Obama Announcement on Small Business Seen as Additional Help to a Healed Market

SBA Secondary Market Prices Climb to New Post-Crisis Highs

Obama Announcement on Small Business Seen as Additional Help to a Healed Market

SAN DIEGO, CA - (October 21, 2009) - GovGex.com, the exchange where banks sell small business loans into the secondary market, reported that prices reached new highs since the credit crisis froze the market in September 2008.

According to GovGex.com, banks selling SBA loans with the most desired structure have earned premiums in excess of 110% of the loan's value. "We've seen record price increases on GovGex since President Obama first announced his small business initiative," said Mike Rozman of GovGex.com. "Comparing the 3 months prior to Obama's March 16, 2009 announcement to the last 3 months shows a 261% increase in premium values in the 25-Year-Maturity GovGex Index and a 314% rise in the 10-Year-Maturity GovGex Index, respectively. Transactions with the highest premiums are even triggering additional SBA fees."

Greg Poehlmann, President of 44 Business Capital, points out that the secondary market frees up more capital to jumpstart more lending. "By earning high premiums on my loan sales on GovGex I can make more loans to worthy businesses," said Poehlmann.

Bob Coleman, publisher of the Coleman Report, the leading information provider on small business lending points out that a number of announced initiatives haven't been enacted. "The SBA has yet to follow through with their promise to buy loans from broker-dealers. But by temporarily eliminating fees and increasing the guarantee rate to 90% - the SBA went a long way to drive real growth. I look forward to seeing if Obama's proposal to increase the caps on SBA loans, give better access to TARP for small banks, and to convene a Treasury-SBA Small Business Lending Conference makes a difference on Main Street."

Banks turn to GovGex to make loans for sale to a network of more than 30 buyers. To learn more visit: http://www.govgex.com/premium.php.

About GovGex.com
GovGex is the secure online exchange for selling SBA and USDA loans. GovGex works with a network of over 30 Buyers to ensure loans receive full exposure. GovGex is an independent source for secondary market pricing information - built on actual bid levels as seen on GovGex from all the Buyers. Contact GovGex for all of your secondary market needs.

Media Contact:
Mike Rozman
GovGex.com
mrozman@govgex.com
617-266-326