SC
SBA 7(a) franchise lending portfolio
Sound Credit Union
CRITICAL risk
- Total loans
- 24
- Loan volume
- $11.6M
- Avg loan size
- $484K
- Charge-off rate
- 20.0%
- vs 15.4% national avg
Defaults
4
Avg interest
6.19%
Franchises funded
20
Risk rating
CRITICAL
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Jimmy John's | 5 | $2.8M | 0.0% (low risk) |
| Quiznos | 1 | $188K | 100.0% (very high risk) |
| Subway Sandwich Shop | 1 | $158K | 0.0% (low risk) |
| Round Table Pizza | 1 | $256K | 100.0% (very high risk) |
| Val Pak | 1 | $80K | 0.0% (low risk) |
| Dairy Queen | 1 | $356K | 0.0% (low risk) |
| Wetzel's Pretzel | 1 | $286K | 100.0% (very high risk) |
| Sub Shop | 1 | $112K | 0.0% (low risk) |
| Curves For Women | 1 | $250K | 100.0% (very high risk) |
| Garlic Jim's Famous Gourmet Pi | 1 | $140K | 0.0% (low risk) |
| Abbey Carpet & Floor | 1 | $25K | 0.0% (low risk) |
| Fastsigns | 1 | $60K | 0.0% (low risk) |
| Sizzler | 1 | $1.9M | 0.0% (low risk) |
| Orange Theory Fitness | 1 | $150K | 0.0% (low risk) |
| Valpak | 1 | $551K | N/A |
| Real Property Management | 1 | $323K | 0.0% (low risk) |
| Chevron - Retail Supply Contra | 1 | $2.3M | N/A |
| Jimmy John's | 1 | $635K | N/A |
| Fit Body Boot Camp | 1 | $30K | 0.0% (low risk) |
| Anytime Fitness | 1 | $963K | N/A |
Lending volume by year
1'03
1'07
5'08
2'09
1'10
1'15
3'16
4'17
1'18
1'19
1'20
1'21
1'23
1'24
Sound Credit Union charge-off rate by loan vintage
BrandNational avg
Geographic exposure
2420.0% (very high risk)
Portfolio summary
Total funded$11.6M
Defaults4 of 24
Risk tierCRITICAL
Avg rate6.19%
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 Sound Credit Union originated?
- 24 loans totaling $11.6M. The portfolio carries a 20.0% 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 Sound Credit Union fund the most?
- The “Top franchise exposures” table above lists the brands Sound Credit Union has the largest concentration in. Click any brand to see its full FDD-disclosed financials, growth trajectory, and SBA loan performance across all lenders.