HB
SBA 7(a) franchise lending portfolio
HSBC Bank USA National Association
CRITICAL risk
- Total loans
- 106
- Loan volume
- $13.5M
- Avg loan size
- $128K
- Charge-off rate
- 28.3%
- vs 15.4% national avg
Defaults
30
Avg interest
7.58%
Franchises funded
67
Risk rating
CRITICAL
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Subway Sandwich Shop | 19 | $1.9M | 10.5% (elevated risk) |
| Quiznos | 4 | $510K | 75.0% (very high risk) |
| AAMCO Transmissions | 3 | $432K | 0.0% (low risk) |
| Blimpie | 3 | $254K | 66.7% (very high risk) |
| Econo Lodge Motel | 3 | $200K | 0.0% (low risk) |
| Convenient Food Mart | 2 | $250K | 50.0% (very high risk) |
| Dairy Queen | 2 | $757K | 50.0% (very high risk) |
| Kiddie Academy | 2 | $129K | 50.0% (very high risk) |
| Mail Boxes Etc. Usa | 2 | $95K | 50.0% (very high risk) |
| Domino's Pizza | 2 | $175K | 0.0% (low risk) |
| Tutor Time | 2 | $226K | 0.0% (low risk) |
| Quik Drop | 2 | $174K | 0.0% (low risk) |
| Meineke Car Care | 2 | $150K | 50.0% (very high risk) |
| Extra Innings Training Centers | 2 | $200K | 100.0% (very high risk) |
| Dunkin Donuts | 2 | $770K | 50.0% (very high risk) |
| Tropical Smoothie | 2 | $223K | 50.0% (very high risk) |
| Conte's Bicycles And Fitness E | 2 | $827K | 0.0% (low risk) |
| Jackson Hewitt Tax Service | 1 | $30K | 0.0% (low risk) |
| Fantastic Sam's | 1 | $51K | 0.0% (low risk) |
| Mobil Oil (stations) | 1 | $950K | 0.0% (low risk) |
Lending volume by year
3'92
2
3
5
6
16'97
3
4
2
5
8'03
8
15
4
8
5'08
4
1
1
1
1'19
1'20
HSBC Bank USA National Association charge-off rate by loan vintage
BrandNational avg
Geographic exposure
9628.1% (very high risk)
560.0% (very high risk)
20.0% (low risk)
10.0% (low risk)
10.0% (low risk)
10.0% (low risk)
Portfolio summary
Total funded$13.5M
Defaults30 of 106
Risk tierCRITICAL
Avg rate7.58%
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 HSBC Bank USA National Association originated?
- 106 loans totaling $13.5M. The portfolio carries a 28.3% charge-off rate, earning a “CRITICAL” 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 HSBC Bank USA National Association fund the most?
- The “Top franchise exposures” table above lists the brands HSBC Bank USA National Association has the largest concentration in. Click any brand to see its full FDD-disclosed financials, growth trajectory, and SBA loan performance across all lenders.