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10-Q
Table of Contents

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________ 
FORM 10-Q
____________________________________________ 
(Mark One)    
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____to_____
Commission file number: 814-01035
 
____________________________________________ 
NEWTEK BUSINESS SERVICES CORP.
 ____________________________________________ 

(Exact name of registrant as specified in its charter)
____________________________________________ 

  
Maryland
 
46-3755188
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
 
 
212 West 35th Street, 2nd Floor New York, New York
 
10001
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (212) 356-9500
 ____________________________________________  

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ¨    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company (all as defined in Rule 12b-2 of the Exchange Act).
 
Large accelerated filer
 
¨
Accelerated filer
 
x
 
 
 
 
 
 
Non-accelerated filer
 
¨
Smaller reporting company
 
¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x
As of May 9, 2016 there were 14,481,335 shares issued and outstanding of the registrant’s Common Stock, par value $0.02 per share.
 

Table of Contents

TABLE OF CONTENTS
 
 
 
Page
 
 
 
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
Item 5.
 
 
 
Item 6.



Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)
 
March 31, 2016
 
December 31, 2015
ASSETS
(Unaudited)
 
(Note 1)
Investments, at fair value
 
 
 
SBA unguaranteed non-affiliate investments (cost of $176,227 and $166,752, respectively; includes $142,997 and $146,463, respectively, related to securitization trusts)
$
166,786

 
$
158,355

SBA guaranteed non-affiliate investments (cost of $2,259 and $2,069, respectively)
2,536

 
2,284

Controlled investments (cost of $34,481 and $35,781, respectively)
107,201

 
104,376

Non-control/non-affiliate investments (cost of $1,486 and $1,847, respectively)
1,446

 
1,824

Investments in money market funds (cost of $35 and $35, respectively)
35

 
35

Total investments at fair value
278,004

 
266,874

Cash and cash equivalents
3,614

 
4,308

Restricted cash
18,971

 
22,869

Broker receivable
23,256

 
32,083

Due from related parties
2,819

 
3,056

Servicing assets, at fair value
13,644

 
13,042

Credits in lieu of cash, at fair value
646

 
860

Other assets
9,312

 
9,338

Total assets
$
350,266

 
$
352,430

LIABILITIES AND NET ASSETS
 
 
 
Liabilities:
 
 
 
Bank notes payable
$
32,329

 
$
29,100

Notes due 2022
7,745

 
7,770

Notes payable - Securitization trusts (net of $2,355 and $2,501 of debt issuance costs related to securitization trusts, respectively)
83,531

 
89,244

Dividends payable
—

 
5,802

Notes payable - related parties
10,817

 
5,647

Due to related parties
552

 
256

Notes payable in credits in lieu of cash, at fair value
646

 
860

Deferred tax liability
2,465

 
857

Accounts payable, accrued expenses and other liabilities
8,419

 
8,945

Total liabilities
146,504

 
148,481

Commitments and contingencies (Note 8)
 
 
 
Net Assets:
 
 
 
Preferred stock (par value $0.02 per share; authorized 1,000 shares, no shares issued and outstanding)
—

 
—

Common stock (par value $0.02 per share; authorized 200,000 shares, 14,452 and 14,509 issued and outstanding, respectively)
289

 
290

Additional paid-in capital
188,311

 
189,031

Undistributed net investment income
3,056

 
4,437

Net unrealized appreciation, net of deferred taxes
8,761

 
8,062

Net realized gains
3,345

 
2,129

Total net assets
203,762

 
203,949

Total liabilities and net assets
$
350,266

 
$
352,430

Net asset value per common share
$
14.10

 
$
14.06

See accompanying notes to unaudited condensed consolidated financial statements.

1
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, except for Per Share Data)
 
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
Investment income:
 
 
 
From non-affiliate investments:
 
 
 
Interest income
$
2,451

 
$
2,125

Servicing income
1,371

 
1,043

Other income
597

 
395

Total investment income from non-affiliate investments
4,419

 
3,563

From controlled investments:
 
 
 
Interest income
82

 
88

Dividend income
2,293

 
1,087

Other income
—

 
12

Total investment income from controlled investments
2,375

 
1,187

Total investment income
6,794

 
4,750

Expenses:
 
 
 
Salaries and benefits
3,344

 
3,023

Interest
1,488

 
1,356

Depreciation and amortization
40

 
85

Other general and administrative costs
3,302

 
2,762

Total expenses
8,174

 
7,226

Net investment loss
(1,380
)
 
(2,476
)
Net realized and unrealized gains (losses):
 
 
 
Net realized gain on non-affiliate investments
6,286

 
7,699

Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments
62

 
(1,698
)
Net unrealized depreciation on SBA unguaranteed non-affiliate investments
(1,027
)
 
(666
)
Net unrealized appreciation on controlled investments
3,690

 
7,500

Provision for deferred taxes on unrealized appreciation on controlled investments
(1,608
)
 
—

Net unrealized depreciation on non-control/non-affiliate investments
(16
)
 
—

Net unrealized depreciation on servicing assets
(403
)
 
(356
)
Net realized and unrealized gains
6,984

 
12,479

Net increase in net assets
$
5,604

 
$
10,003

Net increase in net assets per share
$
0.39

 
$
0.98

Net investment loss per share
$
(0.10
)
 
$
(0.24
)
Dividends and distributions declared per common share
$
0.35

 
$
0.39

Weighted average shares outstanding
14,509

 
10,206

See accompanying notes to unaudited condensed consolidated financial statements.

2
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
(In Thousands)
 
Three Months Ended March 31, 2016
Increase in net assets:
 
Net investment loss
$
(1,380
)
Net realized gain on investments
6,286

Net change in unrealized appreciation on investments
1,101

Net change in unrealized depreciation on servicing assets
(403
)
Net increase in net assets
5,604

Distributions to stockholders:
 
Distributions to stockholders from net realized gains
(5,070
)
Capital share transactions:
 
Issuance of common stock under dividend reinvestment plan
143

Repurchase of common stock under share repurchase plan
(866
)
Net decrease in net assets from capital share transactions
(723
)
Other transactions:
 
Return of dividends related to common stock issued in connection with litigation settlement
2

Total decrease in net assets
(187
)
Net assets at beginning of period
203,949

Net assets at end of period
$
203,762

Common shares outstanding at end of period
14,452

Capital share activity:
 
Shares issued under dividend reinvestment plan
13

Shares repurchased under share repurchase plan
(70
)
Net decrease in capital activity
(57
)

See accompanying notes to unaudited condensed consolidated financial statements.

3
Table of Contents


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
 
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
Cash flows from operating activities:
 
 
 
Net increase in net assets
$
5,604

 
$
10,003

Adjustments to reconcile net increase in net assets to net cash provided by (used in) operating activities:
 
 
 
Net unrealized appreciation on controlled investments
(3,690
)
 
(7,500
)
Net unrealized depreciation on non-affiliate investments
981

 
2,364

Net unrealized depreciation on servicing assets
403

 
356

Realized gains on non-affiliate investments
(6,286
)
 
(7,746
)
Realized losses on non-affiliate investments
—

 
47

Amortization of deferred financing costs
271

 
220

Deferred income taxes
1,608

 
—

Depreciation and amortization
40

 
85

Funding of controlled investments
—

 
(200
)
Originations of SBA guaranteed non-affiliate investments
(42,700
)
 
(37,288
)
Principal payments received from controlled investments
1,300

 
300

Principal payments received from non-control/non-affiliate investments
361

 
—

Proceeds from sale of SBA guaranteed non-affiliate investments
48,769

 
60,048

Originations of SBA unguaranteed non-affiliate investments
(13,358
)
 
(12,340
)
Payments received on SBA non-affiliate investments
3,836

 
4,193

Other, net
111

 
25

Changes in operating assets and liabilities:
 
 
 
Net increase in investments in money market funds
—

 
(3,000
)
Broker receivable
8,827

 
(12,959
)
Due to/from related parties
97

 
(1,006
)
Other assets
(52
)
 
1,673

Accounts payable, accrued expenses, other liabilities and deferred revenue
(379
)
 
(541
)
Change in restricted cash
4,016

 
(6,039
)
Capitalized servicing assets
(1,005
)
 
(1,236
)
Other, net
39

 
109

Net cash provided by (used in) operating activities
8,793

 
(10,432
)
Cash flows from investing activities:
 
 
 
Purchase of fixed assets
(76
)
 
(12
)
Cash flows from financing activities:
 
 
 
Net borrowings on bank lines of credit
3,229

 
91

Net borrowings from related party line of credit
5,170

 
—

Repurchase of common stock under share repurchase plan
(866
)
 
—

Payments on bank term note payable
—

 
(417
)
Dividends paid
(10,872
)
 
—

Payments on Notes Payable - Securitization Trusts
(5,891
)
 
(2,624
)
Change in restricted cash related to securitization
(118
)
 
4,182


4
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
 
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
Additions to deferred financing costs
(61
)
 
(4
)
Other, net
(2
)
 
(4
)
Net cash (used in) provided by financing activities
(9,411
)
 
1,224

Net decrease in cash and cash equivalents
(694
)
 
(9,220
)
Cash and cash equivalents—beginning of period
4,308

 
17,813

Cash and cash equivalents—end of period
$
3,614

 
$
8,593

 
 
 
 
Supplemental disclosure of cash flow activities:
 
 
 
Non-cash operating, investing and financing activities:
 
 
 
Reduction of credits in lieu of cash and notes payable in credits in lieu of cash balances due to delivery of tax credits to Certified Investors
$
217

 
$
348

Foreclosed real estate acquired
$
83

 
$
409

Dividends declared but not paid
$
—

 
$
3,985

Reversal of deferred tax asset
$
—

 
$
2,870

Issuance of common stock under dividend reinvestment plan
$
143

 
$
—

            
See accompanying notes to unaudited condensed consolidated financial statements.

5
Table of Contents



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Performing SBA Unguaranteed Investments (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gill Express Inc and Blue Speed LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
$
518.0

 
$
518.0

 
$
504.3

 
0.25
%
Men of Steel Enterprises LLC and Vogelbacher Properties LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
393.5

 
393.5

 
362.3

 
0.18
%
Cameo Carter, MD A Professional Corporation dba The Garden Pediatric
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026

 
75.0

 
75.0

 
63.3

 
0.03
%
Dana A. Farley dba Independent Cabinets
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
67.5

 
67.5

 
68.8

 
0.03
%
Farhad Brothers LLC dba Lulu's Pizzeria & Family Restaurant and Marvin
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026

 
66.8

 
66.8

 
56.3

 
0.03
%
Christian Soderquist dba Soderquist Plumbing and Heating LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
56.8

 
56.8

 
57.5

 
0.03
%
Duke's Cleaners Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026

 
47.0

 
47.0

 
42.9

 
0.02
%
Vehicle Safety Supply LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026

 
22.5

 
22.5

 
19.0

 
0.01
%
Wyldewood Cellars, Inc.
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2041

 
986.8

 
986.8

 
927.3

 
0.46
%
Tom Sawyer Country Restaurant LLC and AM 3208 LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/30/2041

 
257.5

 
257.5

 
251.1

 
0.12
%
NOSO Development, LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
187.5

 
187.5

 
158.2

 
0.08
%
Beale Street Blues Company-West Palm Beach, LLC dba Lafayette’s-West P
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
93.8

 
93.8

 
81.2

 
0.04
%
Gordon Rogers and Heidi Rogers dba Stone House Motor Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
22.5

 
22.5

 
22.5

 
0.01
%
MTS Car Service LLC
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
10.5

 
10.5

 
8.9

 
—
%
Atlantis of Daytona LLC and Pierre Mamane and Eva Mamane
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2%
 
3/29/2041

 
525.0

 
525.0

 
506.8

 
0.25
%
Lust for Life Footwear, LLC
 
Leather and Allied Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026

 
375.0

 
375.0

 
316.4

 
0.16
%
Vinmar Inc. dba Locanda Portofino
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026

 
81.3

 
81.3

 
68.6

 
0.03
%
Barrocas Gym LLC dba Snap Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026

 
22.5

 
22.5

 
20.3

 
0.01
%

6
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
PHCDC1 LLC dba Quarter + Glory and Public House Collective, Corp.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/28/2026

 
50.0

 
50.0

 
44.6

 
0.02
%
Marathon Engineering Corporation
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2041

 
45.0

 
45.0

 
44.6

 
0.02
%
ReNew Interior Surface Cleaning LLC dba Randy's Carpet Care and Upholstry
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/28/2026

 
12.4

 
12.4

 
12.0

 
0.01
%
Excel RP Inc
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/25/2026

 
125.0

 
125.0

 
112.0

 
0.05
%
RCB Enterprises, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2026

 
56.3

 
56.3

 
47.5

 
0.02
%
Revolution Physical Therapy LLC dba Apex Network Physical Therapy
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2026

 
22.5

 
22.5

 
19.5

 
0.01
%
Acton Hardware LLC and Mark Allgood & Jamie Allgood
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041

 
498.6

 
498.6

 
472.2

 
0.23
%
Lowgap Grocery & Grill LLC
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041

 
167.5

 
167.5

 
170.7

 
0.08
%
ActKnowledge, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/24/2026

 
125.0

 
125.0

 
124.9

 
0.06
%
International Construction Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041

 
50.0

 
50.0

 
51.0

 
0.03
%
Flooring Liquidators Inc and Premier Flooring Yonkers Inc and Flooring
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/24/2026

 
50.0

 
50.0

 
48.1

 
0.02
%
Logmet LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/23/2026

 
75.0

 
75.0

 
68.1

 
0.03
%
The Youth Fountain LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2026

 
47.5

 
47.5

 
40.1

 
0.02
%
Magnation Corporation and Misha Family Trust
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/22/2041

 
101.3

 
101.3

 
103.2

 
0.05
%
Precious Care LLC and Precious Care Management LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026

 
557.5

 
557.5

 
473.5

 
0.23
%
growth.period LLC and Potomac Recruiting LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026

 
156.3

 
156.3

 
131.8

 
0.06
%
Media Capital Partners, Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026

 
22.5

 
22.5

 
19.0

 
0.01
%
ERT Group Inc and Curt's Tools Inspection Inc
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
3/18/2041

 
1,250.0

 
1,250.0

 
1,212.5

 
0.60
%
Taylors Zinn Enterprises Inc dba Eons Auto Care Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/18/2041

 
80.8

 
80.8

 
81.2

 
0.04
%

7
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Mariam Diner Inc dba Country Kitchen Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/18/2026

 
52.5

 
52.5

 
44.3

 
0.02
%
Kekoa Enterprises Inc dba Signarama Sandy
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2026

 
49.5

 
49.5

 
41.8

 
0.02
%
Clean Way Service LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2026

 
22.5

 
22.5

 
19.0

 
0.01
%
Pro Tech Technology LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/18/2026

 
7.5

 
7.5

 
6.3

 
—
%
Brian T Rice dba BD Logging
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
3/17/2026

 
15.8

 
15.8

 
14.1

 
0.01
%
Evergreen Pallet LLC and Evergreen Recycle LLC
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026

 
1,039.3

 
1,039.3

 
926.0

 
0.45
%
LAN Doctors Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026

 
55.0

 
55.0

 
54.8

 
0.03
%
K Soles Corp dba Max Collections
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026

 
22.5

 
22.5

 
19.0

 
0.01
%
Demand Printing Solutions Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026

 
21.8

 
21.8

 
20.4

 
0.01
%
Auto and Property Insurance Solutions dba Taylor Company Insurance
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026

 
16.4

 
16.4

 
13.8

 
0.01
%
R & D Enterprises Inc dba My Pool Man
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/15/2026

 
50.0

 
50.0

 
42.2

 
0.02
%
Mustafa Inc and Raouf Properties LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/14/2041

 
75.0

 
75.0

 
75.2

 
0.04
%
HEWZ, LLC dba Hard Exercise Works
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/14/2026

 
22.5

 
22.5

 
19.0

 
0.01
%
Magill Truck Line LLC and Jeff J. Ralls
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/11/2029

 
210.8

 
210.8

 
188.7

 
0.09
%
Accuair Control Systems LLC dba Accuair Suspension
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
150.0

 
150.0

 
129.4

 
0.06
%
Wilban LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
105.0

 
105.0

 
98.7

 
0.05
%
Country Paint and Hardware Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
87.4

 
87.4

 
75.3

 
0.04
%
Dupre Capital LLC dba Fastsigns
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
58.4

 
58.4

 
49.3

 
0.02
%
ABCs & 123s Infant and Child Care Center LP
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
11.3

 
11.3

 
9.5

 
—
%

8
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
State Painting & Decorating Co., Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/10/2026

 
103.8

 
103.8

 
87.5

 
0.04
%
Fayette Computer Consulting Company
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/10/2026

 
22.5

 
22.5

 
19.9

 
0.01
%
B.P.T.M. of NV LLC and Agentis Bros., LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/9/2041

 
525.0

 
525.0

 
512.4

 
0.25
%
Faith Summit Supply Inc dba Summit Supply and Summit True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/9/2026

 
22.5

 
22.5

 
20.3

 
0.01
%
A & A Auto Care LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/9/2026

 
12.2

 
12.2

 
11.5

 
0.01
%
Step Up Academy of the Arts LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/9/2026

 
8.0

 
8.0

 
6.8

 
—
%
Swerve Salon LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/8/2026

 
79.0

 
79.0

 
66.7

 
0.03
%
J & W Hardwood Flooring Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/7/2026

 
7.5

 
7.5

 
6.3

 
—
%
Labmates LLC and POV Holdings LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/4/2041

 
109.3

 
109.3

 
111.4

 
0.05
%
Hueston and Company CPA LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/4/2026

 
8.3

 
8.3

 
7.1

 
—
%
Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/3/2026

 
50.0

 
50.0

 
48.3

 
0.02
%
Miles of Smiles Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/2/2026

 
93.5

 
55.2

 
48.3

 
0.02
%
The River Beas, LLC dba Subway and Punam Singh
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2041

 
135.9

 
135.9

 
136.5

 
0.07
%
Johnson & Dugan Insurance Services Corp
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
62.5

 
62.5

 
52.7

 
0.03
%
Doxa Deo Inc dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
105.0

 
57.0

 
51.2

 
0.03
%
Drug Detection Laboratories, Inc. and Minh Tran
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
19.8

 
19.8

 
17.0

 
0.01
%
Powerpits CS1, LLC dba Pita Pit
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
18.8

 
18.8

 
16.7

 
0.01
%
Living Essentials HVAC Corp
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
15.0

 
15.0

 
12.8

 
0.01
%
Consulting Solutions, Inc. and Mark Luciani
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
11.3

 
11.3

 
10.9

 
0.01
%

9
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Aaradhya LLC dba Market Square Laundry
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/23/2026

 
80.0

 
80.0

 
67.5

 
0.03
%
Blackstones Hairdressing LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/23/2026

 
52.0

 
52.0

 
44.3

 
0.02
%
BER Enterprise 332 Inc dba Edible Arrangements
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/19/2026

 
22.5

 
22.5

 
19.2

 
0.01
%
R-No-Landscaping LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/19/2026

 
8.3

 
8.3

 
7.1

 
—
%
R & K Contracting Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/18/2026

 
15.8

 
15.8

 
13.5

 
0.01
%
Pacific Coast Medical Group LLC dba Celebrity Laser Spa and Advanced
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/17/2026

 
245.0

 
245.0

 
244.8

 
0.12
%
Jersey Shore Marina & Boat Sales, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/12/2041

 
625.0

 
625.0

 
637.1

 
0.31
%
Ei3 Corporation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2026

 
326.9

 
326.9

 
326.6

 
0.16
%
Gilmore Heights Dental Holdings, LTD and Chas Rob LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2029

 
310.3

 
310.3

 
281.9

 
0.14
%
B for Blonde, LLC dba Blo Blow Dry Bar
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2026

 
62.0

 
62.0

 
52.4

 
0.03
%
Base USA, Inc.
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
2/2/2026

 
50.0

 
50.0

 
50.0

 
0.02
%
Nowatzke Service Center Inc dba Nowatzke Truck and Trailer
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/29/2026

 
105.0

 
104.4

 
103.7

 
0.05
%
Zouk Ltd dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/29/2026

 
22.5

 
22.4

 
22.3

 
0.01
%
Wildflour Bakery & Cafe LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026

 
62.5

 
62.1

 
60.0

 
0.03
%
SuzyQue's LLC dba SuzyQue's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026

 
22.5

 
22.4

 
22.4

 
0.01
%
Tammy Lavertue
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026

 
11.3

 
11.2

 
10.7

 
0.01
%
New Image Building Services, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2026

 
83.1

 
82.6

 
73.1

 
0.04
%
Oak Tree Storage LLC
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2026

 
78.8

 
78.3

 
67.3

 
0.03
%
Woody's Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/12/2026

 
12.0

 
11.9

 
10.1

 
—
%

10
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Gendron Funeral and Cremation Services, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/11/2041

 
112.5

 
110.8

 
113.0

 
0.06
%
Dolarian Realty LLC and OV's Restaurant Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/5/2041

 
67.8

 
67.7

 
69.0

 
0.03
%
Lemonberry Food Stores Inc dba Lemonberry Frozen Yogurt
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/29/2025

 
112.5

 
111.1

 
97.3

 
0.05
%
MCF Forte LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/29/2025

 
18.8

 
18.5

 
15.8

 
0.01
%
Bright Dialysis LLC and Ft Pierce Kidney Care LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2025

 
1,250.0

 
1,234.8

 
1,045.2

 
0.51
%
Panditos LLC dba White Lotus Home
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/28/2025

 
15.9

 
15.7

 
13.2

 
0.01
%
V2 Tango LLC dba Palette 22
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/23/2025

 
250.0

 
247.0

 
214.8

 
0.11
%
800 on the Trax LLC and Matrix Z LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2040

 
240.0

 
240.0

 
234.7

 
0.12
%
Ridge Road Equestrian LLC dba Ricochet Ridge Ranch Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/23/2040

 
102.5

 
102.2

 
102.1

 
0.05
%
Optima Health Care Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/23/2025

 
62.5

 
61.7

 
61.7

 
0.03
%
Premier Athletic Center of Ohio Inc. and Gates Investments and Wade Gates
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2028

