Notice2025-16446
Information on SBA Secondary Market Program
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 28, 2025
Issuing agencies
Small Business Administration
Abstract
The purpose of this Notice is to inform the public that the Small Business Administration (SBA) is maintaining the 89.0% minimum maturity ratio for both SBA Standard Pools and Weighted-Average Coupon (WAC) Pools. The minimum maturity ratio covers the estimated cost of the timely payment guaranty for newly formed SBA 7(a) loan pools. This update will be incorporated, as needed, into the SBA Secondary Market Program Guide and all other appropriate SBA Secondary Market documents.
Full Text
<html>
<head>
<title>Federal Register, Volume 90 Issue 165 (Thursday, August 28, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 165 (Thursday, August 28, 2025)]
[Notices]
[Pages 42053-42054]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16446]
-----------------------------------------------------------------------
SMALL BUSINESS ADMINISTRATION
Information on SBA Secondary Market Program
AGENCY: U.S. Small Business Administration.
ACTION: Update to Secondary Market Program.
-----------------------------------------------------------------------
SUMMARY: The purpose of this Notice is to inform the public that the
Small Business Administration (SBA) is maintaining the 89.0% minimum
maturity ratio for both SBA Standard Pools and Weighted-Average Coupon
(WAC) Pools. The minimum maturity ratio covers the estimated cost of
the timely payment guaranty for newly formed SBA 7(a) loan pools. This
update will be incorporated, as needed, into the SBA Secondary Market
Program Guide and all other appropriate SBA Secondary Market documents.
DATES: The update will apply to SBA 7(a) loan pools with an issue date
on or after October 1, 2025.
ADDRESSES: Address comments concerning this Notice to Scott Schaefer,
Secondary Market Group, Office of Financial Assistance, U.S. Small
Business Administration, 409 3rd Street SW, Washington, DC 20416; or
email to <a href="/cdn-cgi/l/email-protection#5d2e3e322929732e3e353c383b382f1d2e3f3c733a322b"><span class="__cf_email__" data-cfemail="f98a9a968d8dd78a9a91989c9f9c8bb98a9b98d79e968f">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Scott Schaefer, Secondary Market
Group, Office of Financial Assistance at (202) 205-9984; or email to
[[Page 42054]]
<a href="/cdn-cgi/l/email-protection#aad9c9c5dede84d9c9c2cbcfcccfd8ead9c8cb84cdc5dc"><span class="__cf_email__" data-cfemail="9fecfcf0ebebb1ecfcf7fefaf9faeddfecfdfeb1f8f0e9">[email protected]</span></a>. If you are deaf, hard of hearing, or have a
speech disability, please dial 7-1-1 to access telecommunications relay
services.
SUPPLEMENTARY INFORMATION: The Secondary Market Improvements Act of
1984, 15 U.S.C. 634(f) through (h), authorized SBA to guarantee the
timely payment of principal and interest on Pool Certificates. A Pool
Certificate represents a fractional undivided interest in a ``Pool,''
which is an aggregation of SBA guaranteed portions of loans made by SBA
Lenders under section 7(a) of the Small Business Act, 15 U.S.C. 636(a).
In order to support the timely payment guaranty requirement, SBA
established the Master Reserve Fund (MRF), which serves as a mechanism
to cover the cost of SBA's timely payment guaranty. Borrower payments
on the guaranteed portions of pooled loans, as well as SBA guaranty
payments on defaulted pooled loans, are deposited into the MRF. Funds
are held in the MRF until distributions are made to investors
(Registered Holders) of Pool Certificates. The interest earned on the
borrower's payments and the SBA guaranty payments deposited into the
MRF supports the timely payments made to Registered Holders.
From time to time, SBA provides guidance to SBA Pool Assemblers on
the required loan and pool characteristics necessary to form a Pool.
These characteristics include, among other things, the minimum number
of guaranteed portions of loans required to form a Pool, the allowable
difference between the highest and lowest gross and net note rates of
the guaranteed portions of loans in a Pool, and the minimum maturity
ratio of the guaranteed portions of loans in a Pool. The minimum
maturity ratio is equal to the ratio of the shortest and the longest
remaining term to maturity of the guaranteed portions of loans in a
Pool.
Based on SBA's expectations as to the performance of future Pools,
SBA Pool Assemblers must maintain the current 89.0% minimum maturity
ratio. Therefore, effective October 1, 2025, all guaranteed portions of
loans in Standard Pools and WAC Pools presented for settlement with
SBA's Fiscal Transfer Agent will be required to have a minimum maturity
ratio of at least 89.0%.
SBA will continue to monitor loan and pool characteristics and will
provide notification of additional changes as necessary. It is
important to note that there is no change to SBA's obligation to honor
its guaranty of the amounts owed to Registered Holders of Pool
Certificates and that such guaranty continues to be backed by the full
faith and credit of the United States.
This program change will be incorporated as necessary into SBA's
Secondary Market Guide and all other appropriate SBA Secondary Market
documents. As indicated above, this change will be effective for
Standard Pools and WAC Pools with an issue date on or after October 1,
2025.
Daniel Pische,
Director, Office of Financial Assistance.
[FR Doc. 2025-16446 Filed 8-27-25; 8:45 am]
BILLING CODE P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on August 28, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.