PB
SBA 7(a) franchise lending portfolio
Paragon Bank
Risk rating: Excellent
- Total loans
- 169
- Loan volume
- $143.6M
- Avg loan size
- $849K
- Charge-off rate
- 4.6%
- vs 16.0% national
Charged off
6
Avg interest
6.71%
Franchises funded
75
Risk rating
Excellent
Top franchise exposures
| Franchise | Loans | Volume | Charge-off % |
|---|---|---|---|
| Primrose Schools | 15 | $42.3M | 0.0% (excellent) |
| Dogtopia | 10 | $8.0M | N/A |
| Menchie's | 8 | $2.5M | N/A |
| Hotworx | 8 | $3.5M | N/A |
| The Woodhouse Day Spa | 8 | $7.5M | N/A |
| Mellow Mushroom | 6 | $6.8M | N/A |
| CycleBar | 6 | $2.7M | N/A |
| Orange Theory Fitness | 5 | $2.5M | N/A |
| Marco's Pizza | 5 | $1.9M | N/A |
| Jimmy John's | 4 | $1.8M | N/A |
| Firehouse Subs | 4 | $1.3M | N/A |
| Nothing Bundt Cakes | 4 | $2.5M | N/A |
| Club Pilates | 4 | $1.2M | N/A |
| Clean Juice | 3 | $727K | N/A |
| Save-A-Lot Food Stores | 3 | $2.7M | N/A |
| The Lash Lounge | 3 | $1.4M | N/A |
| iCRYO Franchise System LLC | 3 | $1.3M | N/A |
| Lizard Thicket | 2 | $592K | N/A |
Lending volume by year
Show the numbers by year
| Fiscal year | Loans |
|---|---|
| FY2013 | 1 |
| FY2015 | 39 |
| FY2016 | 32 |
| FY2017 | 14 |
| FY2018 | 28 |
| FY2019 | 17 |
| FY2020 | 5 |
| FY2021 | 6 |
| FY2022 | 7 |
| FY2023 | 8 |
| FY2024 | 5 |
| FY2025 | 7 |
SBA 7(a) · charge-off rate by approval year
Paragon Bank: below all franchise loans in 4 of 5 rated years
Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (recent years: too early to judge while loans are still being repaid). Their numbers are in the table.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 2015 | 38 | 4 | 10.5% |
| 2016 | 29 | 2 | 6.9% |
| 2017 | 12 | 0 | 0.0% |
| 2018 | 24 | 0 | 0.0% |
| 2019 | 10 | 0 | 0.0% |
| 2020 | 3 | 0 | Too early |
| 2021 | 3 | 0 | Too early |
| 2022 | 4 | 0 | Too early |
| 2023 | 7 | 0 | Too early |
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.
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 Paragon Bank originated?
- 169 loans totaling $143.6M. The portfolio carries a 4.6% charge-off rate, earning a “Excellent” 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. Paragon Bank's rate of 4.6% is below 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 Paragon Bank fund the most?
- The “Top franchise exposures” table above lists the brands Paragon 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.