On March 22, 2012, the SBIC Funding Corporation completed pooling of SBA
debentures with a coupon rate of 2.766%. This lowers the previously low price in
September 2011 of $559 million at a 2.877% coupon rate, and is the lowest pricing
on SBA-pooled debentures in more than 50 years of the SBA Program.
The pricing of the pool is a critical component to the cost of funds used by
SBIC Funds. Once pooled, the interest rate on the SBA debentures becomes fixed
for a 10-year period. The SBIC Fund is responsible only for a semi-annual
interest-only payment on the SBA debentures until the SBA debentures are repaid.
The SBA debentures must be repaid within 10 years. In addition, there are no
The historical pooling information is reflected in our chart (click to view).
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have any questions regarding these issues,
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