Ready Capital Investor Presentation Deck
Small Business Market - 7(a)
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• The SBA (1953) is an independent federal agency
that guarantees loans to small businesses
$120
$100
OUTSTANDING 7(a) BALANCE (BILLIONS)¹
$80
$60
$40
$20
●
$0
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
$73.0
||
2015
$78.8
1. Source: SBA.gov
2016
$86.2
2017
$92.4
2018
$95.1 $97.3
2019
2020
$103.9
2021
●
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
7(a) LOAN APPROVALS (BILLIONS)¹
$40
$35
$30
$25
$20
$15
$10
$5
$0
$25.8 $25.8
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2017
$23.9 $24.5
READY CAPITAL.
2015
2016
2018
$23.6
2019
$22.8
2020
$36.8
2021
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