Securitization and Sale.
Gain tremendous profit potential from non-interest fee income.
Many community banks don’t realize that the SBA’s primary loan product, the 7(a) program, includes an active, liquid and very profitable secondary market. Once an SBA loan is closed, the government-guaranteed portion — 50% to 90% of the loan amount — can be quickly and easily sold to this market. Sales can prove very profitable for the lender. It’s common for a bank to garner sale premiums of 7% to10% of the purchased guarantee, at no net cost to the bank.
Holtmeyer & Monson makes securitization and sale extremely easy. Investors who purchase SBA loan guarantees often “pool” their investments into funds. We locate these and other purchasers for the bank. We arrange the sale. And we complete the transactions for the bank, all for a reasonable fee.
In addition to the initial premium sale, our bank clients earn ongoing service fees paid by the investor.
Contact us for actual returns on at-risk capital realized by H&M client banks.
Read how one of our community bank clients recently increased its bottom line by adding a third of its normal earnings for the year as a result of participating in SBA lending through Holtmeyer & Monson.
