SBA franchise lending
Lending Explorer
Compare franchise lending performance across SBA 7(a) loans (the most common SBA program, covering working capital, equipment, and real estate) and 504 loans (fixed-asset financing through Certified Development Companies). Filter by program, risk rating, and state.
Source: SBA FOIA loan-level data through FY 2024. Charge-off rates reflect cumulative experience of resolved loans. Rates for recent approval years are based on partial cohorts and will change as loans season.
This is an independent research tool and is not affiliated with, endorsed by, or a product of the U.S. Small Business Administration. Nothing here constitutes financial, lending, or legal advice. Methodology
National overview
- Lenders tracked
- 1,033
- Total loans
- 143,527
- Total volume
- $87.0B
- States
- 53
- 7(a) default
- 16.0%
- 504 default
- 13.7%
Loan charge-off rate by approval year
Each bar shows defaults for loans approved that year. Older loans have had more time to resolve, so early years appear higher.
| Year | 7(a) charge-off rate | 7(a) loans | Maturity |
|---|---|---|---|
| 1992 | 9.4% | 1,138 | Mature |
| 1993 | 9.4% | 1,358 | Mature |
| 1994 | 11.6% | 1,791 | Mature |
| 1995 | 16.8% | 2,756 | Mature |
| 1996 | 16.3% | 2,751 | Mature |
| 1997 | 16.6% | 2,837 | Mature |
| 1998 | 18.2% | 2,271 | Mature |
| 1999 | 18.8% | 2,497 | Mature |
| 2000 | 19.1% | 2,699 | Mature |
| 2001 | 19.5% | 2,559 | Mature |
| 2002 | 17.0% | 3,646 | Mature |
| 2003 | 18.8% | 4,396 | Mature |
| 2004 | 20.9% | 4,677 | Mature |
| 2005 | 25.5% | 4,887 | Mature |
| 2006 | 35.5% | 3,134 | Mature |
| 2007 | 38.1% | 3,246 | Mature |
| 2008 | 32.8% | 2,990 | Mature |
| 2009 | 14.9% | 1,808 | Mature |
| 2010 | 8.8% | 2,046 | Mature |
| 2011 | 7.5% | 2,227 | Mature |
| 2012 | 7.1% | 2,193 | Mature |
| 2013 | 6.9% | 2,749 | Mature |
| 2014 | 8.1% | 4,076 | Mature |
| 2015 | 9.9% | 4,966 | Mature |
| 2016 | 11.2% | 4,595 | Mature |
| 2017 | 13.1% | 4,233 | Mature |
| 2018 | 13.1% | 4,470 | Maturing (rate will change) |
| 2019 | 10.9% | 3,681 | Maturing (rate will change) |
| 2020 | 7.8% | 2,608 | Maturing (rate will change) |
| 2021 | 6.4% | 2,756 | Maturing (rate will change) |
| 2022 | 9.0% | 1,367 | Maturing (rate will change) |
| 2023 | 9.5% | 842 | Maturing (rate will change) |
| 2024 | 2.3% | 258 | Maturing (rate will change) |
| 2025 | 0.0% | 42 | Maturing (rate will change) |
State breakdown
Top 10 of 53 states/territories
| 7(a) Program | 504 Program | Combined | |||||||
|---|---|---|---|---|---|---|---|---|---|
| # | State | Loans | Volume | Default | Loans | Volume | Default | Total loans | Total volume |
| 1 | Texas | 16,560 | $10.6B | 20.5% (very high risk) | 1,575 | $1.9B | 18.6% (high risk) | 18,135 | $12.6B |
| 2 | California | 12,874 | $7.9B | 15.3% (high risk) | 1,529 | $2.0B | 7.5% (moderate risk) | 14,403 | $9.8B |
| 3 | Florida | 8,224 | $4.5B | 20.9% (very high risk) | 1,112 | $1.4B | 16.9% (high risk) | 9,336 | $5.8B |
| 4 | Georgia | 6,081 | $4.4B | 15.5% (high risk) | 907 | $996.2M | 21.8% (very high risk) | 6,988 | $5.4B |
| 5 | Ohio | 5,935 | $2.8B | 13.5% (elevated risk) | 583 | $515.5M | 15.2% (high risk) | 6,518 | $3.3B |
| 6 | Illinois | 4,836 | $2.6B | 16.4% (high risk) | 721 | $683.6M | 17.8% (high risk) | 5,557 | $3.3B |
| 7 | Pennsylvania | 4,590 | $2.0B | 13.6% (elevated risk) | 285 | $367.9M | 9.6% (moderate risk) | 4,875 | $2.4B |
| 8 | Michigan | 3,994 | $1.8B | 14.5% (elevated risk) | 509 | $437.1M | 16.6% (high risk) | 4,503 | $2.3B |
| 9 | North Carolina | 4,071 | $2.9B | 14.1% (elevated risk) | 407 | $408.3M | 13.0% (elevated risk) | 4,478 | $3.3B |
| 10 | Minnesota | 3,226 | $1.1B | 14.1% (elevated risk) | 718 | $505.0M | 11.1% (elevated risk) | 3,944 | $1.6B |
43 more states available
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