Liberty Tax Service Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Liberty Tax Service franchisees defaulted on 9.8% of SBA 7(a) loans between FY2010 and FY2019 — 12 of 122 loans were charged off — according to U.S. Small Business Administration data. That is roughly in line with the Tax Preparation Services industry average of 9.7%.
- 9.8%SBA default rate12 of 122 loans
- 122loans resolvedapproved FY2010–FY2019
- 9.7%Tax Preparation Services averageall SBA loans in the industry
- 3rd lowestindustry rankof 3 Tax Preparation Services brands
| SBA default rate | 9.8% |
|---|---|
| Loans approved | 122 |
| Loans charged off | 12 |
| Date range | FY2010–FY2019 |
| Industry | Tax Preparation Services |
| Industry average | 9.7% |
| 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 10 Liberty Tax Service SBA borrowers failed to repay — in line with the Tax Preparation Services average of 9.7%.
What is the Liberty Tax Service franchise failure rate on SBA loans?
Liberty Tax Service is a Tax Preparation Services franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Liberty Tax Service franchisees: 122 loans approved between fiscal 2010 and 2019, of which 12 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–FY2019122
- Charged off12
- Charge-off rate9.8%
- Tax Preparation Services franchise benchmark9.7%
- Brand vs industry1.0x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$124,834
- New SBA loans since 202026
- Early charge-offs since 20202
How does Liberty Tax Service compare with other Tax Preparation Services franchises?
The table sets Liberty Tax Service's charge-off rate beside its Tax Preparation Services 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 | Liberty Tax Service | Tax Preparation Services | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 9.8% | 9.7% | 10.2% | 8.0% |
| Loans in sample | 122 | — | — | — |
| Defaults | 12 | — | — | — |
| Average loan size | $124,834 | — | — | — |
What has Liberty Tax Service SBA lending looked like since 2020?
Since 2020, Liberty Tax Service franchisees have taken 26 new SBA 7(a) loans. 2 have already charged off. Early defaults on loans under six years old are worth noting. Most SBA failures take longer to develop.
Loans approved since 2020, by fiscal year — counts only: 2 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 | 13 | 2 | 15.4% |
| FY2011 | 16 | 0 | 0.0% |
| FY2012 | 10 | 1 | 10.0% |
| FY2013 | 11 | 0 | 0.0% |
| FY2014 | 14 | 2 | 14.3% |
| FY2015 | 24 | 0 | 0.0% |
| FY2016 | 14 | 3 | 21.4% |
| FY2017 | 7 | 2 | 28.6% |
| FY2018 | 9 | 0 | 0.0% |
| FY2019 | 4 | 2 | 50.0% |
| FY2020 | 6 | — | outstanding |
| FY2021 | 6 | — | outstanding |
| FY2022 | 5 | — | outstanding |
| FY2024 | 2 | — | outstanding |
| FY2025 | 3 | — | outstanding |
| FY2026 | 4 | — | 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?
Liberty Tax Service's figure rests on 122 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 122 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 Liberty Tax Service figure is recomputed from the public SBA FOIA file on each rebuild.
Is Liberty Tax Service in financial trouble? What the SBA data shows
Liberty Tax Service's SBA 7(a) default rate was 9.8% for loans approved FY2010–FY2019 (12 of 122 loans charged off) — the highest of 3 Tax Preparation Services brands tracked here. A default rate close to the Tax Preparation Services average of 9.7% is, on its own, neither a warning sign nor a reassurance.
Frequently asked
- What is Liberty Tax Service's franchise failure rate?
- Liberty Tax Service franchisees defaulted on 9.8% of SBA 7(a) loans between FY2010 and FY2019 — 12 of 122 loans were charged off — according to U.S. Small Business Administration data. That is roughly in line with the Tax Preparation Services industry average of 9.7%.
- How does Liberty Tax Service compare to other Tax Preparation Services franchises?
- Liberty Tax Service's 9.8% SBA default rate is roughly in line with the Tax Preparation Services industry average of 9.7%. See every Tax Preparation Services franchise ranked on the Tax Preparation Services industry page. Tax Preparation Services 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). Liberty Tax Service franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 9.8% (12 of 122 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/liberty-tax-service/ · Data & methodology · Download the dataset (CSV)