
7N/A
7N/A
6N/A
6N/A
6N/A
6N/A
5N/A
Portfolio summary
Total funded$112.7M
Charged off49 of 256
Risk tierHigh Risk
Avg rate5.71%
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 Federal Deposit Insurance Corporation originated?
- 256 loans totaling $112.7M. The portfolio carries a 20.1% 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. Federal Deposit Insurance Corporation's rate of 20.1% 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 Federal Deposit Insurance Corporation fund the most?
- The “Top franchise exposures” table above lists the brands Federal Deposit Insurance Corporation has the largest concentration in. Click any brand to see its full FDD-disclosed financials, growth trajectory, and SBA loan performance across all lenders.