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C-Suite Wednesday — SBA 7(a) Secondary Market Heat Map for FY 2019

February 12, 2020

By Caity Witucki
Contributing Editor, C-Suite Wednesday

C-Suite Wednesday — SBA 7(a) Secondary Market Heat Map for FY 2019

The SBA has been tracking secondary market 7(a) initial sales over the past 5 years and following the secondary market’s patterns carefully. On January 8, 2020 at the Secondary Market Summit, the SBA released secondary market sales data for 7(a) loans in FY 2019 and compared the data to statistics gathered in FY 2018.

Here are the highlights from the SBA’s presentation:

In FY 2019, the highest concentration of SBA 7(a) secondary market initial sales had premiums between 106 – 112 (78.78% of initial sales in dollar terms)

In FY 2019, SBA 7(a) secondary market loans with premiums above 110 accounted for 41.19% of initial sales in dollar terms

In FY 2018, the highest concentration of SBA 7(a) secondary market initial sales also had premiums between 106 – 112 (68.97% of initial sales in dollar terms)

In FY 2018, SBA 7(a) secondary market loans with premiums above 110 accounted for 52% of initial sales in dollar terms.

The change in percentage reflects a higher concentration of loans with low dollar amounts and more outliers in 2018.

Source:
SBA Secondary Market Summit Presentation

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