NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to three classes of notes issued by Harvest SBA Loan Trust 2023-1. Harvest Small Business Finance, LLC was formed as a California limited liability company in 2015 and originates, owns, sells, and services small business loans backed by owner-occupied, multi-purpose commercial real estate in accordance with the SBA 7(a) loan program.
As of August 31, 2023, the collateral consists of 529 Loans with an unguaranteed balance of $121.3 million, approximately 21% of the full outstanding current principal balance of the Loans. The collateral has an average remaining loan balance (unguaranteed) of approximately $230,000 and a weighted average original and remaining term of approximately 296 and 283 months. All loans in the current pool are amortizing, with monthly payments, floating rate interest rates based on the Prime rate plus a margin up to 3.00%, and original terms of either 10 years, 15 years, or 25 years. The obligors have a weighted average FICO of 729. The loan proceeds are used by small business concerns for a variety of purposes and the properties used to collateralize the loans are all commercial real estate with a weighted average loan-to-value (LTV) of 77.9%.
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- Global General Rating Methodology for Asset-Backed Securities
- Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
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