IB
SBA 7(a) franchise lending portfolio
Independence Bank
CRITICAL risk
- Total loans
- 299
- Loan volume
- $45.4M
- Avg loan size
- $152K
- Charge-off rate
- 34.1%
- vs 15.4% national avg
Defaults
102
Avg interest
6.97%
Franchises funded
44
Risk rating
CRITICAL
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Subway Sandwich Shop | 119 | $18.2M | 18.5% (high risk) |
| Quiznos | 112 | $16.4M | 52.7% (very high risk) |
| Fantastic Sam's | 11 | $1.3M | 36.4% (very high risk) |
| Mail Boxes Etc. Usa | 4 | $570K | 0.0% (low risk) |
| The UPS Store | 4 | $475K | 25.0% (very high risk) |
| Blimpie | 3 | $280K | 100.0% (very high risk) |
| Ronzio | 3 | $315K | 0.0% (low risk) |
| Quizno's Subs | 3 | $400K | 66.7% (very high risk) |
| UPS Store | 2 | $250K | 0.0% (low risk) |
| 1-800-Got-Junk? | 2 | $275K | 0.0% (low risk) |
| Subway | 2 | $300K | 100.0% (very high risk) |
| Big O Tires | 2 | $300K | 0.0% (low risk) |
| Champion Auto Store | 1 | $115K | 100.0% (very high risk) |
| Mobil Oil (stations) | 1 | $1.0M | 0.0% (low risk) |
| Radio Shack | 1 | $156K | 0.0% (low risk) |
| Johnny Rockets | 1 | $800K | 0.0% (low risk) |
| Americinn | 1 | $385K | 0.0% (low risk) |
| Domino's Pizza | 1 | $150K | 0.0% (low risk) |
| Texaco Service Station | 1 | $495K | 0.0% (low risk) |
| NAPA Auto Parts | 1 | $40K | 0.0% (low risk) |
Lending volume by year
1'98
1'00
20'02
76'03
69'04
62'05
36'06
3'07
2'09
4'15
5'16
7'17
7'18
6'19
Independence Bank charge-off rate by loan vintage
BrandNational avg
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Geographic exposure
6328.6% (very high risk)
2611.5% (elevated risk)
2425.0% (very high risk)
2454.2% (very high risk)
2030.0% (very high risk)
1625.0% (very high risk)
955.6% (very high risk)
862.5% (very high risk)
771.4% (very high risk)
742.9% (very high risk)
Portfolio summary
Total funded$45.4M
Defaults102 of 299
Risk tierCRITICAL
Avg rate6.97%
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 Independence Bank originated?
- 299 loans totaling $45.4M. The portfolio carries a 34.1% 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 Independence Bank fund the most?
- The “Top franchise exposures” table above lists the brands Independence 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.