Where can I access data on SBA 7a loan performance by franchise for 2000 – 2018?
Is this data publicly available, or paid? In particular, I need data like the that contained in the following link: https://fitsmallbusiness.com/best-franchises-sba-default-rates/, except for all franchises recognized by SBA, not just the top 50 and bottom 50 performers
The SBA publishes this data under the Freedom of Information Act, and it is available as an excel file located here: https://www.sba.gov/about-sba/open-government/foia
Scroll down to the bottom of that page, and there is a list of “Frequently requested records”. The one you want is titled: 2010 – Present SBA 7(a) Loan Data
The excel file is quite large and includes all 7(a) loan data (not just franchise loans). The easiest way to access the data you are looking for is to either filter or set up a pivot table. Column ‘X’ indicates that the loan is a franchise loan by including the franchise number, and column ‘Y’ provides the name of the franchise.
Hope this helps!
Thank you for your quick response!
As a follow up question, may I ask how you calculated the “SBA Loan Default Rate” in your article? Did you just use the count of CHGOFF divided by the sum of the counts of COMMIT, PIF, CANCLD, EXEMPT, and CHGOFF for each franchise?
I am trying to replicate those numbers for all of the franchises listed in the dataset
The default rates were calculated by taking the sum of the number of loans charged-off or canceled, and dividing that sum by the sum of number of loans that were charged-off, canceled or paid in full.
(charged-off + canceled)/(charged-off + canceled + paid in full) = default rate
So, for example, the article lists Comfort Keepers as #1 on the Best list. Comfort Keepers had 25 loans that were closed out in that time period, two of which were either charged-off or canceled, the remainder were paid in full.
2/25 = 0.08 = 8%
COMMIT loans are loans that were commited/obligated by the SBA, but are not yet issued as actual loans. EXEMPT loans are loans that are still in repayment status. Loans with either of these statuses were not included in the calculations, as we can’t predict what will happen with them.
Hopefully, this helps clarify our calculations and determinations. Keep in mind you may find some variations in the numbers, because it is possible that there may be additional loans that fell into a default status since the article was written/published.