SBA Prepay Commentary

January 2022 SBA Prepayment Speeds



Prepayment speeds on equipment loan pools increased for the ninth time in ten months while those for real-estate loan pools slowed. Concerns over inflation among small business owners continue to mount. As reported by the NFIB, 22% of respondents list inflation as the single most important problem, the highest percentage since 1981. To give some context about how quickly inflation-related worries are rising, only 1% of respondents listed it as their primary concern in the NFIB’s survey one year ago. For the month of December, 48% of owners reported raising compensation, and 32% said they plan on raising wages within the next three months. These raises correspond not only with inflation concerns, but also those over cost of labor, which rose from 9% to 13% of respondents’ primary problem over the last month.



Equipment loan pools’ prepayments increased from 15.6 to 17.2 CPR, which was reflected among all individual vintages. Prepayments on real-estate loan pools slightly slowed from 15.4 to 15.3 CPR, though results were more mixed when viewed on a vintage-by-vintage basis.



Equipment Loan Pool CPRs


1Equipment loan pools have original WAMs between 8 and 13 years


Real-Estate Loan Pool CPRs


2Real-estate loan pools have original WAMs greater than 18 years


SBA Prepayment Tables (PDF)

Prepared according to methodologies described by SIFMA.



Other Helpful Links

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Brokered Deposit Rate Indications | Weekly, Monday

Vining Sparks Interest Rate Products Weekly Commentary | Weekly, Monday

Investment Alternatives Matrix | Weekly, Tuesday

MBS Prepay Commentary (January) | Monthly, 5th business day

NFIB Small Business Economic Trends (December) | Monthly, 2nd Tuesday of each month




Adam Hofer

Analyst, Investment Product Strategies

Vining Sparks

AHofer@viningsparks.com


Kevin A. Smith, CFA

SVP, Director Investment Product Strategies

Vining Sparks

KSmith@viningsparks.com


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