Notice2026-19802
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
September 28, 2026
Issuing agencies
Small Business Administration
Abstract
The U.S. Small Business Administration (SBA) is maintaining the 89.0 percent minimum maturity ratio for SBA Standard Pools and Weighted-Average Coupon (WAC) Pools. The minimum maturity ratio is a pool-formation characteristic intended to support the estimated cost of SBA's timely payment guaranty for newly formed pools of SBA-guaranteed portions of 7(a) loans. SBA will incorporate this notice, as appropriate, into the SBA Secondary Market Program Guide and other applicable SBA Secondary Market program materials.
Full Text
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<title>Federal Register, Volume 91 Issue 186 (Monday, September 28, 2026)</title>
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[Federal Register Volume 91, Number 186 (Monday, September 28, 2026)]
[Notices]
[Pages 61271-61272]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19802]
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SMALL BUSINESS ADMINISTRATION
Information on SBA Secondary Market Program
AGENCY: U.S. Small Business Administration.
ACTION: Notice to Secondary Market Program.
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SUMMARY: The U.S. Small Business Administration (SBA) is maintaining
the 89.0 percent minimum maturity ratio for SBA Standard Pools and
Weighted-Average Coupon (WAC) Pools. The minimum maturity ratio is a
pool-formation characteristic intended to support the estimated cost of
SBA's timely payment guaranty for newly formed pools of SBA-guaranteed
portions of 7(a) loans. SBA will incorporate this notice, as
appropriate, into the SBA Secondary Market Program Guide and other
applicable SBA Secondary Market program materials.
DATES: The notice will apply to SBA 7(a) loan pools with an issue date
on or after October 1, 2026.
[[Page 61272]]
ADDRESSES: Submit comments concerning this Notice to Phillip
Frechette, Office of Credit Risk Management, U.S. Small Business
Administration by email to <a href="/cdn-cgi/l/email-protection#84f4ecede8e8edf4aae2f6e1e7ece1f0f0e1c4f7e6e5aae3ebf2"><span class="__cf_email__" data-cfemail="14647c7d78787d643a726671777c71606071546776753a737b62">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Phillip Frechette, Office of Credit
Risk Management at (603) 225-1600; or by email to
<a href="/cdn-cgi/l/email-protection#ec9c84858080859cc28a9e898f8489989889ac9f8e8dc28b839a"><span class="__cf_email__" data-cfemail="f3839b9a9f9f9a83dd958196909b96878796b3809192dd949c85">[email protected]</span></a>. Individuals who are deaf, hard of hearing,
or have a speech disability, may dial 7-1-1 to access
telecommunications relay services.
SUPPLEMENTARY INFORMATION: The Small Business Secondary Market
Improvements Act of 1984, 15 U.S.C. 634(f) through (h), authorizes 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 the SBA-guaranteed
portions of loans made under section 7(a) of the Small Business Act, 15
U.S.C. 636(a). Consistent with 13 CFR part 120, subpart F, SBA
guarantees to each Registered Holder the timely payment of principal
and interest installments, as well as any prepayment or other recovery
of principal, to which the Registered Holder is entitled under the Pool
Certificate.
To support SBA's timely payment guaranty, SBA established the
Master Reserve Fund (MRF). Borrower payments on the guaranteed portions
of pooled loans and SBA guaranty payments on defaulted pooled loans are
deposited into the MRF. Those funds are held in the MRF pending
distributions to Registered Holders of Pool Certificates. Interest
earned on funds held in the MRF supports the timely payment of amounts
due to Registered Holders.
SBA periodically establishes and updates pool-formation
characteristics for Pool Assemblers through the SBA Secondary Market
Program Guide, Fiscal Transfer Agent (FTA) program guidance, and other
applicable SBA Secondary Market materials. These characteristics
include the minimum number of guaranteed portions required to form a
Pool, permissible differences among the gross and net interest rates of
the guaranteed portions in a Pool, and the minimum maturity ratio.
For purposes of this notice, the minimum maturity ratio is the
ratio of the shortest remaining term to maturity to the longest
remaining term to maturity among the guaranteed portions included in a
Pool. The remaining terms are measured as of the Pool issue date. The
ratio establishes the minimum permitted relationship between the
shortest and longest remaining maturities of the guaranteed portions
included in a Standard Pool or WAC Pool.
Based on SBA's expectations regarding the performance of future
Pools, Pool Assemblers must continue to maintain a minimum maturity
ratio of 89.0 percent. Accordingly, for Standard Pools and WAC Pools
with an issue date on or after October 1, 2026, all guaranteed portions
presented to SBA's Fiscal Transfer Agent for settlement must satisfy a
minimum maturity ratio of at least 89.0 percent. Pool Assemblers must
continue to comply with all other applicable statutory, regulatory,
program-guide, and FTA requirements governing pool formation and
settlement.
SBA will continue to monitor loan and pool characteristics and may
issue additional guidance or notices as appropriate. This notice does
not alter SBA's obligation to honor its guaranty of amounts owed to
Registered Holders of Pool Certificates. That guaranty continues to be
backed by the full faith and credit of the United States.
SBA will incorporate this program requirement, as appropriate, into
the SBA Secondary Market Program Guide and other applicable SBA
Secondary Market program materials.
Phillip Frechette,
Supervisory Financial Analyst, Office of Credit Risk Management.
[FR Doc. 2026-19802 Filed 9-25-26; 8:45 am]
BILLING CODE P
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