KBRA Assigns Preliminary Ratings to Harvest SBA Loan Trust 2023-1

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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Related Publications

• Global General Rating Methodology for Asset-Backed Securities
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.