SBA 7(a) loan outcomes · FY2010–FY2019 cohort · Statuses as of June 30, 2026 · Last updated August 17, 2026
Rainbow Restoration Franchise Failure Rate: 38.1% SBA Loan Defaults (2010–2019 Federal Data)
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.
About 1 in 3 Rainbow Restoration SBA borrowers failed to repay — more than double the Remediation Services average of 7.4%.
Between 2010 and 2019, 21 Rainbow Restoration franchisees financed with SBA 7(a) loans. 8 defaulted — a 38.1% charge-off rate, 5.2x the Remediation Services average of 7.4%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
What is the Rainbow Restoration franchise failure rate on SBA loans?
Rainbow Restoration is a Remediation 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 Rainbow Restoration franchisees: 21 loans approved between fiscal 2010 and 2019, of which 8 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–FY201921
- Charged off8
- Charge-off rate38.1%
- Remediation Services franchise benchmark7.4%
- Brand vs industry5.2x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$420,967
- New SBA loans since 202081
- Early charge-offs since 20209
How does Rainbow Restoration compare with other Remediation Services franchises?
The table sets Rainbow Restoration's charge-off rate beside its Remediation 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. A cell in red is more than twice the industry benchmark.
| Measure | Rainbow Restoration | Remediation Services | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 38.1% | 7.4% | 10.2% | 8.0% |
| Loans in sample | 21 | — | — | — |
| Defaults | 8 | — | — | — |
| Average loan size | $420,967 | — | — | — |
What has Rainbow Restoration SBA lending looked like since 2020?
Since 2020, Rainbow Restoration franchisees have taken 81 new SBA 7(a) loans. 9 have already charged off. Early defaults on loans under six years old are notable — most SBA failures take longer to develop.
Loans approved since 2020, by fiscal year — counts only: 9 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 |
|---|---|---|---|
| FY2011 | 1 | 0 | 0.0% |
| FY2017 | 1 | 1 | 100.0% |
| FY2018 | 7 | 4 | 57.1% |
| FY2019 | 12 | 3 | 25.0% |
| FY2020 | 19 | — | outstanding |
| FY2021 | 18 | — | outstanding |
| FY2022 | 11 | — | outstanding |
| FY2023 | 9 | — | outstanding |
| FY2024 | 17 | — | outstanding |
| FY2025 | 5 | — | outstanding |
| FY2026 | 2 | — | 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?
Rainbow Restoration's figure rests on 21 resolved SBA 7(a) loans approved between fiscal 2010 and 2019 — a matured cohort, so the rate is a settled outcome, not a projection. With 21 resolved loans, one default moves the rate by about 4.8 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 Rainbow Restoration figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 21 resolved loans — directional, not precise.
Frequently asked
- What is Rainbow Restoration's franchise failure rate on SBA loans?
- Between 2010 and 2019, 21 Rainbow Restoration franchisees financed with SBA 7(a) loans. 8 defaulted — a 38.1% charge-off rate, 5.2x the Remediation Services average of 7.4%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
- Is Rainbow Restoration a safe franchise investment?
- Between 2010–2019, Rainbow Restoration franchisees defaulted on SBA loans at 38.1% versus a 7.4% industry average. This data is one input for due diligence; it is not investment advice.
Cite this page
Franchise Default Rates (2026). Rainbow Restoration franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 38.1% (8 of 21 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/rainbow-restoration/ · Data & methodology · Download the dataset (CSV)