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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

SBA Loan Sale Premiums Hit Record High in June


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BoeFly, LLC, the premier online marketplace connecting lenders with business borrowers and secondary market buyers, today announced the publication of its BoeFly Loan Sale Index (SBA) for the second quarter of 2010. Increased demand and higher premiums suggest an optimistic outlook for SBA lending and individual transactions achieved record highs in June


BoeFly Loan Sale Index - 2Q/2010 Highlights:

  • During Q2, 2010, loan sale premiums hit an all time high during the Index's history, as prices surged in May and held strong through the end of the quarter. In June, 10-year deals continued to rise while 25-year deals leveled off.


  • The BoeFly Loan Sale Index for 10-year Prime+2 loans followed its May gain of 130 basis points with a 40 basis point gain in June to end the quarter at 107.9%, a new record high. 25-year Prime+2 loans followed their May surge by holding steady in June and ending where they started the month, tying May's record high of 109.7%.


  • SBA fees on high premiums did not suppress prices either, as individual transactions also achieved record highs in June. This included a 25-year deal fetching 112.38%, and an 11-year deal crossing the 110 barrier to settle at 110.289%.


BoeFly Transactions: June 2010
Deal Term Premium Servicing
25

112.380%

1.00%

10

109.940%

1.00%

11

110.289%

1.00%

BoeFly Loan Sale Index P + 2%
Month 10 Year

25 year

Jun

107.9%

108.1%

May

107.5%

109.7%

Apr

106.2%

108.1%


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.