Q1 Recap: 2023 Secondary Market Performance Report, BankLink's Launch for Windsor Lenders, and SBA Resources

Welcome back to the Windsor Advantage Newsletter, a roundup of what's happening in the world of government-guaranteed lending.

Premium prices stagnated in 2023 as sales activity slowed, maintaining the below-average premium prices recorded in 2022. It was a stark contrast when compared to the record-high performances of prior years (2019-2021), however, to be expected based on a few key shifts in the SBA landscape. Including:

• Depository Institutions’ Need for Liquidity
• Higher Prepayment Rates and Borrower Defaults

Below are SBA Premium Price Highs and Lows for the 2023 FY:

While the performance was relatively stable for 10 year loans, we did find that bids were lower all around for both 10 and 25 year notes. The lower bids are an indication of less interest than in past years.

This is due to: 1) faster prepayments speeds, 2) less demand for the product against its non-government backed loan peers and 3) a softer yield curve.



In 2023, we sold significantly less 25 year loans than average which is a direct relation to our Clients having less interest in “commercial real estate” backed SBA 7(a) credits for construction or commercial real estate projects. We also feel this lack of interest in CRE as of late is due to a highly saturated market in that field. We expect competition to increase as we lean into 2024 and applicants reacclimate to this rate environment.

Continue Reading for further analysis of key performance factors of the 2023 SBA Secondary Market, plus best practices for adapting in 2024:

Save This File: Updated Loan Program Chart from SBA

New to the SBA space? In addition to the popular 7(a) Loan Program, SBA offers a number of financing programs for SMB owners dependent on eligibility.

The below chart was recently shared by SBA. This chart outlines a high level overview of the latest eligibility requirements and loan proceed amounts available for each SBA financing program. This chart is a convenient resource to keep on hand for internal use, and as a reference for potential borrowers exploring their options in the SBA space. 

Stay In Touch: Your Contact at Windsor Advantage

Our team is always available to discuss strategies and services to help your organization move forward.

Reach out to eligibility@windsoradvantage.com for questions regarding loan structuring and prequalification.

Contact our team at windsoradvantage.com/contact for more information on working together to build and scale your SBA department.