NS
SBA 7(a) franchise lending portfolio
Newtek Small Business Finance, Inc.
Risk rating: Elevated
- Total loans
- 961
- Loan volume
- $458.4M
- Avg loan size
- $477K
- Charge-off rate
- 19.2%
- vs 16.0% national
Charged off
140
Avg interest
6.98%
Franchises funded
505
Risk rating
Elevated
Top franchise exposures
| Franchise | Loans | Volume | Charge-off % |
|---|---|---|---|
| Mail Boxes Etc. Usa | 46 | $5.7M | 4.7% (excellent) |
| Fantastic Sam's | 18 | $1.9M | 16.7% (elevated) |
| WaterStation | 17 | $20.3M | 0.0% (excellent) |
| Fastsigns | 16 | $3.1M | 12.5% (average) |
| Maids (the) | 14 | $954K | 42.9% (high risk) |
| Postal Annex Plus | 13 | $1.2M | 46.2% (high risk) |
| Days Inn | 13 | $15.4M | 15.4% (elevated) |
| AAMCO Transmissions | 12 | $4.7M | N/A |
| Max Muscle | 9 | $1.6M | N/A |
| Grand Master Samane's Pro Mart | 9 | $1.5M | N/A |
| Temporary Franchises | 9 | $2.1M | N/A |
| Hotworx | 9 | $3.4M | N/A |
| Medicap Pharmacy | 8 | $1.8M | N/A |
| Kabloom | 8 | $1.5M | N/A |
| True Value Hardware | 8 | $4.0M | N/A |
| Luv 2 Play | 8 | $3.0M | N/A |
| Ramada Inn | 7 | $8.6M | N/A |
| F45 Training | 7 | $933K | N/A |
| Simple Simon's Pizza | 6 | $878K | N/A |
Lending volume by year
Show the numbers by year
| Fiscal year | Loans |
|---|---|
| FY1995 | 5 |
| FY1996 | 42 |
| FY1997 | 64 |
| FY1998 | 58 |
| FY1999 | 35 |
| FY2000 | 13 |
| FY2001 | 10 |
| FY2003 | 9 |
| FY2004 | 25 |
| FY2005 | 47 |
| FY2006 | 27 |
| FY2007 | 30 |
| FY2008 | 16 |
| FY2010 | 17 |
| FY2011 | 12 |
| FY2012 | 7 |
| FY2013 | 21 |
| FY2014 | 25 |
| FY2015 | 38 |
| FY2016 | 68 |
| FY2017 | 51 |
| FY2018 | 52 |
| FY2019 | 71 |
| FY2020 | 36 |
| FY2021 | 50 |
| FY2022 | 87 |
| FY2023 | 45 |
SBA 7(a) · charge-off rate by approval year
Newtek Small Business Finance, Inc.: above all franchise loans in 13 of 24 rated years
Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (too few to judge). Their numbers are in the table.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 1995 | 5 | 1 | Too few |
| 1996 | 41 | 8 | 19.5% |
| 1997 | 64 | 16 | 25.0% |
| 1998 | 56 | 13 | 23.2% |
| 1999 | 35 | 11 | 31.4% |
| 2000 | 13 | 2 | 15.4% |
| 2001 | 10 | 5 | 50.0% |
| 2003 | 9 | 2 | Too few |
| 2004 | 25 | 6 | 24.0% |
| 2005 | 47 | 17 | 36.2% |
| 2006 | 27 | 12 | 44.4% |
| 2007 | 30 | 14 | 46.7% |
| 2008 | 16 | 6 | 37.5% |
| 2010 | 17 | 1 | 5.9% |
| 2011 | 12 | 2 | 16.7% |
| 2012 | 7 | 0 | Too few |
| 2013 | 19 | 1 | 5.3% |
| 2014 | 21 | 3 | 14.3% |
| 2015 | 34 | 5 | 14.7% |
| 2016 | 57 | 6 | 10.5% |
| 2017 | 34 | 4 | 11.8% |
| 2018 | 30 | 3 | 10.0% |
| 2019 | 38 | 2 | 5.3% |
| 2020 | 18 | 0 | 0.0% |
| 2021 | 29 | 0 | 0.0% |
| 2022 | 23 | 0 | 0.0% |
| 2023 | 12 | 0 | 0.0% |
Dashed line: all franchise 7(a) loans approved the same year.
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
10429.3% (high risk)
10120.3% (high risk)
10123.5% (high risk)
5022.0% (high risk)
4714.6% (average)
4418.9% (elevated)
4220.0% (high risk)
3523.1% (high risk)
3420.0% (high risk)
3312.9% (average)
Portfolio summary
Total funded$458.4M
Charged off140 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). 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. Newtek Small Business Finance, Inc.'s rate of 19.2% is above 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 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.