There are two new government programs in the queue that aim to revive the frozen secondary market for loans guaranteed by the Small Business Administration.

The Term Asset-Backed Securities Loan Facility would accept SBA pools as collateral through the Federal Reserve Bank of New York and is scheduled to commence operations this month. The economic recovery bill passed by Congress last week contains a provision that would establish an SBA Secondary Market Lending Authority that would provide favorably priced financing lines to broker-dealers that specialize in this niche market.

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