Solomon Hess invests in four main types of assets. Our primary focus is investing in small business loans originated under the SBA 7(a) program via a wide network of lending partners. We primarily invest in loans in which the small business borrower is located in an economically distressed community. Secondly, we invest in community development focused loans originated under the USDA sponsored loan programs. Since 2004 we have invested over $250 million in community development focused loans originated under the SBA 7(a) and USDA loan programs. Thirdly, we are an investor in the U.S. Government Guaranteed SBA 504 First Mortgage Loan Pools that lenders are using to liquidate 80% of their 504 loans.
Finally, we also purchase SBA 7(a) excess servicing rights, also called interest only strips, or originator fees, which are created when small business loans are packaged into securities. Our investment in these assets helps create liquidity in the small business loan secondary market. Since 2004 we have invested over $25 million in SBA 7(a) interest only strips.