SBA Update

June 18, 2018

The Federal Reserve raised the Fed Funds Target Rate 25bps last week and two additional rate hikes are projected by the Fed this year, which should continue to drive demand in floating-rate SBAs. The day after the Fed raised rates, SBA 7(a) pool factors showed that prepayments increased as well.


SBA Prepayment Speeds

SBA 7(a) prepayments increased in both equipment-loan and real-estate pools to the highest CPR posted since the SBA changed its cashflow methodology last October, more than erasing last month’s decline. While day count by itself should have pushed speeds higher, seasonal factors and cyclical influences also impacted last month’s prepayment activity. Speeds increased across almost all vintages for both real-estate and equipment-loan pools. For additional charts and SBA prepayment commentary, please click here.




Floating-Rate 7(a) Pools



Fixed-Rate (DCPC and SBIC) Pools



Dan Stimpson, CPA

Senior Vice President

Vining Sparks

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