About a year ago, we launched what we call a Fast Track 504, which is a wholesale program–a secondary market program–meant for banks, credit unions, non-banks, commercial mortgage brokers, all to participate in outsourcing 504 first-lien loans to us to finance. In return, we actually pay them non-interest income premiums based on the yield spread based on increasing the spread over the index we use to factor the interest rate. It’s modeled after things that have existed in the 504 marketplace for decades, but it’s a different spin. We have a broader credit box than a lot of folks out there. We have an appetite for multi-use properties and special-use properties. If something doesn’t fit within the SBA 504 sphere, we’ll actually do a low LTV conventional loan as an alternative and we pay the same. We pay the same up to four percent, or four points, to their originating source for a multi-purpose property and we pay up to three points for special-purpose properties.
We also allow them if they want to include some origination fees overtop of that–we can do that as well. It’s a very, very competitive program. It’s something that’s been around for about a year. We’ve probably paid now just over a million dollars in referral fees over the last about 18 months of having this and not everybody knows about it. Unlike some of the existing programs that are out there, we prefer to work with banks and credit unions that probably don’t have an SBA department. A lot of times, I’ll tell them to send us their misses because we may have a wider credit box then they do. We’ll also work with commercial mortgage brokers, we’ll work with commercial real estate brokers–I don’t make a distinction from where the deal comes from based on the source. I’ve been doing this for almost 20 years and if I don’t know how to sus out a good deal or not, it’s my problem, not so much the originating source’s problem. That’s what we call the Fast Track 504 program. We’re very, very quick and there are only a couple folks that compete with us in the nation right now on this program. I think we’re a lot faster. I’m a fanatic about our customer service, so I hope that people will consider working with us very soon and have a lot more people jump on board the fast track and work with us. We’ll have a lot more fun and help a lot more business owners.