Harvest Closes Unguaranteed SBA 7(a) $116 Million CRE Loan Pool

The underlying SBA 7(a) loans securing the unguaranteed participation interest have an average principal balance of $991,639 and an average remaining term of 296 months. 

All of the loans are monthly pay, with an adjustable interest rate based on the Prime Rate. Most of the pool consists of 25-year, fully-amortizing loans. 

The obligors have a weighted average FICO of 729 and the properties used to collateralize the loans are all commercial real estate with a weighted average LTV of 77.89%. 

The average time in business of the underlying businesses is approximately 14 years.

The blended advance rate on the offered Notes is 86.77%. 

Harvest SBA Loan Trust 2023-1 is Harvest‘s fourth SBA 7(a) securitization and its sixth Harvest issuance overall, including transactions from Harvest Commercial Capital.

HSLT 2023-1 was the first unguaranteed SBA 7(a) transaction to involve a REMIC structure, as well as the first transaction in this asset class to involve the issuance of a “BB” rated note.  This transaction involved the issuance of three classes of notes rated by KBRA. The Class A, Class B and Class C Notes were rated “A-”, “BBB-”, and “BB”, respectively.

Harvest leaders Adam Seery, Todd Massas and Jason Raefski comment, “HSBF has been one of the top SBA 7(a) lenders across the nation since our inception in 2016. We take pride in our ability to provide growing small businesses with much needed access to capital. Our exceptional team cares deeply about our mission of “Funding the American Dream” through commercial real estate ownership, creating jobs and furthering growth.”