PB
SBA 7(a) franchise lending portfolio
Paragon Bank
EXCELLENT risk
- Total loans
- 169
- Loan volume
- $143.6M
- Avg loan size
- $849K
- Charge-off rate
- 4.6%
- vs 15.4% national avg
Defaults
6
Avg interest
6.71%
Franchises funded
75
Risk rating
EXCELLENT
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Dogtopia | 10 | $8.0M | 0.0% (low risk) |
| Menchie's | 8 | $2.5M | 25.0% (very high risk) |
| Primrose Schools | 8 | $24.6M | 0.0% (low risk) |
| Hotworx | 8 | $3.5M | 0.0% (low risk) |
| Primrose Schools | 7 | $17.7M | 0.0% (low risk) |
| Mellow Mushroom | 6 | $6.8M | 16.7% (high risk) |
| CycleBar | 6 | $2.7M | 0.0% (low risk) |
| Orange Theory Fitness | 5 | $2.5M | 0.0% (low risk) |
| Marco's Pizza | 5 | $1.9M | 0.0% (low risk) |
| Jimmy John's | 4 | $1.8M | 0.0% (low risk) |
| The Woodhouse Day Spa | 4 | $3.4M | 0.0% (low risk) |
| Firehouse Subs | 4 | $1.3M | 0.0% (low risk) |
| Nothing Bundt Cakes | 4 | $2.5M | 0.0% (low risk) |
| Club Pilates | 4 | $1.2M | 0.0% (low risk) |
| Woodhouse Day Spa / Woodhouse | 4 | $4.1M | 0.0% (low risk) |
| Clean Juice | 3 | $727K | 0.0% (low risk) |
| Save-A-Lot Food Stores | 3 | $2.7M | 50.0% (very high risk) |
| The Lash Lounge | 3 | $1.4M | N/A |
| iCRYO Franchise System LLC | 3 | $1.3M | 0.0% (low risk) |
| Lizard Thicket | 2 | $592K | 0.0% (low risk) |
Lending volume by year
1'13
39'15
32'16
14'17
28'18
17'19
5'20
6'21
7'22
8'23
5'24
7'25
Paragon Bank charge-off rate by loan vintage
BrandNational avg
Geographic exposure
Portfolio summary
Total funded$143.6M
Defaults6 of 169
Risk tierEXCELLENT
Avg rate6.71%
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). 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 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.