MASSACHUSETTS · SBA 7(a)/504 FOIA · FY1991–PRESENT
Franchises in Massachusetts: the loan record
Since 1991, banks have made 2,104 SBA-backed loans to franchisees of 361 brands in Massachusetts. SBA loans to Massachusetts franchisees approved through FY2020 defaulted less often than franchise loans made in the same years nationally: 157 charge-offs among 1,278 resolved loans, where about 203 would be expected (0.8×).
Evidence, all years: 160 of 1,333 resolved loans were charged off (raw rate 12.0%). The raw rate mixes loans from every era, including the 2006–08 loans that met the recession, so it is not compared with anything here. Borrowers are matched to brands by name, so some matches may be wrong.
2,104
SBA loans since 1991
361
Brands financed
0.8×
Loss ratio vs same-year loans
29.5
Loans per 100k residents
| THE UPS STORE (TRADITIONAL) | 0 charge-offs vs ~5.9 expected | 0× |
| Mail Boxes Etc. Usa | 1 charge-offs vs ~5.4 expected | 0.2× |
Every SBA 7(a) and 504 loan in the FY1991–present FOIA files (data.sba.gov) whose borrower is matched to a franchise brand and whose borrower state is Massachusetts. Fuel-supply contracts, insurance agencies and other SBA codes that are not franchises a buyer can purchase are excluded. Totals count every such loan, including brands with too few loans here to list. The loss ratio compares charge-offs among loans approved through FY2020 (old enough that most failures have surfaced) with the charge-offs expected if each loan had defaulted at the national rate for franchise loans approved the same year; 1.0× means the same as same-year franchise loans. Only charged-off and paid-in-full loans count, so still-open loans never dilute it. A ratio prints at 30+ resolved loans; “not clear” marks a ratio that chance alone could produce. Local conditions and lender mix sit inside these numbers; read a brand's national record and its FDD before concluding anything.
A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing the numbers, including talking you out of a bad deal.