Secondary Market Transactions for Development Loans

With the reduction in federal dollars for community and economic development lending over the last decade, many development lenders around the country are being squeezed. Most localities cannot backfill the gap. And thus far foundations have been unable or unwilling to make up the difference. Some development lenders have stopped making new loans. Still others have closed up shop entirely.

There is a private market solution to this dire picture. Selling or borrowing against existing loan portfolios is proving to be a practical answer to the funding needs of development lenders. Banks, financial service companies, retirement funds and insurance companies have begun to demonstrate a vast appetite for secondary market development deals.

There are several financial advisory firms handling these types of secondary market transactions, but UPD specializes in the area of community and economic development lending, so our services are tailored to the specific needs of non-profit and public sector lenders. We also provide management consulting services to help our clients develop short- and long-term strategies for preparing loan funds for the secondary market, and for using transaction proceeds to achieve development and financial goals.