However, the obstacles to securitizing loans to small businesses are large, especially for loans not backed by a guarantee from the Small Business Administration (SBA). As a result, securitization has so far remained modest and is unlikely to increase substantially over the foreseeable future.
Small business finances and recent financial market developments Financial market conditions began to deteriorate quite rapidly in the middle of August. Although conditions have steadily, albeit gradually, improved over recent weeks, problems could spill over to the market for small business loans.