FM
SBA 7(a) franchise lending portfolio
First Merchants Bank
Risk rating: Good
- Total loans
- 133
- Loan volume
- $79.1M
- Avg loan size
- $595K
- Charge-off rate
- 5.8%
- vs 16.0% national
Charged off
6
Avg interest
6.20%
Franchises funded
84
Risk rating
Good
Top franchise exposures
| Franchise | Loans | Volume | Charge-off % |
|---|---|---|---|
| Goldfish Swim School | 21 | $30.6M | 0.0% (excellent) |
| Hotbox Pizza | 4 | $470K | N/A |
| Gigi's Cupcakes | 4 | $532K | N/A |
| Quiznos | 3 | $898K | N/A |
| A-1 Concrete Leveling, Inc. | 3 | $92K | N/A |
| Save - A - Lot | 3 | $1.4M | N/A |
| Anytime Fitness | 3 | $702K | N/A |
| Chrysler - Sales and Service A | 3 | $2.9M | N/A |
| Postal Instant Press | 2 | $195K | N/A |
| Jackson Hewitt Tax Service | 2 | $367K | N/A |
| Servpro | 2 | $185K | N/A |
| Bellacino's Pizza | 2 | $278K | N/A |
| Skyline Chili | 2 | $615K | N/A |
| Massage Envy | 2 | $663K | N/A |
| Little Caesars | 2 | $390K | N/A |
| Lawn Doctor | 2 | $165K | N/A |
| Menchie's | 2 | $550K | N/A |
| Smartstyle | 2 | $869K | N/A |
Lending volume by year
Show the numbers by year
| Fiscal year | Loans |
|---|---|
| FY1993 | 3 |
| FY1995 | 1 |
| FY1996 | 1 |
| FY1997 | 1 |
| FY2001 | 1 |
| FY2002 | 1 |
| FY2003 | 2 |
| FY2004 | 7 |
| FY2005 | 4 |
| FY2006 | 3 |
| FY2008 | 9 |
| FY2009 | 1 |
| FY2010 | 2 |
| FY2011 | 6 |
| FY2012 | 9 |
| FY2013 | 6 |
| FY2014 | 6 |
| FY2015 | 14 |
| FY2016 | 8 |
| FY2017 | 2 |
| FY2018 | 7 |
| FY2019 | 12 |
| FY2020 | 2 |
| FY2021 | 8 |
| FY2022 | 5 |
| FY2023 | 1 |
| FY2024 | 4 |
| FY2025 | 7 |
SBA 7(a) · charge-off rate by approval year
First Merchants Bank charge-off rate by loan vintage
Only 1 of these 15 approval years has 10 or more resolved loans, too few to draw a trend. Each year’s numbers are in the table below.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 1993 | 3 | 0 | Too few |
| 2004 | 7 | 2 | Too few |
| 2005 | 4 | 1 | Too few |
| 2006 | 3 | 2 | Too few |
| 2008 | 9 | 0 | Too few |
| 2011 | 6 | 0 | Too few |
| 2012 | 9 | 0 | Too few |
| 2013 | 6 | 0 | Too few |
| 2014 | 5 | 0 | Too few |
| 2015 | 13 | 0 | 0.0% |
| 2016 | 7 | 0 | Too few |
| 2018 | 6 | 0 | Too few |
| 2019 | 7 | 1 | Too few |
| 2021 | 4 | 0 | Too early |
| 2022 | 3 | 0 | Too early |
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.
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 First Merchants Bank originated?
- 133 loans totaling $79.1M. The portfolio carries a 5.8% charge-off rate, earning a “Good” 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. First Merchants Bank's rate of 5.8% is below 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 First Merchants Bank fund the most?
- The “Top franchise exposures” table above lists the brands First Merchants 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.