No. of Recommendations: 0
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
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement