Treasury Announces Sale of Seven SBA 7(a) Securities

WASHINGTON – Today, the United States Department of the Treasury announced the sale of seven Small Business Administration (SBA) 7(a) securities executed through a Bid Wanted in Competition (BWIC) for approximately $58.0 million, which represents overall gains and income of approximately $1.3 million for those SBA 7(a) securities.  The closing date for the seven securities is expected to occur on or about October 24, 2011. 

 

SBA 7(a) securities are comprised of the portion of loans guaranteed by the Small Business Administration which finance a wide-range of small business needs, including working capital, machinery, equipment, furniture, and fixtures. 

 

Treasury originally invested in 31 SBA 7(a) securities with a value of approximately $368 million.  Those securities were comprised of 1,001 loans from 17 different industries, including retail, food services, manufacturing, scientific and technical services, healthcare, educational services, and others.  Treasury has now sold a total of 23 securities for approximately $271.7 million, representing overall income and gains of approximately $7.5 million.  After the closing, Treasury will continue to hold 8 SBA 7(a) securities. 

 

Treasury acquired its SBA 7(a) securities portfolio under the Troubled Asset Relief Program (TARP).  Treasury purchased the securities in order to help restart the flow of credit to small businesses.  Purchasing securities from participating "pool assemblers" enabled them to purchase additional small business loans from loan originators.  Since Treasury began purchasing SBA 7(a) securities, the SBA 7(a) market has recovered, as exhibited by new pool issuance volumes returning to pre-crisis levels. 

 

The disposition of these SBA 7(a) securities is part of Treasury's ongoing efforts to wind down TARP.  The Obama Administration will continue its strong commitment to ensuring that small businesses have the capital they need to create jobs and strengthen economic growth through the implementation of the Small Business Jobs Act and a number of other critical programs.

 

EARNEST Partners, which has acted as Treasury's Financial Agent for the SBA 7(a) securities portfolio, will continue to execute the securities disposition through broker-dealers on behalf of Treasury.  Prospective purchasers of SBA 7(a) securities held by Treasury should contact EARNEST Partners by e-mailing UCSBTeam@earnestpartners.com or by calling (404) 815-8772.

Treasury Announces Sale of Four SBA 7(a) Securities

WASHINGTON – Today, the United States Department of the Treasury announced the sale of four Small Business Administration (SBA) 7(a) securities executed through a Bid Wanted in Competition (BWIC) for approximately $62.1 million, which represents overall gains and income of approximately $1.8 million for those SBA 7(a) securities. The closing date for the four securities is expected to occur on or about September 23, 2011.

SBA 7(a) securities are comprised of the portion of loans guaranteed by the Small Business Administration which finance a wide-range of small business needs, including working capital, machinery, equipment, furniture, and fixtures.

Treasury originally invested in 31 SBA 7(a) securities with a value of approximately $368 million. Those securities were comprised of 1,001 loans from 17 different industries, including retail, food services, manufacturing, scientific and technical services, healthcare, educational services, and others. Treasury has now sold a total of 16 securities for approximately $213.6 million, representing overall income and gains of approximately $6.3 million. After the closing, Treasury will continue to hold 15 SBA 7(a) securities.

Treasury acquired its SBA 7(a) securities portfolio under the Troubled Asset Relief Program (TARP). Treasury purchased the securities in order to help restart the flow of credit to small businesses. Purchasing securities from participating “pool assemblers” enabled them to purchase additional small business loans from loan originators. Since Treasury began purchasing SBA 7(a) securities, the SBA 7(a) market has recovered, as exhibited by new pool issuance volumes returning to pre-crisis levels.

The disposition of these SBA 7(a) securities is part of Treasury’s ongoing efforts to wind down TARP. The Obama Administration will continue its strong commitment to ensuring that small businesses have the capital they need to create jobs and strengthen economic growth through the implementation of the Small Business Jobs Act and a number of other critical programs.

EARNEST Partners, which has acted as Treasury’s Financial Agent for the SBA 7(a) securities portfolio, will continue to execute the securities disposition through broker-dealers on behalf of Treasury. Prospective purchasers of SBA 7(a) securities held by Treasury should contact EARNEST Partners by e-mailing UCSBTeam@earnestpartners.com or by calling (404) 815-8772.

