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Original research · from the federal loan record

SBA lenders by charge-off rate: the best and the worst

Short answer. Across SBA 7(a) lenders with a meaningful loan history, the median lender charges off 0.85% of its dollars within five years, against a ~2.11% all-lender average — and the spread is enormous, from 0% to 13.6%. Highest: Lendistry (13.6%), CDC Small Business Finance (10.8%), BayFirst (9.2%). Lowest: a dozen lenders at 0%, including Harvest Small Business Finance and GBank. A high rate often reflects small-loan or fintech lending, not a “bad” lender — read it with the loan counts.
Median lender
0.85%
dollars charged off, 5 yr
Highest
13.6%
Lendistry SBLC
Lowest
0%
a dozen lenders
All-lender average
2.11%
share of dollars

Highest charge-off rates

≥100 loans
LenderLoans, 5 yrTypical loanCharge-off rate
Lendistry SBLC, LLC3,327$150,00013.55%
CDC Small Business Finance Corp.1,242$150,00010.82%
PeopleFund192$128,5509.87%
BayFirst National Bank7,831$150,0009.15%
FDIC - Community Bank & Trust-West Georgia223$935,0006.93%
LiftFund, Inc.168$149,5005.02%
United Midwest Savings Bank National Association3,203$150,0004.61%
Five Star Bank628$200,0004.46%
Milestone Bank114$1,012,5004.41%
Mortgage Capital Development Corporation102$192,4504.04%
VelocitySBA, LLC543$705,0003.52%
Magnifi Financial CU294$236,8503.43%
Quaint Oak Bank115$477,0003.43%
Celtic Bank Corporation4,325$150,0003.32%
Seacoast National Bank190$680,5502.98%
Union Bank and Trust Company239$250,0002.95%
First Resource Bank105$350,0002.88%
Hiawatha National Bank259$200,0002.86%
Central Pacific Bank357$40,0002.84%
Stearns Bank National Association561$250,0002.79%
Santander Bank, National Association281$59,2002.75%
Happen Bank185$886,0002.75%
Midwest Regional Bank346$643,5002.73%
Gesa CU163$465,0002.64%
Eastern Bank1,360$77,2502.58%

A high figure usually reflects who a lender serves — very small loans, startups, or fintech-style volume — more than sloppiness. It is a risk signal to weigh, not a verdict. Read it next to the loan count, and against the ~2.11% all-lender average.

Lowest charge-off rates

≥100 loans
LenderLoans, 5 yrTypical loanCharge-off rate
Harvest Small Business Finance, LLC1,415$748,0000.00%
GBank609$2,556,0000.00%
Port 51 Lending LLC385$1,190,0000.00%
Merchants Bank of Indiana299$657,6000.00%
ChoiceOne Bank276$305,2500.00%
Idaho Central CU268$300,0000.00%
22nd State Bank, A Division of 22nd State Banking Company215$970,0000.00%
Valley National Bank191$689,0000.00%
Maine Community Bank188$124,5000.00%
ConnectOne Bank177$600,0000.00%
Firstrust Savings Bank173$950,0000.00%
Southwestern National Bank160$1,261,5000.00%
Millennium Bank149$1,950,0000.00%
St. Mary's CU149$49,3000.00%
BankNewport118$60,0000.00%
PS Bank115$70,0000.00%
St. Louis Bank110$712,5000.00%
First Service Bank105$350,0000.00%
Countybank102$487,5000.00%
Oxford Bank100$315,3000.00%

A 0% rate means none of the lender’s dollars charged off in the five-year window — strong, but often a sign of conservative, larger-loan lending. Lower default is not automatically the “better” lender for you if they never fund deals like yours.

The busiest SBA lenders, and how they perform

by 5-yr volume
LenderLoans, 5 yrTypical loanCharge-off rate
The Huntington National Bank27,356$100,0001.19%
TD Bank, National Association11,760$50,0002.39%
U.S. Bank, National Association10,386$40,0000.97%
Readycap Lending, LLC8,068$107,9000.59%
BayFirst National Bank7,831$150,0009.15%
Manufacturers and Traders Trust Company7,483$50,2001.67%
Wells Fargo Bank National Association6,918$15,0001.09%
Live Oak Banking Company6,588$745,0000.53%
JPMorgan Chase Bank, National Association6,186$190,0001.55%
Northeast Bank5,911$100,0001.08%
Celtic Bank Corporation4,325$150,0003.32%
Lendistry SBLC, LLC3,327$150,00013.55%
United Midwest Savings Bank National Association3,203$150,0004.61%
Bank of America, National Association3,081$333,0000.46%
KeyBank National Association2,909$50,0000.58%

The names you have heard of — ranked here by volume, with the charge-off rate most “best lenders” lists never show you.

How to read this — and why we can show it

A lender’s charge-off rate reflects how the loans it made have performed — useful context a borrower rarely gets. It is dollar-weighted over five years (the lender convention), so it differs from the count-based default rates we use for franchises and industries. And here is the part that matters: no lender pays to appear here, and we are not a broker. Every “best SBA lenders” list you will find is paid by lenders; this one is just the loan record. Then match the right lender to your deal with the matcher.

Evidence & reproducibility

check our work
SourceSBA 7(a) FOIA files
Data released2026-06-30
Records analyzed383 lenders; rankings limited to lenders with ≥100 loans in the last five years
DefinitionCharge-off rate = share of loan dollars charged off within a five-year window (the lender metric, dollar-weighted — distinct from our count-based franchise/industry default rates)
ExclusionsLenders with too few recent loans to rank reliably
Analysis updated2026-07-31
DownloadAll lenders, charge-off rates (CSV)

Related

Editorial: why lender rankings mislead → All 415 lender pages → Match a lender to your deal → Franchise default rates → More research →