FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2021

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:


	Year Ended December 31,
	2021		2020
	Discount Rate	Prepayment Rate	Discount Rate	Prepayment Rate
SBA 7(a) loans receivable, subject to credit risk	6.25% - 8.25%	5.00% - 17.50%	6.50% - 8.25%	4.00% - 17.50%
SBA 7(a) loans receivable, subject to loan-backed notes	5.75% - 7.75%	5.00% - 17.50%	5.50% - 8.00%	4.88% - 17.50%
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%
SBA 7(a) loans receivable, paycheck protection program	1.00%	N/A	1.00%	N/A

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:


	December 31, 2021				December 31, 2020
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value		Level
	(in thousands)
Assets:
SBA 7(a) loans receivable, paycheck protection program	$	4,903	$	5,050	$	14,089	$	14,484	3
SBA 7(a) loans receivable, subject to loan-backed notes	$	18,077	$	19,635	$	23,606	$	24,850	3
SBA 7(a) loans receivable, subject to credit risk	$	42,416	$	44,399	$	32,509	$	32,397	3
SBA 7(a) loans receivable, subject to secured borrowings	$	6,891	$	6,976	$	8,822	$	8,914	3
SBA 7(a) loans receivable, held for sale	$	1,256	$	1,355	$	4,109	$	4,527	3
Liabilities:
Mortgage payable (1)	$	97,100	$	100,838	$	97,100	$	100,799	2, 3
Junior subordinated notes (1)	$	27,070	$	24,378	$	27,070	$	24,236	3

(1)The carrying amounts for the mortgage payable and junior subordinated notes represents the principal outstanding amounts, excluding deferred debt issuance costs and discounts.