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SBA Backed Loans Failure Performance


The Small Business Administration recently published it’s annual compilation of performance data on thousands of franchisee loans it has guaranteed.

The information is available through Coleman Publishing. The study looks at the number of SBA-backed franchisee loans that went into liquidation. The measure gives some insight into the financial risks involved with franchises that received funding thru the SBA Guaranteed loans program..

The latest report — covering loans made from Oct. 1, 2000, to Sept. 30, 2007. Among other statistics, it shows how many loans were made to a franchise, the dollars disbursed, and what percentage of loans went into liquidation, something the SBA classifies as a “failure.”

Many SBA lenders use the data to help spot negative trends and reduce future loan losses.

Best Performers (less than 1% failure) Sorted Ascending by lowest % (ties sorted descending by # of loans)

Comfort Inn 158 0 0%
Primrose 110 0 0%
Edible Arrangement 104 0 0%
Massage Envy 61 0 0%
Cartridge World 112 8 .93%
Subway 1974 84 .96%
Dunkin Donuts 410 17 .96%
Sport Clips 191 8 .96%
Travelodge 91 4 .96%
IHOP 67 3 .96%
Goddard 109 3 .97%
Super 8 Motel 363 8 .98%
Best Western 156 3 .98%
Choice Hotels 144 3 .98%
Rita’s Water Ice 103 2 .98%
Arco 85 2 .98%
Zaxby’s 81 2 .98%
Anytime Fitness 65 1 .98%
Holiday Inn Express 157 1 .99%
Culver’s Frozen Custard 150 1 .99%
Hampton Inn 88 1 .99%
Brusters Real Ice Cream 84 1 .99%
Little Caesars Pizza 72 1 .99%
FastSigns 71 1 .99%

High Failures (greater than 25%) Sorted Descending by Highest % (ties sorted descending by # of loans)

Carvel Ice Cream 76 30 39%
Matco Tools 316 95 30%
Atlanta Bread 61 18 30%
Golf Etc 67 24 36%
Cornwell Quality Tool 53 19 36%
Blimpie Subs & Salads 158 58 37%
Cottman Transmission 163 75 46%
All Tune & Lube 77 37 48%
Philly Connection 63 30 48%






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