MB
SBA 7(a) franchise lending portfolio
Mercantile Bank
AVERAGE risk
- Total loans
- 31
- Loan volume
- $6.5M
- Avg loan size
- $208K
- Charge-off rate
- 10.3%
- vs 15.4% national avg
Defaults
3
Avg interest
5.54%
Franchises funded
25
Risk rating
AVERAGE
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Great Clips | 2 | $149K | 0.0% (low risk) |
| Stone Mountain Carpet Mill Out | 2 | $285K | 0.0% (low risk) |
| Ace Hardware | 2 | $775K | 0.0% (low risk) |
| Subway Sandwich Shop | 2 | $370K | 0.0% (low risk) |
| Biggby Coffee | 2 | $417K | 0.0% (low risk) |
| Pure Barre | 2 | $460K | 0.0% (low risk) |
| One-Hour Moto Photo | 1 | $150K | 0.0% (low risk) |
| Post Net | 1 | $50K | 0.0% (low risk) |
| Dream Dinners | 1 | $150K | 100.0% (very high risk) |
| Once Upon A Child | 1 | $200K | 0.0% (low risk) |
| Big Boy | 1 | $1.1M | 0.0% (low risk) |
| Little Ceasar's Pizza | 1 | $100K | 0.0% (low risk) |
| Samuel Mancino's Italian Eater | 1 | $104K | 100.0% (very high risk) |
| Camp Bow Wow | 1 | $183K | 0.0% (low risk) |
| Play N Trade | 1 | $119K | 100.0% (very high risk) |
| Sunoco Service Station | 1 | $155K | 0.0% (low risk) |
| Beaner's Gourmet Coffee | 1 | $135K | 0.0% (low risk) |
| Cold Stone Creamery, Inc. | 1 | $350K | 0.0% (low risk) |
| Interstate All Battery Center | 1 | $250K | 0.0% (low risk) |
| Little Caesar Pizza | 1 | $37K | 0.0% (low risk) |
Lending volume by year
1'93
1'99
1'01
1'03
1'05
2'06
2'07
5'08
1'09
4'10
1'12
3'13
4'14
1'16
1'17
1'18
1'22
Mercantile Bank charge-off rate by loan vintage
BrandNational avg
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 Mercantile Bank originated?
- 31 loans totaling $6.5M. The portfolio carries a 10.3% 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 Mercantile Bank fund the most?
- The “Top franchise exposures” table above lists the brands Mercantile 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.