SBA Introduces Emergency Rule to Boost Small Business Loan Market Amidst LIBOR Base Rate and Secondary Market Pool Interest Rate Changes

Summary

The Small Business Administration (SBA) has issued an interim final rule to address extraordinary market conditions, introducing an additional LIBOR base rate for lenders to price 7(a) loans and allowing secondary market loan pools with weighted average coupon rates, with the aim of improving loan pricing efficiency and maintaining capital availability for small businesses.