A pool of adjustable-rate, first-lien small business loans will secure $145.2 million in asset-backed securities (ABS) being issued by the ReadyCap Lending Small Business Loan Trust, 2026-4.
Each Small Business Administration 7(a) loan collateralizing the notes is secured by at least one commercial real estate (CRE) property, which might also be secured by other related collateral, according to analysts from Morningstar DBRS.
The transaction will issue notes through three tranches of class A, B and C notes, which will also be adjustable rate, according to DBRS, and the class A notes will issue the largest portion of notes, $111.6 million.
J.P. Morgan Securities and Performance Trust Capital Partners are managers on the deal, which is slated to close around June 26, according to DBRS and Asset Securitization Report's deal database.
Notes have a maturity date of June 25, 2053.
The deal's capital structure includes overcollateralization, subordination, excess spread and cash deposited in a reserve account.
AS of the pool's cutoff date, the loans had strong overall credit characteristics, especially with a weighted average (WA) obligor FICO score of 745, DBRS said.
About 46.8% of the businesses associated with the loans are in the hotel and motel (25.1%), and the gasoline and convenience store (21.7%) industries, according to DBRS.
Analysts assigned (P) A (low) (sf), (P) BBB (low) (sf) and (P) BB (sf) to classes A, B and C, respectively.
