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.
|*Based on Prime + 2.75%, Quarterly reset, 25-year loan term.|