 
882.0

 
874.5

 
877.7

 
0.43
%
B&B Organics LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/22/2040

 
375.0

 
373.9

 
381.1

 
0.19
%
Joyce Outdoor Advertising Chicago LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2040

 
300.0

 
300.0

 
284.7

 
0.14
%
The LAX Shop Inc
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/22/2025

 
125.0

 
123.5

 
123.3

 
0.06
%
D.C. Group, Inc. dba Unique Setting of New York
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/21/2025

 
750.0

 
740.9

 
658.6

 
0.32
%
Hattingh Incorporated dba Prosthetic Care Facility
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2025

 
18.0

 
17.8

 
15.8

 
0.01
%
G.W. Fitness Centers, LLC and J.G. Fitness LLC and NP Gym LLC and ANA
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040

 
1,025.0

 
1,022.0

 
1,041.5

 
0.51
%
Accent Tag and Label Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040

 
665.8

 
663.9

 
651.3

 
0.32
%
Trip Consultants U.S.A. Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
175.0

 
172.9

 
145.8

 
0.07
%

11
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Labmates LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040

 
162.5

 
162.0

 
165.1

 
0.08
%
Jay Kevin Gremillion dba Dino Smiles Children's Cosmetic Dentistry
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
73.0

 
73.0

 
63.9

 
0.03
%
Abbondanza Market LLC dba Hampton Falls Village Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
73.8

 
72.2

 
62.7

 
0.03
%
Capital Scrap Metal LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
36.0

 
35.6

 
30.3

 
0.01
%
Mustafa Inc dba Adiba Grocery
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025

 
103.8

 
102.5

 
100.8

 
0.05
%
Sourceco Limited Liability Company
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025

 
62.5

 
61.8

 
54.0

 
0.03
%
Learning Skills LLC and Christopher Shrope
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025

 
10.8

 
10.7

 
9.0

 
—
%
New York Home Health Care Equipment, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
875.0

 
864.4

 
839.0

 
0.41
%
Swalm Sreet LLC and New York Home Health Care Equipment LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2040

 
375.0

 
373.9

 
370.1

 
0.18
%
JAG Unit 1, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
250.0

 
247.0

 
208.3

 
0.10
%
Abitino's JFK LLC dba Abitino's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2022

 
125.0

 
125.0

 
110.6

 
0.05
%
D&G Capital LLC dba Miami Grill 277
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
83.8

 
82.4

 
76.5

 
0.04
%
Moments to Remember USA LLC dba Retain Loyalty
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
75.0

 
74.2

 
67.6

 
0.03
%
SDA Holdings LLC and Les Cheveux Salon Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/15/2040

 
428.8

 
427.4

 
412.9

 
0.20
%
Evans & Paul LLC and E&P Holdings I LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2025

 
125.0

 
123.5

 
109.7

 
0.05
%
Basista Family Limited Partnership and UPE, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/14/2040

 
342.5

 
341.5

 
333.7

 
0.16
%
DC Enterprises Ltd. dba Lakeview True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2025

 
22.5

 
22.2

 
20.9

 
0.01
%
Alexandra Afentoulides dba Vi's Pizza Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/11/2040

 
46.3

 
46.1

 
47.0

 
0.02
%
ENI Inc. dba ENI Group, Inc
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2025

 
36.0

 
35.6

 
31.4

 
0.02
%

12
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
AGR Foodmart Inc dba Nashua Road Mobil
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/11/2025

 
22.5

 
22.2

 
20.9

 
0.01
%
Tri-State Remodeling & Investments, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/11/2025

 
15.9

 
15.7

 
15.1

 
0.01
%
Cares, Inc dba Dumpling Grounds Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/10/2025

 
7.5

 
7.4

 
7.3

 
—
%
Custom Exteriors, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/9/2025

 
100.0

 
98.8

 
86.3

 
0.04
%
Sushiya, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/8/2025

 
108.8

 
107.4

 
96.1

 
0.05
%
My Jewels, LLC dba The UPS Store #6712
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/7/2025

 
56.3

 
56.3

 
47.4

 
0.02
%
LC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040

 
502.5

 
501.1

 
496.7

 
0.24
%
American Campgrounds LLC dba Whit's End Campground
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040

 
293.0

 
292.2

 
290.2

 
0.14
%
Food & Fuel Company LLC dba Lowery Food Mart
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040

 
122.5

 
122.1

 
124.0

 
0.06
%
Blue Ox Trucking Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/4/2025

 
12.3

 
12.2

 
12.1

 
0.01
%
Tariq, LLC dba 76 Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/2/2040

 
375.0

 
373.9

 
371.1

 
0.18
%
401 JJS, Corp and G. Randazzo's Trattoria Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/1/2040

 
52.8

 
52.8

 
51.6

 
0.03
%
All-Tag Corporation
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
250.4

 
245.8

 
214.4

 
0.11
%
Block and Grinder LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
200.0

 
198.8

 
195.5

 
0.10
%
Japp Business Inc dba Pick and Eat and Japp Drink Corp.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
125.0

 
122.7

 
108.8

 
0.05
%
Smokeyard Inc dba Smokeyard BBQ and Chop Shop
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
125.0

 
122.7

 
105.8

 
0.05
%
Delta Aggregate, LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
100.0

 
98.2

 
98.1

 
0.05
%
Hurshell Leon Dutton dba High Jump Party Rentals
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
17.6

 
17.2

 
16.9

 
0.01
%
Alejandro Rico dba Rico Motors and Golden West Motel and Alrima Co Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/25/2040

 
146.3

 
145.6

 
147.9

 
0.07
%
State Painting and Decorating Co Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025

 
100.0

 
98.2

 
82.8

 
0.04
%

13
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Medeiros Holdings Inc dba Outdoor Lighting Perspectives of the Triad
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025

 
22.5

 
22.1

 
18.6

 
0.01
%
DWeb Studio, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025

 
11.3

 
11.0

 
9.3

 
—
%
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/23/2040

 
1,189.5

 
640.7

 
652.9

 
0.32
%
Play and Learn Child Care and School Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/23/2025

 
11.1

 
10.9

 
10.9

 
0.01
%
CNYP 717 Irondequoit LLC and CNYP 2002 Ontario LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/20/2040

 
244.4

 
243.3

 
225.2

 
0.11
%
Haven Hospitality Group Inc. dba Haven Gastropub
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/20/2025

 
132.5

 
130.1

 
111.7

 
0.05
%
Ronny Ramirez RX Corp dba Naturxheal Family Pharmacy
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
11/20/2025

 
89.0

 
88.5

 
76.1

 
0.04
%
S.B.B. Enterprises Inc dba Williamston Hardware
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/19/2040

 
108.8

 
108.3

 
100.5

 
0.05
%
Bradley Stinson and Associates Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/19/2025

 
15.0

 
14.7

 
12.4

 
0.01
%
Key Pix Productions Inc. dba Air Bud Entertainment
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
11/18/2040

 
839.8

 
836.1

 
852.1

 
0.42
%
Holloway & CO. P.L.L.C.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/16/2025

 
75.0

 
73.6

 
73.5

 
0.04
%
RDT Enterprises, L.L.C.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/12/2025

 
22.5

 
22.1

 
20.6

 
0.01
%
E.S.F.P. LLC dba Volusia Van and Storage
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/11/2025

 
91.3

 
89.6

 
77.3

 
0.04
%
Green Life Lawnscapes LLC dba Green Life Lawn Care
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/6/2025

 
127.3

 
124.9

 
120.5

 
0.06
%
Jumbomarkets Inc dba Rines Jumbomarkets
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/4/2025

 
306.3

 
300.6

 
288.8

 
0.14
%
Joseph Nich and Tina M. Nich dba Vic's Greenhouses
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/4/2025

 
62.5

 
61.4

 
61.3

 
0.03
%
Bisson Transportation Inc dba I & R Associates and Document Security
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/30/2025

 
22.5

 
21.9

 
20.4

 
0.01
%
Top Cat Ready Mix, LLC, Ples Investments LLC, and Pappy's Sand and
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/28/2025

 
711.3

 
694.6

 
608.0

 
0.30
%

14
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
L.M. Jury Enterprises, Inc dba Midwest Monograms
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
10/28/2025

 
77.0

 
75.1

 
64.6

 
0.03
%
Financial Network Recovery
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/26/2025

 
40.0

 
39.0

 
32.9

 
0.02
%
Windsor Direct Distribution LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/26/2025

 
14.3

 
13.9

 
11.7

 
0.01
%
Kup’s Auto Spa, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/23/2025

 
62.5

 
61.0

 
59.2

 
0.03
%
Jacksonville Beauty Institute Inc. dba Beauty Institute's
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
10/23/2025

 
50.0

 
48.8

 
41.1

 
0.02
%
Insurance Fire & Water Restorations, LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
10/23/2025

 
22.5

 
21.9

 
20.6

 
0.01
%
New Hampshire Precision Metal Fabricators, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/23/2025

 
22.5

 
21.9

 
21.9

 
0.01
%
Werthan Packaging Inc.
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/14/2025

 
1,162.5

 
1,148.1

 
1,066.6

 
0.52
%
Tannehill Enterprises Inc dba Hobbytown USA Folsom
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
10/14/2025

 
87.4

 
85.2

 
71.9

 
0.04
%
ADMO Inc dba Mid States Equipment
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/8/2025

 
22.5

 
21.9

 
19.0

 
0.01
%
Recycling Consultants, Inc. and Prairie State Salvage and Recycling
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2027

 
767.5

 
749.0

 
666.2

 
0.33
%
R.H. Hummer Jr., Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
375.0

 
368.0

 
347.8

 
0.17
%
Barub Realty LLC and Barub LLC dba Woodlawn Cabinets
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/30/2040

 
143.0

 
142.0

 
143.4

 
0.07
%
Naeem Khan LTD
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
125.0

 
121.1

 
100.9

 
0.05
%
Bat Bridge Investments Inc dba Kalologie 360 Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
85.5

 
84.4

 
70.4

 
0.03
%
SCJEN Management Inc dba Bowl of Heaven
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
71.3

 
69.7

 
58.1

 
0.03
%
Accent Homes Services LLC dba Benjamin Franklin Plumbing of Kansas City
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/30/2028

 
66.5

 
65.1

 
62.1

 
0.03
%
Binky's Vapes LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
22.5

 
21.8

 
18.2

 
0.01
%
Joyce Outdoor Advertising LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/29/2040

 
234.8

 
233.8

 
233.7

 
0.11
%

15
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
The Grasso Companies LLC and Grasso Pavement Maintenance LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/28/2025

 
518.8

 
502.8

 
494.2

 
0.24
%
RIM Investments LLC and RIM Architects LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040

 
399.0

 
396.1

 
381.3

 
0.19
%
Greensward of Marco Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040

 
87.5

 
86.9

 
84.1

 
0.04
%
Yachting Solutions LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
962.5

 
955.5

 
904.0

 
0.44
%
Sandlot Ventures LLC and Sandbox Ventures LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
442.5

 
439.3

 
416.5

 
0.20
%
Hemingway Custom Cabinetry LLC
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025

 
220.0

 
213.2

 
181.9

 
0.09
%
South Towne Dental Center, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025

 
50.0

 
48.5

 
48.3

 
0.02
%
Daniel W. Stark dba Mountain Valley Lodge and RV Park
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
13.5

 
13.4

 
13.6

 
0.01
%
Prestigious LifeCare for Seniors LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025

 
9.8

 
9.5

 
8.6

 
—
%
St Lawrence Hotel Corp and Oheka Catering Inc dba Quality Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/24/2040

 
625.0

 
620.4

 
606.0

 
0.30
%
Hagerstown Muffler, Inc. and JMS Muffler, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/24/2040

 
327.5

 
325.1

 
330.5

 
0.16
%
J.R. Wheeler Corporation dba Structurz Exhibits and Graphics
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/24/2025

 
21.0

 
20.4

 
20.3

 
0.01
%
J3K LLC dba Ronan True Value Hardware
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025

 
152.5

 
147.8

 
123.2

 
0.06
%
Stormrider Inc dba Shirley's Stormrider Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025

 
67.5

 
65.4

 
54.5

 
0.03
%
Rutledge Enterprises Inc dba BLC Property Management
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/23/2040

 
62.5

 
61.5

 
60.1

 
0.03
%
Finish Strong Inc dba FASTSIGNS St Peters
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025

 
50.0

 
48.5

 
40.4

 
0.02
%
Nova Solutions Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/22/2040

 
320.0

 
317.7

 
310.6

 
0.15
%
Pine Belt Wood Products LLC
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
9/22/2040

 
163.8

 
162.6

 
146.1

 
0.07
%
Frozen Treats of Hollywood FL, LLC dba Sub Zero Ice Cream
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/22/2025

 
15.8

 
15.3

 
13.4

 
0.01
%

16
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
IIoka Inc dba New Cloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025

 
665.0

 
647.5

 
539.6

 
0.26
%
Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025

 
50.0

 
48.5

 
42.8

 
0.02
%
Vallmar Studios, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025

 
15.8

 
15.3

 
12.7

 
0.01
%
Scent-Sation Inc
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
9/18/2040

 
687.5

 
685.5

 
691.8

 
0.34
%
Al-Mustafa Enterprise, Inc. and Al-Mustafa Enterprise Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/18/2040

 
134.0

 
133.8

 
130.7

 
0.06
%
Vanderhoof LLC dba Soxfords
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/18/2025

 
15.9

 
15.4

 
12.8

 
0.01
%
MiJoy Inc dba Imo's Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/18/2025

 
8.3

 
8.0

 
6.7

 
—
%
Naeem Khan LTD
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/17/2025

 
125.0

 
121.2

 
101.0

 
0.05
%
Import Car Connection Inc dba Car Connection
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/16/2040

 
407.5

 
404.5

 
404.9

 
0.20
%
FirstVitals Health and Wellness Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/15/2025

 
150.0

 
145.3

 
121.1

 
0.06
%
Johnson Carwash LLC and Johnson Petroleum LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/14/2040

 
340.0

 
339.4

 
343.8

 
0.17
%
Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2025

 
62.5

 
60.6

 
58.9

 
0.03
%
Veliu LLC dba FASTSIGNS #15901
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/10/2025

 
50.0

 
49.1

 
42.0

 
0.02
%
B and A Friction Materials Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/9/2025

 
102.5

 
99.3

 
82.8

 
0.04
%
Gardner's Wharf Holdings LLC and Gardner's Wharf Seafood Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/8/2040

 
140.0

 
139.0

 
141.3

 
0.07
%
Empower Autism Academy
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/4/2040

 
685.0

 
680.0

 
691.3

 
0.34
%
AIG Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/4/2040

 
363.8

 
361.1

 
337.2

 
0.17
%
Higher Grounds Community Coffeehouse, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/2/2025

 
8.3

 
8.0

 
6.9

 
—
%
The Camera House Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2025

 
1,250.0

 
1,203.4

 
1,089.6

 
0.53
%
Delray Scrap Recycling LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2025

 
22.5

 
21.4

 
17.8

 
0.01
%

17
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
P and D Enterprises Ind dba Wallaby's Liquor Warehouse
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
8/28/2040

 
888.9

 
881.1

 
859.0

 
0.42
%
J and K Fitness L.L.C. dba Physiques Womens Fitness Center
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2041

 
93.8

 
93.7

 
92.9

 
0.05
%
Zephyr Seven Series LLC dba 18/8 Fine Men's Salon
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
81.3

 
81.2

 
69.3

 
0.03
%
LAN Doctors Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
81.3

 
78.2

 
70.2

 
0.03
%
Trading Group 3 Inc
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
50.0

 
48.1

 
40.1

 
0.02
%
Elite Institute LLC dba Huntington Learning Center
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
15.0

 
14.6

 
12.2

 
0.01
%
B and J Catering Inc dba Culinary Solutions
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/27/2040

 
547.5

 
546.8

 
520.2

 
0.26
%
3000 CSI Property LLC and Consulting Solutions Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/20/2040

 
137.5

 
136.3

 
136.2

 
0.07
%
God Be Glorified Inc dba GBG Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/20/2025

 
53.0

 
51.0

 
42.5

 
0.02
%
GDP Gourmet LLC dba Joe and John's Pizza Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/19/2040

 
145.0

 
143.7

 
139.5

 
0.07
%
Gold Jet Corp.
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
8/14/2025

 
68.3

 
67.4

 
60.6

 
0.03
%
Screenmobile Management Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/14/2025

 
47.0

 
45.2

 
38.1

 
0.02
%
SKJ Inc dba Subway
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/13/2025

 
84.8

 
81.7

 
69.1

 
0.03
%
LP Industries Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/29/2025

 
125.0

 
120.1

 
111.0

 
0.05
%
Advanced Machine & Technology, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/29/2025

 
90.3

 
86.3

 
78.7

 
0.04
%
Pauley Tree and Lawn Care Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2025

 
65.8

 
62.9

 
55.7

 
0.03
%
C& D Medical of Naples, Inc and Forever & Always of Naples, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/24/2040

 
135.0

 
133.6

 
122.6

 
0.06
%
Forever & Always of Naples Inc dba Island Animal Hospital
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/24/2025

 
107.5

 
102.8

 
92.5

 
0.05
%
Beale Street Blues Company-West Palm Beach LLC dba Lafayette's-West Palm
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/24/2025

 
66.3

 
63.4

 
55.0

 
0.03
%

18
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Pooh's Corner Realty LLC and Pooh's Corner Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/23/2040

 
103.8

 
102.7

 
103.4

 
0.05
%
Smart Artists Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/23/2025

 
22.5

 
21.5

 
17.9

 
0.01
%
Aaron Delgado and Associates Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/22/2025

 
8.2

 
7.8

 
6.5

 
—
%
Free Ion Advisors LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/21/2025

 
64.3

 
61.4

 
51.2

 
0.03
%
Murrayville Donuts, Inc dba Dunkin' Donuts
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/15/2040

 
344.5

 
343.6

 
326.9

 
0.16
%
Union 2 LLC dba The Standard
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/10/2025

 
91.5

 
90.5

 
82.4

 
0.04
%
The Smile Place LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
283.9

 
280.5

 
275.0

 
0.13
%
Anglin Cultured Stone Products LLC dba Anglin Construction
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
281.8

 
267.7

 
233.9

 
0.11
%
Thrifty Market, Inc. dba Thrifty Foods
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2030

 
262.5

 
255.1

 
225.0

 
0.11
%
All About Smiles P A
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
237.7

 
234.9

 
230.2

 
0.11
%
BJ's Tavern LLC and BJ's Cabana Bar Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
212.5

 
210.0

 
205.2

 
0.10
%
Jonathan E Nichols and Nichols Fire and Security LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
75.0

 
71.2

 
67.0

 
0.03
%
Danny V, LLC dba Hugo's Taproom
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
54.0

 
53.4

 
49.0

 
0.02
%
Advanced Skincare Medcenter Inc dba Advanced Skincare Surgery
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
337.5

 
320.6

 
272.2

 
0.13
%
Summit Beverage Group LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/29/2030

 
291.9

 
283.8

 
255.8

 
0.13
%
R2 Tape Inc dba Presto Tape
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
176.3

 
167.4

 
157.9

 
0.08
%
Myclean Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
15.9

 
15.1

 
12.6

 
0.01
%
Jihan Inc dba ARCO AM/PM and Diana Inc dba Diana's Recycling
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040

 
380.0

 
375.5

 
363.8

 
0.18
%
CEM Autobody LLC dba Dawn's Autobody
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040

 
135.5

 
133.8

 
128.2

 
0.06
%
SofRep, Inc dba Force 12 Media
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025

 
66.3

 
62.9

 
52.4

 
0.03
%

19
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
E & G Enterprises LLC dba Comfort Keepers
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025

 
22.5

 
21.4

 
17.9

 
0.01
%
TJU-DGT Inc dba The Lorenz Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/26/2029

 
20.6

 
20.0

 
19.8

 
0.01
%
Ohs Auto Body, Inc. dba Ohs Body Shop
 
Repair and Maintenance
 
Term Loan
 
7.2775%
 
6/25/2040

 
1,207.5

 
1,201.5

 
1,148.3

 
0.56
%
Wolf Enviro Interests, LLC and Enviromax Services Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2040

 
246.5

 
243.6

 
223.0

 
0.11
%
Amboy Group, LLC dba Tommy's Moloney's
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025

 
454.0

 
433.0

 
431.3

 
0.21
%
Evinger PA One, Inc. dba Postal Annex, Falcon
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025

 
22.5

 
21.4

 
19.0

 
0.01
%
Northeast Arkansas Pizza, Inc. dba Domino’s Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/23/2025

 
608.0

 
577.6

 
484.7

 
0.24
%
Richards Plumbing and Heating Co., Inc. dba Richards Mechanical
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/23/2040

 
551.8

 
545.2

 
554.1

 
0.27
%
RJI Services, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2025

 
22.5

 
21.2

 
17.7

 
0.01
%
Real Help LLC dba Real Help Decorative Concrete
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2025

 
53.1

 
50.5

 
48.7

 
0.02
%
Balthazar Management Virgin Islands, LLC dba The Beach Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/22/2025

 
15.8

 
15.0

 
14.9

 
0.01
%
KRN Logistics, LLC,Newsome Trucking, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
543.5

 
516.3

 
465.1

 
0.23
%
PM Cassidy Enterprises, Inc. dba Junk King
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
14.9

 
14.1

 
11.8

 
0.01
%
Inverted Healthcare Staffing of Florida LLC dba Interim Healthcare Tra
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025

 
61.3

 
58.2

 
48.5

 
0.02
%
Square Deal Siding Company,LLC dba Square Deal Siding Company
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025

 
22.5

 
21.5

 
21.4

 
0.01
%
Flooring Liquidators Inc and Flooring Liquidators of Mt Kisco LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/17/2025

 
437.5

 
415.6

 
404.8

 
0.20
%
AM PM Properties, LLC and AM PM Willington, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/17/2040

 
87.1

 
85.8

 
85.7

 
0.04
%
Nelson Sargsyan dba HDA Trucking
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025

 
130.5

 
124.0

 
103.3

 
0.05
%
Mirage Plastering Inc and Mpire LLC and Mpire II LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040

