HB
SBA 7(a) franchise lending portfolio
Heritage Bank of Commerce
Risk rating: Good
- Total loans
- 147
- Loan volume
- $113.7M
- Avg loan size
- $774K
- Charge-off rate
- 7.5%
- vs 16.0% national
Charged off
10
Avg interest
6.21%
Franchises funded
86
Risk rating
Good
Top franchise exposures
| Franchise | Loans | Volume | Charge-off % |
|---|---|---|---|
| Quiznos | 11 | $1.6M | 9.1% (good) |
| Speedee Oil Change & Tune-Up | 8 | $3.7M | N/A |
| MAACO Auto Painting Center | 6 | $2.5M | N/A |
| Subway Sandwich Shop | 5 | $993K | N/A |
| Days Inn | 5 | $9.3M | N/A |
| Minuteman Press | 3 | $395K | N/A |
| Best Western Inn | 3 | $4.3M | N/A |
| Comfort Inn | 3 | $5.6M | N/A |
| Howard Johnson | 3 | $5.3M | N/A |
| Union 76 Oil | 3 | $1.6M | N/A |
| Travelodge | 3 | $4.6M | N/A |
| Super 8 Motel | 3 | $4.1M | N/A |
| Quality Inn/Quality Suites, Ho | 3 | $10.8M | N/A |
| Precision Tune | 2 | $672K | N/A |
| Texaco Service Station | 2 | $846K | N/A |
| Papa Murphy's Take & Bake Pizz | 2 | $465K | N/A |
| Dream Dinners | 2 | $457K | N/A |
| Econo Lodge Motel | 2 | $2.8M | N/A |
| UPS Store | 2 | $400K | N/A |
Lending volume by year
Show the numbers by year
| Fiscal year | Loans |
|---|---|
| FY1994 | 1 |
| FY1995 | 1 |
| FY1997 | 1 |
| FY1998 | 1 |
| FY1999 | 2 |
| FY2000 | 3 |
| FY2001 | 14 |
| FY2002 | 10 |
| FY2003 | 12 |
| FY2004 | 12 |
| FY2005 | 9 |
| FY2006 | 7 |
| FY2007 | 10 |
| FY2008 | 3 |
| FY2009 | 4 |
| FY2010 | 3 |
| FY2011 | 5 |
| FY2013 | 5 |
| FY2014 | 13 |
| FY2015 | 5 |
| FY2016 | 5 |
| FY2017 | 2 |
| FY2018 | 7 |
| FY2019 | 4 |
| FY2020 | 5 |
| FY2023 | 1 |
| FY2024 | 1 |
| FY2026 | 1 |
SBA 7(a) · charge-off rate by approval year
Heritage Bank of Commerce: below all franchise loans in 5 of 6 rated years
Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (too few to judge). Their numbers are in the table.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 2000 | 3 | 0 | Too few |
| 2001 | 14 | 1 | 7.1% |
| 2002 | 10 | 0 | 0.0% |
| 2003 | 12 | 1 | 8.3% |
| 2004 | 11 | 1 | 9.1% |
| 2005 | 9 | 1 | Too few |
| 2006 | 7 | 1 | Too few |
| 2007 | 10 | 3 | 30.0% |
| 2008 | 3 | 0 | Too few |
| 2009 | 4 | 0 | Too few |
| 2010 | 3 | 0 | Too few |
| 2011 | 5 | 0 | Too few |
| 2013 | 5 | 0 | Too few |
| 2014 | 12 | 1 | 8.3% |
| 2015 | 5 | 0 | Too few |
| 2016 | 4 | 0 | Too few |
| 2018 | 4 | 0 | Too few |
| 2019 | 3 | 0 | Too few |
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
1477.5% (good)
Portfolio summary
Total funded$113.7M
Charged off10 of 147
Risk tierGood
Avg rate6.21%
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 of Commerce originated?
- 147 loans totaling $113.7M. The portfolio carries a 7.5% 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. Heritage Bank of Commerce's rate of 7.5% 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 Heritage Bank of Commerce fund the most?
- The “Top franchise exposures” table above lists the brands Heritage Bank of Commerce has the largest concentration in. Click any brand to see its full FDD-disclosed financials, growth trajectory, and SBA loan performance across all lenders.