💰SBA Updates Minimum Maturity Ratio for Loan Pools
Information on SBA Secondary Market Program
Summary
The purpose of this Notice is to inform the public that the Small Business Administration (SBA) is maintaining the 89.0% minimum maturity ratio for both SBA Standard Pools and Weighted-Average Coupon (WAC) Pools. The minimum maturity ratio covers the estimated cost of the timely payment guaranty for newly formed SBA 7(a) loan pools. This update will be incorporated, as needed, into the SBA Secondary Market Program Guide and all other appropriate SBA Secondary Market documents.
Agencies
- Small Business Administration
Business Impact
$$ - Med
The update maintains the minimum maturity ratio for SBA 7(a) loan pools, impacting compliance and financial stability for businesses that rely on these loans. This regulatory change affects borrowing costs and marketability, which are directly relevant to business owners and executives.