 
338.8

 
334.8

 
289.3

 
0.14
%
Anturio Marketing Inc dba Logic Consulting
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040

 
290.3

 
286.8

 
291.5

 
0.14
%

20
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Bizzare Foods Inc dba Trooper Foods
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/12/2025

 
125.0

 
117.9

 
98.2

 
0.05
%
Eldredge Tavern LLC dba Gonyea's Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/8/2040

 
56.3

 
55.6

 
56.5

 
0.03
%
ViAr Visual Communications, Inc. dba Fastsigns 281701
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/5/2025

 
62.0

 
58.9

 
50.3

 
0.02
%
Chitalian Fratelli LLC dba Francesca Brick Oven Pizza and Pasta
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/5/2025

 
16.1

 
15.2

 
12.7

 
0.01
%
Nicor LLC dba Fibrenew Sacramento
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/5/2022

 
13.8

 
12.7

 
10.5

 
0.01
%
Video Vault & Tanning LLC and Mosaic Salon LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/4/2040

 
90.5

 
89.5

 
90.8

 
0.04
%
Medworxs LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/3/2025

 
125.0

 
118.7

 
99.8

 
0.05
%
DTM Parts Supply Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/2/2025

 
62.8

 
59.6

 
49.7

 
0.02
%
XCESSIVE THROTTLE, INC dba Jake's Roadhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2025

 
8.3

 
7.8

 
6.5

 
—
%
God is Good LLC dba BurgerFi
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/27/2025

 
67.3

 
22.2

 
22.1

 
0.01
%
Villela CPA PL
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/27/2025

 
9.0

 
8.5

 
7.4

 
—
%
Douglas Posey and Sally Watkinson dba Audrey's Farmhouse
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/20/2040

 
174.1

 
171.8

 
169.9

 
0.08
%
Pen Tex Inc dba The UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/20/2025

 
22.0

 
20.8

 
17.3

 
0.01
%
15 McArdle LLC and No Other Impressions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/15/2040

 
257.1

 
253.7

 
237.6

 
0.12
%
E-Z Box Storage, Inc.
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
5/11/2025

 
89.3

 
84.2

 
83.9

 
0.04
%
Guard Dogs MFS LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/8/2025

 
65.0

 
61.3

 
51.6

 
0.03
%
George S Cochran DDS Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/7/2025

 
130.0

 
122.7

 
102.5

 
0.05
%
South Park Properties LLC and Midlothian Hardware LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/6/2040

 
170.5

 
167.1

 
169.3

 
0.08
%
200 North 8th Street Associates LLC and Enchanted Acres Farm
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/4/2028

 
494.6

 
479.6

 
480.0

 
0.24
%

21
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Matthew Taylor and Landon Farm LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/4/2040

 
100.0

 
99.4

 
88.4

 
0.04
%
Cares Inc dba Dumpling Grounds Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/1/2040

 
81.9

 
78.4

 
79.7

 
0.04
%
Capitol Compliance Associates Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2025

 
15.9

 
8.6

 
7.2

 
—
%
RDRhonehouse ENT. LLC dba Chill Skinz
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/29/2025

 
88.9

 
83.3

 
69.4

 
0.03
%
Orchid Enterprises Inc dba Assisting Hands of Sussex County
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/24/2025

 
15.0

 
14.1

 
11.7

 
0.01
%
Ragazza Restaurant Group, Inc. dba Bambolina
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/21/2025

 
22.5

 
21.1

 
18.5

 
0.01
%
Diamond Solutions LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/21/2025

 
22.5

 
21.0

 
17.5

 
0.01
%
Giacchino Maritime Consultants Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/17/2025

 
22.5

 
21.1

 
17.6

 
0.01
%
Sound Coaching Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
4/14/2025

 
44.4

 
41.6

 
34.7

 
0.02
%
Carolina Beefs, LLC dba Beef O'Brady's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/13/2025

 
19.5

 
18.3

 
15.2

 
0.01
%
Faramarz Nikourazm dba Car Clinic Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/3/2040

 
73.8

 
72.6

 
70.2

 
0.03
%
T and B Boots Inc dba Takkens
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
807.8

 
752.2

 
707.5

 
0.35
%
Advance Case Parts RE Holdings LLC and Advance Case Parts Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040

 
758.3

 
748.0

 
692.7

 
0.34
%
Mid-South Lumber Co. of Northwest Florida, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040

 
428.8

 
421.7

 
388.2

 
0.19
%
HAVANA CENTRAL NJ1, LLC dba Havana Central
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
250.0

 
240.1

 
234.7

 
0.12
%
Jatcoia 60056, LLC dba Style Encore
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
22.3

 
19.3

 
18.2

 
0.01
%
Copper Beech Financial Group LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025

 
125.0

 
116.3

 
105.3

 
0.05
%
Delta Aggregate LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025

 
90.0

 
86.5

 
86.1

 
0.04
%

22
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Foresite Realty Partners LLC and Foresite Real Estate Holdings LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
1,238.3

 
1,152.4

 
959.4

 
0.47
%
Shellhorn and Hill Inc dba Total Fleet Service
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
1,040.3

 
1,023.2

 
941.7

 
0.46
%
Sunset Marine Resort LLC and GoXpeditions LLC and Lavon Gomes and Trac
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
301.8

 
296.8

 
301.6

 
0.15
%
South Florida Air Conditioning and Refrigeration Corp.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
155.5

 
153.0

 
152.7

 
0.07
%
Balthazar Management Virgin Islands LLC dba The Beach Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
123.3

 
114.7

 
114.2

 
0.06
%
Shorr Enterprises Inc dba New Design Furniture Manufacturers
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
106.5

 
99.2

 
91.1

 
0.04
%
Geo Los Angeles LLC dba Geo Film Group
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2025

 
130.0

 
121.1

 
110.5

 
0.05
%
Joyce Outdoor Advertising NJ LLC and Joyce Outdoor Advertising LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2040

 
54.0

 
53.1

 
53.1

 
0.03
%
Carpet Exchange of North Texas Inc and Clyde E. Cumbie Jr
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/25/2040

 
810.0

 
796.8

 
801.9

 
0.39
%
Zero-In Media Inc
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2025

 
22.5

 
20.9

 
17.4

 
0.01
%
Loriet LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/24/2025

 
12.0

 
11.2

 
9.3

 
—
%
CML RW Security, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
3/20/2025

 
575.0

 
535.1

 
445.5

 
0.22
%
Shelton Incorporated dba Mrs. Winners
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040

 
112.5

 
110.7

 
111.7

 
0.05
%
Jaymie Hazard dba Indigo Hair Studio and Day Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040

 
42.9

 
42.2

 
40.6

 
0.02
%
R & R Security and Investigations Inc dba Pardners Lake Buchanan
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/19/2040

 
85.4

 
84.1

 
85.4

 
0.04
%
MMS Realty, LLC and Molecular MS Diagnostics LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2040

 
160.7

 
158.1

 
150.8

 
0.07
%
Gurtej Singh and Ranjit Kaur dba Food Fair Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/18/2025

 
22.5

 
21.2

 
17.7

 
0.01
%
BND Sebastian Limited Liability Company and Sebastian Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040

 
172.5

 
169.7

 
167.6

 
0.08
%
Royal Crest Motors LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040

 
91.3

 
89.7

 
87.2

 
0.04
%

23
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Firm Foundations Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/13/2025

 
81.3

 
75.6

 
67.1

 
0.03
%
Douglas Printy Motorsports, Inc. dba Blackburn Trike
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/9/2040

 
191.8

 
188.6

 
179.9

 
0.09
%
Luigi's on Main LLC and Luigi's Main Street Pizza Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/4/2025

 
11.3

 
10.4

 
10.4

 
0.01
%
Calhoun Satellite Communications Inc and Transmission Solutions Group
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
952.8

 
879.8

 
768.4

 
0.38
%
J&M Concessions Inc dba A 1 Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
87.5

 
81.8

 
72.9

 
0.04
%
Baystate Firearms and Training, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
63.4

 
58.4

 
49.2

 
0.02
%
Road to Sedona Inc dba Thirteen
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
56.6

 
52.3

 
44.3

 
0.02
%
Kingseal LLC dba Desoto Health and Rehab Center
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
2/26/2040

 
1,250.0

 
1,227.6

 
1,247.3

 
0.61
%
Pace Motor Lines, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/26/2025

 
66.2

 
61.2

 
60.9

 
0.03
%
Nelson Financial Services LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/24/2025

 
12.5

 
11.5

 
9.6

 
—
%
Kiddie Steps 4 You Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
2/19/2040

 
61.8

 
60.8

 
57.6

 
0.03
%
Triangle Trash LLC dba Bin There Dump That
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
2/18/2025

 
74.4

 
68.7

 
61.7

 
0.03
%
Silva Realty Holdings, LLC and MF-Silva Enterprises, Inc. dba T
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/11/2040

 
171.6

 
169.1

 
160.5

 
0.08
%
740 Barry Street Realty LLC and Wild Edibles Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/10/2040

 
492.5

 
483.7

 
491.4

 
0.24
%
Kostekos Inc dba New York Style Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/6/2040

 
66.3

 
65.1

 
62.9

 
0.03
%
DuCharme Realty LLC and DuCharme Enterprises LLC dba Specialty
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/2/2040

 
225.1

 
221.1

 
207.3

 
0.10
%
Dean 1021 LLC dba Pure Pita
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/29/2025

 
80.0

 
77.5

 
65.7

 
0.03
%
Limameno LLC dba Sal's Italian Ristorante
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/23/2025

 
83.3

 
76.4

 
65.7

 
0.03
%
Palmabak Inc dba Mami Nora's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/22/2025

 
21.5

 
19.1

 
19.0

 
0.01
%

24
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Jung Design Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/20/2022

 
8.4

 
7.3

 
6.1

 
—
%
Grand Blanc Lanes, Inc. and H, H and H, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/31/2039

 
133.0

 
130.4

 
130.5

 
0.06
%
First Prevention and Dialysis Center, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
273.3

 
266.8

 
249.6

 
0.12
%
FHJE Ventures LLC and Eisenreich II Inc dba Breakneck Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/30/2039

 
245.5

 
241.7

 
225.0

 
0.11
%
Evans and Paul LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
223.8

 
203.8

 
195.1

 
0.10
%
Bear Creek Entertainment, LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
106.3

 
96.9

 
96.5

 
0.05
%
Bowlerama Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2039

 
1,202.5

 
1,179.0

 
1,197.6

 
0.59
%
The Lodin Group LLC and Lodin Health Imaging Inc dba Highlands Breast
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
530.3

 
519.1

 
479.2

 
0.24
%
Thermoplastic Services Inc and Paragon Plastic Sheet, Inc
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
500.0

 
489.5

 
497.2

 
0.24
%
401 JJS Corporation and G. Randazzo Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
473.5

 
467.7

 
463.0

 
0.23
%
Atlantis of Daytona LLC and Ocean Club Sportswear Inc
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
240.0

 
231.0

 
234.7

 
0.12
%
Carolina Flicks Inc dba The Howell Theater
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
12/23/2032

 
163.3

 
157.1

 
148.5

 
0.07
%
Beale Street Blues Company-West Palm Beach, LLC dba Lafayette Music Hall
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2024

 
187.5

 
170.8

 
150.3

 
0.07
%
The Jewelers Inc. dba The Jewelers of Las Vegas
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/19/2024

 
1,250.0

 
1,141.1

 
960.3

 
0.47
%
B.S. Ventures LLC dba Dink's Market
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/19/2039

 
53.8

 
52.6

 
53.3

 
0.03
%
MM and M Management Inc dba Pizza Artista
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/19/2025

 
46.3

 
43.1

 
36.7

 
0.02
%
B & W Towing, LLC and Boychucks Fuel LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/17/2039

 
164.5

 
161.1

 
152.6

 
0.07
%
All American Games, LLC and Sportslink - The Game, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/10/2024

 
400.0

 
364.3

 
323.0

 
0.16
%

25
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
The Conibear Corporation and Conibear Trucking, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2024

 
12.0

 
7.9

 
7.4

 
—
%
Kemmer LLC and Apples Tree Top Liquors LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/4/2039

 
138.4

 
135.5

 
126.5

 
0.06
%
The Red Pill Management, Inc. dba UFC Gym Matthews
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
11/26/2024

 
54.3

 
49.9

 
43.8

 
0.02
%
Trading Group 3, Inc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/26/2024

 
22.5

 
20.4

 
16.9

 
0.01
%
Meridian Hotels, LLC dba Best Western Jonesboro
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/25/2039

 
228.0

 
223.8

 
227.4

 
0.11
%
Modern Manhattan LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
220.0

 
199.0

 
168.2

 
0.08
%
Teamnewman Enterprises LLC dba Newmans at 988 and John H. Newman
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/25/2039

 
148.8

 
145.4

 
139.3

 
0.07
%
Stormrider Inc dba Shirley's Stormrider, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
150.0

 
135.7

 
112.9

 
0.06
%
DeRidder Chiropractic LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
13.2

 
11.9

 
11.7

 
0.01
%
J&D Resources, LLC dba Aqua Science
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024

 
767.9

 
687.0

 
585.0

 
0.29
%
Legacy Estate Planning Inc dba American Casket Enterprises
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024

 
42.0

 
38.0

 
31.6

 
0.02
%
DC Real LLC and DC Enterprises LTD dba Lakeview True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/20/2039

 
119.4

 
117.2

 
115.9

 
0.06
%
MLM Enterprises LLC and Demand Printing Solutions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/18/2024

 
70.5

 
63.8

 
59.2

 
0.03
%
JEJE Realty LLC and La Familia Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/10/2039

 
205.8

 
201.1

 
192.9

 
0.09
%
Joey O's LLC and Jennifer Olszewski
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/7/2024

 
13.1

 
7.7

 
6.5

 
—
%
Laura L. Smith dba Lisa Smith Studio
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/3/2024

 
15.0

 
13.5

 
11.2

 
0.01
%
Heartland American Properties LLC and Skaggs RV Outlet LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/31/2039

 
479.0

 
467.5

 
459.7

 
0.23
%
M and C Renovations Inc
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/31/2024

 
20.3

 
18.6

 
15.6

 
0.01
%
Golden Transaction Corporation dba Bleh Sunoco
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/30/2039

 
156.7

 
152.9

 
152.3

 
0.07
%

26
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Kantz LLC and Kantz Auto LLC dba Kantz's Hometown Auto
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/29/2039

 
68.1

 
66.6

 
65.2

 
0.03
%
Seelan Inc dba Candleridge Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/27/2039

 
90.5

 
88.3

 
84.5

 
0.04
%
185 Summerfield Inc and Valcon Contracting Corp
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/24/2039

 
162.3

 
158.3

 
157.0

 
0.08
%
Navdeep B Martins and Busy Bubbles LLC dba Wishy Washy
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/24/2039

 
89.0

 
87.0

 
81.3

 
0.04
%
3 F Management LLC and ATC Port Charlotte LLC dba Around The Clock Fit
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/17/2024

 
131.3

 
117.8

 
104.1

 
0.05
%
One Hour Jewelry Repair Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/14/2024

 
20.6

 
18.4

 
15.4

 
0.01
%
Return to Excellence, Inc. dba The Waynesville Inn Golf & Spa
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/10/2039

 
1,250.0

 
1,233.1

 
1,252.5

 
0.61
%
Capitol Waste and Recycling Services LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
10/10/2024

 
257.8

 
231.4

 
206.6

 
0.10
%
Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/10/2024

 
187.5

 
168.6

 
147.7

 
0.07
%
DNT Storage and Properties LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
10/10/2039

 
101.8

 
99.3

 
99.0

 
0.05
%
Boilermaker Industries LLC dba PostNet
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/9/2024

 
18.8

 
7.3

 
7.3

 
—
%
Doctors Express Management of Central Texas LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2024

 
105.0

 
83.4

 
79.3

 
0.04
%
Smith Spinal Care Center P.C. and James C. Smith
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2039

 
60.0

 
58.6

 
57.3

 
0.03
%
Michael Rey Jr. and Lynn J. Williams (EPC) and GIG Petcare
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/3/2039

 
126.9

 
122.7

 
121.4

 
0.06
%
Sumad LLC dba BrightStar Care of Encinitas
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/2/2024

 
92.5

 
47.7

 
47.5

 
0.02
%
Roccos LLC and Sullo Pantalone Inc dba Rocco's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2039

 
255.8

 
249.2

 
245.0

 
0.12
%
Keller Holdings LLC and David H Keller III and Carie C Keller
 
Scenic and Sightseeing Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2039

 
100.0

 
97.4

 
99.5

 
0.05
%
The Woods at Bear Creek LLC and Bear Creek Entertainment LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2039

 
513.3

 
501.6

 
515.0

 
0.25
%
Orange County Insurance Brokerage Inc dba Beaty Insurance Agency
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/29/2039

 
325.1

 
317.8

 
326.3

 
0.16
%

27
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Keys Phase One LLC dba The Grand Guesthouse
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
736.3

 
717.3

 
724.0

 
0.36
%
Colts V LLC and Nowatzke Service Center, Inc dba Nowatzke Truck & Trailer
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
601.8

 
586.3

 
590.0

 
0.29
%
Gordon E Rogers dba Stonehouse Motor Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
57.5

 
56.0

 
57.5

 
0.03
%
Auto Shine Carwash Inc and AKM R. Hossain and Jessica F. Masud
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/26/2024

 
22.5

 
20.0

 
18.5

 
0.01
%
6 Price Avenue, LLC and Pauley Tree & Lawn Care, Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/24/2039

 
452.5

 
440.9

 
422.2

 
0.21
%
North Columbia LLC and Loop Liquor and Convenience Store LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/24/2039

 
159.3

 
155.2

 
156.4

 
0.08
%
R A Johnson Inc dba Rick Johnson Auto and Tire
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/23/2039

 
301.3

 
293.5

 
301.4

 
0.15
%
Andrene's LLC dba Andrene's Caribbean Soul Food Carry Out
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/23/2024

 
37.8

 
33.3

 
30.0

 
0.01
%
Utek Corporation dba Arcade Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/22/2039

 
405.5

 
402.1

 
410.5

 
0.20
%
Play and Stay LLC dba Zoom Room Tinton Falls
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/18/2024

 
42.1

 
38.0

 
34.1

 
0.02
%
Ryan Crick and Pamela J. Crick and Crick Enterprises Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2039

 
145.5

 
141.8

 
145.6

 
0.07
%
Modern Leather Goods Repair Shop Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2024

 
58.8

 
51.9

 
46.5

 
0.02
%
Tavern Properties LLC and Wildwood Tavern LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2039

 
425.0

 
416.8

 
419.0

 
0.21
%
Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/15/2024

 
272.5

 
242.8

 
226.6

 
0.11
%
RDT Enterprises LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
162.8

 
150.4

 
148.8

 
0.07
%
KW Zion, LLC and Key West Gallery Inc
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/12/2039

 
1,250.0

 
1,217.9

 
1,228.6

 
0.60
%
Indy East Smiles Youth Dentistry LLC dba Prime Smile East
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2024

 
630.2

 
561.5

 
505.6

 
0.25
%
B&P Diners LLC dba Engine House Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/10/2024

 
80.0

 
71.3

 
63.9

 
0.03
%
Feel The World Inc dba Xero Shoes and Invisible Shoes
 
Leather and Allied Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/5/2024

 
51.9

 
46.2

 
42.2

 
0.02
%
Delta Aggregate LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
8/28/2039

 
911.3

 
865.3

 
888.4

 
0.44
%

28
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Lamjam LLC (EPC) Goldsmith Lambros Inc (OC)
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024

 
133.8

 
118.7

 
119.1

 
0.06
%
Orange County Cleaning Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024

 
41.3

 
36.5

 
32.7

 
0.02
%
Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/26/2024

 
121.0

 
107.1

 
101.2

 
0.05
%
Atlas Auto Body Inc dba Atlas Auto Sales
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/22/2039

 
51.6

 
50.1

 
49.6

 
0.02
%
Grey Light Realty, LLC (EPC) NH Precision Metal Fabricators Inc (OC)
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/21/2039

 
1,226.0

 
1,192.6

 
1,195.2

 
0.59
%
S&P Holdings of Daytona LLC (EPC) S&P Corporation of Daytona Beach
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
433.5

 
419.3

 
430.5

 
0.21
%
Barber Investments LLC and Fieldstone Quickstop LLC and Maine Dollar
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
150.0

 
146.5

 
139.0

 
0.07
%
Alpha Preparatory Academy LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
145.2

 
141.8

 
145.6

 
0.07
%
Katie Senior Care LLC dba Home Instead Senior Care
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2024

 
124.3

 
109.8

 
98.5

 
0.05
%
Almost Home Property LLC and Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/7/2039

 
715.8

 
697.3

 
709.0

 
0.35
%
iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
379.1

 
346.2

 
326.3

 
0.16
%
AGV Enterprises LLC dba Jet's Pizza #42
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
54.8

 
48.1

 
43.9

 
0.02
%
575 Columbus Avenue Holding Company, LLC and LA-ZE LLC dba EST EST EST
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/30/2039

 
22.5

 
21.9

 
22.4

 
0.01
%
L&S Insurance & Financial Services Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/25/2024

 
22.5

 
19.7

 
17.9

 
0.01
%
Honeyspot Investors LLP and Pace Motor Lines Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/24/2039

 
150.0

 
145.7

 
149.1

 
0.07
%
Miss Cranston Diner II, LLC and Miss Cranston II Realty LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/17/2039

 
100.0

 
97.7

 
98.0

 
0.05
%
Wired LLC and Moulison North Corporation
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/3/2024

 
150.1

 
138.3

 
130.3

 
0.06
%
Honeyspot Investors LLP and Pace Motor Lines Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
875.3

 
850.3

 
869.5

 
0.43
%
iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
629.8

 
610.7

 
587.8

 
0.29
%
Wired LLC and Moulison North Corporation
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
500.0

 
457.2

 
430.8

 
0.21
%

29
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
AMG Holding, LLC and Stetson Automotive, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
208.0

 
201.7

 
207.0

 
0.10
%
Lisle Lincoln II Limited Partnership dba Lisle Lanes LP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
100.0

