FranchiseVerdict

SBA 504 certified development company

504 Capital Corporation

CRITICAL risk
Total loans
131
Loan volume
$149.2M
Avg loan size
$1.1M
Default rate
23.1%
vs 13.3% national avg

Defaults

15

Franchises funded

97

Risk rating

CRITICAL

Top franchise exposures

FranchiseLoansVolumeDefault %
Days Inn5$6.9M80.0%
Quality Inn5$4.7M40.0%
Choice Hotels International In3$3.9M50.0%
Chuck E. Cheese (show Biz Pizz3$1.1M0.0%
International House Of Pancake3$2.5M0.0%
Pods3$1.9M0.0%
Extended Stay America Suites f3$10.5M
Motel 63$2.2M0.0%
Ramada Inn2$2.1M50.0%
Bojangles2$1.5M0.0%
Sonic2$886K0.0%
Comfort Inn2$2.2M
Best Western Inn2$2.6M0.0%
Popeyes Louisiana Kitchen2$747K0.0%
Servpro2$657K0.0%
Comfort Inn by Choice Hotels/C2$6.9M0.0%
The Goddard School2$3.0M0.0%
Holiday Inn Express/Holiday In2$3.8M
Primrose Schools2$4.5M
Kiddie Academy2$4.2M

Lending volume by year

1
'92
3
1
3
1
5
'03
5
8
5
5
11
'08
2
4
2
3
6
'13
4
2
2
3
6
'20
11
19
13
1
3
'25
2
'26

Geographic coverage

Portfolio summary

Total funded$149.2M
Defaults15 of 131
Risk tierCRITICAL

Source: SBA 504 FOIA loan-level data, aggregated by FranchiseVerdict

Default 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%), Critical (>20%).