Health Check: BoeFly Debuts SBA Loan Secondary Market Index
How is the health of small business loans tracking?
BoeFly LLC, a company that hooks up lenders with online business owners and secondary market buyers online, wants to show you.
Late last month, BoeFly launched an Index that tracks the month-to-month variation in premiums paid on the secondary market SBA-guaranteed loan sales.
And so far, the data, which dates back to January 2009, indicates recent improvement. For example, premiums on 25-year SBA loans recovered in February (108.2%) and March (107.9% ) from the previous two months’ slight dips, and 10-year loans also moved up in March (106.5%) from the previous four months.
“The BoeFly Loan Sale Index is a valuable resource for our members who have access to full transaction details on all loans presented for sale and can take that into account when orginiating and selling loans,” said Bobby Tannenhauser, chief executive, in a statement. “For Q1 2010, the Index demonstrates that even with TALF coming to an end, investors remained willing to purchase loans at a healthy premium.”
The data from the Index is coming from the loan data from “hundreds of banks – of all sizes and geographies – as they transact with buyers in the market,” according to BoeFly.
