HB
SBA 7(a) franchise lending portfolio
Heritage Bank
GOOD risk
- Total loans
- 226
- Loan volume
- $75.9M
- Avg loan size
- $336K
- Charge-off rate
- 6.4%
- vs 15.4% national avg
Defaults
13
Avg interest
6.19%
Franchises funded
95
Risk rating
GOOD
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Subway Sandwich Shop | 64 | $9.5M | 0.0% (low risk) |
| Taco Del Mar | 12 | $1.9M | 16.7% (high risk) |
| Dairy Queen | 11 | $3.6M | 18.2% (high risk) |
| Baskin-Robbins 31 Ice Cream | 8 | $742K | 0.0% (low risk) |
| Subway | 5 | $1.5M | 20.0% (very high risk) |
| Arco (gas Station) | 4 | $1.3M | 0.0% (low risk) |
| Black Bear Diners | 4 | $3.5M | 0.0% (low risk) |
| Coldwell Banker Commercial | 4 | $814K | 0.0% (low risk) |
| Fantastic Sam's | 3 | $167K | 0.0% (low risk) |
| Quiznos | 3 | $500K | 33.3% (very high risk) |
| Paul Davis Restoration | 3 | $278K | 0.0% (low risk) |
| Massage Envy | 3 | $722K | 0.0% (low risk) |
| Comfort Inn | 2 | $4.6M | 0.0% (low risk) |
| Toshi's Teriyaki | 2 | $128K | 0.0% (low risk) |
| Holiday Inn Express | 2 | $1.9M | 0.0% (low risk) |
| Hobbytown Usa | 2 | $105K | 0.0% (low risk) |
| Econo Lodge Motel | 2 | $2.7M | 0.0% (low risk) |
| Cold Stone Creamery, Inc. | 2 | $404K | 0.0% (low risk) |
| Minuteman Press | 2 | $280K | 0.0% (low risk) |
| Blimpie | 2 | $180K | 0.0% (low risk) |
Lending volume by year
1'92
2
5
9
20
4'97
6
6
15
10
10'02
13
16
6
8
9'07
9
4
4
1
1'12
6
13
9
7
6'17
1
5
2
2
3'22
4
4
4
1'26
Heritage Bank charge-off rate by loan vintage
BrandNational avg
Geographic exposure
2026.6% (moderate risk)
1211.1% (elevated risk)
70.0% (low risk)
30.0% (low risk)
10.0% (low risk)
10.0% (low risk)
Portfolio summary
Total funded$75.9M
Defaults13 of 226
Risk tierGOOD
Avg rate6.19%
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 Heritage Bank originated?
- 226 loans totaling $75.9M. The portfolio carries a 6.4% 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 Heritage Bank fund the most?
- The “Top franchise exposures” table above lists the brands Heritage 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.