February 10, 2015
By Bob Coleman
Editor, SBA Hot Topic Tuesday
Says the Receiver of Small Business Capital and its associated funds.
All were seized in June 2012 by the SEC for a ponzi-type investment scheme.
Since then, the Receiver has been liquidating the assets of the funds and company. In January, the SBA 504 loan portfolio was sold to Western Alliance Bank for 110% of the principal balance. Three non-SBA loan were sold at 60% of the balance.
In a court filing on January 27th the Receiver writes, “Efforts to sell the 7(a) loans and the SBA license continue. The highest bidder was selected and the Receiver expects to file a motion approving the sale shortly. Assuming the sale is concluded to the current buyer, the 7(a) portfolio will sell for approximately 93% of the retained portion of the unpaid balance of the loans. The SBA license will be sold for $700,000 as part of the same transaction.”
The unpaid balance of the SBA 7(a) loan portfolio is $14.5 million.
Last November, the owner of Small Business Capital, Mark Feathers was arrested on 29 counts of fraud.