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FranchiseVerdict

SBA 7(a) franchise lending portfolio

Mechanics and Farmers Bank

CRITICAL risk
Total loans
14
Loan volume
$4.8M
Avg loan size
$340K
Charge-off rate
100.0%
vs 15.4% national avg

Defaults

1

Avg interest

9.71%

Franchises funded

12

Risk rating

CRITICAL

Top franchise exposures

FranchiseLoansVolumeDefault %
Smoothie King2$420KN/A
Cinnaholic2$837KN/A
All Tune And Lube1$39K100.0% (very high risk)
Zoom Room1$300KN/A
Epic Wings/Epic Wings N Things1$560KN/A
LIVE Hydration Spa1$318KN/A
Pure Green1$395KN/A
Domino's1$200KN/A
Signarama1$800KN/A
Top Rail Fence1$207KN/A
Poolwerx1$150KN/A
Avendelle (fka The Haven)1$530KN/A

Geographic exposure

6100.0% (very high risk)
1N/A

Portfolio summary

Total funded$4.8M
Defaults1 of 14
Risk tierCRITICAL
Avg rate9.71%

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 Mechanics and Farmers Bank originated?
14 loans totaling $4.8M. The portfolio carries a 100.0% 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 Mechanics and Farmers Bank fund the most?
The “Top franchise exposures” table above lists the brands Mechanics and Farmers 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.