FM
SBA 7(a) franchise lending portfolio
First Merchants Bank
GOOD risk
- Total loans
- 133
- Loan volume
- $79.1M
- Avg loan size
- $595K
- Charge-off rate
- 5.8%
- vs 15.4% national avg
Defaults
6
Avg interest
6.20%
Franchises funded
84
Risk rating
GOOD
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Goldfish Swim School | 12 | $15.2M | 0.0% (low risk) |
| Goldfish Swim School | 9 | $15.4M | 0.0% (low risk) |
| Hotbox Pizza | 4 | $470K | 0.0% (low risk) |
| Quiznos | 3 | $898K | 33.3% (very high risk) |
| A-1 Concrete Leveling, Inc. | 3 | $92K | 0.0% (low risk) |
| Save - A - Lot | 3 | $1.4M | 0.0% (low risk) |
| Anytime Fitness | 3 | $702K | 0.0% (low risk) |
| Chrysler - Sales and Service A | 3 | $2.9M | N/A |
| Postal Instant Press | 2 | $195K | 0.0% (low risk) |
| Jackson Hewitt Tax Service | 2 | $367K | 0.0% (low risk) |
| Servpro | 2 | $185K | 0.0% (low risk) |
| Bellacino's Pizza | 2 | $278K | 50.0% (very high risk) |
| Skyline Chili | 2 | $615K | 0.0% (low risk) |
| Massage Envy | 2 | $663K | 0.0% (low risk) |
| Gigi's Cupcakes | 2 | $319K | 0.0% (low risk) |
| Little Caesars | 2 | $390K | 0.0% (low risk) |
| Lawn Doctor | 2 | $165K | 0.0% (low risk) |
| Menchie's | 2 | $550K | 0.0% (low risk) |
| Gigi's Cupcakes | 2 | $214K | 0.0% (low risk) |
| Smartstyle | 2 | $869K | N/A |
Lending volume by year
3'93
1
1
1
1
1'02
2
7
4
3
9'08
1
2
6
9
6'13
6
14
8
2
7'18
12
2
8
5
1'23
4
7'25
First Merchants Bank charge-off rate by loan vintage
BrandNational avg
Geographic exposure
Portfolio summary
Total funded$79.1M
Defaults6 of 133
Risk tierGOOD
Avg rate6.20%
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). 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 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.