A key benefit for lenders making SBA 7(a) loans is the active secondary market. Lenders can sell the guaranteed portion to generate significant amounts of non-interest income. This is a particularly beneficial strategy when interest rates are ultra-low.
COVID-19 SBA program enhancements 2021 have raised the loan guarantee for lenders to 90%, even further enhancing the opportunity to boost income, increase liquidity and make more loans.
Here, we’ve done the math for you … check out the examples below!
Enhancements to the 7(a) program expire September 30, 2021. Loans must be approved prior to September 30, so be sure to engage experienced SBA loan professional who will make the process smooth and efficient.
Fee Income for $350,000 SBA 7(a) Loan in 2021
Fee Income for $1,000,000 SBA 7(a) Loan in 2021
Fee Income for $4,000,000 SBA 7(a) Loan in 2021
What would an extra $401,000 do for your bank’s financial statement this month? Contact the experienced team at VITAL for support.