Given the volatility in the debt markets, we thought it worthwhile to revisit loan premiums obtained on the sale of SBA 7(a) guarantees in the secondary market. After post-crash premiums peaked at 118.75 in February 2013, pricing gradually declined during the balance of 2013. Then, throughout 2014, secondary market premiums traded within a tight range of 117.00-117.25. In 2015, loan premiums drifted down slightly to an average of 116.50, but still very healthy levels compared with price declines in other debt-related securities, making the sale of SBA 7(a) guarantees look very attractive right now, as shown in the table below.
| 2015 | Premium* |
|---|---|
| Dec | 116.00 |
| Nov | 116.00 |
| Oct | 116.00 |
| Sep | 116.00 |
| Aug | 116.75 |
| Jul | 117.00 |
| Jun | 117.50 |
| May | 117.00 |
| Apr | 117.00 |
| Mar | 116.75 |
| Feb | 116.50 |
| Jan | 116.50 |
| Avg. | Premium* |
| 2015 Average | 116.50 |
| 2014 Average | 117.00 |
| 2013 Average | 118.00 |
| 2012 Average | 116.00 |
| *Based on Prime + 2.75%, Quarterly Reset, 25-year loan term. | |
