Premiums on SBA Loan Sales on GovGex.com Hit Highs Not Seen Since July 2008

Analysis evidences higher bids obtained through the fair and open exchange

San Diego, California - June 2, 2009 - Premium bids on select SBA loan sales surpassed 107% for the first time since July 23, 2008 on GovGex.com, the fair and open exchange for the sale of government guaranteed loans. As reported by the GovGex Independent Pricing Service™ (GovGex IPS), loan terms such as base rate (Prime vs. Libor), spread on top of base rate, loan amount and years to maturity continue to have a significant impact on bid levels.

There are many potential factors influencing the rise in premiums on certain loans. Probable causes include The American Recovery and Reinvestment Act of 2009 which gives SBA the authority to make loans directly to systemically important SBA secondary market broker dealers, limited supply of loans for sale, the Fed's TALF program and the return of investor demand for specific loans. While the cause of the price increase is debated, what is clear is the importance of obtaining as many bids as possible through a fair and open sale.

A May 2009 study conducted by Edgeware Analytics, providers of GovGex.com, compared $25 million of SBA loan sales by two of the nation's largest SBA originators to the results seen on GovGex.com, the open and fair exchange for selling SBA and USDA loans. The analysis found that, on average, GovGex sellers received a 101bps premium over non-GovGex sellers for financially equivalent loans. GovGex captures higher premiums by providing full coverage to the investing community in a fair and competitive bid environment.

The GovGex Independent Pricing Service provides SBA originators with real-time secondary market pricing information based on actual bid levels on GovGex.com - the SBA secondary market's only open exchange. The service allows lenders to keep their finger on the pulse of the secondary market and to understand how to structure deals to receive the highest possible premium in light of what the market is valuing.

GovGex makes loans available to a growing network of more than 20 buyers, covering the leading SBA pool assemblers and direct investors. To learn more visit: http://www.govgex.com/premium.php.

About Edgeware Analytics

Edgeware Analytics, Inc. provides a comprehensive suite of technology products and services to the small business lending marketplace. The company’s Small Business Loan Exchange™, BizLX.com™, utilizes powerful analytics to transparently match a broad array of lending marketplace participants including business borrowers, aggregators such as franchisors and business brokers, lenders, secondary market funding sources, and vendors to small businesses. Elements of the Small Business Loan Exchange include SBLX™ connecting business borrowers with lenders, GovGex.com™ connecting sellers and buyers of government guaranteed loans, and ScoreEdge™ creditworthiness scoring model used by national lenders, certified development companies, credit unions and community banks. Additional information can be found at www.BizLX.com.

Media contact:
Mike Rozman
Edgeware Analytics
mrozman@ew-a.com
888-672-6730