 
87.2

 
87.1

 
0.04
%
Highway Striping Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
53.1

 
46.2

 
42.9

 
0.02
%
FHJE Ventures LLC and Eisenreich II Inc. dba Breakneck Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/27/2039

 
321.8

 
311.9

 
312.6

 
0.15
%
JPM Investments LLC and Carolina Family Foot Care P.A.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2039

 
136.1

 
133.0

 
134.2

 
0.07
%
Zinger Hardware and General Merchant Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/26/2024

 
110.5

 
96.2

 
92.1

 
0.05
%
Nikobella Properties LLC and JPO Inc dba Village Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/25/2039

 
476.3

 
461.8

 
464.1

 
0.23
%
RDJ Maayaa Inc dba RDJ Distributors
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/23/2024

 
8.7

 
7.4

 
6.8

 
—
%
Big Sky Plaza LLC and Strickland, Incorporated dba Livingston True Vale
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/20/2039

 
233.4

 
226.3

 
226.7

 
0.11
%
510 ROK Realty LLC dba ROK Health and Fitness and Robert N. D'urso
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/19/2024

 
332.0

 
289.6

 
287.3

 
0.14
%
Nirvi Enterprises LLC dba Howard Johnson / Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/17/2039

 
920.3

 
892.2

 
915.8

 
0.45
%
Hotels of North Georgia LLC dba Comfort Inn and Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/17/2039

 
837.5

 
812.0

 
832.9

 
0.41
%
Global Educational Delivery Services LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/16/2024

 
60.0

 
52.9

 
53.1

 
0.03
%
Rainbow Dry Cleaners
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/13/2024

 
122.5

 
106.7

 
99.4

 
0.05
%
NVR Corporation dba Discount Food Mart
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/11/2039

 
68.3

 
64.9

 
66.7

 
0.03
%
Sico & Walsh Insurance Agency Inc and The AMS Trust
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/6/2039

 
250.0

 
90.6

 
93.0

 
0.05
%
Sujata Inc dba Stop N Save Food Mart and Dhruvesh Patel
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/3/2024

 
22.5

 
19.6

 
18.1

 
0.01
%
Long Island Barber + Beauty LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2039

 
55.5

 
53.8

 
53.5

 
0.03
%

30
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
CJR LLC (EPC) and PowerWash Plus, Inc. (OC)
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024

 
53.0

 
45.9

 
44.6

 
0.02
%
Pocono Coated Products, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024

 
22.5

 
19.4

 
19.0

 
0.01
%
R. A. Johnson, Inc. dba Rick Johnson Auto & Tire
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/29/2039

 
943.8

 
913.7

 
937.9

 
0.46
%
Wilton Dental Care P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024

 
128.1

 
112.9

 
102.2

 
0.05
%
EGM Food Services Inc dba Gold Star Chili
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024

 
19.2

 
16.6

 
15.3

 
0.01
%
Jonesboro Health Food Center LLC
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
5/27/2024

 
60.0

 
51.8

 
46.7

 
0.02
%
USI Properties LLC dba U Store It
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
5/23/2039

 
144.6

 
140.0

 
142.9

 
0.07
%
Bay State Funeral Services, LLC (EPC) and Riley Funeral Home Inc(OC)
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/21/2039

 
134.9

 
130.9

 
134.4

 
0.07
%
Hae M. and Jin S. Park dba Buford Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/15/2039

 
166.5

 
160.4

 
158.0

 
0.08
%
Moochie's LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/13/2024

 
100.5

 
87.9

 
80.1

 
0.04
%
The River Beas LLC and Punam Singh
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/8/2039

 
90.3

 
87.4

 
87.4

 
0.04
%
AS Boyals LLC dba Towne Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/29/2039

 
117.5

 
113.5

 
116.5

 
0.06
%
ENI Inc, Event Networks Inc, ENI Worldwide LLC and Spot Shop Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/25/2024

 
500.0

 
428.6

 
384.9

 
0.19
%
Gerami Realty, LC (EPC) Sherrill Universal City Corral, LP
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/23/2027

 
78.8

 
70.9

 
71.1

 
0.03
%
Complete Body & Paint, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/23/2039

 
20.8

 
20.1

 
20.6

 
0.01
%
Island Wide Realty LLC and Long Island Partners, Inc.
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
4/22/2039

 
103.8

 
100.4

 
103.0

 
0.05
%
Aiello's Pizzeria LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/18/2024

 
42.8

 
35.6

 
32.9

 
0.02
%
Wilshire Media Systems Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/17/2024

 
186.3

 
159.6

 
146.1

 
0.07
%
1899 Tavern & Tap LLC and Ale House Tavern & Tap LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/9/2039

 
137.5

 
131.9

 
133.4

 
0.07
%
Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/31/2024

 
1,250.0

 
637.7

 
639.3

 
0.31
%

31
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Hodges Properties LLC and Echelon Enterprises Inc dba Treads Bicycle
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
449.0

 
433.2

 
437.3

 
0.21
%
Dantanna's Tavern LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
164.3

 
141.6

 
131.7

 
0.06
%
RDT Enterprises, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028

 
141.2

 
129.0

 
130.4

 
0.06
%
Kemmer, LLC (EPC) and Pitts Package Store, Inc.(OC)
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
117.5

 
113.6

 
108.0

 
0.05
%
Little People's Village II LLC (OC) and Iliopoulos Realty LLC (EPC)
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
101.5

 
98.8

 
96.4

 
0.05
%
Little People's Village II LLC (OC) and Iliopoulos Realty LLC (EPC)
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
92.1

 
89.6

 
87.4

 
0.04
%
Wilban LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/28/2039

 
427.5

 
413.7

 
415.7

 
0.20
%
Lake Area Autosound LLC and Ryan H. Whittington
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2039

 
125.0

 
122.3

 
121.5

 
0.06
%
Sapienzo Properties LLC (EPC) CNS Self-Storage Inc (OC)
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/27/2039

 
193.8

 
186.0

 
190.9

 
0.09
%
Hascher Gabelstapler Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/26/2024

 
143.3

 
121.8

 
117.6

 
0.06
%
Knowledge First Inc dba Magic Years of Learning and Kimberly Knox
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/21/2039

 
145.0

 
140.1

 
138.2

 
0.07
%
636 South Center Holdings, LLC and New Mansfield Brass and Aluminum Co.
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039

 
497.5

 
479.9

 
492.4

 
0.24
%
Cormac Enterprises and Wyoming Valley Beverage Incorporated
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039

 
110.8

 
107.0

 
109.8

 
0.05
%
Kinisi, Inc. dba The River North UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2024

 
41.3

 
30.8

 
29.6

 
0.01
%
Tortilla King, Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2029

 
1,033.1

 
963.1

 
927.2

 
0.46
%
SE Properties 39 Old Route 146, LLC (EPC) SmartEarly Clifton Park LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/14/2039

 
408.0

 
394.8

 
404.3

 
0.20
%
Tortilla King Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2039

 
216.9

 
210.1

 
204.9

 
0.10
%
Bowl Mor, LLC dba Bowl Mor Lanes / Spare Lounge, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/13/2039

 
223.5

 
215.6

 
221.2

 
0.11
%
Avayaan2 LLC dba Island Cove
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/7/2039

 
157.5

 
151.9

 
152.6

 
0.07
%
Onofrio's Fresh Cut Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/6/2024

 
75.0

 
63.9

 
62.5

 
0.03
%

32
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
J&M Concessions, Inc.dba A-1 Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/3/2039

 
135.6

 
131.3

 
128.0

 
0.06
%
R & R Boyal LLC dba Cap N Cat Clam Bar and Little Ease Tavern
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039

 
417.5

 
402.2

 
400.2

 
0.20
%
Summit Beverage Group LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024

 
350.6

 
295.8

 
283.3

 
0.14
%
Faith Memorial Chapel LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039

 
214.2

 
206.7

 
203.7

 
0.10
%
952 Boston Post Road Realty, LLC and HNA LLC dba Styles International
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039

 
211.0

 
203.3

 
200.7

 
0.10
%
Choe Trade Group Inc dba Rapid Printers of Monterey
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024

 
159.3

 
134.4

 
134.0

 
0.07
%
96 Mill Street LLC, Central Pizza LLC and Jason Bikakis George Bikaki
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/12/2039

 
141.3

 
136.4

 
140.0

 
0.07
%
JWB Industries, Inc. dba Carteret Die Casting
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/11/2024

 
280.0

 
236.1

 
217.1

 
0.11
%
Sovereign Communications LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/7/2024

 
907.8

 
766.5

 
695.7

 
0.34
%
986 Dixwell Avenue Holding Company, LLC(EPC) and Mughali Foods, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/7/2039

 
99.1

 
95.9

 
96.2

 
0.05
%
Awesome Pets II Inc dba Mellisa's Pet Depot
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
2/7/2024

 
83.2

 
71.0

 
65.7

 
0.03
%
Sarah Sibadan dba Sibadan Agency
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/27/2039

 
129.4

 
124.4

 
126.4

 
0.06
%
3Fmanagement LLC and ATC Fitness Cape Coral, LLC dba Around the Clock
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
1/24/2024

 
425.0

 
355.5

 
330.1

 
0.16
%
JDR Industries Inc dba CST-The Composites Store, JetCat USA
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
1/21/2024

 
140.3

 
117.3

 
110.1

 
0.05
%
Icore Enterprises Inc dba Air Flow Filters Inc
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/15/2024

 
21.8

 
18.2

 
18.2

 
0.01
%
Nutmeg North Associates LLC (OC) Steeltech Building Products Inc
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/31/2038

 
897.8

 
880.6

 
867.4

 
0.43
%
Carl R. Bieber, Inc. dba Bieber Tourways/Bieber Transportation/Bieber
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2027

 
712.5

 
646.1

 
651.8

 
0.32
%
CLU Amboy, LLC (EPC) and Amboy Group, LLC (OC) dba Tommy Moloney's
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/27/2023

 
656.3

 
554.1

 
555.2

 
0.27
%
Shane M. Howell and Buck Hardware and Garden Center, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/27/2038

 
322.5

 
309.5

 
303.7

 
0.15
%

33
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Superior Disposal Service, Inc.
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
12/26/2023

 
240.5

 
199.5

 
195.2

 
0.10
%
KK International Trading Corporation
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/23/2028

 
190.0

 
171.8

 
169.1

 
0.08
%
Mosley Auto Group LLC dba America's Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038

 
221.5

 
212.6

 
215.8

 
0.11
%
Kurtis Sniezek dba Wolfe's Foreign Auto
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038

 
88.9

 
85.3

 
87.5

 
0.04
%
PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/19/2038

 
555.3

 
532.9

 
528.2

 
0.26
%
Lefont Theaters Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/19/2023

 
14.4

 
11.9

 
11.3

 
0.01
%
TAK Properties LLC and Kinderland Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/18/2038

 
405.0

 
388.8

 
386.8

 
0.19
%
Any Garment Cleaner-East Brunswick, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2023

 
53.8

 
44.6

 
43.6

 
0.02
%
TOL LLC dba Wild Birds Unlimited
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/13/2023

 
18.0

 
15.4

 
14.5

 
0.01
%
8 Minute Oil Change of Springfield Corporation and John Nino
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/12/2038

 
196.8

 
186.3

 
189.6

 
0.09
%
920 CHR Realty LLC (EPC) V. Garofalo Carting Inc (OC)
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
12/10/2038

 
418.1

 
401.3

 
411.7

 
0.20
%
DKB Transport Corp
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2038

 
138.8

 
133.2

 
136.6

 
0.07
%
Firm Foundations Inc. David S Gaitan Jr and Christopher K Daigle
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/3/2023

 
545.8

 
452.5

 
428.5

 
0.21
%
Firm Foundations Inc David S Gaitan Jr and Christopher K Daigle
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/3/2038

 
104.3

 
100.0

 
96.4

 
0.05
%
Spectrum Development LLC and Solvit Inc & Solvit North, Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/2/2023

 
387.3

 
321.2

 
304.0

 
0.15
%
BVIP Limousine Service LTD
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/27/2038

 
76.5

 
73.3

 
74.0

 
0.04
%
Eco-Green Reprocessing LLC and Denali Medical Concepts, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/27/2023

 
67.2

 
55.3

 
50.5

 
0.02
%
Wallace Holdings LLC (EPC) GFA International Inc (OC)
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.5%
 
11/25/2023

 
125.0

 
102.6

 
92.8

 
0.05
%

34
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
AcuCall LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2023

 
15.8

 
12.9

 
11.6

 
0.01
%
Seven Peaks Mining Inc and Cornerstone Industrial Minerals Corporation
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
11/18/2038

 
1,250.0

 
1,194.6

 
1,142.2

 
0.56
%
Kids in Motion of Springfield LLC dba The Little Gym of Springfield IL
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/18/2023

 
45.0

 
37.7

 
34.4

 
0.02
%
Kup's Auto Spa Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/15/2038

 
396.7

 
376.3

 
383.9

 
0.19
%
Yousef Khatib dba Y&M Enterprises
 
Wholesale Electronic Markets and Agents and Brokers
 
Term Loan
 
Prime plus 2.75%
 
11/15/2023

 
75.0

 
61.7

 
56.5

 
0.03
%
Howell Gun Works LLC
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
11/14/2023

 
8.3

 
6.9

 
6.2

 
—
%
Polpo Realty, LLC(EPC) Polpo Restaurant, LLC (OC)
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/6/2038

 
62.5

 
60.2

 
61.7

 
0.03
%
Twinsburg Hospitality Group LLC dba Comfort Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
945.0

 
905.7

 
897.0

 
0.44
%
Master CNC Inc & Master Properties LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
596.6

 
570.7

 
554.8

 
0.27
%
1 North Restaurant Corp dba 1 North Steakhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
212.5

 
203.3

 
206.0

 
0.10
%
Mid-Land Sheet Metal Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
137.5

 
131.8

 
132.9

 
0.07
%
Janice B. McShan and The Metropolitan Day School, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/31/2023

 
42.8

 
35.9

 
35.9

 
0.02
%
Meridian Hotels LLC dba Best Western Jonesboro
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
10/29/2038

 
664.5

 
634.2

 
649.6

 
0.32
%
New Image Building Services Inc. dba New Image Repair Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/29/2023

 
331.3

 
270.1

 
250.4

 
0.12
%
A-1 Quality Services Corporation
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/29/2023

 
8.9

 
7.2

 
6.5

 
—
%
Clairvoyant Realty Corp. and Napoli Marble & Granite Design, Ltd
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/24/2038

 
246.3

 
235.5

 
231.5

 
0.11
%
Greenbrier Technical Services, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/24/2023

 
240.1

 
178.4

 
178.6

 
0.09
%
Kelly Auto Care LLC dba Shoreline Quick Lube and Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/18/2023

 
87.5

 
71.3

 
66.2

 
0.03
%
KenBro Enterprises LLC dba Hearing Aids by Zounds-Cherry Hill
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
10/18/2023

 
25.8

 
21.0

 
20.3

 
0.01
%

35
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Shepher Distr's and Sales Corp and The Lederer Industries Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2023

 
1,050.0

 
699.0

 
706.5

 
0.35
%
Fieldstone Quick Stop LLC(OC) Barber Investments LLC (EPC) Thadius M B
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
676.3

 
658.3

 
666.4

 
0.33
%
Cencon Properties LLC and Central Connecticut Warehousing Company, Inc
 
Warehousing and Storage
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
344.5

 
329.2

 
341.2

 
0.17
%
Lenoir Business Partners LLC (EPC) LP Industries, Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
322.7

 
310.7

 
319.0

 
0.16
%
Onofrios Enterprises LLC (EPC) Onofrios Fresh Cut, Inc
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
312.5

 
299.5

 
308.1

 
0.15
%
Discount Wheel and Tire
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
223.8

 
213.5

 
218.2

 
0.11
%
Top Properties LLC and LP Industries, Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
120.0

 
115.3

 
119.7

 
0.06
%
First Steps Real Estate Company, LLC (EPC) and First Steps Preschool
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
97.6

 
93.2

 
94.6

 
0.05
%
Gabrielle Realty, LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038

 
757.6

 
722.9

 
738.0

 
0.36
%
Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038

 
335.1

 
319.7

 
328.0

 
0.16
%
Handy 6391 LLC dba The UPS Store #6391
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2023

 
62.5

 
51.2

 
51.8

 
0.03
%
Eastside Soccer Dome, Inc .
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
463.8

 
442.4

 
459.3

 
0.23
%
HJ & Edward Enterprises, LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2023

 
262.5

 
219.1

 
217.8

 
0.11
%
Anthony C Dinoto and Susan S P Dinoto and Anthony C Dinoto Funeral Home
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
100.0

 
95.5

 
99.1

 
0.05
%
Southeast Chicago Soccer, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
51.3

 
48.9

 
50.8

 
0.02
%
Kiddie Steps 4 You Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/25/2038

 
89.3

 
86.4

 
87.9

 
0.04
%
Diamond Memorials Incorporated
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2023

 
14.3

 
10.9

 
10.5

 
0.01
%
Faith Memorial Chapel LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2038

 
268.4

 
256.5

 
263.1

 
0.13
%
Serious-Fun in Alpharetta, LLC dba The Little Gym of Alpharetta
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2023

 
46.3

 
37.6

 
36.5

 
0.02
%

36
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Westville Seafood LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2038

 
112.3

 
107.2

 
109.5

 
0.05
%
Maynard Enterprises Inc dba Fastsigns of Texarkana
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/18/2023

 
16.1

 
13.1

 
12.8

 
0.01
%
Grafio Inc dba Omega Learning Center-Acworth
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2023

 
156.3

 
132.9

 
129.4

 
0.06
%
The Berlerro Group, LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/12/2023

 
421.3

 
351.5

 
341.3

 
0.17
%
Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/12/2028

 
54.8

 
48.9

 
48.8

 
0.02
%
Prospect Kids Academy Inc
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038

 
124.3

 
118.6

 
122.0

 
0.06
%
Alma J. and William R. Walton (EPC) and Almas Child Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038

 
39.5

 
37.7

 
39.1

 
0.02
%
B for Brunette dba Blo
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/10/2023

 
53.4

 
43.7

 
42.1

 
0.02
%
Schmaltz Holdings, LLC (EPC) and Schmaltz Operations, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/4/2038

 
224.2

 
212.6

 
217.2

 
0.11
%
IlOKA Inc dba Microtech Tel and NewCloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
687.5

 
551.1

 
539.2

 
0.26
%
ACI Northwest Inc.
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
906.3

 
541.7

 
540.6

 
0.27
%
Spectrum Radio Fairmont, LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
187.5

 
164.3

 
165.7

 
0.08
%
Excel RP Inc
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
130.3

 
104.3

 
104.8

 
0.05
%
Gulfport Academy Child Care and Learning Center, Inc. and Jennifer Sis
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
43.3

 
34.7

 
34.7

 
0.02
%
Ramard Inc and Advanced Health Sciences Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/28/2023

 
187.5

 
150.3

 
144.2

 
0.07
%
RM Hawkins LLC dba Pure Water Tech West and Robert M Hawkins
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/26/2023

 
85.8

 
65.1

 
65.8

 
0.03
%
JSIL LLC dba Blackstones Hairdressing
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/16/2023

 
19.5

 
15.4

 
15.0

 
0.01
%
Jatcoia, LLC dba Plato's Closet
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
8/15/2023

 
65.0

 
40.0

 
40.4

 
0.02
%
Caribbean Concepts, Inc. dba Quick Bleach
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/12/2023

 
22.5

 
18.2

 
17.6

 
0.01
%

37
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
209 North 3rd Street, LLC (EPC) Yuster Insurance Group Inc (OC)
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/29/2038

 
83.9

 
79.8

 
82.0

 
0.04
%
Majestic Contracting Services, Inc. dba Majestic Electric and Majestic
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/26/2038

 
190.0

 
180.7

 
184.2

 
0.09
%
Daniel W and Erin H Gordon and Silver Lining Stables CT, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/24/2023

 
11.3

 
8.9

 
9.0

 
—
%
Angkor Restaurant Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/19/2038

 
93.0

 
88.4

 
91.3

 
0.04
%
Tri County Heating and Cooling Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2023

 
87.8

 
69.7

 
70.0

 
0.03
%
Harbor Ventilation Inc and Estes Investment, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2038

 
92.1

 
27.6

 
28.7

 
0.01
%
Morning Star Trucking LLC and Morning Star Equipment and Leasing LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/17/2023

 
53.8

 
42.7

 
41.0

 
0.02
%
Maxiflex LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2023

 
153.5

 
120.7

 
122.0

 
0.06
%
JRA Holdings LLC (EPC) Jasper County Cleaners Inc dba Superior Cleaner
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2038

 
121.0

 
114.8

 
119.2

 
0.06
%
GIA Realty LLC and VRAJ GIA LLC dba Lakeview Laundromat
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2038

 
97.5

 
92.5

 
96.0

 
0.05
%
Emerald Ironworks Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/27/2023

 
72.0

 
56.9

 
55.3

 
0.03
%
Contract Packaging Services Inc dba Superior Pack Group
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/21/2023

 
851.8

 
676.3

 
664.0

 
0.33
%
2161 Highway 6 Trail, LLC, (EPC) R. H. Hummer JR., Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2026

 
1,250.0

 
821.6

 
835.2

 
0.41
%
CBlakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial Services
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/18/2028

 
875.0

 
770.0

 
785.7

 
0.39
%
KDP LLC and KDP Investment Advisors, Inc and KDP Asset Management, Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/14/2023

 
343.8

 
270.7

 
261.0

 
0.13
%
Elite Structures Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/12/2038

 
932.8

 
868.7

 
900.4

 
0.44
%
(EPC) Absolute Desire LLC and Mark H. Szierer (OC) Sophisticated Smile
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038

 
188.3

 
178.9

 
181.3

 
0.09
%
(EPC) Willowbrook Properties LLC (OC) Grove Gardens Landscaping Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038

 
186.3

 
176.8

 
181.9

 
0.09
%
RKP Service dba Rainbow Carwash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/31/2023

 
300.0

 
236.6

 
228.9

 
0.11
%

38
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
RXSB, Inc dba Medicine Shoppe
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
5/30/2023

