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The consumer asset backed securities market is a source of liquidity to financial institutions that provide federally guaranteed small business loans and consumer lending such as auto loans, student loans and credit cards.
FORBES: Magazine Article
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In addition, the Federal Reserve and the Treasury have jointly announced a facility that will lend against AAA-rated asset-backed securities collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration.
FORBES: The Crisis and the Policy Response
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The company is no growth rocket, but the business of funding and servicing government-guaranteed and private student loans is pretty stable.
FORBES: Bonds With Moving Parts
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The law also added service-disabled vets to the list of groups eligible for fully guaranteed loans under the government's 7A small-business loan program and created a government-wide goal that 3% of all federal contracts must go to small businesses owned by service-disabled veterans.
FORBES: Magazine Article
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Last year Congress also reduced federal subsidies for federally-guaranteed student loans, and some lenders said that made the business uneconomical for them.
NPR: Bush Backs Legislation to Safeguard Student Loans