|
|
Article: In Search of a Secondary Market.
- Article from:
- Collections & Credit Risk
- Article date:
- July 1, 2003
CopyrightCOPYRIGHT 2003 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
It's no mystery why there isn't a secondary market for conventional small business loans: They're too unique to make a tidy package. Unlike consumer loans, which are easily categorized, packaged, and sold, small business loans reflect the special circumstances of each small business.
One aim of the loan monitoring system now under development for the SBA is to create a new set of lending rules from all those exceptions. When that is accomplished, a critical building block for a secondary market will be in place. The SBA has sold seven packages of its guaranteed loans since it started doing so in 1999.
Then all that will be left will be to convince ...