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FranchiseVerdict

SBA 7(a) franchise lending portfolio

NexBank

CRITICAL risk
Total loans
19
Loan volume
$4.3M
Avg loan size
$226K
Charge-off rate
57.9%
vs 15.4% national avg

Defaults

11

Avg interest

6.00%

Franchises funded

15

Risk rating

CRITICAL

Top franchise exposures

FranchiseLoansVolumeDefault %
Minuteman Press4$1.2M100.0% (very high risk)
Dinner Station (the)2$237K100.0% (very high risk)
Massey Ferguson1$210K0.0% (low risk)
Eagle Postal Centers1$170K100.0% (very high risk)
Nutri-Lawn Of Texas1$143K0.0% (low risk)
Just Dogs! Gourmet1$75K100.0% (very high risk)
Remax1$55K0.0% (low risk)
Sign-A-Rama1$128K0.0% (low risk)
Culver's Frozen Custard1$150K0.0% (low risk)
Mega Wraps1$150K100.0% (very high risk)
Papa Murphy's Take & Bake Pizz1$150K0.0% (low risk)
Pro Cuts1$91K100.0% (very high risk)
Purosystems1$102K0.0% (low risk)
Puckmasters Fargo1$359K100.0% (very high risk)
Original Pancake House (the)1$1.1M0.0% (low risk)

Geographic exposure

1957.9% (very high risk)

Portfolio summary

Total funded$4.3M
Defaults11 of 19
Risk tierCRITICAL
Avg rate6.00%

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 NexBank originated?
19 loans totaling $4.3M. The portfolio carries a 57.9% 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 NexBank fund the most?
The “Top franchise exposures” table above lists the brands NexBank has the largest concentration in. Click any brand to see its full FDD-disclosed financials, growth trajectory, and SBA loan performance across all lenders.