HB
SBA 7(a) franchise lending portfolio
Honor Bank
GOOD risk
- Total loans
- 16
- Loan volume
- $2.2M
- Avg loan size
- $140K
- Charge-off rate
- 8.3%
- vs 15.4% national avg
Defaults
1
Avg interest
6.23%
Franchises funded
9
Risk rating
GOOD
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Servpro | 3 | $300K | 0.0% (low risk) |
| Verizon Wireless Zone | 3 | $128K | 0.0% (low risk) |
| Subway | 2 | $257K | 0.0% (low risk) |
| Mr. Rooter | 2 | $201K | 0.0% (low risk) |
| Play It Again Sports | 2 | $650K | N/A |
| Chem-Dry | 1 | $20K | 100.0% (very high risk) |
| Great Clips | 1 | $90K | 0.0% (low risk) |
| Snap-On Tools | 1 | $40K | 0.0% (low risk) |
| Kilwins Chocolates and Ice Cre | 1 | $552K | N/A |
Lending volume by year
1'03
4'09
1'12
2'13
1'15
2'16
2'18
1'23
2'24
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 Honor Bank originated?
- 16 loans totaling $2.2M. The portfolio carries a 8.3% 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 Honor Bank fund the most?
- The “Top franchise exposures” table above lists the brands Honor 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.