NB
SBA 7(a) franchise lending portfolio
Northeast Bank
CRITICAL risk
- Total loans
- 393
- Loan volume
- $240.9M
- Avg loan size
- $613K
- Charge-off rate
- 35.4%
- vs 15.4% national avg
Defaults
105
Avg interest
7.59%
Franchises funded
207
Risk rating
CRITICAL
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Cold Stone Creamery, Inc. | 54 | $18.1M | 74.1% (very high risk) |
| Sylvan Learning Center | 14 | $6.6M | 30.8% (very high risk) |
| Petland | 14 | $9.1M | 78.6% (very high risk) |
| Melting Pot | 14 | $14.6M | 42.9% (very high risk) |
| Burger King | 14 | $350K | 0.0% (low risk) |
| Planet Beach | 9 | $2.7M | 88.9% (very high risk) |
| Subway Sandwich Shop | 7 | $4.0M | 14.3% (elevated risk) |
| Dairy Queen | 5 | $2.8M | 0.0% (low risk) |
| Wingstop Restaurant | 5 | $1.5M | 0.0% (low risk) |
| MAACO Auto Painting Center | 4 | $1.3M | 75.0% (very high risk) |
| Subway | 4 | $767K | 0.0% (low risk) |
| Cornwell Quality Tools | 4 | $550K | 100.0% (very high risk) |
| Subway | 4 | $575K | 0.0% (low risk) |
| Travelodge | 3 | $2.6M | 0.0% (low risk) |
| AAMCO Transmissions | 3 | $850K | 0.0% (low risk) |
| Togo's Eatery | 3 | $1.2M | 0.0% (low risk) |
| Massage Envy | 3 | $1.2M | 33.3% (very high risk) |
| Broadway Pizza | 3 | $1.2M | 0.0% (low risk) |
| Best Western - Membership Agre | 3 | $10.8M | 0.0% (low risk) |
| Blaze Pizza | 3 | $2.5M | 0.0% (low risk) |
Lending volume by year
2'92
1
2
3
2
2'98
2
3
3
1
1'04
33
74
33
32
12'09
1
2
5
8
18'15
9
23
26
23
4'20
2
20
11
20
9'25
6'26
Northeast Bank charge-off rate by loan vintage
BrandNational avg
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Geographic exposure
4631.6% (very high risk)
4136.7% (very high risk)
3942.4% (very high risk)
3442.1% (very high risk)
198.3% (moderate risk)
1958.3% (very high risk)
1750.0% (very high risk)
1642.9% (very high risk)
1370.0% (very high risk)
1112.5% (elevated risk)
Portfolio summary
Total funded$240.9M
Defaults105 of 393
Risk tierCRITICAL
Avg rate7.59%
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 Northeast Bank originated?
- 393 loans totaling $240.9M. The portfolio carries a 35.4% 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 Northeast Bank fund the most?
- The “Top franchise exposures” table above lists the brands Northeast 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.