 
186.3

 
145.8

 
139.7

 
0.07
%
Gregory P Jellenek OD and Associates PC dba Gregory P Jellenek OD
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/28/2023

 
63.5

 
49.5

 
48.7

 
0.02
%
Ryan D. Thornton and Thornton & Associates LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
5/24/2023

 
68.8

 
45.3

 
43.4

 
0.02
%
Insurance Problem Solvers LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
5/20/2023

 
17.1

 
13.3

 
12.8

 
0.01
%
PowerWash Plus, Inc. and CJR, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/30/2038

 
550.0

 
521.0

 
531.8

 
0.26
%
Peanut Butter & Co., Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/30/2023

 
100.0

 
77.1

 
74.2

 
0.04
%
Brothers International Desserts
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/26/2023

 
230.0

 
177.8

 
175.6

 
0.09
%
Kidrose, LLC dba Kidville Riverdale
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/22/2023

 
78.8

 
61.6

 
60.2

 
0.03
%
Vernon & Stephanie Scott and Little Stars Day Care Center, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/18/2038

 
151.0

 
142.8

 
148.2

 
0.07
%
Capital Scrap Metal, LLC and Powerline Investment, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
500.0

 
450.1

 
466.9

 
0.23
%
MRM Supermarkets Inc dba Constantins Breads; Dallas Gourmet Breads
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
336.0

 
317.3

 
320.5

 
0.16
%
1258 Hartford TPKE, LLC (EPC) and Phelps and Sons, Inc (OC)
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
124.6

 
117.6

 
119.5

 
0.06
%
A & M Commerce, Inc. dba Cranberry Sunoco
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/27/2038

 
330.3

 
311.6

 
320.6

 
0.16
%
Xela Pack, Inc. and Aliseo and Catherine Gentile
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2028

 
271.8

 
235.9

 
240.7

 
0.12
%
Neyra Industries, Inc. and Edward Neyra
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
217.5

 
166.5

 
168.1

 
0.08
%
Gator Communications Group, LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
17.3

 
13.4

 
13.3

 
0.01
%
American Diagnostic Imaging, Inc. dba St. Joseph Imaging Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2038

 
537.5

 
507.5

 
517.3

 
0.25
%
Michael A.and HeatherR. Welsch dba Art & FrameEtc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/22/2038

 
67.5

 
63.7

 
65.4

 
0.03
%
M & H Pine Straw Inc and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023

 
288.8

 
220.9

 
219.9

 
0.11
%

39
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Truth Technologies Inc dba Truth Technologies Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023

 
79.5

 
60.9

 
58.9

 
0.03
%
J. Kinderman & Sons Inc., dba BriteStar Inc.
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/20/2023

 
181.3

 
142.7

 
144.0

 
0.07
%
Stellar Environmental LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2023

 
56.3

 
43.1

 
43.2

 
0.02
%
Sound Manufacturing, Inc. and Monster Power Equipment Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/15/2023

 
523.0

 
400.0

 
394.6

 
0.19
%
Golden Gate Lodging LLC (OC)
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2038

 
115.0

 
108.6

 
111.5

 
0.05
%
River Club Golf Course Inc dba The River Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2038

 
475.2

 
447.7

 
458.7

 
0.23
%
Bakhtar Group LLC dba Malmaison
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2023

 
103.8

 
79.4

 
76.1

 
0.04
%
Osceola River Mill, LLC(EPC) Ironman Machine, Inc.(OC)
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/20/2038

 
86.3

 
81.3

 
83.5

 
0.04
%
Java Warung, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/19/2038

 
51.0

 
48.1

 
49.5

 
0.02
%
Nancy & Karl Schmidt(EPC) Moments to Remember USA, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/15/2038

 
106.3

 
100.2

 
102.9

 
0.05
%
Orient Direct, Inc. dba Spracht, Celltek, ODI
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/12/2023

 
84.9

 
63.6

 
60.9

 
0.03
%
Knits R Us, Inc. dba NYC Sports / Mingle
 
Textile Mills
 
Term Loan
 
Prime plus 2.75%
 
2/11/2038

 
125.0

 
118.0

 
122.4

 
0.06
%
North Country Transport, LLC
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/6/2023

 
15.0

 
11.4

 
11.5

 
0.01
%
MJD Investments, LLC dba The Community Day School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2038

 
258.3

 
243.0

 
248.1

 
0.12
%
Sherill Universal City dba Golden Corral
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2038

 
440.5

 
416.0

 
425.3

 
0.21
%
Macho LLC (EPC) Madelaine Chocolate Novelties Inc(OC) dba The Madelai
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/31/2037

 
500.0

 
471.9

 
489.4

 
0.24
%
WI130, LLC (EPC) & Lakeland Group, Inc (OC) dba Lakeland Electrical
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028

 
271.5

 
236.0

 
233.1

 
0.11
%
Elegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2022

 
97.5

 
72.6

 
69.7

 
0.03
%
John Duffy Fuel Co., Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/28/2022

 
513.8

 
382.7

 
386.1

 
0.19
%

40
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Babie Bunnie Enterprises Inc dba Triangle Mothercare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2027

 
46.3

 
35.4

 
34.3

 
0.02
%
Polpo Realty LLC (EPC) & Polpo Restaurant LLC (OC) dba Polpo Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/27/2037

 
517.5

 
489.4

 
507.5

 
0.25
%
Martin L Hopp, MD PHD A Medical Corp (OC) dba Tower ENT
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2022

 
66.3

 
49.1

 
47.9

 
0.02
%
Ezzo Properties, LLC and Great Lakes Cleaning, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2027

 
389.6

 
333.5

 
327.3

 
0.16
%
Pioneer Window Holdings, Inc and Subsidiaries dba Pioneer Windows
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/20/2022

 
225.0

 
167.8

 
164.9

 
0.08
%
The Amendments Group LLC dba Brightstar
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/17/2022

 
22.5

 
16.7

 
16.9

 
0.01
%
G.M. Pop's, Inc. & S.D. Food, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/11/2022

 
127.1

 
94.7

 
91.8

 
0.05
%
Aegis Creative Communications, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2022

 
387.5

 
277.8

 
266.1

 
0.13
%
Cheryle A Baptiste and Cheryle Baptiste DDS PLLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2037

 
286.5

 
268.8

 
276.6

 
0.14
%
Daniel Gordon and Erin Gordon and Silver Lining Stables CT, LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
11/28/2037

 
223.8

 
209.8

 
217.2

 
0.11
%
Richmond Hill Mini Market, LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/27/2037

 
185.3

 
173.7

 
178.5

 
0.09
%
D&L Rescources, Inc. dba The UPS Store
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/27/2022

 
9.8

 
7.2

 
6.9

 
—
%
DRV Enterprise, Inc. dba Cici's Pizza # 339
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/26/2022

 
65.0

 
46.8

 
47.2

 
0.02
%
Pioneer Windows Manufacturing Corp, Pioneer Windows
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/21/2022

 
275.0

 
203.1

 
199.5

 
0.10
%
U & A Food and Fuel, Inc. dba Express Gas & Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/21/2037

 
96.3

 
90.2

 
93.5

 
0.05
%
Clean Brothers Company Inc dba ServPro of North Washington County
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/21/2022

 
17.0

 
12.5

 
12.2

 
0.01
%
R & J Petroleum LLC (EPC) Manar USA, Inc. (OC)
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/20/2037

 
180.0

 
168.7

 
173.9

 
0.09
%
St Judes Physical Therapy P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2022

 
21.0

 
15.5

 
15.6

 
0.01
%
Hi-Def Imaging, Inc. dba SpeedPro Imaging
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/9/2022

 
22.2

 
16.4

 
15.9

 
0.01
%
Reidville Hydraulics Mfg Inc dba Summit
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/2/2037

 
265.9

 
249.2

 
251.3

 
0.12
%

41
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Big Apple Entertainment Partners, LLC d/b/a Ripley's Believe It or Not
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/26/2022

 
180.0

 
134.4

 
128.7

 
0.06
%
Chickamauga Properties, Inc. and MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/19/2022

 
59.8

 
43.5

 
43.9

 
0.02
%
LA Diner Inc dba Loukas L A Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/28/2037

 
677.5

 
636.1

 
663.5

 
0.33
%
ATC Fitness LLC dba Around the Clock Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2022

 
180.0

 
133.6

 
134.6

 
0.07
%
University Park Retreat, LLC dba Massage Heights
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2022

 
76.0

 
54.8

 
55.5

 
0.03
%
Forno Italiano Di Nonna Randazzo, LLC dba Nonna Randazzo's Bakery
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/26/2037

 
183.8

 
172.9

 
179.3

 
0.09
%
LaSalle Market and Deli EOK Inc and Rugen Realty LLC dba LaSalle Mark
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/21/2037

 
252.3

 
235.5

 
244.1

 
0.12
%
O'Rourkes Diner LLC dba O'Rourke's Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2037

 
65.5

 
61.1

 
63.3

 
0.03
%
Vision Network Solutions, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/12/2022

 
19.5

 
14.1

 
14.0

 
0.01
%
Michael J. Speeney & Joyce Speeney and R2 Tape, Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2037

 
367.5

 
342.4

 
357.2

 
0.18
%
AJK Enterprise LLC dba AJK Enterprise LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/27/2022

 
16.5

 
11.8

 
11.9

 
0.01
%
New Image Building Services, Inc. dba New Image Repair Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/23/2037

 
285.7

 
266.2

 
274.6

 
0.13
%
Suncoast Aluminum Furniture, Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/17/2037

 
360.0

 
335.6

 
350.0

 
0.17
%
Matchless Transportation LLC dba First Class Limo
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/3/2022

 
185.0

 
134.2

 
134.8

 
0.07
%
Hofgard & Co., Inc. dba HofgardBenefits
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022

 
107.3

 
75.7

 
76.3

 
0.04
%
Georgia Safe Sidewalks LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022

 
15.0

 
10.4

 
10.5

 
0.01
%
Scoville Plumbing & Heating Inc and Thomas P. Scoville
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/25/2022

 
50.0

 
37.1

 
37.6

 
0.02
%
Havana Central (NY) 5, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/29/2022

 
1,166.8

 
851.1

 
858.6

 
0.42
%
Central Tire, Inc. dba Cooper Tire & Auto Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/29/2037

 
288.5

 
267.5

 
277.3

 
0.14
%

42
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
WPI, LLC
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2024

 
129.5

 
99.0

 
99.7

 
0.05
%
Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/27/2037

 
69.8

 
64.8

 
67.3

 
0.03
%
KIND-ER-ZZ Inc dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2022

 
50.0

 
34.6

 
34.4

 
0.02
%
Graphish Studio, Inc. and Scott Fishoff
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/14/2022

 
20.3

 
14.2

 
14.1

 
0.01
%
Spectrumit, Inc, (OC) dba LANformation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/31/2030

 
154.9

 
134.3

 
137.7

 
0.07
%
5091 LLC and TR/AL LLC d/b/a Cafe Africana
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/31/2037

 
121.3

 
112.6

 
117.0

 
0.06
%
ALF, LLC (EPC) Mulit-Service Eagle Tires (OC)
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/31/2037

 
62.9

 
58.3

 
60.5

 
0.03
%
Craig R Freehauf d/b/a Lincoln Theatre
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
5/31/2022

 
47.9

 
24.5

 
24.8

 
0.01
%
Lefont Theaters, Inc.
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
5/30/2022

 
137.0

 
94.8

 
95.1

 
0.05
%
Christou Real Estate Holdings LLC dba Tops American Grill
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/17/2037

 
284.0

 
262.6

 
273.4

 
0.13
%
Tracey Vita-Morris dba Tracey Vita's School of Dance
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
5/10/2022

 
22.5

 
15.6

 
15.4

 
0.01
%
Bisson Transportation, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/7/2037

 
588.1

 
554.9

 
573.8

 
0.28
%
Bisson Moving & Storage Company Bisson Transportation Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/7/2022

 
528.8

 
383.0

 
386.0

 
0.19
%
Fair Deal Food Mart Inc dba Neighbors Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/3/2037

 
381.3

 
352.8

 
367.9

 
0.18
%
Tanner Optical, Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/27/2022

 
8.3

 
5.6

 
5.7

 
—
%
Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
4/25/2022

 
228.8

 
158.9

 
158.9

 
0.08
%
Zane Filippone Co Inc dba Culligan Water Conditioning
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/12/2022

 
558.2

 
384.1

 
386.3

 
0.19
%
Indoor Playgrounds Limited Liability Company dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/5/2022

 
19.5

 
11.1

 
11.2

 
0.01
%
Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/30/2022

 
466.3

 
319.4

 
319.2

 
0.16
%

43
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Brandywine Picnic Park, Inc. and B.Ross Capps & Linda Capps
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/30/2031

 
231.5

 
203.5

 
209.9

 
0.10
%
Access Staffing, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2022

 
187.5

 
126.8

 
125.8

 
0.06
%
Willow Springs Golf Course, Inc. & JC Lindsey Family Limited Partners
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/29/2037

 
755.4

 
704.2

 
733.9

 
0.36
%
Manuel P. Barrera and Accura Electrical Contractor, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028

 
103.7

 
86.5

 
87.5

 
0.04
%
Shweiki Media, Inc. dba Study Breaks Magazine
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/22/2027

 
1,178.8

 
962.2

 
975.5

 
0.48
%
BCD Holdings, LLC and H-MA, LLC d/b/a/ Hawaii Mainland Administrators
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/2/2022

 
451.3

 
295.1

 
293.3

 
0.14
%
ATC Fitness, LLC d/b/a Around the Clock Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2022

 
10.2

 
6.8

 
6.8

 
—
%
ATI Jet, Inc.
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/28/2026

 
852.8

 
674.1

 
684.8

 
0.34
%
J. Kinderman & Sons, Inc. dba Brite Star Manufacturing Company
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/22/2036

 
495.0

 
458.3

 
477.5

 
0.23
%
K's Salon, LLC d/b/a K's Salon
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2021

 
73.6

 
48.1

 
47.7

 
0.02
%
15 Frederick Place LLC & Pioneer Windows Holdings Inc & Subs
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/16/2021

 
250.0

 
162.3

 
162.7

 
0.08
%
M & H Pinestraw, Inc. and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/15/2021

 
238.3

 
155.6

 
155.7

 
0.08
%
Taylor Transport, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/8/2021

 
515.5

 
291.9

 
294.6

 
0.14
%
City Sign Service, Incorporated
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
165.8

 
130.0

 
132.3

 
0.06
%
Scent-Sation, Inc. d/b/a Scent-Sation, Inc.
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
11/21/2021

 
337.5

 
250.7

 
253.6

 
0.12
%
Thomas P. Scoville dba Scoville Plumbing & Heating, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/16/2021

 
62.5

 
40.2

 
40.6

 
0.02
%
MRM Supermarkets, Inc. dba Constantin's Breads
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/10/2021

 
137.5

 
88.7

 
89.2

 
0.04
%
K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
10/26/2021

 
58.8

 
37.9

 
37.7

 
0.02
%

44
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
28 Cornelia Street Properties, LLC and Zouk, Ltd.dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/25/2021

 
22.5

 
14.3

 
14.5

 
0.01
%
C & G Engines Corp.
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2021

 
1,041.5

 
650.9

 
654.7

 
0.32
%
Robert E. Caves, Sr. and American Plank dba Caves Enterprises
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2021

 
302.5

 
187.6

 
190.0

 
0.09
%
PTK, Incorporated dba Night N Day 24 HR Convenience Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
137.5

 
125.2

 
130.7

 
0.06
%
39581 Garfield, LLC and Tri County Neurological Associates, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
83.3

 
75.8

 
78.9

 
0.04
%
39581 Garfield, LLC and Tricounty Neurological Associates, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
28.5

 
25.8

 
26.8

 
0.01
%
Big Apple Entertainment Partners, LLC dba Ripley's Believe it or Not
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2021

 
1,070.0

 
667.5

 
668.3

 
0.33
%
Polymer Sciences, Inc. dba Polymer Sciences, Inc.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/28/2036

 
422.6

 
383.6

 
400.6

 
0.20
%
Equity National Capital LLC & Chadbourne Road Capital, LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/26/2021

 
62.5

 
39.3

 
39.5

 
0.02
%
Bryan Bantry Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/8/2021

 
400.0

 
167.7

 
167.9

 
0.08
%
SBR Technologies d/b/a Color Graphics
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/31/2021

 
806.2

 
492.9

 
498.7

 
0.24
%
Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
8/31/2021

 
575.0

 
348.2

 
351.3

 
0.17
%
Michael S. Decker & Janet Decker dba The Hen House Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2036

 
16.4

 
15.0

 
15.6

 
0.01
%
Trademark Equipment Company Inc and David A. Daniel
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/19/2036

 
133.6

 
121.4

 
126.5

 
0.06
%
Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/19/2021

 
187.5

 
110.0

 
110.6

 
0.05
%
A & A Auto Care, LLC d/b/a A & A Auto Care, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/12/2036

 
101.0

 
91.8

 
95.9

 
0.05
%
Valiev Ballet Academy, Inc
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
8/12/2036

 
91.5

 
38.5

 
40.2

 
0.02
%
LaHoBa, LLC d/b/a Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/3/2036

 
77.5

 
69.9

 
73.0

 
0.04
%

45
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Kelly Chon LLC dba Shi-Golf
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/29/2021

 
17.5

 
7.8

 
7.9

 
—
%
MTV Bowl, Inc. dba Legend Lanes
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2036

 
248.5

 
225.0

 
234.0

 
0.11
%
Lisle Lincoln II Limited Partnership dba Lisle Lanes LP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/29/2036

 
338.1

 
318.1

 
331.6

 
0.16
%
Lavertue Properties LLP dba Lavertue Properties
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/29/2036

 
44.8

 
40.6

 
42.4

 
0.02
%
Pierce Developments, Inc. dba Southside Granite
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/13/2036

 
256.1

 
231.8

 
240.8

 
0.12
%
Major Queens Body & Fender Corp
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/10/2021

 
28.6

 
17.4

 
17.6

 
0.01
%
J&K Fitness, LLC dba Physiques Womens Fitness Center
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/8/2036

 
449.3

 
410.0

 
427.4

 
0.21
%
Peanut Butter & Co., Inc. d/b/a Peanut Butter & Co.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/3/2021

 
65.5

 
38.4

 
38.5

 
0.02
%
Demand Printing Solutions, Inc. and MLM Enterprises, LLC d/b/a Demand
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/27/2021

 
16.5

 
9.9

 
9.9

 
—
%
Modern on the Mile, LLC dba Ligne Roset
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
5/25/2021

 
212.5

 
126.0

 
126.2

 
0.06
%
Music Mountain Water Company, LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/25/2036

 
138.1

 
123.8

 
129.3

 
0.06
%
Profile Performance, Inc. and Eidak Real Estate, L.L.C.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2036

 
127.5

 
114.9

 
120.0

 
0.06
%
Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/18/2036

 
129.5

 
117.9

 
123.1

 
0.06
%
Michael S. Korfe dba North Valley Auto Repair
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/24/2036

 
15.5

 
13.9

 
14.5

 
0.01
%
Actknowledge,Inc dba Actknowledge
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2021

 
57.3

 
33.3

 
33.7

 
0.02
%
Food & Beverage Associates Of N.J. Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/11/2021

 
10.0

 
5.2

 
5.2

 
—
%
Key Products I&II, Inc. dba Dunkin' Donuts/Baskin-Robbins
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/10/2021

 
153.0

 
88.9

 
89.2

 
0.04
%
Stephen Frank, Patricia Frank and Suds Express LLC dba Frank Chiropra
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/25/2023

 
63.0

 
39.8

 
40.5

 
0.02
%

46
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
SuzyQue’s LLC dba Suzy Que’s
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/11/2036

 
61.0

 
54.9

 
57.3

 
0.03
%
Little People’s Village, LLC dba Little People’s Village
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2036

 
31.1

 
27.9

 
29.1

 
0.01
%
Seagate Group Holdings, Inc. dba Seagate Logistics, Inc.
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/28/2036

 
113.4

 
101.4

 
105.8

 
0.05
%
Metro Used Cars Inc. dba Metro Auto Center
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
1/14/2027

 
117.6

 
91.1

 
93.3

 
0.05
%
Patrageous Enterprises, LLC dba Incredibly Edible Delites of Laurel
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/29/2020

 
7.6

 
3.7

 
3.7

 
—
%
Chickamauga Properties,Inc., MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2035

 
189.5

 
169.4

 
176.7

 
0.09
%
Chickamauga Properties, Inc., MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2035

 
74.3

 
66.7

 
69.5

 
0.03
%
Shree OM Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/17/2035

 
27.7

 
24.7

 
25.8

 
0.01
%
Lodin Medical Imaging, LLC dba Watson Imaging Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/1/2020

 
66.4

 
35.7

 
36.1

 
0.02
%
Robert F. Schuler and Lori A. Schuler dba Bob’s Service Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/30/2035

 
34.0

 
30.3

 
31.6

 
0.02
%
Any Garment Cleaner-East Brunswick, Inc dba Any Garment Cleaner
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/18/2020

 
42.5

 
19.3

 
19.5

 
0.01
%
West Cobb Enterprises, Inc and Advanced Eye Associates, L.L.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/12/2035

 
148.7

 
132.6

 
137.8

 
0.07
%
Lincoln Park Physical Therapy
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/20/2020

 
43.5

 
23.3

 
23.5

 
0.01
%
Jade Automotive d/b/a Sears Hometown Store
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
10/6/2035

 
146.6

 
130.9

 
136.6

 
0.07
%
Wise Forklift Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/1/2020

 
296.9

 
155.4

 
157.2

 
0.08
%
Elan Realty, LLC and Albert Basse Asociates, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
9/30/2035

 
228.2

 
202.3

 
211.3

 
0.10
%
K9 Bytes, Inc & Epazz, Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
9/30/2020

 
18.5

 
9.9

 
9.9

 
—
%
Success Express,Inc. dba Success Express
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2020

 
91.8

 
48.2

 
48.5

 
0.02
%
Modern Manhattan, LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/20/2020

 
204.0

 
108.3

 
108.9

 
0.05
%

47
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Dirk's Trucking, L.L.C. dba Dirk's Trucking
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/17/2020

