FD
SBA 7(a) franchise lending portfolio
Federal Deposit Insurance Corporation
CRITICAL risk
- Total loans
- 256
- Loan volume
- $112.7M
- Avg loan size
- $440K
- Charge-off rate
- 20.1%
- vs 15.4% national avg
Defaults
49
Avg interest
5.71%
Franchises funded
152
Risk rating
CRITICAL
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Great Clips | 12 | $1.0M | 0.0% (low risk) |
| Subway Sandwich Shop | 9 | $3.3M | 0.0% (low risk) |
| Mountain Mike's Pizza | 6 | $1.2M | 0.0% (low risk) |
| Econo Lodge Motel | 6 | $6.3M | 0.0% (low risk) |
| Days Inn | 5 | $5.0M | 0.0% (low risk) |
| Papyrus (retail Paper) | 4 | $478K | 0.0% (low risk) |
| Chop Chop | 4 | $452K | 0.0% (low risk) |
| Quiznos | 4 | $685K | 50.0% (very high risk) |
| Choice Hotels International In | 4 | $3.9M | 25.0% (very high risk) |
| Dunkin Donuts | 4 | $1.7M | 0.0% (low risk) |
| Super 8 Motel | 4 | $6.0M | 25.0% (very high risk) |
| Big O Tires | 3 | $925K | 0.0% (low risk) |
| Blimpie | 3 | $218K | 0.0% (low risk) |
| Papa Murphy's Take & Bake Pizz | 3 | $525K | 0.0% (low risk) |
| Best Western Inn | 3 | $3.4M | 0.0% (low risk) |
| Cold Stone Creamery, Inc. | 3 | $768K | 66.7% (very high risk) |
| Cartridge World | 3 | $225K | 0.0% (low risk) |
| Taco Maker | 3 | $495K | 66.7% (very high risk) |
| 1-800-Radiator | 3 | $548K | 33.3% (very high risk) |
| Martin's Bbq | 3 | $683K | 0.0% (low risk) |
Lending volume by year
9'92
10
11
11
10
6'97
4
8
5
8
12'02
12
27
31
36
21'07
12
3
5
12
1'12
1
1'15
Federal Deposit Insurance Corporation charge-off rate by loan vintage
BrandNational avg
Geographic exposure
6517.5% (high risk)
639.5% (moderate risk)
2347.4% (very high risk)
780.0% (very high risk)
70.0% (low risk)
60.0% (low risk)
616.7% (high risk)
616.7% (high risk)
616.7% (high risk)
50.0% (low risk)
Portfolio summary
Total funded$112.7M
Defaults49 of 256
Risk tierCRITICAL
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 “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 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.