SOURCE: Edgeware Analytics

October 16, 2008 09:00 ET

Edgeware Analytics, Inc. Launches Secondary Market Exchange for USDA Loans

New Exchange Creates Liquidity for Small Business Lenders

SAN DIEGO, CA--(Marketwire - October 16, 2008) - Edgeware Analytics, Inc., provider of BizLX.com™, the Small Business Loan Exchange™, announced today the launch of the first-of-its-kind secondary market exchange for USDA loans. Utilizing the GovGex.com™ platform for government guaranteed loans, which is a component of the Small Business Loan Exchange, the USDA loans exchange allows originators to sell guaranteed portions of USDA loans to secondary market buyers.

USDA loans, originated by lenders throughout the nation, are backed by the full faith and credit of the U.S. government. "The ability for USDA lenders to seamlessly achieve liquidity is an important market change, especially during this time of tight credit," said Bob Judge, a partner at Government Loan Solutions, which recently joined with Edgeware Analytics to provide settlement, gain-on-sale calculations, and valuation services to GovGex.com users. GLS services are also now available to USDA loan exchange users.

"After successfully selling our SBA loans through GovGex we were thrilled to learn that we can now sell our USDA loans on the online exchange," said Kevin Coffman, senior vice president at Plains State Bank. "Because of the transparency GovGex provides, we know we're capturing the highest available bid by reaching the widest range of buyers -- something that is more important than ever in today's credit market. USDA loans can be more complex than SBA loans making the sale longer and more difficult. With GovGex's proven technology and the detailed USDA information it provides buyers, we expect GovGex's simplified process will allow us to sell our USDA loans more quickly and at a higher premium."

Buyers directly share in the benefit. "We actively use GovGex as it connects us with sellers we may not otherwise see," said Joel Banes, CEO of Banes Capital Group, LLC a leader in the government guaranteed secondary market.

The GovGex component of the Small Business Loan Exchange provides one-click access to all bids -- allowing the seller to capture as much value as possible for their loan sale. The Small Business Loan Exchange also provides complete archiving and tracking for audit and compliance. Just prior to the launch of the USDA loan exchange, the Small Business Loan Exchange transacted over $1 million per day. Buyers on GovGex include direct investors, broker-dealers, and over 95 percent of secondary market pool assemblers.

"In the current credit climate, government guaranteed loan programs are a great alternative for lenders who want to mitigate risk," said Edgeware Analytics CEO Dan Shoham. "USDA lenders can now have the same immediate liquidity our other BizLX customers already enjoy by selling loans to the largest pool of buyers accessible anywhere, while buyers can secure specific deals that fit their needs."

About Edgeware Analytics, Inc.

Edgeware Analytics, Inc. provides a comprehensive suite of technology products and services to the small business lending marketplace. The company's Small Business Loan Exchange™, BizLX.com™, utilizes powerful analytics to transparently match a broad array of lending marketplace participants including business borrowers, aggregators such as franchisors and business brokers, lenders, secondary market funding sources, and vendors to small businesses. Elements of the Small Business Loan Exchange include SBLX™ connecting business borrowers with lenders, GovGex.com™ connecting sellers and buyers of government guaranteed loans, and ScoreEdge™ creditworthiness scoring model used by national lenders, certified development companies, credit unions and community banks. Additional information can be found at www.BizLX.com

Contact Information

  • Media contact:
    Meghan Searles Gardner
    Edgeware Analytics
    Email Contact
    857-222-2864