SB
SBA 7(a) franchise lending portfolio
SouthStar Bank, S.S.B.
CRITICAL risk
- Total loans
- 10
- Loan volume
- $9.5M
- Avg loan size
- $947K
- Charge-off rate
- 33.3%
- vs 15.4% national avg
Defaults
1
Avg interest
6.78%
Franchises funded
8
Risk rating
CRITICAL
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Line-X | 3 | $3.7M | N/A |
| Souper Salad/Souper Fresh | 1 | $100K | 0.0% (low risk) |
| Interstate All Battery Center | 1 | $176K | 100.0% (very high risk) |
| Minuteman Press | 1 | $189K | 0.0% (low risk) |
| Title Boxing Club | 1 | $94K | N/A |
| Sit Still Kids Salon | 1 | $183K | N/A |
| Pinnacle Montessori Academy | 1 | $4.8M | N/A |
| Rolling Suds | 1 | $200K | N/A |
Lending volume by year
1'13
2'14
1'19
3'20
1'21
2'23
Geographic exposure
1033.3% (very high risk)
Portfolio summary
Total funded$9.5M
Defaults1 of 10
Risk tierCRITICAL
Avg rate6.78%
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 SouthStar Bank, S.S.B. originated?
- 10 loans totaling $9.5M. The portfolio carries a 33.3% 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 SouthStar Bank, S.S.B. fund the most?
- The “Top franchise exposures” table above lists the brands SouthStar Bank, S.S.B. has the largest concentration in. Click any brand to see its full FDD-disclosed financials, growth trajectory, and SBA loan performance across all lenders.