NORTH CAROLINA · SBA 7(a)/504 FOIA · FY1991–PRESENT
Franchises in North Carolina: the loan record
Since 1991, banks have made 3,862 SBA-backed loans to franchisees of 566 brands in North Carolina. SBA loans to North Carolina franchisees approved through FY2020 defaulted less often than franchise loans made in the same years nationally: 302 charge-offs among 2,216 resolved loans, where about 360 would be expected (0.8×).
Evidence, all years: 308 of 2,388 resolved loans were charged off (raw rate 12.9%). 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.
3,862
SBA loans since 1991
566
Brands financed
0.8×
Loss ratio vs same-year loans
35
Loans per 100k residents
| Subway | 1 charge-offs vs ~18 expected | 0.06× |
| QUALITY INN | 1 charge-offs vs ~5.9 expected | 0.2× |
| THE UPS STORE (TRADITIONAL) | 1 charge-offs vs ~5.8 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 North Carolina. 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.