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Article: SBA Creates Secondary Market Guarantee Program for 504 First Mortgage Loan Pools.
- Article from:
- Investment Weekly News
- Article date:
- November 14, 2009
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Regulations published by the U.S. Small Business Administration will create a secondary market guarantee program to provide greater liquidity for lenders and expand access to capital for small businesses.
Funded through the American Recovery and Reinvestment Act, the new program would encourage sales into the secondary market of the "first mortgage" portion of small business financing made possible through the SBA's 504 Certified Development Company (CDC) program. As a result of the economic recession and the disruption in the credit markets, there has been a significant decline in secondary market activity for 504 first mortgage loans.
"This new program ...