SBA 7(a) loan outcomes · FY2010–FY2019 cohort · Statuses as of June 30, 2026 · Last updated August 17, 2026
Tax Preparation Services Franchise Failure Rates: SBA Loan Defaults for 3 Brands
Tax Preparation Services franchises charged off 9.7% of SBA 7(a) loans approved FY2010–FY2019, versus 10.2% for all franchises and 8.0% for all SBA borrowers. This page tracks 3 brands: default rates ranged from H&R Block (0.0%) to Liberty Tax Service (9.8%). Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
How do Tax Preparation Services franchises perform on SBA loans?
Across the 3 Tax Preparation Services brands tracked here, 209 SBA 7(a) loans were approved between fiscal 2010 and 2019 and 13 were charged off — a pooled rate of 6.2% for these brands against a 9.7% benchmark for all Tax Preparation Services franchise loans. 0 brands with 20+ loans ran at more than twice the industry benchmark; 1 brand with 40+ loans recorded zero defaults. Statuses as of June 30, 2026.
- Brands tracked3
- SBA 7(a) loans, FY2010–2019209
- Charged off13
- Pooled rate, these brands6.2%
- Tax Preparation Services benchmark (all franchise loans)9.7%
- All-franchise benchmark10.2%
- All SBA borrowers8.0%
- Lowest rateH&R Block · 0.0%
- Highest rateLiberty Tax Service · 9.8%
Which Tax Preparation Services franchise brands have the highest and lowest SBA default rates?
Every Tax Preparation Services brand with at least five resolved SBA 7(a) loans, sorted from highest to lowest default rate. Click a column heading to re-sort; use the filter to find a brand.
| Brand | Loans | Defaults | Rate | vs industry avg | Loans since 2020 | Early charge-offs |
|---|---|---|---|---|---|---|
| Liberty Tax Service | 122 | 12 | 9.8% | 1.0x | 26 | 2 |
| Jackson Hewitt Tax Service | 46 | 1 | 2.2% | 0.2x | 25 | 0 |
| H&R Block | 41 | 0 | 0.0% | — | 0 | 0 |
* Small sample (5–19 loans): rate shown for completeness; treat as a diligence flag, not a verdict. Loans since 2020 and early charge-offs are counts only — that cohort is too young for a rate.
Frequently asked
- Which Tax Preparation Services franchises have the highest SBA default rates?
- Among Tax Preparation Services brands with 20 or more SBA 7(a) loans approved FY2010–FY2019, the highest charge-off rates were Liberty Tax Service (9.8%), Jackson Hewitt Tax Service (2.2%), H&R Block (0.0%). Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
- What is the Tax Preparation Services franchise SBA default rate benchmark?
- Tax Preparation Services franchise borrowers charged off 9.7% of SBA 7(a) loans approved FY2010–FY2019, compared with 10.2% for all franchises and 8.0% for all SBA borrowers.
Cite this page
Franchise Default Rates (2026). Tax Preparation Services franchise SBA 7(a) default rates, FY2010–FY2019 cohort: 3 brands, pooled 6.2%. Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/industry/tax-preparation-services/ · Data & methodology · Download the dataset (CSV)