Technology Is Helping Increase Loan Volumes

Small balance lending demand has taken off. Sabal Capital Partners is a leader in this space, working with Freddie Mac’s small balance loan program, which focuses on workforce housing. To keep up with the strong demand for small balance loan, defined as loans with a value of $1 million to $7.5 million, Sabal has adopted technology to create efficiencies, and it has become a cornerstone of the firm’s business. We sat down with Pat Jackson, CEO of Sabal Capital Partners to talk about the demand for small balance loans and how the firm is leveraging technology to support the high demand.

GlobeSt.com: What has demand been like this year for small balance lending, and why?

Pat Jackson: Demand for commercial small balance loans has been exceptionally high year-to-date, following high volume in 2017, as well. There is currently a real need for acquisition and refinance debt in the $1 million to $7.5 million range, specifically for multifamily properties. Many of these properties are workforce housing located in, or near, major metropolitan regions where employment is strong, populations are high, for sale homes are expensive and many are simply priced out. Freddie Mac’s Small Balance (SBL) Program, which Sabal is a major lender partner to, is designed to provide finance that will ultimately keep these properties in play and affordable for America’s workers.