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

The information included herein has been obtained from sources deemed reliable, but it is not in any way guaranteed, and it, together with any opinions expressed, is subject to change at any time. Any and all details offered in this publication are preliminary and are therefore subject to change at any time. This has been prepared for general information purposes only and does not consider the specific investment objectives, financial situation and particular needs of any individual or institution. This information is, by its very nature, incomplete and specifically lacks information critical to making final investment decisions. Investors should seek financial advice as to the appropriateness of investing in any securities or investment strategies mentioned or recommended. The accuracy of the financial projections is dependent on the occurrence of future events which cannot be assured; therefore, the actual results achieved during the projection period may vary from the projections. The firm may have positions, long or short, in any or all securities mentioned. Member FINRA/SIPC.
Copyright © 2021
This is a publication of Vining-Sparks IBG, L.P.
775 Ridge Lake Blvd., Memphis, TN 38120