SBA 7(a) Secondary Market Loans Up
After months of reduced activity and lower premiums, the SBA said its 7(a) secondary market is starting to recover.
From June 2009 to April, the average monthly loan volume settled from lenders to broker-dealers in the 7(a) secondary market has been $336 million, which has provided credit unions and other lenders with additional liquidity to increase lending, according to SBA data as of May 24.
The agency also reported that more lenders are making loans. From Feb. 17, 2009 to May 21, more than 1,309 lenders who had not made a loan since at least 2007 made a 7(a) loan. America's Recovery Capital loans, included in a sample of 300 other Recovery Act loans currently being reviewed by the SBA's Office of Inspector General, have also seen an uptick. The agency said as of May 21, 7,582 ARC loans totaling over $245.4 million have been made by 1,249 lenders.
As of that same time period, $20.6 billion in Recovery Act loans have been approved, the SBA said.