Harvest Small Business Finance Launches Successful SBA 7(a) Securitization

LAGUNA HILLS, Calif., October 10, 2025 – Harvest Small Business Finance, LLC (HSBF) has marked a significant milestone in the non-bank originations sector by successfully closing its sixth securitization of SBA 7(a) unguaranteed portions. This new securitization, valued at $87.8 million, is being hailed as the Harvest SBA Loan Trust 2025-1 (HSLT 2025-1) and primarily includes first-lien commercial real estate (CRE) loans.

Key Players and Structure of HSLT 2025-1

Performance Trust Capital Partners, LLC played a pivotal role as the sole structuring agent and bookrunner for this transaction, while East West Markets, LLC acted as co-manager. This securitization is only the third REMIC-structured securitization in the SBA sector, underscoring Harvest’s innovative approach to financing.

Utilizing ratings from Morningstar DBRS, HSLT 2025-1 received favorable ratings for its Class A, Class B, and Class C Notes, assigned as A (low) (sf), BBB (low) (sf), and BB (high) (sf) respectively.

Consistent Performance in a Competitive Market

Leaders at HSBF, including Adam Seery, Todd Massas, and Jason Raefski, emphasize the company’s commitment to delivering consistent performance and volume in the non-bank SBA 7(a) sector. They state, “If there is one thing the market appreciates, it’s consistency as a programmatic issuer. We pride ourselves on setting the gold standard in originations, credit decisions, and exceptional staffing.”

Important Deal Characteristics

The Harvest SBA Loan Trust 2025-1 represents Harvest’s sixth SBA 7(a) securitization and tenth overall issuance, including the operations of Harvest Commercial Capital, LLC. The structure of this deal includes pro-rata payments distributed across Class A, Class B, and Class C Notes.

• Prefunding Period: The transaction features a 90-day prefunding window, allowing for the inclusion of up to 20% in additional collateral.
• Static Collateral Pool: After this period, the transaction will maintain a static collateral pool. As of the initial cut-off date on August 31, 2025, the collateral comprises the unguaranteed portions of 374 SBA 7(a) loans, with an approximate aggregate unguaranteed principal balance of $79 million.

Loan Details and Underlying Conditions

• Weighted Averages: The collateral pool has a weighted average outstanding unguaranteed balance of about $211,000, with a remaining term averaging 281 months.
• Payment Terms: All loans within this pool offer monthly payments and feature a quarterly adjustable interest rate, primarily based on the Prime Rate. Most loans are structured as 25-year fully amortizing notes.
• Creditworthiness: The obligors have a commendable weighted average FICO score of 736, while the properties securing these loans maintain a weighted average original loan-to-value (LTV) ratio of 76.4%. The businesses behind these loans also show stability, with an average time in operation of 15.5 years.

About Harvest Small Business Finance

Founded in February 2016, Harvest Small Business Finance, LLC is a California-based lender dedicated to originating and servicing loans backed by owner-occupied, multi-purpose commercial real estate under the SBA’s 7(a) loan program. The company has established itself as a key player in several major U.S. markets, operating under the authority of a Small Business Lending Company (SBLC) license obtained in March 2016. HSBF is majority owned by an affiliate of Medalist Partners, LP, an SEC-registered investment manager, with approximately $2.2 billion in net assets under management as of September 30, 2025.

This recent securitization reflects Harvest’s unwavering focus on expanding access to capital for small businesses and solidifying its reputation as a leader in SBA 7(a) lending.

Conclusion

As Harvest Small Business Finance continues to thrive in the competitive landscape of SBA 7(a) lending, their latest achievement demonstrates a strong commitment to innovative financial solutions. HSLT 2025-1 is a significant step forward in providing essential funding to small businesses across the United States.

By focusing on consistency and performance, HSBF not only enhances its own stature but also supports the broader economy, showcasing its essential role in small business financing.

For more information, please visit Harvest Small Business Finance.