SBA Update

January 28, 2019



Investor interest continued last week in floating-rate SBA pools as yields on these pools have moved higher with Fed rate hikes and spreads have widened over the last several months.  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.

 

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.  As has been the case for some time, supply and not demand limits loan trading volumes.



Dan Stimpson, CPA

Senior Vice President, Investment Strategies

Vining Sparks IBG, LP

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