SBA Loan Sales & Pool Investing
Signature Securities Institutional Trading Group, with an office in Houston, TX, ranks as one of the largest SBA pool assemblers in the nation. In its role as a market maker for SBA loan pool investments and as a leading fixed-income solutions provider, Signature Securities caters to the complex financial needs of investment managers of banks, pension funds, credit unions, insurance companies, and investment advisors by providing the following:
- SBA loan pools (investing in these products is often CRA-positive)
- Government agency products
- Mortgage-backed securities
- Derivative products
- Portfolio analysis and portfolio tracking
- Direct access to a specialized fixed-income trading desk
Click here to learn more about the potential advantages of investing in SBA Loan Pools.
Financial institutions interested in divesting their SBA Loans can click here to learn more about the advantages of selling SBA Loans.
To contact Signature Securities' Institutional Trading Group, please call toll-free at 1.866.750.7150.
Note: SBA pools and other institutional trading products and services discussed above are not available or marketed to personal consumers.
The collateral for SBA pools is loans to small businesses that are guaranteed by the full faith and credit of the US Government as timely payment of principal and interest. Most of the pools are adjusted to the prime rate and have no periodic cap and only a few of the pools have a lifetime cap.
Interest only, known as "Strips", are a derivative product created as a function of pooling of SBA guaranteed loans. The loans from which strips are taken are generally variable rated based on Wall Street Journal prime with monthly payments and monthly or quarterly rate adjustments. Original maturities range from 7 to 25 years. Strips offer investors a number of attractive features such as the guarantee of accrued interest by the full faith and credit of the U.S. Government, attractive yields and a wide range of maturities.