MICHIGAN · SBA 7(a)/504 FOIA · FY1991–PRESENT
Franchises in Michigan: the loan record
Since 1991, banks have made 3,944 SBA-backed loans to franchisees of 522 brands in Michigan. SBA loans to Michigan franchisees approved through FY2020 defaulted at a rate not clearly different from franchise loans made in the same years nationally: 358 charge-offs among 2,364 resolved loans, where about 372 would be expected (1.0×).
Evidence, all years: 365 of 2,510 resolved loans were charged off (raw rate 14.5%). 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.
3,944
SBA loans since 1991
522
Brands financed
1.0×
Loss ratio vs same-year loans (not clear)
38.9
Loans per 100k residents
| Jets Pizza | 0 charge-offs vs ~7.5 expected | 0× |
| Jimmy John's | 0 charge-offs vs ~5.9 expected | 0× |
| Tropical Smoothie Cafe | 0 charge-offs vs ~3.6 expected | 0× |
| Culver's | 2 charge-offs vs ~8.7 expected | 0.2× |
| Biggby Coffee | 2 charge-offs vs ~7 expected | 0.3× |
| Subway | 9 charge-offs vs ~24 expected | 0.4× |
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 Michigan. 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.