 
17.7

 
9.2

 
9.3

 
—
%
Newsome Trucking Inc and Kevin Newsome
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035

 
423.1

 
212.7

 
221.7

 
0.11
%
California College of Communications, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/2/2020

 
172.5

 
92.9

 
93.5

 
0.05
%
Rudy & Louise Chavez dba Clyde's Auto and Furniture Upholstery
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035

 
50.1

 
44.4

 
46.3

 
0.02
%
DDLK Investments LLC d/b/a Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020

 
7.5

 
3.2

 
3.3

 
—
%
Kino Oil of Texas, LLC dba Kino Oil
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/27/2020

 
60.0

 
31.1

 
31.4

 
0.02
%
Kino Oil of Texas LLC dba Kino Company and B&D Oil
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/27/2035

 
12.0

 
10.5

 
10.9

 
0.01
%
Planet Verte,LLC d/b/a Audio Unlimited
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2020

 
40.0

 
21.0

 
21.1

 
0.01
%
Members Only Software
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020

 
40.3

 
20.7

 
20.9

 
0.01
%
New Life Holdings, LLC and Certified Collision Services, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2035

 
76.2

 
66.7

 
69.6

 
0.03
%
ActKnowledge,Inc dba ActKnowledge
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2020

 
50.0

 
25.3

 
25.5

 
0.01
%
I-90 RV & Auto Supercenter
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/29/2035

 
74.9

 
66.0

 
68.9

 
0.03
%
WeaverVentures, Inc dba The UPS Store
 
Postal Service
 
Term Loan
 
Prime plus 2.75%
 
7/28/2020

 
23.8

 
12.2

 
12.3

 
0.01
%
Zouk, Ltd. dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/25/2020

 
27.5

 
14.3

 
14.4

 
0.01
%
CJ Park Inc. dba Kidville Midtown West
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2020

 
26.4

 
10.6

 
10.6

 
0.01
%
H.H. Leonards Trust and Potomac Fund LLC and The 2020 O Street Corporation
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
7/23/2020

 
62.0

 
19.3

 
19.6

 
0.01
%
Tanner Optical Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2035

 
94.6

 
83.2

 
86.5

 
0.04
%
M & H Pine Straw, Inc.and Harris Maloy
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
7/10/2020

 
67.5

 
34.5

 
34.8

 
0.02
%
Excel RP, Inc./Kevin and Joann Foley
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/8/2028

 
50.0

 
39.5

 
40.6

 
0.02
%

48
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
ValleyStar, Inc. dba BrightStar Healthcare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020

 
7.5

 
3.8

 
3.8

 
—
%
ValleyStar, Inc. dba BrightStar HealthCare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020

 
0.6

 
3.0

 
3.1

 
—
%
Atlanta Vascular Research Organization, Inc dba Atlanta Vascular Foundation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/6/2020

 
24.3

 
12.6

 
12.8

 
0.01
%
Diag, LLC dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/21/2020

 
37.5

 
18.5

 
18.6

 
0.01
%
M & H Pine Straw, Inc and Harris L. Maloy
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
6%
 
4/30/2020

 
183.3

 
71.1

 
71.8

 
0.04
%
New Economic Methods LLC dba Rita's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2020

 
24.8

 
0.9

 
0.9

 
—
%
Cocoa Beach Parasail Corp. dba Cocoa Beach Parasail
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/26/2020

 
6.3

 
3.0

 
3.0

 
—
%
JRJG, Inc. dba BrightStar HealthCare-Naperville/Oak Brook
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/23/2020

 
15.0

 
7.3

 
7.3

 
—
%
Caring Hands Pediatrics,P.C. dba Caring Hands Pediatrics
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/9/2020

 
14.5

 
7.0

 
7.1

 
—
%
Vortex Automotive LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/5/2035

 
76.6

 
67.1

 
69.9

 
0.03
%
ATC Fitness LLC dba Around the Clock Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2019

 
15.0

 
5.9

 
5.9

 
—
%
Lahoba,LLC dba Papa John's Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/30/2034

 
42.5

 
37.1

 
38.6

 
0.02
%
Music Mountain Water Company,LLC dba Music Mountain Water Co.
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/29/2019

 
185.4

 
84.0

 
84.8

 
0.04
%
Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2024

 
126.5

 
83.7

 
85.1

 
0.04
%
CMA Consulting dba Construction Management Associates
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
58.5

 
27.1

 
27.2

 
0.01
%
David A. Nusblatt, D.M.D, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
9.0

 
4.0

 
4.1

 
—
%
KMC RE, LLC & B&B Kennels
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2034

 
58.3

 
50.6

 
52.7

 
0.03
%
Demand Printing Solutions, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/12/2019

 
10.0

 
4.4

 
4.5

 
—
%
Planet Verte, LLC dba Audio Unlimited of Oceanside
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/28/2019

 
57.0

 
25.0

 
25.1

 
0.01
%

49
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Demand Printing Solutions, Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
10/29/2034

 
147.5

 
127.7

 
133.3

 
0.07
%
Supreme Screw Products
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/17/2019

 
308.2

 
113.4

 
114.4

 
0.06
%
Gray Tree Service, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2018

 
50.0

 
16.3

 
16.4

 
0.01
%
Envy Salon & Spa LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/4/2018

 
20.3

 
6.6

 
6.7

 
—
%
Gourmet to You, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2019

 
12.1

 
4.1

 
4.2

 
—
%
Grapevine Professional Services, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/22/2019

 
8.2

 
2.7

 
2.7

 
—
%
Inflate World Corporation
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/30/2018

 
7.5

 
1.8

 
1.8

 
—
%
Peter Thomas Roth Labs LL
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/26/2018

 
425.0

 
130.3

 
131.2

 
0.06
%
Dream Envy, Ltd. d/b/a Massage Envy
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/9/2018

 
88.0

 
28.0

 
28.2

 
0.01
%
K & D Family and Associates, Inc. dba Philly Pretzel Factory
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
8/5/2018

 
81.3

 
24.0

 
24.1

 
0.01
%
Seven Stars Enterprises, Inc. dba Atlanta Bread Company
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2018

 
86.3

 
24.0

 
24.1

 
0.01
%
CBA D&A Pope, LLC dba Christian Brothers Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/14/2018

 
144.9

 
41.5

 
41.7

 
0.02
%
Gilbert Chiropractic Clinic, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/7/2018

 
22.5

 
6.3

 
6.3

 
—
%
D & D's Divine Beauty School of Esther, LLC
 
Educational Services
 
Term Loan
 
6%
 
8/1/2031

 
57.7

 
53.0

 
55.0

 
0.03
%
Daniel S. Fitzpatrick dba Danny's Mobile Appearance Reconditioning Service
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/29/2018

 
9.4

 
2.4

 
2.4

 
—
%
Burks & Sons Development LLC dba Tropical Smoothie Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/22/2018

 
49.8

 
12.5

 
12.5

 
0.01
%
Bliss Coffee and Wine Bar, LLC
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
3/19/2018

 
87.5

 
70.9

 
71.3

 
0.03
%
Zog Inc.
 
Other Information Services
 
Term Loan
 
6%
 
3/17/2018

 
97.5

 
71.3

 
71.7

 
0.04
%
Saan M.Saelee dba Saelee's Delivery Service
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2018

 
9.8

 
2.4

 
2.4

 
—
%
A & A Acquisition, Inc. dba A & A International
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/15/2018

 
100.0

 
22.9

 
23.0

 
0.01
%
Enewhere Custom Canvas, LLC
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
2/15/2018

 
12.0

 
3.2

 
3.2

 
—
%

50
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
All American Printing
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
10/26/2032

 
69.8

 
38.3

 
39.8

 
0.02
%
Seo's Paradise Cleaners, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2018

 
9.8

 
1.6

 
1.6

 
—
%
Margab, Inc. dba Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/28/2017

 
44.0

 
9.7

 
9.8

 
—
%
RCB Enterprises, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2017

 
21.2

 
5.8

 
5.8

 
—
%
Timothy S. Strange dba Strange's Mobile Apperance Reconditioning Service
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/17/2017

 
8.4

 
1.4

 
1.5

 
—
%
Parties By Pat, Inc. and Jose M. Martinez Jr.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/11/2017

 
93.1

 
20.2

 
20.3

 
0.01
%
Tammy's Bakery, Inc. dba Tammy's Bakery
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/10/2017

 
71.8

 
16.4

 
16.5

 
0.01
%
Maria C. Sathre and David N. Sathre dba Black Forest Liquor Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/28/2017

 
18.6

 
3.9

 
3.9

 
—
%
MJ Mortgage & Tax Services, Inc.
 
Credit Intermediation and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/14/2017

 
6.9

 
1.3

 
1.3

 
—
%
Kings Laundry,LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/30/2017

 
64.5

 
13.3

 
13.3

 
0.01
%
Quality Engraving Services Inc. and Ian M. Schnaitman
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
10/17/2017

 
15.0

 
2.8

 
2.9

 
—
%
Flourishing Fruits, LLC dba Edible Arrangements
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/29/2017

 
21.1

 
2.0

 
2.0

 
—
%
Louis B. Smith dba LAQ Funeral Coach
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/15/2017

 
12.6

 
2.4

 
2.4

 
—
%
Flint Batteries LLC dba Batteries Plus of Flint
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
8/29/2017

 
9.0

 
1.3

 
1.3

 
—
%
1911 East Main Street Holdings, Corp
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2032

 
15.8

 
12.7

 
13.2

 
0.01
%
Metano IBC Services, Inc. and Stone Brook Leasing, LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
8/17/2017

 
315.0

 
49.3

 
49.5

 
0.02
%
Mala Iyer, MD dba Child and Family Wellness Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/11/2017

 
50.0

 
9.5

 
9.5

 
—
%
South Dade Restoration Corp. dba Servpro of Kendall/Pinecrest
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/10/2016

 
61.8

 
2.4

 
2.4

 
—
%
Twietmeyer Dentistry PA
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2017

 
148.9

 
24.3

 
24.4

 
0.01
%
Water Works Laundromat, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.25%
 
9/7/2027

 
267.3

 
189.4

 
189.9

 
0.09
%

51
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
L.C.N. Investments, L.L.C. dba Max Muscle Sports Nutrition
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
5/27/2017

 
12.8

 
1.9

 
1.9

 
—
%
Dave Kris, and MDK Ram Corp.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/5/2026

 
221.0

 
34.4

 
35.3

 
0.02
%
Saul A. Ramirez and Norma L. Trujillo
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/31/2017

 
6.0

 
0.7

 
0.7

 
—
%
No Thirst Software LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/26/2017

 
6.8

 
0.7

 
0.8

 
—
%
Zeroln Media LLC,
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
4/25/2017

 
7.5

 
1.1

 
1.1

 
—
%
CCIPTA, LLC
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
1/17/2017

 
47.0

 
1.2

 
1.2

 
—
%
Gill Express Inc. dba American Eagle Truck Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/5/2027

 
286.9

 
197.2

 
202.7

 
0.10
%
Kyoshi Enterprises, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/29/2016

 
22.5

 
2.4

 
2.4

 
—
%
Spain Street LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/29/2017

 
63.0

 
2.3

 
2.3

 
—
%
Nora A. Palma and Julio O Villcas
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/27/2017

 
56.3

 
1.0

 
1.0

 
—
%
Jojan, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.25%
 
12/18/2031

 
204.8

 
39.0

 
39.1

 
0.02
%
Contractors Pumping Service, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/3/2016

 
9.9

 
0.3

 
0.3

 
—
%
Smooth Grounds, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
7.75%
 
10/11/2016

 
64.5

 
32.6

 
32.7

 
0.02
%
Nelson Financial Services, LLC
 
Scenic and Sightseeing Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/2/2016

 
57.0

 
0.9

 
0.9

 
—
%
Flint Batteries, LLC
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
7/21/2016

 
46.9

 
1.0

 
1.0

 
—
%
Tesserah Tile Design, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2016

 
7.1

 
0.2

 
0.2

 
—
%
It's A Buffalo
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/26/2016

 
219.8

 
2.8

 
2.8

 
—
%
Pro Levin Yoga, Incorporated
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/12/2016

 
16.4

 
0.4

 
0.4

 
—
%
Fran-Car Corporation dba Horizon Landscape Management
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/3/2028

 
407.8

 
167.9

 
173.0

 
0.08
%

52
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Head To Toe Personalized Pampering, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/27/2031

 
52.0

 
9.3

 
9.5

 
—
%
Maxwell Place, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
6%
 
12/31/2018

 
1,076.8

 
786.3

 
792.6

 
0.39
%
Christopher F. Bohon & Pamela D. Bohon
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/28/2026

 
14.2

 
3.4

 
3.5

 
—
%
Shree Om Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/2/2030

 
333.3

 
65.2

 
67.5

 
0.03
%
Pedzik's Pets, LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
3/31/2030

 
53.5

 
9.3

 
9.6

 
—
%
Nancy Carapelluci & A & M Seasonal Corner Inc.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/1/2025

 
106.9

 
15.7

 
16.1

 
0.01
%
Moonlight Multi Media Production, Inc.
 
Other Information Services
 
Term Loan
 
5.3%
 
2/1/2025

 
19.7

 
3.8

 
3.8

 
—
%
McCallister Venture Group, LLC and Maw's Vittles, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/30/2029

 
75.0

 
12.0

 
12.4

 
0.01
%
Computer Renaissance dba Dante IT Services, Inc.
 
Electronics and Appliance Stores
 
Term Loan
 
Prime plus 3.75%
 
3/1/2018

 
100.0

 
2.4

 
2.5

 
—
%
Chong Hun Im dba Kim's Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.5%
 
2/27/2024

 
80.0

 
10.2

 
10.3

 
0.01
%
West Experience,Inc/West Mountain Equipment Rental,Inc/Ski West Lodge
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
6/5/2026

 
1,333.0

 
885.1

 
908.5

 
0.45
%
Center-Mark Car Wash, Ltd
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/18/2024

 
221.3

 
30.0

 
30.7

 
0.02
%
Shuttle Car Wash, Inc. dba Shuttle Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.25%
 
11/10/2028

 
109.8

 
17.9

 
18.0

 
0.01
%
Min Hui Lin
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2028

 
134.3

 
18.2

 
18.8

 
0.01
%
Delta Partners, LLC dba Delta Carwash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.5%
 
4/5/2029

 
280.9

 
44.3

 
45.1

 
0.02
%
Oz B. Zamir dba Zamir Marble & Granite
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.5%
 
8/6/2028

 
54.0

 
8.6

 
8.8

 
—
%
B & J Manufacturing Corporation and Benson Realty Trust
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2%
 
3/30/2021

 
250.0

 
21.7

 
21.5

 
0.01
%
RAB Services, Inc. & Professional Floor Installations
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.5%
 
1/31/2023

 
62.5

 
7.7

 
7.8

 
—
%
Taste of Inverness, Inc. dba China Garden
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2%
 
6/29/2025

 
73.8

 
9.4

 
9.3

 
—
%
Ralph Werner dba Werner Transmissions
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/29/2021

 
26.6

 
2.6

 
2.6

 
—
%
M. Krishna, Inc. dba Super 8 Motel
 
Accommodation
 
Term Loan
 
Prime plus 2%
 
3/20/2025

 
250.0

 
10.1

 
10.0

 
—
%

53
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
OrthoQuest, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2%
 
3/12/2022

 
56.8

 
4.9

 
4.9

 
—
%
CPN Motel, L.L.C. dba American Motor Lodge
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
4/30/2024

 
379.0

 
33.2

 
33.3

 
0.02
%
Track Side Collision & Tire, Inc.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025

 
44.8

 
5.2

 
5.3

 
—
%
Duttakrupa, LLC dba Birmingham Motor Court
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/8/2023

 
98.8

 
13.3

 
13.3

 
0.01
%
Deesha Corporation, Inc. dba Best Inn & Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
2/14/2025

 
250.0

 
29.4

 
28.8

 
0.01
%
Maruti, Inc
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
11/25/2024

 
220.0

 
27.3

 
27.3

 
0.01
%
Willington Hills Equestrian Center LLC
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
10/19/2022

 
85.0

 
13.1

 
13.4

 
0.01
%
LABH, Inc. t/a Ramada Ltd.
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/27/2024

 
555.0

 
43.9

 
44.0

 
0.02
%
Randall D. & Patricia D. Casaburi dba Pat's Pizzazz
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/13/2023

 
68.8

 
7.7

 
7.8

 
—
%
Gain Laxmi, Inc. dba Super 8 Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
5/31/2023

 
202.5

 
21.9

 
21.9

 
0.01
%
Naseeb Corporation
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
3/31/2024

 
402.5

 
32.3

 
32.3

 
0.02
%
Stillwell Ave Prep School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/14/2023

 
72.0

 
7.0

 
6.9

 
—
%
Karis, Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2%
 
12/22/2023

 
148.8

 
14.6

 
14.5

 
0.01
%
Five Corners, Ltd.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
85.0

 
5.8

 
5.8

 
—
%
Alyssa Corp dba Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/30/2023

 
350.0

 
43.7

 
43.7

 
0.02
%
Bhailal Patel dba New Falls Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
100.0

 
4.3

 
4.4

 
—
%
Pegasus Automotive, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/23/2022

 
112.5

 
12.1

 
12.3

 
0.01
%
Delyannis Iron Works
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
12/8/2022

 
16.0

 
1.3

 
1.3

 
—
%
P. Agrino, Inc. dba Andover Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/18/2021

 
150.0

 
11.3

 
11.5

 
0.01
%
Golden Elevator Co., Inc.
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
1/31/2022

 
50.0

 
1.4

 
1.4

 
—
%

54
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
RJS Service Corporation
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
8/20/2021

 
79.0

 
7.0

 
7.1

 
—
%
Chez Rurene Bakery
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/20/2017

 
150.0

 
25.1

 
25.1

 
0.01
%
Total Performing SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
190,398.2

 
$
164,417.6

 
$
160,069.9

 
78.56
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Performing SBA Unguaranteed Investments (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*214 North Franklin, LLC and Winter Ventures, Inc.
 
Nonstore Retailers
 
Term Loan
 
6%
 
11/29/2037

 
133.4

 
133.5

 
92.9

 
0.05
%
*A + Quality Home Health Care, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
8/1/2016

 
1.3

 
1.3

 
1.2

 
—
%
Almeria Marketing 1, Inc.
 
Personal and Laundry Services
 
Term Loan
 
7.75%
 
10/15/2015

 
4.6

 
4.6

 
4.4

 
—
%
*AUM Estates, LLC and Sculpted Figures Plastic Surgery Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
3/14/2038

 
305.3

 
305.7

 
110.2

 
0.05
%
Auto Sales, Inc.
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6%
 
8/17/2023

 
3.9

 
3.9

 
3.4

 
—
%
*AWA Fabrication & Construction, L.L.C.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
4/30/2025

 
34.7

 
34.8

 
17.6

 
0.01
%
*B&B Fitness and Barbell, Inc. dba Elevations Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/22/2035

 
217.8

 
218.1

 
205.0

 
0.10
%
*Baker Sales, Inc. d/b/a Baker Sales, Inc.
 
Nonstore Retailers
 
Term Loan
 
6%
 
3/29/2036

 
181.5

 
182.0

 
115.6

 
0.06
%
*Barnum Printing & Publishing, Co.
 
Printing and Related Support Activities
 
Term Loan
 
6%
 
7/29/2015

 
7.3

 
7.3

 
6.6

 
—
%
*BCD Enterprises, LLC dba Progressive Tool and Nutmeg Tool
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
6/22/2026

 
290.3

 
290.9

 
20.0

 
0.01
%
Bwms Management, LLC
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
7/7/2027

 
73.4

 
73.6

 
63.8

 
0.03
%
Capstone Pediatrics PLLC and Capstone Healthcare Consulting LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/15/2025

 
660.4

 
662.1

 
658.9

 
0.32
%
*Custom Software, Inc. a Colorado Corporation dba M-33 Access
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/17/2021

 
288.5

 
289.2

 
271.8

 
0.13
%
*Custom Software, Inc. a Colorado Corporation dba M-33 Access
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
4/30/2022

 
94.1

 
94.3

 
88.6

 
0.04
%
*Danjam Enterprises, LLC dba Ariel Dental Care
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2035

 
180.5

 
180.7

 
169.8

 
0.08
%
*Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2023

 
64.7

 
64.8

 
12.4

 
0.01
%
*Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2021

 
2.3

 
2.3

 
—

 
—
%

55
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
3/23/2037

 
687.4

 
689.1

 
568.4

 
0.28
%
DC Realty, LLC dba FOGO Data Centers
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2022

 
196.4

 
196.8

 
175.6

 
0.09
%
*Dill Street Bar and Grill Inc and WO Entertainment, Inc
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
9/27/2027

 
104.4

 
104.6

 
22.4

 
0.01
%
Dixie Transport, Inc. & Johnny D. Brown & Jimmy Brown & Maudain Brown
 
Support Activities for Transportation
 
Term Loan
 
5.25%
 
12/28/2035

 
140.0

 
140.2

 
81.4

 
0.04
%
*DocMagnet Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
1/23/2025

 
13.9

 
13.9

 
4.7

 
—
%
*Dr. Francis E. Anders, DVM
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
8/9/2015

 
1.6

 
1.6

 
1.5

 
—
%
E.W. Ventures, Inc. dba Swift Cleaners & Laundry
 
Personal and Laundry Services
 
Term Loan
 
0%
 
4/18/2017

 
90.6

 
90.9

 
7.9

 
—
%
*Elite Treats Enterprises, Inc. dba Rochelle Dairy Queen
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
1/24/2032

 
49.0

 
49.0

 
7.1

 
—
%
*Europlast Ltd
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/26/2022

 
324.6

 
325.4

 
50.3

 
0.02
%
*Europlast Ltd
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
6%
 
5/31/2023

 
155.2

 
155.6

 
—

 
—
%
Event Mecca LLC
 
Other Information Services
 
Term Loan
 
6%
 
4/10/2023

 
12.9

 
12.9

 
8.9

 
—
%
*EZ Towing, Inc.
 
