4.6.15: SBA Guarantee Premiums Remain at Attractive Levels

It has been a while since we reported on the sale of SBA 7(a) loan guarantees, primarily because pricing has not moved much over the past year. After post-crash premiums peaked at 118.75 in February 2013, pricing gradually declined during the balance of 2013. Then, throughout 2014, secondary market premiums traded within a tight range of 117.00-117.25. That trend has continued into 2015. Stable credit markets and no movement in interest rates have contributed to a steady market for SBA 7(a) loan guarantees. With the Federal Reserve continually moving forward the time frame for interest rate increases, secondary market premiums may remain in the range of 117.00-117.25 for the balance of 2015.

2015   Premium*
Mar 117.25
Feb 117.00
Jan 117.00
2014   Premium*
Dec 117.00
Nov 117.00
Oct 117.00
Sep 117.00
Aug 117.00
Jul 117.00
Jun 117.00
May 117.00
Apr 117.25
Mar 117.25
Feb 117.00
Jan 117.25
Avg   Premium*
2014 Average 117.00
2013 Average 118.00
2012 Average 116.00
*Based on Prime + 2.75%, Quarterly reset, 25-year loan term.
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This entry was posted in Commercial Lending, Commercial Real Estate Loans, Michael D. Sneden, News & Recent Closings, SBA, SBA 7(a), The Banker's Mortgage Conduit, Valuexpress and tagged , . Bookmark the permalink.

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