Amit L.

In both Non-QM and prime jumbo, the question for translating origination amounts to issuance volumes becomes one of the securitization rate. Our anticipation of continued regulatory easing and interest rates that don't come down too much should keep the bank bid for jumbo mortgage loans strong and the yield buyer bid for Non-QM pools robust. These dynamics should mitigate any negative supply technical from becoming too detrimental to valuations.

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In both Non-QM and prime jumbo, the question for translating origination amounts to issuance volumes becomes one of the securitization rate. Our anticipation of continued regulatory easing and interest rates that don't come down too much should keep the bank bid for jumbo mortgage loans strong and the yield buyer bid for Non-QM pools robust. These dynamics should mitigate any negative supply technical from becoming too detrimental to valuations.

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There’s a hard truth about the SBA brokerage world that most people don’t like to talk about: Most loan brokers who “do SBA” fail at it. And after working with hundreds of brokers over the years — from my seat as a lender — I’ve seen exactly why. 👉The brokers who struggle tend to treat SBA as just another product they can casually offer alongside conventional, DSCR, MCA, equipment financing, and everything else. When "an SBA deal” comes in, it’s often not even a deal — it’s a loose lead that gets forwarded to a lender with very little understanding of eligibility, structure, cash flow, or SBA rules. As a lender, I’d open the file and immediately know: 🤷🏻‍♂️This broker doesn’t really understand SBA. Now here’s the flip side. The brokers I’ve worked with who are doing $50–$100 million a year — all had one thing in common: ✅ They went all-in on SBA by making it one of only a couple products that they offer, often the only one. And as a result, they learned faster, structured smarter deals, and in many cases knew the SBA rules as well as — or better than — the lenders they were working with. This isn't about match-making. That’s the real secret to building a successful SBA brokerage is to become an expert in the craft, learn the rules inside and out (I promise it's not that bad,) and go to market with the knowledge that will add value to the small business community. That’s exactly why I created The SBA Expert Course. This course is designed to give loan brokers the foundation they need to become true SBA experts — not order takers, not lead passers, but trusted advisors who can confidently quarterback complex SBA transactions from start to finish. Here’s what’s included: 🔹8+ hours of in-depth training content covering eligibility, cash flow analysis, deal structuring, credit considerations, and more 🔹A toolbox of practical resources you can use immediately in your day-to-day workflow 🔹A curated SBA lender database 🔹Access to a 24/7 Slack channel where you can ask questions and pressure-test real deals A weekly live huddle, where I: 👉Share market and policy updates 👉Bring in experienced SBA lenders 👉Walk through real, live deal scenarios 👉Answer questions you’re actively working through The feedback from this course has been overwhelmingly positive. Members consistently tell us: "The content is far deeper than anything else available" and  "The weekly huddle alone is worth the price" And here’s the simplest math of all: 👉If you close just one additional SBA deal as a result of this course, it pays for itself many times over. This year, we’re taking things to the next level: -More guest speakers -New tools and resources -A growing community of like-minded, supportive brokers who want to win together If you’re serious about breaking through, increasing your close rate, and doing more SBA loans with confidence — this is a no-brainer. You can learn more at www.sbaexpertcourse.com.

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The Rate Cut is Priced In. The "Data Fog" is Not. 🌫️📉 Everyone in CRE is waiting for the Fed’s announcement at 2:00 PM today. The consensus is clear: a 25 bps cut is effectively a done deal. But if you’re only looking at the headline number, you’re missing the bigger story affecting our capital markets. The Real Story: We are flying partially blind. The 43-day government shutdown that ended in November has left us with a "Data Fog." The economic reports the Fed relies on (jobs, inflation) are currently dealing with a backlog and collection delays. Why this matters for Commercial Real Estate: We are getting the "lower rates" we wanted, but we aren't getting the "certainty" lenders crave. - Spreads vs. Yields: While the 10-Year Treasury may compress further on today's news, don't expect mortgage rates to drop lock-step. Lenders are likely to keep spreads wide until the data quality normalizes in Q1 2026. - The 2026 Dot Plot: The cut today is irrelevant, it’s history. The most valuable signal will be the updated "Dot Plot" for 2026. Are the Fed governors projecting a rapid descent to a neutral 3.0%, or a pause to let the post-shutdown dust settle? My take: The "Green Light" for transaction volume isn't today's cut. It’s when the data catches up to the policy. Until then, expect a disconnect between borrower expectations and lender quotes.

