Live Oak Bank
SBA 7(a) Lender — Club Pilates / Pure Barre
Live Oak Bank carries an RS Index score of 52 out of 100 — Constructed Persona. Low RS scores reflect a documented gap between projected identity and verifiable reality, based on public records, regulatory filings, and franchise relations history. Under standard coalition monitoring.
Background
Significant SBA 7(a) loan exposure across Club Pilates and Pure Barre franchise units. Coalition members who financed through Live Oak Bank are encouraged to present the March 18, 2026 FTC Consent Order (Case No. 8:26-CV-00610) as evidence of fraudulent inducement by the franchisor. SBA lender certifications rely on accurate Item 19 financial projections — projections the FTC has formally found to be deceptive.
RS Index Analysis
RS = ((O + C + I) / 30) × 100 = 51.7Live Oak Bank holds significant SBA 7(a) exposure across Club Pilates and Pure Barre franchise units. SBA lenders are required to conduct due diligence on franchise systems before approving loans — the FTC consent order documents that the FDD disclosures forming the basis for those approvals were deceptive.
Live Oak's SBA lending conduct is consistent with standard SBA 7(a) lender practices — the consistency gap is not in lending behavior but in the diligence processes that relied on deceptive franchise disclosure documents the FTC later found violated the Franchise Rule.
Live Oak holds active SBA loan exposure across a franchise system currently under FTC consent order. As SBA loan defaults continue, Live Oak's exposure crystallizes into documented charge-off risk. SBA Franchisor Certification (June 30, 2026) could eliminate XPO from future SBA loan eligibility.
Loyalty Avatar — Live Oak made SBA loans based on FDD disclosures the FTC found deceptive. The Loyalty Avatar classification captures structural complicity: the lender functioned within the system — reviewing the disclosures presented to it, following SBA underwriting standards — without independent discovery of the disclosure manipulation that was occurring at the franchisor level.
RS Index — Audit Glitches
1 documentedFDD-based approval without independent verification: Live Oak approved SBA 7(a) loans based on FDD disclosures the FTC later found deceptive — standard lender due diligence did not independently verify Item 20 completeness that was systematically falsified by XPO. Source: FTC Case 8:26-CV-00610; SBA loan data.
This lender holds SBA 7(a) loan exposure across Xponential Fitness franchise units. These loans were approved based on FDD disclosures the FTC formally found to be deceptive in its March 18, 2026 consent order (Case No. 8:26-CV-00610).
Coalition members financed through this lender should reference the FTC consent order as evidence of fraudulent inducement when negotiating loan modifications, workouts, or forgiveness programs.
How lenders are tracked →Documented Events
1 on recordLive Oak Bank holds significant SBA 7(a) exposure across Club Pilates and Pure Barre franchise units. Estimated default rate: 6–8% (Club Pilates). Coalition members financed through Live Oak should present the FTC consent order as evidence of fraudulent inducement.
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