Support Activities for Transportation
 
Term Loan
 
6%
 
1/31/2023

 
123.2

 
123.5

 
74.7

 
0.04
%
Goetzke Chiropractic, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
10/25/2017

 
2.9

 
2.9

 
2.6

 
—
%
Gotta Dance Studio, Inc. dba Gotta Dance Studio Academy of Performing
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/16/2016

 
3.7

 
3.7

 
3.6

 
—
%
*Grand Manor Realty, Inc. & Kevin LaRoe
 
Real Estate
 
Term Loan
 
6%
 
2/20/2023

 
18.9

 
19.0

 
18.2

 
0.01
%
Groundworks Unlimited LLC
 
Specialty Trade Contractors
Term Loan
 
6%
 
12/17/2023

 
84.0

 
84.1

 
74.4

 
0.04
%
Guzman Group,LLC
 
Rental and Leasing Services
 
Term Loan
 
6%
 
1/30/2016

 
194.7

 
195.2

 
190.4

 
0.09
%
*Hamer Road Auto Salvage, LLC and Scott T. Cook and Nikki J. Cook
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
8/8/2039

 
185.7

 
186.2

 
178.6

 
0.09
%
*Harrelson Materials Management,Inc
 
Waste Management and Remediation Services
 
Term Loan
 
6%
 
6/24/2021

 
464.5

 
465.7

 
36.4

 
0.02
%
*Home Again Restaurant LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
58.7

 
58.8

 
56.4

 
0.03
%

56
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*Hybrid Racing LLC.
 
Transportation Equipment Manufacturing
Term Loan
 
6%
 
5/15/2023

 
73.4

 
73.6

 
5.5

 
—
%
*Integrity Sports Group, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
6%
 
3/6/2018

 
14.7

 
14.7

 
13.0

 
0.01
%
Island Nautical Enterprises, Inc. (OC) and Ingwall Holdings, LLC (EPC)
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/14/2038

 
315.1

 
315.8

 
257.2

 
0.13
%
*J Olson Enterprises LLC and Olson Trucking Direct, Inc.
 
Truck Transportation
 
Term Loan
 
6%
 
6/28/2025

 
649.9

 
651.5

 
267.3

 
0.13
%
*Jenny's Wunderland, Inc.
 
Social Assistance
Term Loan
 
6%
 
6/29/2036

 
149.7

 
150.1

 
76.4

 
0.04
%
*Karykion, Corporation dba Karykion Corporation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2022

 
144.4

 
144.8

 
136.1

 
0.07
%
*Krishna of Orangeburg, Inc.
 
Accommodation
 
Term Loan
 
6%
 
2/20/2032

 
10.3

 
10.3

 
5.7

 
—
%
*Las Torres Development LLC dba Houston Event Centers
 
Real Estate
 
Term Loan
 
6%
 
8/27/2028

 
51.0

 
51.0

 
8.1

 
—
%
*Lucil Chhor dba Baja Fresh #159
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
12/28/2022

 
30.0

 
30.0

 
15.6

 
0.01
%
*Milliken and Milliken, Inc. dba Milliken Wholesale Distribution
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
6%
 
6/10/2036

 
152.8

 
152.9

 
115.8

 
0.06
%
*Mojo Brands Media, LLC
 
Broadcasting (except Internet)
 
Term Loan
 
6%
 
8/28/2023

 
731.9

 
733.7

 
366.8

 
0.18
%
*Morris Glass and Construction
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
3/7/2021

 
44.8

 
44.8

 
3.0

 
—
%
*New Paltz Dental Care, PLLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
97.3

 
97.5

 
—

 
—
%
*Opes Campitor Corporation dba Frux Documents
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/20/2025

 
15.9

 
15.9

 
14.9

 
0.01
%
*Our Two Daughters L.L.C. dba Washington's Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
6/18/2026

 
169.8

 
170.3

 
22.8

 
0.01
%
*E & I Holdings, LP & PA Farm Products, LLC
 
Food Manufacturing
 
Term Loan
 
6%
 
4/30/2030

 
1,234.0

 
1,237.1

 
480.1

 
0.24
%
*Parth Dev, Ltd dba Amerihost Inn Hotel-Kenton
 
Accommodation
 
Term Loan
 
5.25%
 
10/3/2028

 
38.3

 
38.3

 
12.8

 
0.01
%
*Professional Systems, LLC and Professional Cleaning
 
Administrative and Support Services
 
Term Loan
 
6%
 
7/30/2020

 
132.0

 
132.1

 
55.9

 
0.03
%
Pure Water Innovations, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
9/6/2016

 
0.1

 
0.1

 
0.2

 
—
%
Robin C. & Charles E. Taylor & Brigantine Aquatic Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
9/14/2023

 
24.0

 
24.0

 
21.2

 
0.01
%
*Route 130 SCPI Holdings LLC (EPC) Route 130 SCPI Operations LLC (OC)
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2039

 
537.4

 
538.8

 
485.8

 
0.24
%
*Sheikh M Tariq dba Selbyville Foodrite
 
Gasoline Stations
 
Term Loan
 
6%
 
3/13/2023

 
21.2

 
21.2

 
0.5

 
—
%

57
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NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Shivsakti, LLC dba Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/20/2032

 
72.2

 
72.3

 
60.3

 
0.03
%
*Signs of Fortune, LLC dba FastSigns
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.5%
 
4/3/2023

 
227.5

 
228.1

 
82.5

 
0.04
%
*STK Ventures Inc dba JP Dock Service & Supply
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
5/9/2037

 
31.6

 
31.6

 
6.8

 
—
%
Stokes Floor Covering Company Inc. and Robert E. Rainey, Jr.
 
Furniture and Home Furnishings Stores
 
Term Loan
 
6%
 
8/26/2024

 
109.0

 
109.1

 
89.4

 
0.04
%
*Stormwise South Florida dba Stormwise Shutters
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
11/7/2036

 
405.7

 
406.7

 
340.5

 
0.17
%
*Stormwise South Florida dba Stormwise Shutters
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
11/7/2036

 
200.2

 
200.7

 
—

 
—
%
*Summit Treatment Services Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/11/2025

 
21.8

 
21.8

 
—

 
—
%
*Summit Treatment Services, Inc. dba Summit Treatment Services
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/30/2037

 
129.3

 
129.6

 
112.9

 
0.06
%
*Sunmar, Inc. dba Creative Cooking
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/19/2035

 
47.1

 
47.2

 
44.3

 
0.02
%
*David M. Goens dba Superior Auto Paint & Body, Inc.
 
Repair and Maintenance
 
Term Loan
 
6%
 
8/26/2024

 
15.7

 
15.7

 
14.7

 
0.01
%
*Tequila Beaches, LLC dba Fresco Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
9/16/2021

 
15.8

 
15.8

 
11.8

 
0.01
%
The Alba Financial Group, Inc.
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
6%
 
1/10/2019

 
5.8

 
5.8

 
4.5

 
—
%
The Lucky Coyote, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
6%
 
5/8/2017

 
9.3

 
9.3

 
8.8

 
—
%
United Woodworking, Inc
 
Wood Product Manufacturing
 
Term Loan
 
6%
 
12/20/2022

 
12.1

 
12.1

 
10.4

 
0.01
%
Whirlwind Car Wash, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2%
 
4/9/2029

 
0.8

 
0.8

 
0.7

 
—
%
*Will Zac Management LLC dba Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/19/2024

 
46.0

 
46.1

 
43.3

 
0.02
%
Winter Ventures Inc and 214 N Franklin LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/29/2024

 
56.5

 
56.6

 
5.4

 
—
%
*Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall
 
Nonstore Retailers
 
Term Loan
 
6%
 
12/23/2024

 
149.1

 
149.3

 
81.4

 
0.04
%
*Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall
 
Nonstore Retailers
 
Term Loan
 
6%
 
4/3/2029

 
134.4

 
134.5

 
28.2

 
0.01
%
Total Non-Performing SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
11,784.2

 
$
11,809.8

 
$
6,716.3

 
3.30
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
202,182.4

 
$
176,227.4

 
$
166,786.2

 
81.85
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

58
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NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Performing SBA Guaranteed Investments (4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/23/2040

 
2,562.7

 
1,922.0

 
2,156.0

 
1.06
%
Doxa Deo Inc dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
228.0

 
171.0

 
194.2

 
0.10
%
Miles of Smiles Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/2/2026

 
220.6

 
165.5

 
185.4

 
0.09
%
Total SBA Guaranteed Performing Investments
 
 
 
 
 
 
 
 
 
$
3,011.3

 
$
2,258.5

 
$
2,535.6

 
1.24
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed and Guaranteed Investments
 
 
 
 
 
 
 
 
 
$
205,193.7

 
$
178,485.9

 
$
169,321.8

 
83.10
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Controlled Investments (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advanced Cyber Security Systems, LLC (6), (14)                                         
 
Data processing, hosting and related services.
 
50% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
 
 
 
 
Term Loan
 
3%
 
 December 2014
 
1,120.0

 
381.0

 
—

 
—
%
*Automated Merchant Services, Inc. (7), (14)
 
Data processing, hosting and related services.
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
—

 
—
%
CDS Business Services, Inc. (8)                                                                                         
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—%
 
—

 
—

 
4,428.0

 
825.0

 
0.40
%
 
 
 
 
Line of Credit
 
Prime plus 2.5%
 
August 2018
 
1,870.0

 
1,870.0

 
1,870.0

 
 
CrystalTech Web Hosting, Inc. (11)                                                                                         
 
Data processing, hosting and related services.
 
100% Common Stock
 
—%
 
—

 
—

 
8,764.0

 
21,413.9

 
10.51
%
Exponential Business Development Co. Inc. (14)                                                                               
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
—

 
—
%
*Fortress Data Management, LLC (14)                                                                                    
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
Newtek Insurance Agency, LLC (12), (14)                                                                           
 
Insurance Carriers and Related Activities
 
100% Membership Interests
 
—%
 
—

 
—

 
—

 
2,500.0

 
1.23
%
PMTWorks Payroll, LLC (9)                                                                                    
 
Data processing, hosting and related services.
 
80% Membership Interests
 
—%
 
—

 
—

 
700.1

 
1,020.0

 
0.50
%
 
 
 
 
Term Loan
 
10%-12%
 
Various maturities through September 2016
 
935.0

 
935.0

 
435.0

 
0.21
%

59
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NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2016 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Secure CyberGateway Services, LLC (10), (14)                                                                                                                     
 
Data processing, hosting and related services.
 
66.7% Membership Interests
 
—%
 
—

 
—

 
—

 
—

 
—
%
 
 
 
 
Term Loan
 
7%
 
 December 2016
 
2,400.0

 
900.0

 
898.3

 
0.44
%
Small Business Lending, LLC (12), (14)                                                                       
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
5,500.0

 
2.70
%
*Summit Systems and Designs, LLC (13), (14)                                                                     
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
Premier Payments LLC (11)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
16,503.0

 
17,491.0

 
8.58
%
Universal Processing Services of Wisconsin, LLC (11) (14)                                           
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
55,248.0

 
27.11
%
Total Controlled Investments
 
 
 
 
 
 
 
 
 
$
6,325.0

 
$
34,481.1

 
$
107,201.2

 
52.61
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-control/Non-affiliate Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Titanium Asset Management LLC
 
Administrative and Support Services
 
Term Loan
 
3%
 
July 2017
 
$
2,200.0

 
$
1,486.3

 
$
1,446.3

 
0.71
%
 
 
 
 
Warrants
 
—%
 
—

 
—

 
—

 
—

 
—
%
 
 
 
 
 
 
 
 
 
 
$
2,200.0

 
$
1,486.3

 
$
1,446.3

 
0.71
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments in Money Market Funds
 
 
 
 
 
 
 
 
 
$
—

 
$
35.0

 
$
35.0

 
0.02
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Investments
 
 
 
 
 
 
 
 
 
$
213,718.7

 
$
214,488.3

 
$
278,004.3

 
136.44
%
See accompanying notes to unaudited condensed consolidated financial statements.

* Denotes non-income producing security.
(1) Newtek values each unguaranteed portion of SBA 7(a) performing loans (“Loan”) using a discounted cash flow analysis which projects future cash flows and incorporates projections for Loan pre-payments and Loan defaults using historical portfolio data. The data predicts future prepayment and default probability on curves which are based on Loan age. The recovery assumption for each Loan is specific to the discounted valuation of the collateral supporting that Loan. Each Loan’s cash flow is discounted at a rate which approximates a market yield. The Loans were originated under the SBA 7(a) program and conform to the underwriting guidelines in effect at their time of origination. Newtek has been awarded Preferred Lender Program (“PLP”) status from the SBA. The portions of these Loans are not guaranteed by the SBA. Individual loan participations can be sold to institutions which have been granted an SBA 750 license. Loans can also be sold as a pool of loans in a security form to qualified investors.
(2) Prime Rate is equal to 3.25% as of March 31, 2016.
(3) Newtek values non-performing SBA 7(a) loans using a discounted cash flow analysis of the underlying collateral which supports the loan. Net recovery of collateral, (fair value less cost to liquidate) is applied to the discounted cash flow analysis based upon a time to liquidate estimate. Modified loans are valued based upon current payment streams and are re-amortized at the end of the modification period.

60
Table of Contents

(4) Newtek values guaranteed performing SBA 7(a) loans using the secondary SBA 7(a) market as a reference point. Newtek routinely sells performing SBA 7(a) loans into this secondary market. Guaranteed portions of SBA 7(a) loans partially funded as of the valuation date are valued using level two inputs as disclosed in Note 6.
(5) Controlled Investments are disclosed above as equity investments (except as otherwise noted) in those companies that are “Controlled Investments” of the Company as defined in the Investment Company Act of 1940. A company is deemed to be a “Controlled Investment” of Newtek Business Services Corp. if Newtek Business Services Corp. or its subsidiaries owns more than 25% of the voting securities of such company. See Note 4 in the accompanying notes to the consolidated financial statements for transactions during the three months ended March 31, 2016 with affiliates the Company is deemed to control.
(6) 50% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), 50% owned by non-affiliate. The term loan is past its original maturity date and currently in default. As such, the fair value of the investment is zero.
(7) 96.11% owned by Wilshire Partners, LLC (a subsidiary of Newtek Business Services Corp.), 3.89% owned by Newtek Business Services Corp.
(8) 18.35% owned by Wilshire New York Partners IV, LLC (a subsidiary of Newtek Business Services Corp.), 31.8% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.) and 49.85% owned by Wilshire Holdings 1, Inc. (a subsidiary of Newtek Business Services Corp.)
(9) 25% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.), 65% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), and 10% owned by non-affiliate.
(10) 66.7% owned by The Whitestone Group, LLC (a subsidiary of Newtek Business Services Corp.), 33.3% owned by non-affiliate.
(11) 100% owned by Newtek Business Services Holdco1, Inc. (a subsidiary of Newtek Business Services Corp.).
(12) 100% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.).
(13) 100% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.).
(14) Zero cost basis is reflected as the portfolio company was organized by the Company and incurred internal legal costs to organize the entity and immaterial external filing fees which were expensed when incurred.
(15) All of the Company's investments are in entities which are organized under the Laws of the United States and have a principal place of business in the United States.
(16) Under the Investment Company Act of 1940, as amended, the Company may not acquire any non-qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. At March 31, 2016, 5.8% of total assets are non-qualifying assets.




61
Table of Contents


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Performing SBA Unguaranteed Investments (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bright Dialysis LLC and Ft Pierce Kidney Care LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2025

 
$
1,250.0

 
$
1,250.0

 
$
1,056.6

 
0.52
%
Return to Excellence, Inc. dba The Waynesville Inn Golf & Spa
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/10/2039

 
1,250.0

 
1,233.3

 
1,252.8

 
0.61
%
Kingseal LLC dba Desoto Health and Rehab Center
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
2/26/2040

 
1,250.0

 
1,233.3

 
1,253.1

 
0.61
%
The Camera House Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2025

 
1,250.0

 
1,226.7

 
1,116.1

 
0.55
%
KW Zion, LLC and Key West Gallery Inc
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/12/2039

 
1,250.0

 
1,223.7

 
1,207.8

 
0.59
%
Ohs Auto Body, Inc. dba Ohs Body Shop
 
Repair and Maintenance
 
Term Loan
 
7.22%
 
6/25/2040

 
1,207.5

 
1,205.1

 
1,151.0

 
0.56
%
Seven Peaks Mining Inc and Cornerstone Industrial Minerals Corporation
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
11/18/2038

 
1,250.0

 
1,204.1

 
1,168.9

 
0.57
%
Grey Light Realty, LLC (EPC) NH Precision Metal Fabricators Inc (OC)
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/21/2039

 
1,226.0

 
1,198.3

 
1,170.7

 
0.57
%
Bowlerama Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2039

 
1,202.5

 
1,184.5

 
1,202.6

 
0.59
%
Foresite Realty Partners LLC and Foresite Real Estate Holdings LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
1,238.3

 
1,176.0

 
977.4

 
0.48
%
The Jewelers Inc. dba The Jewelers of Las Vegas
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/19/2024

 
1,250.0

 
1,165.5

 
978.9

 
0.48
%
Werthan Packaging Inc.
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/14/2025

 
1,162.5

 
1,162.5

 
1,078.2

 
0.53
%
Shellhorn and Hill Inc dba Total Fleet Service
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
1,040.3

 
1,028.0

 
945.0

 
0.46
%
G.W. Fitness Centers, LLC and J.G. Fitness LLC and NP Gym LLC and ANA
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040

 
1,025.0

 
1,025.0

 
1,044.6

 
0.51
%
Shweiki Media, Inc. dba Study Breaks Magazine
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/22/2027

 
1,178.8

 
976.2

 
991.8

 
0.49
%
Tortilla King, Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2029

 
1,033.1

 
975.2

 
946.5

 
0.46
%
Yachting Solutions LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
962.5

 
959.7

 
912.7

 
0.45
%
R. A. Johnson, Inc. dba Rick Johnson Auto & Tire
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/29/2039

 
943.8

 
918.3

 
944.9

 
0.46
%

62
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NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Twinsburg Hospitality Group LLC dba Comfort Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
945.0

 
910.1

 
907.5

 
0.44
%
Calhoun Satellite Communications Inc and Transmission Solutions Group
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
952.8

 
898.1

 
782.6

 
0.38
%
Nirvi Enterprises LLC dba Howard Johnson / Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/17/2039

 
920.3

 
896.6

 
922.6

 
0.45
%
West Experience,Inc/West Mountain Equipment Rental,Inc/Ski West Lodge
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
6/5/2026

 
1,333.0

 
885.1

 
909.0

 
0.45
%
P and D Enterprises Ind dba Wallaby's Liquor Warehouse
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
8/28/2040

 
888.9

 
885.0

 
865.8

 
0.42
%
Nutmeg North Associates LLC (OC) Steeltech Building Products Inc
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/31/2038

 
897.8

 
883.1

 
876.8

 
0.43
%
Premier Athletic Center of Ohio Inc. and Gates Investments and Wade Ga
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2028

 
882.0

 
882.0

 
885.3

 
0.43
%
Havana Central (NY) 5, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/29/2022

 
1,166.8

 
878.5

 
887.2

 
0.44
%
New York Home Health Care Equipment, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
875.0

 
875.0

 
847.9

 
0.42
%
Elite Structures Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/12/2038

 
932.8

 
873.5

 
907.2

 
0.44
%
Delta Aggregate LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
8/28/2039

 
911.3

 
871.5

 
885.0

 
0.43
%
Honeyspot Investors LLP and Pace Motor Lines Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
875.3

 
854.5

 
876.2

 
0.43
%
2161 Highway 6 Trail, LLC, (EPC) R. H. Hummer JR., Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2026

 
1,250.0

 
842.8

 
858.4

 
0.42
%
Key Pix Productions Inc. dba Air Bud Entertainment
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
11/18/2040

 
839.8

 
839.8

 
855.8

 
0.42
%
Hotels of North Georgia LLC dba Comfort Inn and Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/17/2039

 
837.5

 
816.0

 
838.7

 
0.41
%
Shepher Distr's and Sales Corp and The Lederer Industries Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2023

 
1,050.0

 
801.8

 
805.3

 
0.39
%
Maxwell Place, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
6%
 
2/28/2016

 
1,076.8

 
801.3

 
802.4

 
0.39
%
Carpet Exchange of North Texas Inc and Clyde E. Cumbie Jr
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/25/2040

 
810.0

 
800.4

 
804.9

 
0.39
%
Sovereign Communications LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/7/2024

 
907.8

 
784.1

 
722.7

 
0.35
%

63
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NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
CBlakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial Services
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/18/2028

 
875.0

 
780.5

 
797.9

 
0.39
%
T and B Boots Inc dba Takkens
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
807.8

 
767.6

 
720.3

 
0.35
%
Recycling Consultants, Inc. and Prairie State Salvage and Recycling Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2027

 
767.5

 
760.1

 
680.7

 
0.33
%
Advance Case Parts RE Holdings LLC and Advance Case Parts Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040

 
758.3

 
751.5

 
695.2

 
0.34
%
D.C. Group, Inc. dba Unique Setting of New York
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/21/2025

 
750.0

 
750.0

 
665.7

 
0.33
%
Gabrielle Realty, LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038

 
757.6

 
726.6

 
724.4

 
0.36
%
Keys Phase One LLC dba The Grand Guesthouse
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
736.3

 
720.8

 
712.2

 
0.35
%
Top Cat Ready Mix, LLC, Ples Investments LLC, and Pappy's Sand and
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/28/2025

 
711.3

 
707.8

 
618.5

 
0.30
%
Willow Springs Golf Course, Inc. & JC Lindsey Family Limited Partners
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/29/2037

 
755.4

 
706.5

 
737.4

 
0.36
%
J&D Resources, LLC dba Aqua Science
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024

 
767.9

 
701.8

 
596.5

 
0.29
%
Almost Home Property LLC and Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/7/2039

 
715.8

 
700.7

 
700.1

 
0.34
%
Contract Packaging Services Inc dba Superior Pack Group
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/21/2023

 
851.8

 
694.6

 
686.6

 
0.34
%
Big Apple Entertainment Partners, LLC dba Ripley's Believe it or Not
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2021

