Treasury Completes Wind Down of TARP Small Biz Program
The Treasury Department announced the fifth and final disposition of securities within its Small Business Administration (SBA) 7(a) Securities Purchase Program, which was launched as part of the Troubled Asset Relief Program (TARP). The Treasury sold the eight remaining securities in the portfolio for approximately $63.2 million in proceeds.
This sale marks the successful wind down of another TARP program. In total, Treasury recovered $376 million through sales ($335 million) and principal and interest payments ($41 million) over the life of the SBA 7(a) Securities Purchase Program, representing a gain of approximately $8 million to taxpayers on Treasury’s original investment of $368 million.
Treasury launched the SBA 7(a) Securities Purchase Program as part of the Obama Administration’s efforts to help address the difficulties facing small businesses in the wake of the 2008 financial crisis.
The sale completes the disposition of the SBA 7(a) securities portfolio, which is part of Treasury’s ongoing efforts to wind down TARP. More than 77% ($318 billion) of the $414 billion funds disbursed for TARP have now been recovered through repayments and other income.