SB
SBA 7(a) franchise lending portfolio
Southern Bank
AVERAGE risk
- Total loans
- 93
- Loan volume
- $38.8M
- Avg loan size
- $417K
- Charge-off rate
- 12.3%
- vs 15.4% national avg
Defaults
8
Avg interest
6.56%
Franchises funded
63
Risk rating
AVERAGE
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Massage LuXe | 6 | $3.3M | 0.0% (low risk) |
| Dairy Queen | 3 | $1.5M | 0.0% (low risk) |
| Tropical Smoothie Cafe | 3 | $1.6M | 0.0% (low risk) |
| 9round | 3 | $362K | 0.0% (low risk) |
| Lapels Dry Cleaning | 3 | $1.8M | 50.0% (very high risk) |
| K-9 Resorts Daycare & Luxury H | 3 | $3.5M | N/A |
| Freshii | 2 | $831K | 0.0% (low risk) |
| Little Ceasar's Pizza | 2 | $190K | 0.0% (low risk) |
| Dunkin Donuts/Baskin-Robbins C | 2 | $1.3M | 0.0% (low risk) |
| The Little Gym | 2 | $1.0M | N/A |
| Floyd's 99 Barbershop | 2 | $728K | N/A |
| Massage Luxe | 2 | $1.1M | 0.0% (low risk) |
| Gyroville | 2 | $531K | 0.0% (low risk) |
| Subway | 2 | $297K | 0.0% (low risk) |
| Imo's Pizza | 2 | $487K | 0.0% (low risk) |
| Smoothie King | 2 | $709K | 0.0% (low risk) |
| Oxi Fresh Carpet Cleaning | 2 | $100K | 0.0% (low risk) |
| Glo Tanning | 2 | $689K | 0.0% (low risk) |
| Kanga's Indoor Playcenters | 2 | $726K | N/A |
| Monster Tree Service | 2 | $600K | 0.0% (low risk) |
Lending volume by year
2'97
1'00
1'02
2'04
2'07
4'08
2'09
2'10
3'11
2'13
4'14
6'15
6'16
7'17
6'18
13'19
10'20
12'21
7'22
1'26
Southern Bank charge-off rate by loan vintage
BrandNational avg
Geographic exposure
4316.7% (high risk)
1211.1% (elevated risk)
100.0% (low risk)
916.7% (high risk)
20.0% (low risk)
2N/A
20.0% (low risk)
20.0% (low risk)
20.0% (low risk)
1N/A
Portfolio summary
Total funded$38.8M
Defaults8 of 93
Risk tierAVERAGE
Avg rate6.56%
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 Southern Bank originated?
- 93 loans totaling $38.8M. The portfolio carries a 12.3% charge-off rate, earning a “AVERAGE” 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 Southern Bank fund the most?
- The “Top franchise exposures” table above lists the brands Southern 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.