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.