HB
SBA 7(a) franchise lending portfolio
Herring Bank
AVERAGE risk
- Total loans
- 23
- Loan volume
- $9.1M
- Avg loan size
- $395K
- Charge-off rate
- 14.3%
- vs 15.4% national avg
Defaults
3
Avg interest
6.62%
Franchises funded
16
Risk rating
AVERAGE
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Subway Sandwich Shop | 5 | $1.2M | 0.0% (low risk) |
| Wild Birds Unlimited | 2 | $135K | 50.0% (very high risk) |
| Texaco Service Station | 2 | $85K | 0.0% (low risk) |
| Mail Boxes Etc. Usa | 2 | $700K | 0.0% (low risk) |
| Roto Rooter | 1 | $193K | 0.0% (low risk) |
| Golden Corral (restaurant) | 1 | $90K | 0.0% (low risk) |
| Mars | 1 | $50K | 0.0% (low risk) |
| Physician's Weight Loss Center | 1 | $70K | 100.0% (very high risk) |
| Jason's Deli | 1 | $1.5M | 0.0% (low risk) |
| Western Sizzlin Steak House | 1 | $75K | 100.0% (very high risk) |
| Merle Norman Cosmetics | 1 | $85K | 0.0% (low risk) |
| Glamour Shots | 1 | $66K | 0.0% (low risk) |
| The UPS Store | 1 | $150K | 0.0% (low risk) |
| Hampton Inns | 1 | $2.9M | 0.0% (low risk) |
| Econo Lodge by Choice Hotels/E | 1 | $1.4M | N/A |
| Red Roof Inn | 1 | $446K | N/A |
Lending volume by year
1'95
2'96
3'97
1'99
1'01
4'02
2'03
2'04
3'05
1'11
1'12
2'23
Herring Bank charge-off rate by loan vintage
BrandNational avg
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 Herring Bank originated?
- 23 loans totaling $9.1M. The portfolio carries a 14.3% charge-off rate, earning a “AVERAGE” 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 Herring Bank fund the most?
- The “Top franchise exposures” table above lists the brands Herring 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.