The Bond Market Association established a committee last week to develop guidelines for secondary market sales of loans guaranteed by the SBA.

The group plans to develop standard guidelines on documents that investors require when buying securities backed by government-guaranteed loans.

The committee also plans to establish guidelines for securitizing loans guaranteed by the Bureau of Indian Affairs, the Agency for International Development, and the Department of Agriculture.

"As funding for these programs grows, the secondary market grows," said Donna Faulk, vice president of Prudential Securities.

Funding for the SBA's 7(a) loans, the most commonly securitized type of SBA loan, increased to $10 billion for fiscal year 1998, up from $9.5 billion in 1997.

Ms. Faulk will lead the committee for the trade group, which represents banks and securities firms that underwrite and sell debt securities.

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