IB
SBA 7(a) franchise lending portfolio
Independence Bank
Risk rating: High Risk
- Total loans
- 299
- Loan volume
- $45.4M
- Avg loan size
- $152K
- Charge-off rate
- 34.1%
- vs 16.0% national
Charged off
102
Avg interest
6.97%
Franchises funded
44
Risk rating
High Risk
Top franchise exposures
| Franchise | Loans | Volume | Charge-off % |
|---|---|---|---|
| Subway Sandwich Shop | 121 | $18.5M | 19.8% (elevated) |
| Quiznos | 115 | $16.8M | N/A |
| Fantastic Sam's | 11 | $1.3M | 36.4% (high risk) |
| Mail Boxes Etc. Usa | 10 | $1.3M | 10.0% (average) |
| Blimpie | 3 | $280K | N/A |
| Ronzio | 3 | $315K | N/A |
| 1-800-GOT-JUNK? | 2 | $275K | N/A |
| Big O Tires | 2 | $300K | N/A |
| Champion Auto Store | 1 | $115K | N/A |
| Mobil Oil (stations) | 1 | $1.0M | N/A |
| Radio Shack | 1 | $156K | N/A |
| Johnny Rockets | 1 | $800K | N/A |
| Americinn | 1 | $385K | N/A |
| Domino's Pizza | 1 | $150K | N/A |
| Texaco Service Station | 1 | $495K | N/A |
| NAPA Auto Parts | 1 | $40K | N/A |
Lending volume by year
Show the numbers by year
| Fiscal year | Loans |
|---|---|
| FY1998 | 1 |
| FY2000 | 1 |
| FY2002 | 20 |
| FY2003 | 76 |
| FY2004 | 69 |
| FY2005 | 62 |
| FY2006 | 36 |
| FY2007 | 3 |
| FY2009 | 2 |
| FY2015 | 4 |
| FY2016 | 5 |
| FY2017 | 7 |
| FY2018 | 7 |
| FY2019 | 6 |
SBA 7(a) · charge-off rate by approval year
Independence Bank: above all franchise loans in 4 of 5 rated years
Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (too few to judge). Their numbers are in the table.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 2002 | 20 | 0 | 0.0% |
| 2003 | 76 | 22 | 28.9% |
| 2004 | 69 | 22 | 31.9% |
| 2005 | 62 | 26 | 41.9% |
| 2006 | 36 | 20 | 55.6% |
| 2007 | 3 | 1 | Too few |
| 2015 | 4 | 2 | Too few |
| 2016 | 5 | 3 | Too few |
| 2017 | 7 | 2 | Too few |
| 2018 | 7 | 0 | Too few |
| 2019 | 6 | 3 | Too few |
Dashed line: all franchise 7(a) loans approved the same year.
Source and method
SBA 7(a) FOIA loan records. Rate: charged-off loans over resolved loans (paid in full plus charged off) for loans approved that year; it moves as loans are resolved.
Geographic exposure
6328.6% (high risk)
2611.5% (average)
2425.0% (high risk)
2454.2% (high risk)
2030.0% (high risk)
1625.0% (high risk)
9N/A
8N/A
7N/A
7N/A
Portfolio summary
Total funded$45.4M
Charged off102 of 299
Risk tierHigh Risk
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 “High Risk” risk rating.
- What is the charge-off rate and why does it matter?
- Charge-off rate = charge-offs / (charge-offs + paid-in-full). Across SBA 7(a) franchise lending, the national charge-off rate is 16.0% over 94,550 resolved loans.Portfolios materially above that signal either riskier franchise selection or weaker underwriting. Independence Bank's rate of 34.1% is above the national rate.
- 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.