| Schedule of Fair Value Measurement Inputs |
The following summarizes the ranges of discount rates and prepayment rates used to arrive at the estimated fair values of the Company’s loans receivable: | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2021 | | December 31, 2020 | | Discount Rate | | Prepayment Rate | | Discount Rate | | Prepayment Rate | | SBA 7(a) loans receivable, subject to credit risk | 6.50% - 8.25% | | 4.00% - 17.50% | | 6.50% - 8.25% | | 4.00% - 17.50% | | SBA 7(a) loans receivable, subject to loan-backed notes | 5.75% - 8.00% | | 4.88% - 17.50% | | 5.50% - 8.00% | | 4.88% - 17.50% | | SBA 7(a) loans receivable, paycheck protection program | 1.00% | | N/A | | 1.00% | | N/A | | SBA 7(a) loans receivable, subject to secured borrowings | 7.00% - 7.75% | | 5.00% - 17.50% | | 7.00% - 7.75% | | 5.00% - 17.50% |
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| Schedule of Fair Values of Financial Instrument Not Recorded at Fair Value on a Recurring Basis |
The estimated fair values of those financial instruments which are not recorded at fair value on a recurring basis on the Company’s consolidated balance sheets are as follows (dollar amounts in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2021 | | December 31, 2020 | | | | | | Carrying
Amount | | Estimated
Fair Value | | Carrying
Amount | | Estimated
Fair Value | | Level | | Assets: | | | | | | | | | | | | SBA 7(a) loans receivable, subject to credit risk | | $ | 42,839 | | | $ | 42,906 | | | $ | 32,509 | | | $ | 32,397 | | | 3 | | | SBA 7(a) loans receivable, subject to loan-backed notes | | $ | 20,172 | | | $ | 21,693 | | | $ | 23,606 | | | $ | 24,850 | | | 3 | | | SBA 7(a) loans receivable, paycheck protection program | | $ | 7,364 | | | $ | 7,622 | | | $ | 14,089 | | | $ | 14,484 | | | 3 | | | SBA 7(a) loans receivable, subject to secured borrowings | | $ | 8,099 | | | $ | 8,186 | | | $ | 8,822 | | | $ | 8,914 | | | 3 | | | SBA 7(a) loans receivable, held for sale | | $ | 16,342 | | | $ | 17,950 | | | $ | 4,109 | | | $ | 4,527 | | | 3 | | | Liabilities: | | | | | | | | | | | Mortgages payable (1) | | $ | 97,100 | | | $ | 101,094 | | | $ | 97,100 | | | $ | 100,799 | | | 2, 3 | Junior subordinated notes (1) | | $ | 27,070 | | | $ | 24,327 | | | $ | 27,070 | | | $ | 24,236 | | | 3 | |
______________________ (1)The carrying amounts for the mortgage payable and junior subordinated notes represents the principal outstanding amounts, excluding deferred loan costs and discounts.
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