Investor Presentaiton
Small Business Market – 7(a)
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READY CAPITAL.
The SBA (1953) is an independent federal agency
that guarantees loans to small businesses
Eligible participants are banks except for 14 non-
bank licenses approved in the 1980s.
Eligible small businesses have under $15M net
worth and $5M net profit
The SBA's lead program is the 7(a) which
guarantees 75% of eligible loans up to $5M @
Prime + 275bps maximum rate
Originator sells 75% pro-rata interest in loan
pooled into SBA Certificates & sold at ~9%+
premium retaining 25% and servicing rights
OUTSTANDING 7(a) BALANCE (BILLIONS)1
7(a) LOAN APPROVALS (BILLIONS)1
$120
$30
$25.8 $25.8
$100
$92.4
$95.1
$97.3
$99.7
$25
$23.9
$24.5
$23.6
$22.8
$86.2
$78.8
$80
$73.0
$20
$60
$40
$20
$15
$10
$5
$10.8
$0
$0
2015
2016
2017
2018
2019
2020
2021
2015
2016
2017
2018
2019
2020
2021
1. Source: SBA.gov
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