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Previous Issues
Issue 30: Loan Sale Premiums Hold Steady in November

Issue 29: Proper Risk Management Protection and Credit Worthiness

Issue 28: BoeFly Helps Veterans With Disabilities Connect With Lenders to Obtain Small Business Loans

Issue 27: Loan Sale Premiums Level off in October

Issue 26: SBA Secondary Market changes - Warranty Period and Premiums on New Larger Loans

Issue 25: BoeFly Surpasses the $1 Billion Transaction Mark

Issue 24: Loan Sale Premiums Continue Climb in September

Issue 23: Robert Tannenhauser, CEO of BoeFly, Interviewed by Michael McKee on Bloomberg Radio

Issue 22: Lender Optimism is up While Anxiously Awaiting the Small Business Jobs Bill

Issue 21: Loan Sale Premiums Blast to Record Highs in August

Issue 20: Title Insurance- the Lender's Perspective

Issue 19: Condemnation and Mortgage Lender's Rights

Issue 18: Long-Term Deals Continue Record Climb; Short-Term Deals Fade

Issue 17: Congressman Walt Minnick (D-Idaho) Gets It

Issue 16: Deeds and Forms of Ownership

Issue 15: SBA Loan Sale Premiums Hit Record High in June

Issue 14: What You Need to Know About Property Insurance

Issue 13: SBA Fixed Interest Rate Loans are an Important Product to have at the Ready

Issue 12: 504 Guaranteed Pool Program Summary and Survey Results

Issue 11: Loan Sale Premiums Surge to Record Highs in May

Issue 10: Environmental Risk for Lending Opportunities

Issue 9: How To Take Advantage of the First Lien Position 504 Loan Pool Guarantee Program

Issue 8: Investors Remain for SBA Loans

Issue 7: Retirement Funds for an Equity Injection - Selecting the Right Plan Provider

Issue 6: Why Outsourcing Environmental Risk Management makes Cents for Lenders

Issue 5: Loan Monitoring: Comfort in a Crisis

Issue 4: BoeFly Case Study: The economics of selling SBA guaranteed loans

Issue 3: BoeFly Lender Survey Results Q1 2010

Issue 2: Loan Sale Premiums Rally in Q1

Issue 1: The Importance of Efficiency in Secondary Markets

Investors Remain for SBA Loans

The close of TALF proves a non-event on SBA loan sale premiums in April


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The BoeFly Loan Sale Index (SBA) is the leading measure of secondary market sale prices of SBA-guaranteed loans. BoeFly, as the only marketplace connecting lenders with business borrowers and secondary market buyers, is uniquely positioned to provide this important pricing index for market followers.

SBA loan sale prices are an important barometer of the health of small business lending. When investors pay high prices, lenders are incented to originate new loans and inversely, as prices drop, lenders are signaled to slow origination.

The BoeFly Loan Sale Index (SBA) measures actual loan sale data from hundreds of banks - of all sizes and geographies - as they transact with buyers in the market.


In April, the close of TALF proved a non-event as premiums on the aggregate stayed close to the levels seen at the end of Q1. The BoeFly Loan Sale Index edged down by twenty basis points for 10-year loans, while moving up by twenty basis points for 25-year loans. At the same time, record premiums for individual transactions were recorded near the end of the month, with some 25-year Prime + 2.75% loans fetching over 110.5% and 10-year Prime + 2.75% loans trading near 109.3%.

Below is recent price and trend information on SBA loan sale premiums as reported by the BoeFly Independent Pricing Service. BoeFly Transactions shows actual bids received on loans presented for sale through BoeFly and GovGex. The BoeFly Index shows what a Prime + 2 loan of the given term that had just been funded would sell for in each month. The BoeFly Index robustly captures month-to-month pricing trends, while also controlling for factors including the age of the loan at the time of sale.


BoeFly Transactions: April 2010
Deal Term Premium Servicing
25

110.16%

1.00%

10

109.3%

1.00%

BoeFly Loan Sale Index P + 2%
Month 10 Year

25 year

Apr

106.2%

108.1%

Mar

106.4%

107.9%

Feb

105.9%

108.2%


About the BoeFly Loan Sale Index (SBA):
The BoeFly Loan Sale Index (SBA) measures premiums paid on secondary market loan sales on a monthly basis. Based on aggregated transaction data from BoeFly, the only marketplace where lenders can connect with business borrowers and secondary market buyers, the Index provides an estimate of the premium a newly issued, 10 or 25 year Prime + 2% loan would fetch. The Index represents aggregated data from actual loan sales by banks. Members of BoeFly have access to full transaction detail on all loans presented for sale. With only slight changes in loan structure driving premiums, lenders rely on BoeFly loan sale data to optimally structure deals in light of what the market is currently valuing. BoeFly is the only service to provide actual bid levels based on loans presented for sale on BoeFly.