Bank of America and United Midwest Savings Bank are the first financial institutions to assemble SBA 504 first mortgage pools to be sold on the secondary market, the agency said today.
Bank of America pooled $32.07 million in loans it purchased from other lenders, with $25.65 million guaranteed by the SBA, according to the agency. United Midwest assembled a pool of $7.96 million, with $6.4 million guaranteed by the SBA.
The announcement follows the launch of the 504 First Mortgage Loan Pooling program on July 1. Authorized as part of the American Recovery and Reinvestment Act of 2009, the SBA said the measure is aimed at jump starting the secondary market for the first mortgage loans made in conjunction with Section 504 Certified Development Company loans. The ability to sell loans into this secondary market will provide liquidity to those lenders that want to partner with a CDC to provide real estate and fixed asset financing to small businesses, the SBA said.
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