SB
SBA 7(a) franchise lending portfolio
Stearns Bank National Association
AVERAGE risk
- Total loans
- 3,342
- Loan volume
- $976.0M
- Avg loan size
- $292K
- Charge-off rate
- 13.0%
- vs 15.4% national avg
Defaults
349
Avg interest
7.05%
Franchises funded
960
Risk rating
AVERAGE
Top franchise exposures
| Franchise | Loans | Volume | Default % |
|---|---|---|---|
| Supercuts | 86 | $11.4M | 4.9% (low risk) |
| Quiznos | 66 | $9.4M | 16.7% (high risk) |
| Subway | 43 | $7.8M | 3.2% (low risk) |
| Dairy Queen | 41 | $15.8M | 4.9% (low risk) |
| F45 Training | 41 | $10.4M | 20.8% (very high risk) |
| Fedex Ground | 39 | $14.6M | 12.1% (elevated risk) |
| Cornwell Quality Tool Company, | 33 | $2.3M | 27.3% (very high risk) |
| Ilovekickboxing.com | 32 | $6.2M | 29.0% (very high risk) |
| Papa Murphy's | 31 | $9.1M | 3.7% (low risk) |
| Firehouse Subs | 29 | $8.1M | 12.5% (elevated risk) |
| The UPS Store | 28 | $5.2M | 0.0% (low risk) |
| Culver's Frozen Custard | 27 | $23.9M | 0.0% (low risk) |
| Subway | 27 | $7.0M | 9.5% (moderate risk) |
| Supercuts | 27 | $4.8M | 0.0% (low risk) |
| Jake's Wayback Burgers | 27 | $6.1M | 25.0% (very high risk) |
| Deka Lash | 27 | $5.8M | 14.3% (elevated risk) |
| Seva Beauty | 27 | $3.6M | 8.3% (moderate risk) |
| Great Clips | 25 | $10.1M | 4.2% (low risk) |
| Dickey's Barbecue Pit | 25 | $7.1M | 29.2% (very high risk) |
| Jimmy John's | 24 | $9.2M | 17.4% (high risk) |
Lending volume by year
1'92
1
2
7
2
8'97
4
21
37
22
26'02
47
87
109
43
12'07
1
6
9
11
18'13
68
273
567
535
552'18
568
183
12
21
25'23
37
25
2'26
Stearns Bank National Association charge-off rate by loan vintage
BrandNational avg
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Geographic exposure
43822.6% (very high risk)
34011.6% (elevated risk)
29316.7% (high risk)
1558.8% (moderate risk)
1498.5% (moderate risk)
14814.2% (elevated risk)
14410.3% (elevated risk)
1276.5% (moderate risk)
11811.1% (elevated risk)
1129.4% (moderate risk)
Portfolio summary
Total funded$976.0M
Defaults349 of 3,342
Risk tierAVERAGE
Avg rate7.05%
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 Stearns Bank National Association originated?
- 3,342 loans totaling $976.0M. The portfolio carries a 13.0% 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 Stearns Bank National Association fund the most?
- The “Top franchise exposures” table above lists the brands Stearns Bank National Association has the largest concentration in. Click any brand to see its full FDD-disclosed financials, growth trajectory, and SBA loan performance across all lenders.