LOANS RECEIVABLE (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Schedule of Loans Receivable, Net

Loans receivable consist of the following (in thousands):

	September 30, 2023		December 31, 2022
SBA 7(a) loans receivable, subject to credit risk	$	5,329	$	56,116
SBA 7(a) loans receivable, subject to loan-backed notes	48,133		—
SBA 7(a) loans receivable, subject to secured borrowings	4,661		6,127
SBA 7(a) loans receivable, held for sale	2,809		117
Loans receivable	60,932		62,360
Deferred capitalized costs, net	1,176		1,293
Loan loss reserves (1)	(1,704)		(1,106)
Loans receivable, net	$	60,404	$	62,547

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(1)On January 1, 2023, the Company adopted ASU 2016-13. As such, the amounts as of September 30, 2023 reflect the Company’s current estimate of potential credit losses related to the Company’s loans receivable.

Schedule of Allowance for Credit Losses

The following table presents the activity in the Company’s current expected credit losses for the nine months ended September 30, 2023 (dollar amounts in thousands):

	Loans Receivable
Allowance for credit losses as of December 31, 2022	$	1,106
Transition adjustment on January 1, 2023	783
Reserve for expected credit losses	51
Current expected credit losses as of March 31, 2023	1,940
Write-offs	(85)
Reserve for expected credit losses	(142)
Current expected credit losses as of June 30, 2023	$	1,713
Reserve for expected credit losses	(9)
Current expected credit losses as of September 30, 2023	$	1,704