CSC Failure Rate and SBA Loan Default List

Again, we can see how the SBA Loan Default List, that is ONLY available on Blue Mau Mau to viewers, misleads both prospective franchisees and the banks as to the actual failure rate of first-generation franchisees who have used loans other than SBA losns to finance the purchase of a franchise.

We see too that the government is willing to guarantee loans with very high failure rates and the banks are apparently willing to make loans on franchises without knowing the true and actual failure rate of the business plans. This is evidence, of course, that the risk factor is obscured under government policy because who would want to negotiate a loan to build a new franchise unit for a franchisor who was experiencing 20%, 30%, or 40% failure rates of first-generation franchisees.

I have been told that the only due diligence the bank owes is to the stock holders and if the collateral on the loan is there, they have no due diligence obligation to investigate the risk of the investment in which the borrower is investing the loan proceeds.

However, with the advent of the colapse of the sub-prime mortgage market and the insecurity of the real estate market and the drop in sale prices of existing homes, how can banks be making home equity loans without putting their stockholders at risk.

Isn't it dangerous for the banks not to know the real and true failure rate of first-generation franchisees that is known to the ZORS. Hasn't their failure to know been a type of subsidy for the franchisors?