Sector risk

Restaurants are not the riskiest sector

Charge-off rate by sector, seasoned FY2015–FY2019 originations.

Transportation and warehousing carries the highest charge-off rate at 9.49%; agriculture the lowest at 3.33%. Accommodation and food service — the sector most often called high-risk — sits mid-table at 7.09%, below construction and retail.

9.49%transportation and warehousing — highest

3.33%agriculture — lowest

6.92%all sectors combined

Source: Analysis of SBA 7(a) and 504 FOIA loan-level data (as of 31 March 2026). Cancelled and never-funded approvals excluded. Published by sba-feasibility-study.com.