To help provide greater liquidity for credit unions and other lenders, the SBA plans to launch a secondary-market guarantee program.
Designed to also expand access to capital for small businesses, under the new program portions of eligible 504 first mortgages pooled by originators or broker dealers could be sold with an SBA guarantee to third-party investors in the secondary market. Lenders will retain at least 15% of each individual loan, pool originators will assume 5% of the risk, and the SBA will guarantee the remaining 80%.
To be eligible to be included in a pool, the first mortgage must be associated with a 504 loan disbursed on or after Feb. 17, 2009. According to the SBA, the program will be in place until Feb. 16, 2011, or until $3 billion in new pools are created, whichever occurs first.
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