{"ok":true,"canonical_url":"https://dealroom.so/glossary/cohort-charge-off-rate","api_url":"https://dealroom.so/api/public/glossary/cohort-charge-off-rate","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-16","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"cohort-charge-off-rate","term":"Cohort charge-off rate","group":"Reading the business","definition":"Failure measured over a fixed group of loans from the same years, so brands and lenders are compared apples-to-apples.","what_it_means":"A charge-off is a loan the lender wrote off as a loss. To compare fairly, DealRoom fixes the cohort to the FY2020–23 loans and measures what share later charged off — newer loans haven't had time to fail, so including them would understate risk. It's the same seasoned-book logic banks use. When you see a failure rate on a franchise or lender page, it's this cohort number, with a minimum loan count so small samples don't masquerade as signal.","url":"https://dealroom.so/glossary/cohort-charge-off-rate","official_sources":[],"related":[{"slug":"franchise-failure-rate","term":"Franchise failure rate","url":"https://dealroom.so/glossary/franchise-failure-rate"},{"slug":"dscr","term":"DSCR","url":"https://dealroom.so/glossary/dscr"}],"related_questions":[{"question":"Does the SBA tell lenders exactly what interest rate they must charge?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-tell-lenders-exactly-what-interest-rate-they-must-charge"},{"question":"What is the specific maximum interest rate a lender can charge on a variable rate 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-is-the-specific-maximum-interest-rate-a-lender-can-charge-on-a-variable-rate-7-a-loan"},{"question":"What if my personal credit report shows a recent charge-off from a past medical bill?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-credit-report-shows-a-recent-charge-off-from-a-past-medical-bill"},{"question":"Is there a maximum interest rate a lender can charge for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-there-a-maximum-interest-rate-a-lender-can-charge-for-an-sba-7-a-loan"},{"question":"What is the maximum interest rate a lender can charge on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-maximum-interest-rate-a-lender-can-charge-on-an-sba-7-a-loan"},{"question":"Under what conditions can a lender charge off a 7(a) loan without prior SBA approval during the liquidation process?","url":"https://dealroom.so/for-lenders/questions/under-what-conditions-can-a-lender-charge-off-a-7-a-loan-without-prior-sba-approval-during"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Cohort charge-off rate","url":"https://dealroom.so/glossary/cohort-charge-off-rate","source_type":"DealRoom Data"}}