Sixty-One Additional Community Banks Across the Country Receive $608 Million to Help Small Businesses Access Capital, Create New Jobs

Total of 191 Banks Have Now Received More Than $2.4 Billion in Funding Through Small Business Lending Fund

WASHINGTON – Today, the U.S. Department of the Treasury announced that an additional 61 community banks across the country received a total of $608 million as part of the next wave of funding provided through the Small Business Lending Fund (SBLF). The SBLF, which was established as part of the Small Business Jobs Act that President Obama signed into law, encourages community banks to increase their lending to small businesses, helping those companies expand their operations and create new jobs.          

Including today’s announcement, 191 community banks have now received more than $2.4 billion in SBLF funding. Additional SBLF funding announcements will be made in the weeks ahead.

“There is no task more important than strengthening our economy and creating jobs, and this investment in small businesses across the country will help us achieve that goal,” said Deputy Secretary of the Treasury Neal S. Wolin.  “By incentivizing community banks to extend billions of dollars in much-needed credit to small businesses, the Small Business Lending Fund can spur growth and put Americans back to work in communities nationwide.” 

 Small businesses play a critical role in the U.S. economy and are central to growth and job creation. Small businesses employ roughly one-half of all Americans and account for about 60 percent of gross job creation. But small business owners faced disproportionate challenges in the aftermath of the recession and credit crisis, including difficulty accessing capital.

The SBLF helps small businesses meet this challenge by providing capital to community banks that hold under $10 billion in assets. The dividend rate a community bank pays on SBLF funding is reduced as that bank increases its lending to small businesses – providing a strong incentive for new lending to small businesses so they can expand and create jobs. For more details on the SBLF program, please visit, link and link.

The SBLF is one part of the Obama Administration’s comprehensive agenda to help small businesses access the capital they need to invest and hire. The State Small Business Credit Initiative (SSBCI), which is also a key part of the Small Business Jobs Act, allocates $1.5 billion to new and existing state programs that will leverage private financing to spur $15 billion in new lending to small businesses and small manufacturers. 

The Obama Administration has also supported 17 direct tax breaks that provide tax relief of more than $50 billion for small businesses. These tax breaks were designed to support job creation and retention, entrepreneurship, investment, and growth. The Administration has also worked with Congress to extend and expand existing Small Business Administration loan programs that helped put more than $42 billion in the hands of small businesses and deliver other important benefits to help small businesses expand and hire. 

Treasury Announces Sale Of Six SBA 7(A) Securities

WASHINGTON – Today, the United States Department of the Treasury announced the sale of six Small Business Administration (SBA) 7(a) securities executed through a Bid Wanted in Competition (BWIC) for approximately $76.5 million, which represents overall gains and income of approximately $1.7 million for those SBA 7(a) securities.  The closing date for the six securities is expected to occur on or about June 24, 2011. 

SBA 7(a) securities are comprised of the portion of loans guaranteed by the Small Business Administration which finance a wide-range of small business needs, including working capital, machinery, equipment, furniture, and fixtures. 

Treasury originally invested in 31 SBA 7(a) securities with a value of approximately $368 million.  Those securities were comprised of 1,001 loans from 17 different industries, including retail, food services, manufacturing, scientific and technical services, healthcare, educational services, and others.  Treasury has now sold a total of 12 securities for approximately $151.5 million, representing overall income and gains of approximately $4.5 million.  After the closing, Treasury will continue to hold 19 SBA 7(a) securities. 

Treasury acquired its SBA 7(a) securities portfolio under the Troubled Asset Relief Program (TARP).  Treasury purchased the securities in order to help restart the flow of credit to small businesses.  Purchasing securities from participating “pool assemblers” enabled them to purchase additional small business loans from loan originators.  Since Treasury began purchasing SBA 7(a) securities, the SBA 7(a) market has recovered, as exhibited by new pool issuance volumes returning to pre-crisis levels. 

The disposition of these SBA 7(a) securities is part of Treasury’s ongoing efforts to wind down TARP.  The Obama Administration will continue its strong commitment to ensuring that small businesses have the capital they need to create jobs and strengthen economic growth through the implementation of the Small Business Jobs Act and a number of other critical programs.

EARNEST Partners, which has acted as Treasury’s Financial Agent for the SBA 7(a) securities portfolio, will continue to execute the securities disposition through broker-dealers on behalf of Treasury.  Prospective purchasers of SBA 7(a) securities held by Treasury should contact EARNEST Partners by e-mailing UCSBTeam@earnestpartners.com or by calling (404) 815-8772.