SBA Update

February 4, 2019

SBA loan applications, approvals and guarantees were not processed during the 35-day government shutdown.  With the SBA closed for over a month, there is a backlog of companies awaiting loan funding from the SBA and it is expected to take a while to recover from the backlog and restore the flow of capital to small businesses.  The temporary disruption in SBA new issuance has resulted in light secondary inventory levels.  The February fixed-rate DCPC auction is scheduled for later this week and includes 20 and 25yr maturities.

Floating-Rate 7(a) Pools

Fixed-Rate DCPC Pools

Government Guaranteed Loan Trading

Government-guaranteed USDA agricultural loans and SBA loans traded to financial institutions last week, but limited availability of supply has impacted activity recently.  As has been the case for some time, supply and not demand limits loan trading volumes.  The temporary disruption in new issuance has resulted in light secondary inventory levels for not only SBA investment pools, but guaranteed loans as well.

Dan Stimpson, CPA

Senior Vice President, Investment Strategies

Vining Sparks IBG, LP

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