MB
SBA 7(a) franchise lending portfolio
Mechanics Bank
Risk rating: Average
- Total loans
- 109
- Loan volume
- $38.5M
- Avg loan size
- $353K
- Charge-off rate
- 13.2%
- vs 16.0% national
Charged off
14
Avg interest
6.21%
Franchises funded
72
Risk rating
Average
Top franchise exposures
| Franchise | Loans | Volume | Charge-off % |
|---|---|---|---|
| Subway Sandwich Shop | 15 | $2.6M | 6.7% (good) |
| Ace Hardware | 7 | $3.5M | N/A |
| Togo's Eatery | 3 | $528K | N/A |
| Mountain Mike's Pizza | 3 | $964K | N/A |
| Mail Boxes Etc. Usa | 3 | $358K | N/A |
| Jamba Juice | 3 | $2.7M | N/A |
| Chem-Dry | 2 | $255K | N/A |
| Papa Murphy's Take & Bake Pizz | 2 | $295K | N/A |
| Sylvan Learning Center | 2 | $154K | N/A |
| Quiznos | 2 | $268K | N/A |
| Chevron (gas Station) | 2 | $2.1M | N/A |
| Little Gym | 2 | $650K | N/A |
| Dutch Bros. Coffee | 2 | $181K | N/A |
| Cold Stone Creamery, Inc. | 2 | $235K | N/A |
| Glass Doctor | 2 | $1.1M | N/A |
| Wendy's | 1 | $730K | N/A |
| Juice Club Inc. | 1 | $175K | N/A |
| Days Inn | 1 | $550K | N/A |
| Ramada Inn | 1 | $1.7M | N/A |
| Molly Maid | 1 | $30K | N/A |
Lending volume by year
Show the numbers by year
| Fiscal year | Loans |
|---|---|
| FY1992 | 1 |
| FY1993 | 1 |
| FY1994 | 3 |
| FY1995 | 4 |
| FY1996 | 5 |
| FY1997 | 7 |
| FY1998 | 2 |
| FY1999 | 3 |
| FY2000 | 3 |
| FY2001 | 4 |
| FY2002 | 4 |
| FY2003 | 9 |
| FY2004 | 4 |
| FY2005 | 5 |
| FY2006 | 2 |
| FY2007 | 6 |
| FY2008 | 9 |
| FY2009 | 7 |
| FY2010 | 7 |
| FY2011 | 1 |
| FY2012 | 4 |
| FY2013 | 1 |
| FY2014 | 1 |
| FY2015 | 4 |
| FY2016 | 2 |
| FY2017 | 3 |
| FY2018 | 3 |
| FY2019 | 4 |
SBA 7(a) · charge-off rate by approval year
Mechanics Bank charge-off rate by loan vintage
None of these 18 approval years has 10 or more resolved loans, too few to draw a trend. Each year’s numbers are in the table below.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 1994 | 3 | 0 | Too few |
| 1995 | 4 | 0 | Too few |
| 1996 | 5 | 1 | Too few |
| 1997 | 7 | 1 | Too few |
| 1999 | 3 | 0 | Too few |
| 2000 | 3 | 0 | Too few |
| 2001 | 4 | 1 | Too few |
| 2002 | 4 | 0 | Too few |
| 2003 | 9 | 0 | Too few |
| 2004 | 4 | 1 | Too few |
| 2005 | 5 | 0 | Too few |
| 2007 | 6 | 4 | Too few |
| 2008 | 9 | 3 | Too few |
| 2009 | 7 | 0 | Too few |
| 2010 | 7 | 0 | Too few |
| 2012 | 4 | 0 | Too few |
| 2015 | 4 | 1 | Too few |
| 2018 | 3 | 0 | Too few |
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
Portfolio summary
Total funded$38.5M
Charged off14 of 109
Risk tierAverage
Avg rate6.21%
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 Bank originated?
- 109 loans totaling $38.5M. The portfolio carries a 13.2% 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). 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. Mechanics Bank's rate of 13.2% is below 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 Mechanics Bank fund the most?
- The “Top franchise exposures” table above lists the brands Mechanics 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.