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LOANS RECEIVABLE (Tables)
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Schedule of Loans Receivable, Net
Loans receivable consist of the following (in thousands):
 March 31, 2025December 31, 2024
SBA 7(a) loans receivable, subject to credit risk$20,211 $19,306 
SBA 7(a) loans receivable, subject to loan-backed notes32,318 34,930 
SBA 7(a) loans receivable, subject to secured borrowings1,371 1,383 
SBA 7(a) loans receivable, held for sale140 1,494 
Loans receivable54,040 57,113 
Deferred capitalized costs, net1,070 1,129 
Current expected credit losses(2,071)(2,032)
Loans receivable, net$53,039 $56,210 
Schedule of Allowance for Credit Losses
The following table presents the activity in the Company’s CECL for the three months ended March 31, 2025 and March 31, 2024 (dollar amounts in thousands):
Loans Receivable
Current expected credit losses as of December 31, 2024
$2,032 
Net adjustment to reserve for expected credit losses
39 
Current expected credit losses as of March 31, 2025
$2,071 
Current expected credit losses as of December 31, 2023
$1,680 
Net adjustment to reserve for expected credit losses(36)
Current expected credit losses as of March 31, 2024
$1,644 
Schedule of Net Book Value of Loans Receivable Portfolio by Year of Origination, Loan Type and Risk Rating The following table presents the net book value of the Company’s loans receivable portfolio as of March 31, 2025 by year of origination, loan type and risk rating (dollar amounts in thousands):
Amortized Cost of Loans Receivable by Year of Origination
As of March 31, 2025
Number of Loans20252024202320222021Prior Total
Loans by internal risk rating:
196$965 $5,686 $5,150 $3,355 $3,884 $11,504 $30,544 
258— 2,753 4,255 4,910 2,254 5,996 $20,168 
31— — — — 435 — $435 
42— — 904 — — 478 $1,382 
5—— — — — — — — 
Total157$965 $8,439 $10,309 $8,265 $6,573 $17,978 $52,529 
Plus: SBA 7(a) loans receivable, subject to secured borrowings (1)
1,371 
Plus: Deferred capitalized costs, net1,070 
Less: Current expected credit losses
(2,071)
Plus: Held for sale guaranteed portion
140 
Total loans receivable, net$53,039 
Weighted average risk rating1.4
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(1)The Company does not assign a risk rating to its SBA 7(a) loans receivable that are subject to secured borrowings or the government guaranteed portion of loans held for sale. The Company has determined there is no credit risk associated with these loans since the SBA has guaranteed payment of the principal.