In the SBA arena the premium paid for the purchase of the guaranteed portion of the loan is taken into income over a half life of the loan usually on a straight line basis. If you have a 20 year loan and it pays off in 6 or 7 then you would have the balance of the premium taken into immediate income. This could be a windfall for TMCV.
If an SBA loan pre-pays faster than anticipated when the sale occured, wouldn't there also be an offseting adjustment to the servicing asset that affects the windfall you mentioned?
10Q: "The exposure of the loan life assumption is if loans prepay faster than expected. The exposure to the discount rate assumption is if prime rate adjusts severely and permanently. Such exposure can cause adjustments to the income statement."