SBA Update

April 22, 2019



The USDA recently announced the implementation status of the 2018 Farm Bill signed into law on December 20th, 2018.  Limits on USDA loans were bumped up to increase the amount producers can borrow through direct and guaranteed FSA loan programs.

Government Guaranteed Loan Trading

Highlights of changes implemented recently by the USDA from the 2018 Farm Bill:

Increased Loan Limits:  FSA announced that eligible agricultural producers have access to higher loan amounts, to better provide them with the credit needed during this period of lower market prices and numerous natural disasters.

Modified Micro Loan Limits:  FSA implemented a change to allow agricultural producers to receive both a $50,000 Direct Operating Microloan and a $50,000 Direct Farm Ownership Microloan. Previously, agricultural producers were limited to a combined total of $50,000.

Increase in Percent of Guarantee for Beginning and Socially Disadvantaged Farmers:  FSA increased the percent for new guaranteed loans to any beginning or socially disadvantaged agricultural producer to 95 percent.

Fixed-Rate DCPC Pools

Fixed-rate DCPC pools and SBIC fixed-rate debentures remain attractive as they offer superior convexity profiles to most residential MBS alternatives, while offering comparable yields and spreads.



Floating-Rate 7(a) Pools



Dan Stimpson, CPA

Senior Vice President, Investment Strategies

Vining Sparks IBG, LP

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