June 09, 2010 09:06 ET

SBA Loan Sale Prices Reach New Record Highs on BoeFly

BoeFly's Online Marketplace Is the Only Site Empowering Banks to Originate and Sell Small Business Loans

NEW YORK, NY--(Marketwire - June 9, 2010) -  BoeFly, LLC, the premier online marketplace connecting lenders with business borrowers, secondary market loan buyers and professional service providers, announced today that sale prices on SBA loans reached 112% for the first time since initiating loan sales in May 2008.

BoeFly connects more than 300 banks from around the country with loan buyers including the systemically important broker dealers which are so critical to providing liquidity for SBA secondary market loan sales. Since launching, BoeFly has supported more than $820 million in small business loans both in new financing requests and secondary market loan sales. In addition to selling SBA guaranteed loans, which are enjoying record high prices, Banks also use BoeFly to sell non-performing conventional loans. 

BoeFly tracks selling activity with the comprehensive BoeFly Loan Sale Index. The BoeFly Loan Sale Index for 10-year Prime+2 loans gained 130 basis points (bps) in May to end the month at 107.5, and 25-year Prime+2 loans jumped a stunning 160 basis points to close out at 109.7. Both levels are record highs since BoeFly began tracking pricing data in mid-2008, with the 25-year index beating its previous record by 150 bps. Similarly, the highest premiums for individual transactions were also recorded, at 112.0% for a 25-year Prime+2.75 loan, and 109.81% for a 10-year Prime+2.75 loan.

"SBA loan sale prices are an important barometer of the health of small business lending," said Bob Coleman, small business lending expert and publisher of the Coleman Report. "When investors pay high prices, lenders are incented to originate new loans and inversely, as prices drop, lenders are signaled to slow origination. A number of very large SBA lenders opt not to sell their SBA loans limiting supply for SBA pool assemblers which may be the source of the price run-up," added Coleman.

The BoeFly Loan Sale Index (SBA) measures actual loan sale data from hundreds of banks -- of all sizes and geographies -- as they transact with buyers in the market.

"BoeFly is excited to connect our hundreds of Bank Members with active buyers in the market," said Robert Tannenhauser, CEO and President of BoeFly. "When BoeFly Bank Members achieve liquidity through loan sales they are positioned to originate new loans, which directly benefits BoeFly Members seeking new business loans." 

About BoeFly
 BoeFly is the only online marketplace harnessing technology to dramatically simplify the execution of commercial transactions, including loan origination and sales. BoeFly revolutionizes commercial transactions by seamlessly connecting all parties, including lenders, borrowers, investors, buyers, and sellers to a potential transaction and facilitating the efficient completion of deals. For small business lenders, BoeFly also provides the ability to sell the government-guaranteed portion of their loans on the secondary market to investors and Small Business Administration (SBA) loan pool assemblers, freeing up liquidity for even more small business lending. Key to the success of BoeFly is the site's dynamic compatibility technology which matches parties based on a specific set of criteria. To help BoeFly subscribers complete transactions, BoeFly also offers access to service providers in a wide variety of professions, from appraisers to closing attorneys to environmental consultants and more. www.boefly.com