HB
SBA 7(a) franchise lending portfolio
Heritage Bank of Commerce
GOOD risk
- Total loans
- 147
- Loan volume
- $113.7M
- Avg loan size
- $774K
- Charge-off rate
- 7.5%
- vs 15.4% national avg
Defaults
10
Avg interest
6.21%
Franchises funded
86
Risk rating
GOOD
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Quiznos | 11 | $1.6M | 9.1% (moderate risk) |
| Speedee Oil Change & Tune-Up | 8 | $3.7M | 12.5% (elevated risk) |
| Subway Sandwich Shop | 5 | $993K | 0.0% (low risk) |
| Days Inn | 5 | $9.3M | 0.0% (low risk) |
| Minuteman Press | 3 | $395K | 0.0% (low risk) |
| MAACO Auto Painting Center | 3 | $1.5M | 0.0% (low risk) |
| Best Western Inn | 3 | $4.3M | 0.0% (low risk) |
| Comfort Inn | 3 | $5.6M | 0.0% (low risk) |
| Howard Johnson | 3 | $5.3M | 0.0% (low risk) |
| Union 76 Oil | 3 | $1.6M | 33.3% (very high risk) |
| Travelodge | 3 | $4.6M | 33.3% (very high risk) |
| Super 8 Motel | 3 | $4.1M | 0.0% (low risk) |
| Quality Inn/Quality Suites, Ho | 3 | $10.8M | 0.0% (low risk) |
| MAACO Auto Painting & Bodywork | 3 | $955K | 33.3% (very high risk) |
| Precision Tune | 2 | $672K | 50.0% (very high risk) |
| Texaco Service Station | 2 | $846K | 0.0% (low risk) |
| Papa Murphy's Take & Bake Pizz | 2 | $465K | 0.0% (low risk) |
| Dream Dinners | 2 | $457K | 0.0% (low risk) |
| Econo Lodge Motel | 2 | $2.8M | 0.0% (low risk) |
| UPS Store | 2 | $400K | 0.0% (low risk) |
Lending volume by year
1'94
1
1
1
2
3'00
14
10
12
12
9'05
7
10
3
4
3'10
5
5
13
5
5'16
2
7
4
5
1'23
1
1'26
Heritage Bank of Commerce charge-off rate by loan vintage
BrandNational avg
Geographic exposure
1477.5% (moderate risk)
Portfolio summary
Total funded$113.7M
Defaults10 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). 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 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.