LS
SBA 7(a) franchise lending portfolio
Lone Star Bank
AVERAGE risk
- Total loans
- 13
- Loan volume
- $14.8M
- Avg loan size
- $1.1M
- Charge-off rate
- 12.5%
- vs 15.4% national avg
Defaults
1
Avg interest
5.84%
Franchises funded
11
Risk rating
AVERAGE
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| A+ Transmission | 2 | $515K | 0.0% (low risk) |
| Jimmy John's | 2 | $585K | N/A |
| Mr. Transmission | 1 | $250K | 100.0% (very high risk) |
| Liberty Tax Service | 1 | $85K | 0.0% (low risk) |
| Servicemaster Clean | 1 | $1.5M | 0.0% (low risk) |
| Motel 6 | 1 | $2.3M | N/A |
| PuroClean | 1 | $269K | N/A |
| Rodeway Inn by Choice Hotels/R | 1 | $2.9M | N/A |
| Ramada by Wyndham | 1 | $2.6M | 0.0% (low risk) |
| Kolache Factory | 1 | $400K | 0.0% (low risk) |
| La Quinta by Wyndham a.k.a. La | 1 | $3.5M | 0.0% (low risk) |
Lending volume by year
3'08
1'09
1'16
1'18
3'19
3'21
1'22
Geographic exposure
1312.5% (elevated risk)
Portfolio summary
Total funded$14.8M
Defaults1 of 13
Risk tierAVERAGE
Avg rate5.84%
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 Lone Star Bank originated?
- 13 loans totaling $14.8M. The portfolio carries a 12.5% 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 Lone Star Bank fund the most?
- The “Top franchise exposures” table above lists the brands Lone Star 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.