Harvest Small Business Finance Sold $93.1 Million in Bonds
The asset-backed deal securitizes 306 small business loans issued under the Small Business Act.
Updated on Oct. 7, 2026 in Corporate Finance
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Harvest Small Business Finance has completed a $93.1 million securitized bond offering, known as HSLT 2026-1. The pool consists of 306 loans originated under section 7(a) of the Small Business Act.
Why it matters
This transaction provides liquidity for small business lending by bundling existing obligations into tradeable securities. It utilizes multiple credit enhancement layers to secure the notes for investors.
The bond pool features a weighted average FICO score of 735 and a loan-to-value ratio of 79.29%. Credit support includes a 1.50% reserve account balance, alongside subordination and excess spread structures.
The players
Harvest Small Business Finance
This financial institution specializes in originating and securitizing loans issued under Small Business Administration programs.
Performance Trust Capital Partners
This investment firm provides fixed-income research, trading, and capital markets services to institutional clients.
The details
The notes utilize a payment structure linked to the Prime Rate minus a spread, the 30-day Secured Overnight Financing Rate, or the Net Weighted Average Coupon, depending on which is lowest. Performance Trust Capital Partners acted as the arranger and initial note purchaser for the deal.
Timeline
The securitized bond deal closed on September 30, 2026.
Investors will begin receiving monthly repayments on October 26, 2026.
The notes carry a final maturity date of January 25, 2053.
Market Dynamics
This deal reflects the ongoing integration of government-guaranteed small business loans into broader private capital markets. It demonstrates how institutional investors utilize structured products to gain exposure to debt obligations backed by federal policy mandates.
The securitization allows for the continued flow of capital into the small business sector by clearing these loans from originators' books. Retail investors with interest in asset-backed securities may see these notes categorized within broader fixed-income or high-yield portfolios.
The takeaway
This transaction underscores the importance of the secondary market in maintaining the health of small business lending channels. Investors in such securities should monitor the weighted average loan-to-value ratios and underlying borrower credit scores as indicators of long-term repayment security.
Further reading
Learn more about the current Corporate Finance landscape and how debt securitization impacts market liquidity.
Source note: This article includes information reported by Asset Securitization Report.
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Is now a good time for individual investors to include small business loan assets in portfolios?
