Ace Hardware Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Ace Hardware franchisees defaulted on 7.0% of SBA 7(a) loans between FY2010 and FY2019 — 18 of 256 loans were charged off — according to U.S. Small Business Administration data. That is roughly in line with the Hardware Stores industry average of 7.6%.
- 7.0%SBA default rate18 of 256 loans
- 256loans resolvedapproved FY2010–FY2019
- 7.6%Hardware Stores averageall SBA loans in the industry
- 5th lowestindustry rankof 5 Hardware Stores brands
| SBA default rate | 7.0% |
|---|---|
| Loans approved | 256 |
| Loans charged off | 18 |
| Date range | FY2010–FY2019 |
| Industry | Hardware Stores |
| Industry average | 7.6% |
| Data source | U.S. SBA 7(a) FOIA loan data |
Most SBA default figures published online use loans approved since 2020 — loans that have had six years or less to fail — so those rates are floors, not outcomes. Every rate on this site is computed from the matured FY2010–FY2019 cohort: loans that have been paid in full or charged off, so the result is settled. Loans approved since 2020 are shown as counts so early charge-offs are visible without being mistaken for a rate.
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.
About 1 in 14 Ace Hardware SBA borrowers failed to repay — below the Hardware Stores average of 7.6%.
What is the Ace Hardware franchise failure rate on SBA loans?
Ace Hardware is a Hardware Stores franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Ace Hardware franchisees: 256 loans approved between fiscal 2010 and 2019, of which 18 were charged off. Loan statuses are as of June 30, 2026, and the cohort has matured, so these are settled outcomes rather than projections.
- SBA 7(a) loans approved FY2010–FY2019256
- Charged off18
- Charge-off rate7.0%
- Hardware Stores franchise benchmark7.6%
- Brand vs industry0.9x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$646,830
- New SBA loans since 2020291
- Early charge-offs since 20200
How does Ace Hardware compare with other Hardware Stores franchises?
The table sets Ace Hardware's charge-off rate beside its Hardware Stores peers and the two economy-wide benchmarks. All figures use the same cohort — SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026 — and the same denominator of resolved loans, so they are directly comparable.
| Measure | Ace Hardware | Hardware Stores | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 7.0% | 7.6% | 10.2% | 8.0% |
| Loans in sample | 256 | — | — | — |
| Defaults | 18 | — | — | — |
| Average loan size | $646,830 | — | — | — |
What has Ace Hardware SBA lending looked like since 2020?
Since 2020, Ace Hardware franchisees have taken 291 new SBA 7(a) loans. None have charged off to date, though most remain outstanding and unresolved.
Loans approved since 2020, by fiscal year — counts only: 0 have charged off to date and most are still outstanding, so no rate is drawn.
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
Show the numbers behind this chart
| Fiscal year | Loans | Charged off | Rate |
|---|---|---|---|
| FY2010 | 24 | 0 | 0.0% |
| FY2011 | 19 | 3 | 15.8% |
| FY2012 | 29 | 2 | 6.9% |
| FY2013 | 18 | 2 | 11.1% |
| FY2014 | 31 | 0 | 0.0% |
| FY2015 | 42 | 4 | 9.5% |
| FY2016 | 24 | 3 | 12.5% |
| FY2017 | 20 | 0 | 0.0% |
| FY2018 | 29 | 4 | 13.8% |
| FY2019 | 20 | 0 | 0.0% |
| FY2020 | 52 | — | outstanding |
| FY2021 | 79 | — | outstanding |
| FY2022 | 51 | — | outstanding |
| FY2023 | 34 | — | outstanding |
| FY2024 | 11 | — | outstanding |
| FY2025 | 27 | — | outstanding |
| FY2026 | 37 | — | outstanding |
How to read this
A charge-off means a franchisee borrowed, operated, and failed severely enough that the SBA wrote off the government-guaranteed loan. Unlike franchisor marketing or Item 19 disclosures, this is an observed outcome recorded by a federal agency. One caveat cuts the other way: SBA borrowers are typically less capitalized than all-cash buyers, so these rates can overstate risk for well-funded operators.
How reliable is this number?
Ace Hardware's figure rests on 256 resolved SBA 7(a) loans approved between fiscal 2010 and 2019. That cohort has matured, so the rate is a settled outcome, not a projection. With 256 resolved loans, the sample is large enough that a single default barely moves the figure. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every Ace Hardware figure is recomputed from the public SBA FOIA file on each rebuild.
Is Ace Hardware in financial trouble? What the SBA data shows
Ace Hardware's SBA 7(a) default rate was 7.0% for loans approved FY2010–FY2019 (18 of 256 loans charged off) — the highest of 5 Hardware Stores brands tracked here. A default rate close to the Hardware Stores average of 7.6% is, on its own, neither a warning sign nor a reassurance.
Frequently asked
- What is Ace Hardware's franchise failure rate?
- Ace Hardware franchisees defaulted on 7.0% of SBA 7(a) loans between FY2010 and FY2019 — 18 of 256 loans were charged off — according to U.S. Small Business Administration data. That is roughly in line with the Hardware Stores industry average of 7.6%.
- How does Ace Hardware compare to other Hardware Stores franchises?
- Ace Hardware's 7.0% SBA default rate is roughly in line with the Hardware Stores industry average of 7.6%. See every Hardware Stores franchise ranked on the Hardware Stores industry page. Hardware Stores franchises →
- What does 'SBA default rate' mean?
- An SBA default rate is the share of SBA 7(a) loans, approved FY2010–FY2019 and since resolved (paid in full or charged off), that were charged off — written off after the borrower failed to repay. It is not a measure of unit closures.
Source
Source: U.S. Small Business Administration, 7(a) loan program charge-off data, FY2010–FY2019. Franchise data is matched on the SBA's franchise code / brand name. "Failure rate" here means the share of approved loans (resolved: paid in full or charged off) that were charged off; it is not a measure of unit closures. Last updated September 30, 2026.
Every brand in one table, with percentiles and breakdowns by year, industry and loan size: franchise SBA default rates, all 415 brands.
Cite this page
Franchise Default Rates (2026). Ace Hardware franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 7.0% (18 of 256 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/ace-hardware/ · Data & methodology · Download the dataset (CSV)