HB
SBA 7(a) franchise lending portfolio
Hills Bank and Trust Company
AVERAGE risk
- Total loans
- 20
- Loan volume
- $2.7M
- Avg loan size
- $137K
- Charge-off rate
- 10.5%
- vs 15.4% national avg
Defaults
2
Avg interest
5.50%
Franchises funded
16
Risk rating
AVERAGE
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Subway Sandwich Shop | 3 | $504K | 0.0% (low risk) |
| Alphagraphics, Printshops Of T | 2 | $350K | 0.0% (low risk) |
| Ben Franklin Store | 2 | $248K | 0.0% (low risk) |
| Breadeaux Pizza | 1 | $51K | 0.0% (low risk) |
| K & N Mobile Distribution Syst | 1 | $75K | 0.0% (low risk) |
| Play It Again Sports (retail S | 1 | $220K | 0.0% (low risk) |
| Grand Slam Usa (indoor Soccer) | 1 | $25K | 0.0% (low risk) |
| Border Magic | 1 | $72K | 100.0% (very high risk) |
| Hardware Hank | 1 | $168K | 0.0% (low risk) |
| 1-888-Wow-1day! Painting | 1 | $87K | 0.0% (low risk) |
| Mr. Goodcents Subs & Pastas | 1 | $125K | 100.0% (very high risk) |
| Merle Norman Cosmetics | 1 | $58K | 0.0% (low risk) |
| Plato's Closet | 1 | $180K | 0.0% (low risk) |
| Winans Fine Chocolates & Coffe | 1 | $126K | 0.0% (low risk) |
| Music Go Round | 1 | $100K | 0.0% (low risk) |
| Woodcraft | 1 | $350K | N/A |
Lending volume by year
1'94
1'95
1'06
2'07
2'08
2'09
2'10
2'11
1'12
2'13
1'14
2'15
1'22
Geographic exposure
2010.5% (elevated risk)
Portfolio summary
Total funded$2.7M
Defaults2 of 20
Risk tierAVERAGE
Avg rate5.50%
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 Hills Bank and Trust Company originated?
- 20 loans totaling $2.7M. The portfolio carries a 10.5% 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 Hills Bank and Trust Company fund the most?
- The “Top franchise exposures” table above lists the brands Hills Bank and Trust Company has the largest concentration in. Click any brand to see its full FDD-disclosed financials, growth trajectory, and SBA loan performance across all lenders.