The secondary market continues to offer very attractive premiums for the sale of the guaranteed portion of SBA 7(a) loans. Below are some recent quotes including two “non-traditional” pricing scenarios. Anything other than Prime+ floating adjusted monthly or quarterly is considered non-traditional by the secondary market. However, these loans can be sold at a premium and should be offered when the competitive nature of a deal dictates. Worst case, the bank can elect to not sell and still book an earning asset with an SBA guarantee.
Loan Amount Term Pricing Premium
$703,000 25 years P+2.75 adj. monthly 18.559%
$282,000 10 years P+2.75 adj. monthly 13.73%
$540,000 25 years P+1.90 adj. every 5yrs. 4.55%
$600,000 25 years 6.00% fixed 3.50%