FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

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%

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.