The Brass Tap Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
The Brass Tap franchisees defaulted on 3.8% of SBA 7(a) loans between FY2010 and FY2019 — 1 of 26 loans were charged off — according to U.S. Small Business Administration data. That is lower than the Drinking Places (Alcoholic Beverages) industry average of 8.1%.
- 3.8%SBA default rate1 of 26 loans
- 26loans resolvedapproved FY2010–FY2019
- 8.1%Drinking Places (Alcoholic Beverages) averageall SBA loans in the industry
- 1st lowestindustry rankof 2 Drinking Places (Alcoholic Beverages) brands
| SBA default rate | 3.8% |
|---|---|
| Loans approved | 26 |
| Loans charged off | 1 |
| Date range | FY2010–FY2019 |
| Industry | Drinking Places (Alcoholic Beverages) |
| Industry average | 8.1% |
| 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 26 The Brass Tap SBA borrowers failed to repay — well below the Drinking Places (Alcoholic Beverages) average of 8.1%.
What is the The Brass Tap franchise failure rate on SBA loans?
The Brass Tap is a Drinking Places (Alcoholic Beverages) franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to The Brass Tap franchisees: 26 loans approved between fiscal 2010 and 2019, of which 1 was 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–FY201926
- Charged off1
- Charge-off rate3.8%
- Drinking Places (Alcoholic Beverages) franchise benchmark8.1%
- Brand vs industry0.5x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$650,800
How does The Brass Tap compare with other Drinking Places (Alcoholic Beverages) franchises?
The table sets The Brass Tap's charge-off rate beside its Drinking Places (Alcoholic Beverages) 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 | The Brass Tap | Drinking Places (Alcoholic Beverages) | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 3.8% | 8.1% | 10.2% | 8.0% |
| Loans in sample | 26 | — | — | — |
| Defaults | 1 | — | — | — |
| Average loan size | $650,800 | — | — | — |
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
Show the numbers behind this chart
| Fiscal year | Loans | Charged off | Rate |
|---|---|---|---|
| FY2013 | 2 | 0 | 0.0% |
| FY2014 | 5 | 0 | 0.0% |
| FY2015 | 3 | 0 | 0.0% |
| FY2016 | 4 | 0 | 0.0% |
| FY2017 | 8 | 1 | 12.5% |
| FY2018 | 4 | 0 | 0.0% |
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?
The Brass Tap's figure rests on 26 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 26 resolved loans, one default moves the rate by about 3.8 percentage points. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every The Brass Tap figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 26 resolved loans — directional, not precise.
Is The Brass Tap in financial trouble? What the SBA data shows
The Brass Tap's SBA 7(a) default rate was 3.8% for loans approved FY2010–FY2019 (1 of 26 loans charged off) — the lowest of 2 Drinking Places (Alcoholic Beverages) brands tracked here. A default rate this far below the Drinking Places (Alcoholic Beverages) average of 8.1% is not, on its own, a sign of distress.
Frequently asked
- What is The Brass Tap's franchise failure rate?
- The Brass Tap franchisees defaulted on 3.8% of SBA 7(a) loans between FY2010 and FY2019 — 1 of 26 loans were charged off — according to U.S. Small Business Administration data. That is lower than the Drinking Places (Alcoholic Beverages) industry average of 8.1%.
- How does The Brass Tap compare to other Drinking Places (Alcoholic Beverages) franchises?
- The Brass Tap's 3.8% SBA default rate is lower than the Drinking Places (Alcoholic Beverages) industry average of 8.1%. See every Drinking Places (Alcoholic Beverages) franchise ranked on the Drinking Places (Alcoholic Beverages) industry page. Drinking Places (Alcoholic Beverages) 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). The Brass Tap franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 3.8% (1 of 26 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/the-brass-tap/ · Data & methodology · Download the dataset (CSV)