December 5, 2018
C-Suite Wednesday — SBA 7(a) Secondary Market Premiums Down 15%
By Bob Coleman
Editor, C-Suite Wednesday
This year’s summit held yesterday in Washington D.C. attracted a diverse crowd of 70 lenders, brokers, investors and SBA officials.
I will cover the conference in more detail in the Coleman Secondary Market Report, but the summit started with an excellent overview by Scott Evans of Government Loan Solutions of why SBA 7(a) secondary market premiums are down approximately 15% from last year.
He offered a number of data points to explain the supply side of loans offered for sale, and the demand side of investor appetite in an rising interest rate environment.
One of the highlights of the SBA Secondary Market Summitt is the presentation by SBA’s John Wade, Chief, Secondary Market Division.
Here are some of the stats he presented:
- 33% of SBA 7(a) loans are sold to the secondary market
- 90% of those loans are pooled
- SBA 7(a) Loan Sales in FY 18 — $9.94 billion
- SBA 7(a) Pool Sales in FY 18 — $7.99 billion
- Total SBA 7(a) Pool Portfolio (10/18) — 80,161 loans
- Total SBA 7(a) Guarantees Outstanding (10/18) — $35.8 billion
More summit coverage will follow in the coming weeks.