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BoeFly Launches Loan Sale Index; Measures Health of SBA-Lending By Tracking Secondary Market Sale Premiums

First Quarter 2010 Showed Healthy Secondary Market Sale Prices for SBA Loans, Even as End of TALF Program Approached

NEW YORK-(BUSINESS WIRE)-BoeFly, LLC, the premier online marketplace connecting lenders with business borrowers and secondary market buyers, today announced the launch of the BoeFly Loan Sale Index (SBA) which tracks the month-to-month variation in premiums paid on the secondary market sales of SBA-guaranteed loans. As the first and only online exchange to seamlessly connect all parties involved in commercial loan transactions, BoeFly is uniquely positioned to provide this data which is an important barometer of the health of small business lending.


During Q4, 2009, secondary sale prices of 25-year SBA loans reached record highs before decreasing. At the start of 2010 the secondary market faced potential challenges, including the coming end of the Term Asset-Backed Securities Loan Fund (TALF) program as well as new accounting changes for gain on sale due to FAS 166. Despite these challenges, premiums on 25-year SBA loans recovered a large portion of the Q4 decrease in February and March, surging in February to 108.2 percent, just below their November 2009 peak, and landing at 107.9 percent in March. 10-year loans edged up slightly in January to 105.9 percent and then surged 60 basis points in March to 106.5 percent.


"As the only online marketplace for secondary SBA loan sales, BoeFly has a unique view of the market and can provide this important insight into secondary sales to help gauge the health of small business lending," said Bobby Tannenhauser, BoeFly’s CEO. "The BoeFly Loan Sale Index is a valuable resource for our members who have access to full transaction details on all loans presented for sale and can take that into account when originating and selling loans. For Q1 2010, the Index demonstrates that even with TALF coming to an end, investors remained willing to purchase loans at a healthy premium."


About the BoeFly Loan Sale Index (SBA):
The BoeFly Loan Sale Index (SBA) measures premiums paid on secondary market loan sales for 10-year and 25-year terms on a monthly basis, while controlling for factors including the age of the loan at the time of the sale. 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 that a newly issued 10- or 25-year Prime + 2 percent loan would fetch. The Index represents aggregate data from actual loan sales by banks. With only slight changes in loan structure driving premiums, lenders rely on BoeFly loan sale data to optimally structure deals at current market value. BoeFly is the only service to provide actual bid levels based on loans presented for sale on BoeFly.com.


About BoeFly
BoeFly is the only online marketplace harnessing technology to dramatically simplify the execution of commercial transactions, including loan origination and sales. BoeFly revolutionizes commercial transactions by seamlessly connecting all parties, including lenders, borrowers, investors, buyers and sellers to a potential transaction and facilitating the efficient completion of these transactions. For small business lenders, BoeFly also provides the ability to sell the government-guaranteed portion of their loans on the secondary market to investors and Small Business Administration (SBA) loan pool assemblers, freeing up liquidity for even more small business lending.


Key to the success of BoeFly is the site’s dynamic compatibility technology which matches parties based on a specific set of criteria. Also, to help BoeFly subscribers complete transactions, BoeFly offers access to service providers in a wide variety professions from appraisers, to closing attorneys to environmental consultants.