Small Business Administration - Secondary Market 7(a) Broker/Dealer Loans Recovery Plan
The Recovery Act allows the SBA to make direct loans to systematically important broker-dealers who have been active in the secondary market for the guaranteed portion of 7(a) loans. These broker-dealers would use the loan funds to purchase SBA-backed loans from commercial lenders, assemble them into pools, and sell them to investors in the secondary loan market.
Making funds available to broker dealers will help provide liquidity for the secondary market, ultimately encouraging lending of new 7(a) loans for small business entrepreneurs and owners.
No Data Available
Schedule and Milestones
|Planning Phase includes
• Developing fee subsidy model, determine strategy and program structure
• Conducting Risk Planning
• Finalizing changes to legal document and developing requirements for system changes
|Execution Phase includes
• Implementing System changes and establish Secondary Market Authority office
• Appointing Program Director
• Publishing Regulations and issuing notification to broker-dealers
• Implementing Secondary Market Lending Authority
|Evaluation Phase includes
• Monitoring Program Performance and report monthly to Congress
Projects and Activities
The Secondary Market 7(a) Broker/Dealer Loan program will make direct loans to broker-dealers who participate in the 7(a) guaranteed loan secondary market. This program will require development of a credit subsidy model, estimation of subsidy costs and necessary fees, and promulgation of regulations to establish the program design, eligibility, and other requirements.
• Financial Model
• Agreements and Forms
• Operational Needs
There is no associated funding for this program; the Recovery Act requires that credit subsidy costs be covered by user fees.
The SBA developed an agency-wide framework to ensure timely and effective implementation of Recovery Act projects to support America’s small businesses. The SBA Recovery Act Steering Committee, comprised of senior SBA leadership, meets every week to review, evaluate and assess the status and results of each SBA-related Recovery Act project.
The Secondary Market Lending program is managed by a team. Project teams, which meet several times each week, and supporting offices are held accountable for on-time completion of project milestones and deliverables. Project teams also meet regularly with the Performance Management Office to track metrics and milestones, which are reported weekly to the Steering Committee.
The Steering Committee reviews reports to identify:
• Progress made toward each project milestone
• Factors that have the potential to slow implementation or decrease effectiveness
• Effectiveness of each project measured against expected outcomes
• Success of any implemented adjustments made to strategies, services and project
• Effectiveness of risk mitigation strategies
Cost and Performance Plan
To report progress on the implementation of this project, SBA will regularly update the Project Plan to report on the status of milestone attainment.
The purpose of this program is to serve as a backstop. Therefore, no metric will be established since the lending authority will only be used if other programs (e.g., TARP, TALF) are not successful. However, the SBA submits a monthly report to Congress that includes the following monthly and year-to-date data elements: Total dollar amount of loans extended, Total dollar amount of loans repaid, Total dollar amount of loans outstanding, Value of assets held as collateral, default (dollars), delinquencies (dollars), and a list of borrowers found to have misused guarantees. If the program is required to be activated, this Congressional report will be posted to SBA’s recovery website and additional metrics may be established.
Energy Efficiency Spending Plans
Program Plan Award Types
No Data Available