Ready Capital Investor Presentation Deck
Small Business Market - 7(a)
●
• The SBA (1953) is an independent federal agency
that guarantees loans to small businesses
$120
$100
●
OUTSTANDING 7(a) BALANCE (BILLIONS)
Eligible participants are banks except for 14 non-
bank licenses approved in the 1980s
$0
Eligible small businesses have under $15M net
worth and $5M net profit
$86.2
2015
$92.4 $95.1 $97.3
2016 2017 2018
$103.9
$78.8
$80 $73.0
$60
m
$40
$20
2019
$106.7
●
2020 2021 2022
The SBA's lead program is the 7(a) which
guarantees 75% of eligible loans up to $5M @
Prime + 275bps maximum rate
7(a) LOAN APPROVALS (BILLIONS)
Originator sells 75% pro-rata interest in loan
pooled into SBA Certificates & sold at ~9% +
premium retaining 25% and servicing rights
$40
$35
$30
$25
$20
$15
$10
$5
$0
$25.8 $25.8
$23.9 $24.5
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READY CAPITAL.
2015
2016
$23.6 $22.8
$36.8
$25.7
2017 2018 2019 2020 2021 2022
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