NS
SBA 7(a) franchise lending portfolio
Newtek Small Business Finance, Inc.
ELEVATED risk
- Total loans
- 961
- Loan volume
- $458.4M
- Avg loan size
- $477K
- Charge-off rate
- 19.2%
- vs 15.4% national avg
Defaults
140
Avg interest
6.98%
Franchises funded
505
Risk rating
ELEVATED
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Mail Boxes Etc. Usa | 34 | $3.7M | 3.1% (low risk) |
| Fantastic Sam's | 18 | $1.9M | 16.7% (high risk) |
| WaterStation | 17 | $20.3M | 0.0% (low risk) |
| Fastsigns | 16 | $3.1M | 12.5% (elevated risk) |
| Maids (the) | 14 | $954K | 42.9% (very high risk) |
| Postal Annex Plus | 13 | $1.2M | 46.2% (very high risk) |
| Days Inn | 13 | $15.4M | 15.4% (high risk) |
| The UPS Store | 12 | $2.1M | 9.1% (moderate risk) |
| AAMCO Transmissions | 12 | $4.7M | 0.0% (low risk) |
| Max Muscle | 9 | $1.6M | 33.3% (very high risk) |
| Grand Master Samane's Pro Mart | 9 | $1.5M | 22.2% (very high risk) |
| Temporary Franchises | 9 | $2.1M | 11.1% (elevated risk) |
| Hotworx | 9 | $3.4M | 0.0% (low risk) |
| Medicap Pharmacy | 8 | $1.8M | 0.0% (low risk) |
| Kabloom | 8 | $1.5M | 12.5% (elevated risk) |
| True Value Hardware | 8 | $4.0M | 25.0% (very high risk) |
| Luv 2 Play | 8 | $3.0M | 0.0% (low risk) |
| Ramada Inn | 7 | $8.6M | 28.6% (very high risk) |
| F45 Training | 7 | $933K | 0.0% (low risk) |
| Simple Simon's Pizza | 6 | $878K | 33.3% (very high risk) |
Lending volume by year
5'95
42
64
58
35
13'00
10
9
25
47
27'06
30
16
17
12
7'12
21
25
38
68
51'17
52
71
36
50
87'22
45'23
Newtek Small Business Finance, Inc. charge-off rate by loan vintage
BrandNational avg
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Geographic exposure
10429.3% (very high risk)
10120.3% (very high risk)
10123.5% (very high risk)
5022.0% (very high risk)
4714.6% (elevated risk)
4418.9% (high risk)
4220.0% (very high risk)
3523.1% (very high risk)
3420.0% (very high risk)
3312.9% (elevated risk)
Portfolio summary
Total funded$458.4M
Defaults140 of 961
Risk tierELEVATED
Avg rate6.98%
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 Newtek Small Business Finance, Inc. originated?
- 961 loans totaling $458.4M. The portfolio carries a 19.2% charge-off rate, earning a “ELEVATED” 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 Newtek Small Business Finance, Inc. fund the most?
- The “Top franchise exposures” table above lists the brands Newtek Small Business Finance, Inc. has the largest concentration in. Click any brand to see its full FDD-disclosed financials, growth trajectory, and SBA loan performance across all lenders.