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How SBA Loans Really Work (From a Broker’s Perspective) SBA loans are often described as low-rate, long-term, flexible financing. All of that is true. But it is also incomplete. From the inside, SBA loans are not a single product and they are definitely not “easy money.” The SBA does not lend directly. Banks do—using an SBA guarantee to reduce risk. That distinction matters! What lenders actually underwrite is not just revenue or a credit score. They are looking at: • Global cash flow (business + personal) • Management experience • Equity injection and source of funds • Credit patterns, not just scores • Deal structure and use of proceeds This is why many SBA deals fail after a borrower thinks they are qualified. The difference between an approval and a decline is often not the borrower—it is how the deal is structured and which lender it is submitted to. Not all SBA lenders are built the same. Some prefer acquisitions. Some prefer real estate-heavy deals. Some are conservative. Some are not. From a broker’s perspective, the real value is not “finding a lender.” It is: • Structuring the deal correctly upfront • Matching it to the right SBA lender • Anticipating underwriting questions before they arise • Preventing costly missteps that slow or kill momentum When SBA loans are done right, they can be one of the most powerful tools for business owners to acquire companies, purchase real estate, and scale with confidence. When done wrong, they become a frustrating exercise in rework and delays. The program isn’t the problem. The strategy usually is. If you’re a business owner or advisor navigating SBA financing, I’m always happy to share what we’re seeing from the lender side of the table. #SBALoans #BusinessAcquisition #freestoneseniorconnect#CommercialRealEstate#freestonemortgage#SmallBusinessFinance #Entrepreneurship #CommercialLending #FreestoneSolutions

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Erithmitic purchases loans, originates loans, leverages lenders and purchases CMBS. Loan purchase opportunity scenario for Erithmitic: Deal: $48M CM2-rated, NAIC-eligible senior loan on a stabilized Class A industrial property in a key Midwest logistics corridor Terms: SOFR + 500 bps, 55% LTV, 4.5 years to maturity Borrower: Institutional sponsor with a national footprint Status: Performing loan, available in the secondary market at a modest discount Risks: Some lease rollover in year 3, but backed by healthy fundamentals and a low-vacancy submarket How We Think About This at Erithmitic It’s a Quality Credit with Mispriced Risk We’re looking at a clean, income-producing industrial asset with durable tenancy and institutional sponsorship. It carries a CM2 rating, qualifies for NAIC treatment, and sits at 55% LTV—conservative by any standard. Yet it’s being offered with a 500 bps spread over SOFR due to liquidity needs at the selling institution. That disconnect between quality and pricing is something we pay close attention to. We’ve Built a Platform for Secondary Execution At Erithmitic, we’ve developed a credit and asset management platform that allows us to move thoughtfully but decisively when opportunities like this arise. We’re not volume-driven; we focus on selectivity, structure, and execution. Secondary purchases require a different kind of discipline—understanding why the paper is trading, how the borrower is performing, and what risks remain in the tail. It Aligns with What Our Platform Is Designed to Hold This type of loan fits well into the kind of risk-adjusted return profile we underwrite to. It’s not speculative—it’s steady, senior-secured, and structured to perform. We’re not trying to reprice risk; we’re buying it where it already makes sense. This is the kind of work we quietly focus on at Erithmitic—acquiring well-structured loans in dislocated environments, where credit quality is intact but the market has lost its footing.

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What add-backs will SBA lenders actually accept? Those of us in the LMM space are constantly getting beaten up over the use of add-backs. Calder's position has always been to be conservative and realistic. Recently, we received the results of a soft survey of some of the most aggressive SBA lenders to find out what add-backs they would and would not accept. Here goes: Hard NOs: Meals & entertainment Most travel and gas expenses Phones (unless you can prove it’s for Aunt Linda) Personal items buried in COGS or supplies Maybe, but bring receipts/evidence: Family salaries, seller’s retirement, legal fees, auto expenses Excess rent or one-time repairs Golf memberships (yes, if it’s clearly personal) Generally YES: Seller salaries (adjusted for buyer) Health & life insurance Verified one-time legal/professional fees Above-market rent with proof Lenders also consistently said: Too many add-backs = red flags A Quality of Earnings report builds significant trust They won’t comb through statements to “help you justify” personal expenses If you’re burying personal stuff to dodge taxes, many lenders will just walk #SBAloans #MergersAndAcquisitions #BusinessValuation #SellingABusiness #BuyingABusiness

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Disorganized borrower financials rarely show up as a single issue. They create pressure across credit, operations, growth, and talent. Over time, those pressures stack. Here are the 7 risks ag banks face when borrower data isn’t clear. 1️⃣ Increased Credit Risk Unclear financials make it harder to assess true creditworthiness, raising default risk and loan loss provisions. 2️⃣ Operational Inefficiencies Loan evaluations take longer, staffing costs rise, and teams get pulled away from revenue-producing work. 3️⃣ Reduced Ability To Cross-Sell Incomplete financial data limits visibility into borrower needs, shrinking non-interest income opportunities. 4️⃣ Reputational Risk Higher defaults signal weak portfolio management, eroding trust with depositors, partners, and regulators. 5️⃣ Liquidity And Capital Constraints Defaults strain reserves, limit new loan origination, and force reliance on more expensive funding sources. 6️⃣ Concentration Risk Poor data makes diversification harder, increasing exposure to ag downturns and tying up capital buffers. 7️⃣ Difficulty Finding And Retaining Qualified Loan Officers Complex, disorganized credits raise hiring costs, increase turnover, and lead to more underwriting errors. Most banks feel these pressures separately. Alarms go off when they see how connected they are. If you think your customers could use help cleaning up their financials, let’s connect. 👉https://lnkd.in/gut5ZJWf

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