New Base Rates & Lending Rebound | Feb. 17, 2026 | SBA Today

This week on SBA Today, Paul and Tonya are joined by David Parrish, a 20-year SBA veteran and secondary market expert, for a deep dive into the massive regulatory and structural shifts hitting the industry in early 2026.

From the strategic move to allow SOFR and Treasury base rates to the candid "insider" truth behind the agency's 53% headcount reduction, this episode is packed with the data and wisdom you need to navigate the current market. 

We're breaking down: 

• The New Rate Revolution: Beginning March 1, 2026, the SBA is unlocking SOFR, 5-year, and 10-year Treasury base rates for variable 7(a) loans. David explains the "math in the sauce" behind secondary market pooling and how these rates provide a critical buffer against future market corrections.
• The 53% SBA Draw-Down: The 2025 Annual Report revealed a staggering loss of headcount. David provides a first-hand account of the "deferred resignation" and "early retirement" waves and what the loss of tenured wisdom means for the speed of SBA processing. 
•  The Green Card Bombshell: A major procedural change now prohibits Lawful Permanent Residents (LPRs) from SBA loan eligibility starting March 1st. We discuss the potentially "devastating" impact on major markets like Florida, Texas, and California.
• FY26 Volume Check: Despite a five-week shutdown at the end of 2025, YTD 7(a) volume has already hit $10.2B. We analyze whether manufacturing initiatives like the MARC program can offset the loss of volume from newly ineligible borrowers. 

Chapters:

[00:00:00] Intro

[00:03:31] The Rate Shift: SOFR, 5-Year, and 10-Year Treasury Options

[00:09:48] Secondary Market Liquidity: Pooling the New Base Rates

[00:13:08] The Exodus: Inside the 53% Headcount Reduction

[00:23:32] YTD Volume: $10.2B and the Rebound from the Shutdown 

[00:25:55] The Citizenship Mandate: Impact on LPR Borrowers 

[00:31:05] Market Hotspots: The Florida and California Squeeze

[00:43:57] Closing: Resiliency in the Small Business Ecosystem 

This episode is sponsored by SBA Collective — empowering community banks and credit unions to compete and win in SBA lending. 

⚠️ Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer. ⚠️