SBA Update

October 1, 2018

As expected the Federal Reserve raised the Fed Funds Target Rate 25bps last week and additional rate hikes are projected, which should continue to drive demand in floating-rate SBAs.  The fed funds futures market is currently pricing in a 77% chance of a 25bps hike by the Fed on December 19th and 12 of 16 Fed members are projecting another hike this year.


Floating-Rate 7(a) Pools

Fixed-Rate DCPC Pools

Fixed-Rate SBIC Debentures

Government Guaranteed Loan Trading

Government-guaranteed USDA agricultural loans and SBA loans actively 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

Vining Sparks

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