SBA GUARANTEED INTEREST CERTIFICATES

SBA Guaranteed Interest Certificates represent beneficial ownership of the entire guaranteed portion of a specified SBA Guaranteed Loan, and feature a unique combination of favorable characteristics:

• Increase the Commercial Loan Portfolio - Because the SBA Guuaranteed Interest Certificate represents the entire guaranteed portion of a specified SBA loan and cannot be purchased in fractional interests, Federal Regulators have determined that depository institutions must report them as loans for call reporting purposes. (Not to be confused with SBA Guaranteed Loan Pools, which are carried in the investment portfolio).
• High Credit Quality - SBA Guaranteed Interest Certificates are unconditionally guaranteed as to the timely principal and interest payments by the Full Faith and Credit of the United States Government.
• Low to 0.0% Risk-Weighting - SBA Guaranteed Interest Certificates qualify as low or zero percent (0.0%) Risk-Weighted Assets. Please check with your regulators for specifics.
• Rate Sensitivity - Most SBA Loans feature adjustable coupons tied to the national Prime Rate index that adjust at least quarterly and are not subject to periodic or lifetime interest rate caps.
• Liquidity - SBA Guaranteed Interest Certificates are actively traded in the secondary market. Investors wishing to sell SBA Guaranteed Interest Certificates into the market enjoy excellent liquidity.
• Marketability - Because SBA Loan coupons reset frequently to the Prime Rate index unhindered by rate caps, their coupons are reflective of the prevailing interest rate environment, greatly enhancing the marketability in various economic conditions.
• Historic Prepayment Data - More than $3 Billion worth of SBA loans are used in the formation of SBA Pool securities each year while a lesser quantity is placed in Guaranteed Interest Certificates. Thanks to the securitzed pool product, investors have a reference universe for historic prepayment performance of SBA loans.
• Pledgeability - While regulatory treatment may vary, SBA Guaranteed Interest Certificates are generally pledgeable as collateral for public funds, Federal Reserve and Federal Home Loan Bank advances, and Treasury, Tax and Loan accounts. Since regulatory treatment may vary, please check with your regulators for specifics.
• Central Fiscal & Transfer Agent - All settlements, transfers and cash flows are handled through the Small Business Administration's Fiscal & Transfer Agent (FTA). The monthly payments for a portfolio consisting of any number of SBA Guaranteed Interest Certificates are satisfied by a single payment from the FTA. A monthly statement from the FTA provides complete accounting details for each loan registered to the investor.
• Attractive Spreads - Variable rate SBA Guaranteed Interest Certificates are offered at potentially attractive spreads to comparable short-term rates. Fixed rate loans are also available and are typically offered at attractive spreads to the U.S. Treasury curve.

Although this information was derived from sources which we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for informational purposes only and it is not intended as an offer or solicitaion with respect to the purchase or sale of any security. Securities which may be shown are subject to prior sale and change in price. Past performance is not indicative of future results. Changes in assumptions may have a material effect on projected results.