The Motley Fool Discussion Boards

Previous Page

Industry Discussions / Real Estate Inv. Trusts: REITs

URL:  http://boards.fool.com/ive-never-heard-of-them-sba-loan-programs-can-29177320.aspx

Subject:  Re: MREIT selling for 60% of NAV Date:  3/17/2011  10:48 AM
Author:  tytthus Number:  67884 of 77348

i've never heard of them. SBA loan programs can provide PCC with low cost, long tenured financing. many of the BDCs i follow have qualified as SBA lenders, though i've never heard of SBA 7(a) loans, perhaps a specific category?

aside from the small cap & low float issues that could lead to P/NAV discounts, they are hurt by the amount of floating rate debt they hold. i'm not sure about PCC, by BDCs that have SBA (SBIC) financing have fixed rates (around 5% currently) that reset yearly. i didn't see any info in PCC's PR about net spreads or terms of their debt, but if/when LIBOR rates start to go up, PCC should benefit pretty well.

best,
--tytthus
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us