What is a Multi-Lender Securitization of SBA 7(a) Unguaranteed Interests? 

The new platform enables multiple approved SBA lenders to pool their Unguaranteed Interests in SBA 7(a) loans together and repackage them into interest-bearing securities sold to institutional investors. 

 

First Execution, June 13th 2024: SOUP 7(a) Trust 2024 – FBC1 
Falcon Bridge Capital (“FBC”) acted as Deal Manager, Structuring Agent and Organizer of the first Multi-Lender securitization of Unguaranteed Interests in SBA 7(a) loans. 

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Benefits of the Multi-Lender Platform:

It allows institutions of all sizes to collectively access capital markets, generate liquidity, and implement effective risk management strategies. It introduces an additional source of liquidity for lenders' balance sheets, reducing their sole dependence on local deposits, especially for community bank. Non-depository lenders gain access to non-recourse funding, supplementing their Repo financing.

• Lenders will be able to pool their Unguaranteed Interests onto this platform, avoiding having to create this capability individually, in-house. 

• The program will allow SBA lenders to more effectively manage risk on their balance sheet and utilize a  source of permanent non-recourse liquidity.  

• Enabling small SBA participating lenders access to the securitization platform will further strengthen SBA’s ability to serve and encourage small business activity in minority, low and moderate-income communities, rural areas, as well as underutilized business zones. 

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Securitization Overview, under SBA 13 CFR §§ 120.420 - 120.425 to securitize Unguaranteed Interests in 7(a) loans:

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