Pub. 4 2014-2015 Issue 3

16 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S FEATURE ARTICLE “As consultants to banks across the country, we continue to get questions about this complex area of SBA operations.“ VERN HANSEN J.R. BRUNO& ASSOCIATES Strategies for Selling SBA Loans on the Secondary Market H ere is a familiar scenario for SBA lenders: Your bank has SBA loans on the books and you’re thinking about selling the guaranteed portion on the secondary market as a way to bring in revenue. You might have received requests from potential investors. What are the advantages of selling? And what are the best strategies for doing so? There are many upsides to selling. The government guaranty helps make SBA loans marketable to investors, which would help your SBA department become a profit center. As the originating lender, you would continue servicing the sold loans, garnering the servicing fees and keeping the relationships with your customers. Your bank could also use the proceeds to origi - nate new SBA loans. As consultants to banks across the country, we continue to get questions about this complex area of SBA operations. In developing definitive answers, we received valuable input from Jenny