Top 10 Banks for Franchise Loans Over the Last 10 Years
Top 10 Banks for Franchise Loans Over the Last 10 Years
A decade of data on the top 10 SBA franchise lenders from 2015 to 2024 reveals the rankings are constantly shifting, with significant turnover year after year. This volatility highlights a key insight—just because a bank excelled in franchise lending one year, or even for several years, doesn’t mean it’s the right lender for you today. Below, we analyze the data to provide stats on the top 10 rankings over the last 10 years. The criteria is based on the top 10 ranked SBA franchise lenders based on total amounts of funded loans per calendar year over the last 10 years.
33% Annual Turnover Rate of the Top 10
Over the past decade, an average of 33% of the top 10 SBA franchise lenders change each year, based on total funded loan amounts. This means that, on average, one-third of the top lenders from one year are replaced by new entrants the next. Here are specific examples over the last few years:
2024 vs. 2023: 3 new banks entered the top 10 (Open Bank, Bank of Hope, Millennium Bank), a 30% turnover.
2023 vs. 2022: 4 new banks appeared (First Bank of the Lake, Byline Bank, United Midwest, Wallis Bank), a 40% turnover.
2021 vs. 2020: 4 new banks joined (Readycap Lending, Peoples Bank, US Metro Bank, First Chatham Bank), a 40% turnover.
This consistent churn demonstrates that the SBA franchise lending landscape is far from static. A bank that led in 2023 might not even rank in 2024.
National Lending Dominates
Most top lenders operate nationally, with out-of-state lending percentages often exceeding 90%. Take these top franchise SBA lenders for example:
Bank of George: 99.87% in 2024, 100% in multiple prior years.
Huntington Bank: 93.33% in 2024, 91.84% in 2023.
Celtic Bank: Consistently above 98% across the decade.
Borrowers must consider lenders beyond their local market, which adds complexity to relying on static lists.
Spreads Vary
The spread (interest rate margin) differs significantly, affecting borrowing costs. There’s no clear correlation between spread and ranking—top lenders have both high and low spreads.
A top ranked bank’s past performance alone is not enough with 33% of the top 10 changing annually. The volatility, strategic shifts, and new players (usually established players with a new or renewed focus on franchise lending) underscores why franchise borrowers can’t depend solely on a lender’s historical ranking. A lender’s past success doesn’t guarantee it’s active or competitive in franchise lending today. This fluidity can make static rankings unreliable for current decisions.
LoanBox is Your Reliable Partner for SBA Loans
LoanBox takes the guesswork out of finding the right SBA lender for your specific business. Once you complete your loan package, our algorithms instantly connect you with top lenders whose criteria you meet 100%. From there, you can review their proposals, select the best offer, and track your loan’s progress to closing—all within LoanBox.
For small business owners, getting the right lender the first time is critical. LoanBox ensures you secure the perfect loan match upfront, saving you time and hassle. It’s built for those seeking substantial small business loans, where delays from mismatched lenders can derail your plans.
Dynamic Matching Beats Static Rankings
The SBA franchise lending market is a moving target—33% of top lenders change yearly, strategies diverge, and even consistent banks fluctuate. LoanBox offers a smarter path to ensure you find the right lender for your needs right now. In a landscape this dynamic, past performance is just a starting point—current compatibility is what counts for your franchise loan today.
Start with LoanBox today and get your business loan done right, with the right lender, on your first try.
Think Inside the LoanBox
For smart business lending think inside the LoanBox. Just log in, answer questionnaires, complete your loan package, and the platform will match you to the exact right lenders you match 100% of dozens of criteria points. Select which lenders you want to access your loan package and offer a loan proposal. Receive loan proposals from interested lenders, select the winning lender, and always know what’s going on from application to funding and what’s needed next in the loan process. Or have a friendly LoanBox Advisor just handle everything for you.