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FranchiseVerdict

SBA 7(a) franchise lending portfolio

Frost Bank

Risk rating: Elevated
Total loans
356
Loan volume
$108.9M
Avg loan size
$306K
Charge-off rate
18.1%
vs 16.0% national

Charged off

49

Avg interest

6.61%

Franchises funded

208

Risk rating

Elevated

Top franchise exposures

FranchiseLoansVolumeCharge-off %
Smoothie King (health Food Sto12$1.1M0.0% (excellent)
Subway Sandwich Shop10$1.1M0.0% (excellent)
MAACO Auto Painting Center9$2.1MN/A
Quiznos7$1.1MN/A
Wingstop Restaurant7$1.3MN/A
Buttermilk Sky Pie Shop7$1.8MN/A
The UPS Store  (f/k/a Mail Box7$1.5MN/A
Express Personnel Services6$527KN/A
Baskin-Robbins 31 Ice Cream6$736KN/A
Pro Cuts6$580KN/A
Dairy Queen5$1.4MN/A
Fastest Labs5$691KN/A
Great Clips4$901KN/A
Servpro4$1.2MN/A
KidStrong4$1.1MN/A
Temporary Franchises3$740KN/A
Rocky Mountain Chocolate Facto3$671KN/A
Ace Hardware3$903KN/A
Get Wax3$192KN/A

SBA 7(a) · charge-off rate by approval year

Frost Bank: below all franchise loans in 9 of 13 rated years

Frost Bank: below all franchise loans in 9 of 13 rated yearsFrost Bank charge-off rate by loan vintage. 29 approval years, 1993 to 2022; the 13 with at least 10 resolved loans are plotted, against all franchise loans approved the same year. Their rates run from 0.0% to 38.1%.

Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (too few to judge; recent years are too early to judge while loans are still being repaid). Their numbers are in the table.

Show the numbers by year
YearResolvedCharged offRate
199341Too few
199410110.0%
199516425.0%
199615213.3%
19971500.0%
199891Too few
199990Too few
200011218.2%
200172Too few
200212433.3%
200314214.3%
200421838.1%
200510220.0%
20061119.1%
200782Too few
200873Too few
200952Too few
20101200.0%
201131Too few
201241Too few
201490Too few
201542Too few
201662Too few
201751Too few
201814214.3%
201981Too few
202050Too early
20211000.0%
202231Too early

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

Texas
35318.2% (elevated)
Oklahoma
2N/A
North Carolina
1N/A

Portfolio summary

Total funded$108.9M
Charged off49 of 356
Risk tierElevated
Avg rate6.61%

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 Frost Bank originated?
356 loans totaling $108.9M. The portfolio carries a 18.1% charge-off rate, earning a “Elevated” 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. Frost Bank's rate of 18.1% 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 Frost Bank fund the most?
The “Top franchise exposures” table above lists the brands Frost 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.