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Franchise · SBA lending record

Ace Hardware: how its 266 SBA loans actually performed

Hardware Stores · 576 units financed with SBA 7(a) loans since 2010 · 161 lenders have funded this brand.

Defaults run at or below the SBA-wide average

11 of 266 seasoned SBA loans charged off — 4.1%, against 5.7% across all SBA 7(a) loans.

Units financed
576
SBA 7(a), 2010 onward
Old enough to judge
266
loans at least 7 years old
Defaulted
charged off within 7 years
4.1%
all 7(a) avg 5.7%
Typical loan
$531k
$100k–$2.0M
See the 11 charged-off loans behind this number — every one, straight from the federal recordShow list ↓Hide list ↑
BusinessLocationCharged offSBA loss
Mike R InvestmentsCathedral City, CA2022$482,357
WORKMAN FAMILY HARDWARE, CORP.Riverside, CA2023$461,872
The Vandervort Supply CompanyPortsmouth, OH2021$247,179
Hartwell Hardware, LLCHartwell, GA2014$206,203
CBEL, INC.Mayville, WI2019$187,127
QK Enterprises Inc.Attalia, AL2018$151,426
Mid State Lumber, Inc.Cuba, MO2016$97,431
Mancuso Hardware CompanyLodi, CA2022$77,640
BAYVIEW BUILDING MATERIALS OF WESTPORT, INC.Westport, WA2016$64,426
Cefo Enterprise, Corp.Macedonia, OH2018$47,265
WMC Inc. dba Overland Ace HardwareBoise, ID2015$13,748

Each row above is an SBA 7(a) loan tied to this brand, charged off (defaulted) within seven years of approval — a few businesses appear more than once. Names, cities and loss amounts are exactly as they appear in the SBA’s FOIA release of 2026-06-30; street addresses are omitted by choice. Count them: there are 11 loans.

How this brand compares

share of owners who defaulted within seven years
Ace Hardware
4.1%
Typical franchise brand
3.0%
All SBA 7(a) loans
5.7%

Franchise disclosure documents are not required to tell you how many owners failed. This is computed from the federal record of every SBA loan made to this brand, so it is the outcome, not the pitch.

Source SBA 7(a) FOIA, franchise field Released 2026-06-30 Sample 266 loans at least 7 years old Method counted by loan — one loan is one owner — grouped by year approved

When owners got into trouble

share of failures by year
Year 3
6%
Year 4
17%
Year 5
11%
Year 6+
67%

Failures usually cluster once the opening cash is spent and the first rent increase lands. Plan working capital for that window, not for month one.

Who still lends on it

last two fiscal years
LenderUnits funded
Live Oak Banking Company26
Bank of America, National Association4
ChoiceOne Bank3
BankVista3
Village Bank and Trust, National Association2

Fewer active lenders means less competition on your rate, and a harder time if the first bank declines.

Each year's owners, as they aged

cumulative % of loan dollars charged off
OpenedYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
20100.00.00.00.00.00.00.00.00.00.0
20110.00.00.00.00.00.71.11.12.62.6
20120.00.01.01.11.11.11.11.11.11.1
20140.00.00.00.00.00.00.00.00.00.0
20150.00.00.00.50.50.50.80.81.91.9
20160.00.00.00.00.01.11.11.13.8·
20170.00.00.00.00.00.00.00.0··
20180.00.00.00.02.03.93.9···
20190.00.00.00.00.00.0····
20200.00.00.00.00.0·····
20210.00.00.00.0······
20220.00.00.0·······
20230.00.0········
2025··········
2026··········
0%
12%+▨ too recent to know

Each row is one year's crop of new owners. Read across to watch them age; read down a column to compare different years at the same point in their life. Blank cells are simply too recent to know.

Brands worth comparing against this one

A default rate only means something next to its neighbours. These are the brands yours is being compared against.

Before you sign anything

This page tells you how past owners fared with SBA debt. It does not tell you whether this brand suits you, what the territory looks like, or how the franchisor behaves. Ask for Item 19, talk to at least five current franchisees and two who left, and run your own numbers.

Check whether the numbers work → What the SBA Franchise Directory is →

Common questions

What percentage of Ace Hardware franchises default on their SBA loans?

Of the 266 Ace Hardware SBA 7(a) loans old enough to judge, 114.1% — were charged off within seven years. That is far below the roughly 5.7% average across all SBA 7(a) loans.

Is Ace Hardware a good franchise to buy with an SBA loan?

This page can only tell you how Ace Hardware's SBA loans have performed, not whether it will work for you. A low default rate — Ace Hardware sits below the norm — is a genuine positive: banks tend to lend more readily, and on better terms, to brands with a clean record. Still, treat it as one input alongside the franchise disclosure document and your own numbers.

How much have lenders lost on Ace Hardware SBA loans?

Across the seasoned Ace Hardware loans in the federal record, 11 were charged off, with about $2,036,674 in SBA losses in total. Every one of those businesses is listed by name on this page — see the 11 that defaulted.