HOW IS AN SBA LOAN INVESTOR COMPENSATED WHEN THE LOAN IS PAID OFF EARLY?
Let's say a business buyer borrows $1 million at 8% for 10 years. The bank sells the loan to an investor for let's say $1.1 million for a 5% yield (I'm just making up numbers). If the loan is paid off after one year, the investor will have lost money. Does the bank make him at least whole or guarantee the yield?