How the numbers are built
How CapBench calculates SBA failure rates
CapBench reports failure rates as the share of a loan cohort that ended in a charge-off. We group loans by the fiscal year they were approved (FY2020–FY2023 cohorts), then measure how many of those loans have since been charged off.
Data sources
- •SBA 7(a) loan records with approval and charge-off status (public)
- •CapBench cohort aggregation by state and by lender
Cohort basis
A failure rate is always tied to a cohort: loans approved in a given fiscal year. Grouping by approval year keeps the comparison fair, because a recently approved loan has had less time to fail than an older one.
We report the FY2020–FY2023 cohorts together as a stable, seasoned window with enough loan age to show real charge-off behavior.
By state and by lender
The state view aggregates every loan in the cohort by the borrower's state, then divides charged-off loans by total loans in that state.
The lender view does the same by approving lender, so you can see how a lender's seasoned book has performed. Worst-performing cohorts are listed first.
What this does not tell you
- •A charge-off rate is a backward-looking outcome on seasoned loans, not a prediction for a new loan.
- •State and lender rates reflect the mix of industries, deal sizes, and economic conditions in each cohort, which differ across places and lenders.
- •Small cohorts can swing on a few loans; weigh the loan count alongside the rate.
AI summary
This page explains the methodology behind how capbench calculates sba failure rates on CapBench: where the underlying data comes from, exactly how the numbers are calculated, and what the result can and cannot tell you. Every figure is derived from public SBA 7(a) and FDIC records.
It exists so any stat CapBench publishes can be traced back to its source and computation rather than taken on faith. This is general information, not legal, tax, or financial advice, and CapBench is not a lender.
Source: CapBench SBA Intelligence, based on public SBA, lender, franchise, FDIC, and related records. CapBench is not a lender and does not guarantee financing.
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