Momentus Securities Granted Exclusive SBA 7(a) Pool Assembler Status to Provide Enhanced Business Support
February 6, 2024
Delaney Sexton
Contributing Editor
Momentus Securities Receives SBA 7(a) Pool Assembler Status
“This is an opportunity to provide enhanced secondary market liquidity to mission-driven lenders that primarily serve business owners working in underserved communities,” says Jaime Aldama, Head of Capital Markets for Momentus Securities, part of the Momentus Capital branded family of organizations. “These pools offer institutional investors the opportunity to support and bolster America’s entrepreneurs who are committed to job creation and economic growth – especially women, veterans, people of color, and rural and low-to-moderate income communities.”
Under the Secondary Market Program, approved SBA Pool Assemblers are authorized to assemble eligible 7(a) loans and market Guaranteed Loan Pool Certificates (SBA Pools). In addition, SBA Pool Assemblers are granted authority to issue and market interest-only investments on these pools known as COOFs. SBA Pools carry the unconditional full faith and credit guarantee of the United States Government.
7(a) loans are the SBA’s primary business loan program for providing financial assistance to America’s small businesses. However, mission-based lenders often run into scale and liquidity limitations. They need to move loans off their balance sheets, creating more liquidity so that they can make more loans to help the communities they serve.
“In response to rising borrowing costs, we have seen renewed interest by community-centric lenders in secondary markets as an alternative way to secure capital,” says Tian Wu, Momentus Securities’ Head of Debt Capital Markets. “These lenders can sell their loans for immediate cash that is then used to issue further loans, amplifying their social impact. Momentus Securities is dedicated to helping these underserved lenders by diversifying the investor base for this asset class.”