 
1,070.0

 
692.9

 
689.2

 
0.34
%
ATI Jet, Inc.
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/28/2026

 
852.8

 
688.4

 
700.6

 
0.34
%
Scent-Sation Inc
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
9/18/2040

 
687.5

 
685.5

 
693.5

 
0.34
%
Empower Autism Academy
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/4/2040

 
685.0

 
683.0

 
695.9

 
0.34
%
C & G Engines Corp.
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2021

 
1,041.5

 
675.1

 
676.2

 
0.33
%
Accent Tag and Label Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040

 
665.8

 
665.8

 
652.7

 
0.32
%
IIoka Inc dba New Cloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025

 
665.0

 
658.9

 
554.7

 
0.27
%

64
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Fieldstone Quick Stop LLC(OC) Barber Investments LLC (EPC) Thadius M B
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
676.3

 
658.3

 
646.2

 
0.32
%
Carl R. Bieber, Inc. dba Bieber Tourways/Bieber Transportation/Bieber
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2027

 
712.5

 
655.6

 
662.7

 
0.32
%
Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/31/2024

 
1,250.0

 
652.9

 
656.5

 
0.32
%
LA Diner Inc dba Loukas L A Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/28/2037

 
677.5

 
641.2

 
666.2

 
0.33
%
Meridian Hotels LLC dba Best Western Jonesboro
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
10/29/2038

 
664.5

 
637.5

 
654.4

 
0.32
%
St Lawrence Hotel Corp and Oheka Catering Inc dba Quality Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/24/2040

 
625.0

 
623.2

 
610.9

 
0.30
%
iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
629.8

 
613.6

 
597.3

 
0.29
%
Colts V LLC and Nowatzke Service Center, Inc dba Nowatzke Truck & Trai
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
601.8

 
589.1

 
579.5

 
0.28
%
Northeast Arkansas Pizza, Inc. dba Domino’s Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/23/2025

 
608.0

 
589.1

 
493.4

 
0.24
%
Indy East Smiles Youth Dentistry LLC dba Prime Smile East
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2024

 
630.2

 
574.0

 
479.7

 
0.24
%
Master CNC Inc & Master Properties LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
596.6

 
573.6

 
562.8

 
0.28
%
CLU Amboy, LLC (EPC) and Amboy Group, LLC (OC) dba Tommy Moloney's
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/27/2023

 
656.3

 
565.8

 
568.3

 
0.28
%
IlOKA Inc dba Microtech Tel and NewCloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
687.5

 
565.5

 
534.2

 
0.26
%
ACI Northwest Inc.
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
906.3

 
560.8

 
548.7

 
0.27
%
Bisson Transportation, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/7/2037

 
588.1

 
557.0

 
577.2

 
0.28
%
Richards Plumbing and Heating Co., Inc. dba Richards Mechanical
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/23/2040

 
551.8

 
547.7

 
556.6

 
0.27
%
B and J Catering Inc dba Culinary Solutions
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/27/2040

 
547.5

 
547.5

 
523.5

 
0.26
%
CML RW Security, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
3/20/2025

 
575.0

 
546.1

 
453.9

 
0.22
%
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/23/2040

 
1,189.5

 
546.1

 
556.5

 
0.27
%

65
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Route 130 SCPI Holdings LLC (EPC) Route 130 SCPI Operations LLC (OC)
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2039

 
538.8

 
536.3

 
505.9

 
0.25
%
PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/19/2038

 
555.3

 
535.7

 
534.4

 
0.26
%
KRN Logistics, LLC,Newsome Trucking, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
543.5

 
526.6

 
473.2

 
0.23
%
PowerWash Plus, Inc. and CJR, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/30/2038

 
550.0

 
523.8

 
537.3

 
0.26
%
The Lodin Group LLC and Lodin Health Imaging Inc dba Highlands Breast
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
530.3

 
521.6

 
480.7

 
0.24
%
The Grasso Companies LLC and Grasso Pavement Maintenance LLC Veranda
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/28/2025

 
518.8

 
512.4

 
503.8

 
0.25
%
SBR Technologies d/b/a Color Graphics
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/31/2021

 
806.2

 
512.0

 
517.0

 
0.25
%
American Diagnostic Imaging, Inc. dba St. Joseph Imaging Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2038

 
537.5

 
510.2

 
522.8

 
0.26
%
The Woods at Bear Creek LLC and Bear Creek Entertainment LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2039

 
513.3

 
503.9

 
511.9

 
0.25
%
LC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040

 
502.5

 
502.5

 
497.9

 
0.24
%
Thermoplastic Services Inc and Paragon Plastic Sheet, Inc
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
500.0

 
491.8

 
499.6

 
0.24
%
Polpo Realty LLC (EPC) & Polpo Restaurant LLC (OC) dba Polpo Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/27/2037

 
517.5

 
489.4

 
508.7

 
0.25
%
740 Barry Street Realty LLC and Wild Edibles Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/10/2040

 
492.5

 
485.9

 
493.7

 
0.24
%
200 North 8th Street Associates LLC and Enchanted Acres Farm
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/4/2028

 
494.6

 
484.0

 
484.5

 
0.24
%
636 South Center Holdings, LLC and New Mansfield Brass and Aluminum Co
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039

 
497.5

 
482.3

 
496.1

 
0.24
%
Macho LLC (EPC) Madelaine Chocolate Novelties Inc(OC) dba The Madelai
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/31/2037

 
500.0

 
474.5

 
493.2

 
0.24
%
401 JJS Corporation and G. Randazzo Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
473.5

 
469.9

 
464.8

 
0.23
%
Heartland American Properties LLC and Skaggs RV Outlet LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/31/2039

 
479.0

 
469.7

 
461.5

 
0.23
%
Nikobella Properties LLC and JPO Inc dba Village Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/25/2039

 
476.3

 
464.0

 
468.6

 
0.23
%
Firm Foundations Inc. David S Gaitan Jr and Christopher K Daigle
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/3/2023

 
545.8

 
463.8

 
442.9

 
0.22
%

66
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Wired LLC and Moulison North Corporation
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
500.0

 
463.4

 
441.2

 
0.22
%
J. Kinderman & Sons, Inc. dba Brite Star Manufacturing Company
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/22/2036

 
495.0

 
458.3

 
478.0

 
0.23
%
Capital Scrap Metal, LLC and Powerline Investment, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
500.0

 
452.8

 
470.8

 
0.23
%
River Club Golf Course Inc dba The River Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2038

 
475.2

 
450.2

 
463.2

 
0.23
%
Eastside Soccer Dome, Inc .
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
463.8

 
444.8

 
457.3

 
0.22
%
Amboy Group, LLC dba Tommy's Moloney's
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025

 
454.0

 
443.0

 
441.4

 
0.22
%
6 Price Avenue, LLC and Pauley Tree & Lawn Care, Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/24/2039

 
452.5

 
443.0

 
402.5

 
0.20
%
Sandlot Ventures LLC and Sandbox Ventures LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
442.5

 
441.2

 
420.4

 
0.21
%
ENI Inc, Event Networks Inc, ENI Worldwide LLC and Spot Shop Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/25/2024

 
500.0

 
438.7

 
400.8

 
0.20
%
Hodges Properties LLC and Echelon Enterprises Inc dba Treads Bicycle
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
449.0

 
435.3

 
441.4

 
0.22
%
SDA Holdings LLC and Les Cheveux Salon Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/15/2040

 
428.8

 
428.8

 
413.8

 
0.20
%
Flooring Liquidators Inc and Flooring Liquidators of Mt Kisco LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/17/2025

 
437.5

 
423.9

 
411.6

 
0.20
%
Mid-South Lumber Co. of Northwest Florida, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040

 
428.8

 
423.7

 
389.5

 
0.19
%
S&P Holdings of Daytona LLC (EPC) S&P Corporation of Daytona Beach
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
433.5

 
421.8

 
428.3

 
0.21
%
Tavern Properties LLC and Wildwood Tavern LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2039

 
425.0

 
418.8

 
411.2

 
0.20
%
Sherill Universal City dba Golden Corral
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2038

 
440.5

 
418.3

 
429.6

 
0.21
%
Wilban LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/28/2039

 
427.5

 
415.6

 
419.8

 
0.21
%
Sound Manufacturing, Inc. and Monster Power Equipment Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/15/2023

 
523.0

 
411.4

 
408.2

 
0.20
%
J&K Fitness, LLC dba Physiques Womens Fitness Center
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/8/2036

 
449.3

 
411.3

 
429.0

 
0.21
%

67
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Import Car Connection Inc dba Car Connection
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/16/2040

 
407.5

 
406.3

 
407.6

 
0.20
%
R & R Boyal LLC dba Cap N Cat Clam Bar and Little Ease Tavern
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039

 
417.5

 
404.3

 
404.7

 
0.20
%
920 CHR Realty LLC (EPC) V. Garofalo Carting Inc (OC)
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
12/10/2038

 
418.1

 
403.4

 
414.8

 
0.20
%
Utek Corporation dba Arcade Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/22/2039

 
405.5

 
402.1

 
404.7

 
0.20
%
RIM Investments LLC and RIM Architects LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040

 
399.0

 
397.8

 
384.7

 
0.19
%
Zane Filippone Co Inc dba Culligan Water Conditioning
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/12/2022

 
558.2

 
397.1

 
400.0

 
0.20
%
SE Properties 39 Old Route 146, LLC (EPC) SmartEarly Clifton Park LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/14/2039

 
408.0

 
396.7

 
407.3

 
0.20
%
John Duffy Fuel Co., Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/28/2022

 
513.8

 
393.9

 
398.2

 
0.20
%
Bisson Moving & Storage Company Bisson Transportation Inc and BTG Real Estate
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/7/2022

 
528.8

 
391.4

 
395.0

 
0.19
%
TAK Properties LLC and Kinderland Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/18/2038

 
405.0

 
390.8

 
391.2

 
0.19
%
Polymer Sciences, Inc. dba Polymer Sciences, Inc.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/28/2036

 
422.6

 
387.2

 
403.7

 
0.20
%
Kup's Auto Spa Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/15/2038

 
396.7

 
377.2

 
386.0

 
0.19
%
Jihan Inc dba ARCO AM/PM and Diana Inc dba Diana's Recycling
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040

 
380.0

 
377.1

 
365.2

 
0.18
%
R.H. Hummer Jr., Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
375.0

 
375.0

 
355.3

 
0.17
%
Tariq, LLC dba 76 Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/2/2040

 
375.0

 
375.0

 
372.0

 
0.18
%
Swalm Sreet LLC and New York Home Health Care Equipment LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2040

 
375.0

 
375.0

 
370.9

 
0.18
%
B&B Organics LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/22/2040

 
375.0

 
375.0

 
382.2

 
0.19
%
All American Games, LLC and Sportslink - The Game, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/10/2024

 
400.0

 
372.1

 
329.1

 
0.16
%
3Fmanagement LLC and ATC Fitness Cape Coral, LLC dba Around the Clock
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
1/24/2024

 
425.0

 
364.2

 
342.2

 
0.17
%

68
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
AIG Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/4/2040

 
363.8

 
362.7

 
340.6

 
0.17
%
The Berlerro Group, LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/12/2023

 
421.3

 
360.6

 
335.9

 
0.16
%
Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
8/31/2021

 
575.0

 
358.1

 
360.2

 
0.18
%
Fair Deal Food Mart Inc dba Neighbors Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/3/2037

 
381.3

 
354.9

 
370.4

 
0.18
%
iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
379.1

 
353.5

 
317.9

 
0.16
%
Murrayville Donuts, Inc dba Dunkin' Donuts
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/15/2040

 
344.5

 
344.5

 
329.3

 
0.16
%
Michael J. Speeney & Joyce Speeney and R2 Tape, Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2037

 
367.5

 
344.4

 
357.7

 
0.18
%
Basista Family Limited Partnership and UPE, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/14/2040

 
342.5

 
342.5

 
334.5

 
0.16
%
Johnson Carwash LLC and Johnson Petroleum LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/14/2040

 
340.0

 
340.0

 
345.1

 
0.17
%
Ezzo Properties, LLC and Great Lakes Cleaning, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2027

 
389.6

 
338.3

 
335.0

 
0.16
%
Suncoast Aluminum Furniture, Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/17/2037

 
360.0

 
337.5

 
350.3

 
0.17
%
Mirage Plastering Inc and Mpire LLC and Mpire II LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040

 
338.8

 
336.3

 
290.1

 
0.14
%
Cencon Properties LLC and Central Connecticut Warehousing Company, Inc
 
Warehousing and Storage
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
344.5

 
331.0

 
339.2

 
0.17
%
Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/30/2022

 
466.3

 
330.4

 
331.0

 
0.16
%
Spectrum Development LLC and Solvit Inc & Solvit North, Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/2/2023

 
387.3

 
329.2

 
314.3

 
0.15
%
Advanced Skincare Medcenter Inc dba Advanced Skincare Surgery
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
337.5

 
326.9

 
277.2

 
0.14
%
Hagerstown Muffler, Inc. and JMS Muffler, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/24/2040

 
327.5

 
326.5

 
332.8

 
0.16
%
Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038

 
335.1

 
321.4

 
323.3

 
0.16
%
Lisle Lincoln II Limited Partnership dba Lisle Lanes LP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/29/2036

 
338.1

 
320.1

 
334.0

 
0.16
%

69
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Orange County Insurance Brokerage Inc dba Beaty Insurance Agency
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/29/2039

 
325.1

 
319.3

 
324.3

 
0.16
%
Nova Solutions Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/22/2040

 
320.0

 
319.1

 
313.0

 
0.15
%
MRM Supermarkets Inc dba Constantins Breads; Dallas Gourmet Breads
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
336.0

 
319.0

 
324.6

 
0.16
%
Taylor Transport, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/8/2021

 
515.5

 
317.2

 
320.2

 
0.16
%
FHJE Ventures LLC and Eisenreich II Inc. dba Breakneck Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/27/2039

 
321.8

 
313.6

 
315.9

 
0.15
%
A & M Commerce, Inc. dba Cranberry Sunoco
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/27/2038

 
330.3

 
313.3

 
323.5

 
0.16
%
Lenoir Business Partners LLC (EPC) LP Industries, Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
322.7

 
311.2

 
313.7

 
0.15
%
Shane M. Howell and Buck Hardware and Garden Center, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/27/2038

 
322.5

 
311.1

 
307.8

 
0.15
%
Jumbomarkets Inc dba Rines Jumbomarkets
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/4/2025

 
306.3

 
306.3

 
294.4

 
0.14
%
BCD Holdings, LLC and H-MA, LLC d/b/a/ Hawaii Mainland Administrators
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/2/2022

 
451.3

 
305.1

 
304.3

 
0.15
%
Summit Beverage Group LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024

 
350.6

 
302.9

 
292.2

 
0.14
%
Onofrios Enterprises LLC (EPC) Onofrios Fresh Cut, Inc
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
312.5

 
301.0

 
304.4

 
0.15
%
Joyce Outdoor Advertising Chicago LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2040

 
300.0

 
300.0

 
284.5

 
0.14
%
Sunset Marine Resort LLC and GoXpeditions LLC and Lavon Gomes and Trac
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
301.8

 
298.2

 
303.0

 
0.15
%
510 ROK Realty LLC dba ROK Health and Fitness and Robert N. D'urso
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/19/2024

 
332.0

 
296.3

 
294.5

 
0.14
%
R A Johnson Inc dba Rick Johnson Auto and Tire
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/23/2039

 
301.3

 
294.9

 
299.5

 
0.15
%
American Campgrounds LLC dba Whit's End Campground
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040

 
293.0

 
293.0

 
290.9

 
0.14
%
Custom Software, Inc. a Colorado Corporation dba M-33 Access
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/17/2021

 
426.0

 
289.2

 
293.0

 
0.14
%

70
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Anturio Marketing Inc dba Logic Consulting
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040

 
290.3

 
288.1

 
292.8

 
0.14
%
Summit Beverage Group LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/29/2030

 
291.9

 
286.8

 
258.1

 
0.13
%
Aegis Creative Communications, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2022

 
387.5

 
286.2

 
277.3

 
0.14
%
The Smile Place LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
283.9

 
282.2

 
276.4

 
0.14
%
KDP LLC and KDP Investment Advisors, Inc and KDP Asset Management, Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/14/2023

 
343.8

 
278.0

 
270.9

 
0.13
%
New Image Building Services Inc. dba New Image Repair Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/29/2023

 
331.3

 
277.0

 
259.8

 
0.13
%
Anglin Cultured Stone Products LLC dba Anglin Construction
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
281.8

 
273.0

 
238.1

 
0.12
%
Cheryle A Baptiste and Cheryle Baptiste DDS PLLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2037

 
286.5

 
270.0

 
278.8

 
0.14
%
Central Tire, Inc. dba Cooper Tire & Auto Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/29/2037

 
288.5

 
269.1

 
279.5

 
0.14
%
First Prevention and Dialysis Center LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
273.3

 
268.9

 
251.4

 
0.12
%
New Image Building Services, Inc. dba New Image Repair Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/23/2037

 
285.7

 
267.7

 
271.6

 
0.13
%
Christou Real Estate Holdings LLC dba Tops American Grill
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/17/2037

 
284.0

 
264.1

 
275.3

 
0.13
%
Faith Memorial Chapel LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2038

 
268.4

 
258.1

 
259.5

 
0.13
%
Thrifty Market, Inc. dba Thrifty Foods
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2030

 
262.5

 
257.9

 
227.2

 
0.11
%
15 McArdle LLC and No Other Impressions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/15/2040

 
257.1

 
254.9

 
238.4

 
0.12
%
Scent-Sation, Inc. d/b/a Scent-Sation, Inc.
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
11/21/2021

 
337.5

 
253.9

 
257.1

 
0.13
%
Reidville Hydraulics & Mfg Inc dba Summit Farms LLC
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/2/2037

 
265.9

 
250.6

 
254.6

 
0.12
%
All-Tag Corporation
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
250.4

 
250.4

 
218.0

 
0.11
%
Roccos LLC and Sullo Pantalone Inc dba Rocco's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2039

 
255.8

 
250.4

 
237.3

 
0.12
%

71
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
JAG Unit 1, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
250.0

 
250.0

 
210.6

 
0.10
%
V2 Tango LLC dba Palette 22
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/23/2025

 
250.0

 
250.0

 
217.1

 
0.11
%
Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/15/2024

 
272.5

 
248.2

 
219.7

 
0.11
%
HAVANA CENTRAL NJ1, LLC dba Havana Central
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
250.0

 
245.1

 
238.9

 
0.12
%
Wolf Enviro Interests, LLC and Enviromax Services Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2040

 
246.5

 
244.7

 
223.7

 
0.11
%
CNYP 717 Irondequoit LLC and CNYP 2002 Ontario LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/20/2040

 
244.4

 
244.4

 
226.0

 
0.11
%
MJD Investments, LLC dba The Community Day School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2038

 
258.3

 
244.3

 
250.6

 
0.12
%
RKP Service dba Rainbow Carwash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/31/2023

 
300.0

 
243.1

 
237.5

 
0.12
%
FHJE Ventures LLC and Eisenreich II Inc dba Breakneck Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/30/2039

 
245.5

 
242.9

 
225.8

 
0.11
%
JWB Industries, Inc. dba Carteret Die Casting
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/11/2024

 
280.0

 
241.8

 
225.3

 
0.11
%
800 on the Trax LLC and Matrix Z LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2040

 
240.0

 
240.0

 
234.6

 
0.12
%
Xela Pack, Inc. and Aliseo and Catherine Gentile
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2028

 
271.8

 
239.2

 
244.5

 
0.12
%
WI130, LLC (EPC) & Lakeland Group, Inc (OC) dba Lakeland Electrical
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028

 
271.5

 
239.0

 
238.1

 
0.12
%
LaSalle Market and Deli EOK Inc and Rugen Realty LLC dba LaSalle Market
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/21/2037

 
252.3

 
236.8

 
242.7

 
0.12
%
Clairvoyant Realty Corp. and Napoli Marble & Granite Design, Ltd
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/24/2038

 
246.3

 
236.8

 
234.5

 
0.11
%
Capitol Waste and Recycling Services LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
10/10/2024

 
257.8

 
236.4

 
210.6

 
0.10
%
All About Smiles P A
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
237.7

 
235.9

 
231.1

 
0.11
%
Joyce Outdoor Advertising LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/29/2040

 
234.8

 
234.8

 
235.3

 
0.12
%
Pierce Developments, Inc. dba Southside Granite
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/13/2036

 
256.1

 
233.3

 
242.6

 
0.12
%
Atlantis of Daytona LLC and Ocean Club Sportswear Inc
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
240.0

 
233.1

 
236.7

 
0.12
%

72
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Big Sky Plaza LLC and Strickland, Incorporated dba Livingston True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/20/2039

 
233.4

 
227.4

 
229.0

 
0.11
%
M & H Pine Straw Inc and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023

 
288.8

 
227.1

 
227.0

 
0.11
%
MTV Bowl, Inc. dba Legend Lanes
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2036

 
248.5

 
226.4

 
235.8

 
0.12
%
Meridian Hotels, LLC dba Best Western Jonesboro
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/25/2039

 
228.0

 
224.9

 
228.4

 
0.11
%
HJ & Edward Enterprises, LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2023

 
262.5

 
224.8

 
218.5

 
0.11
%
DuCharme Realty LLC and DuCharme Enterprises LLC dba Specialty
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/2/2040

 
225.1

 
222.1

 
208.0

 
0.10
%
Hemingway Custom Cabinetry LLC
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025

 
220.0

 
217.3

 
187.0

 
0.09
%
Bowl Mor, LLC dba Bowl Mor Lanes / Spare Lounge, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/13/2039

 
223.5

 
216.7

 
222.9

 
0.11
%
Homegrown For Good LLC
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/26/2024

 
230.0

 
215.5

 
195.5

 
0.10
%
Discount Wheel and Tire
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
223.8

 
214.6

 
214.3

 
0.11
%
Newsome Trucking Inc and Kevin Newsome
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035

 
423.1

 
214.1

 
222.6

 
0.11
%
Schmaltz Holdings, LLC (EPC) and Schmaltz Operations, LLC dba Companio
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/4/2038

 
224.2

 
213.7

 
213.3

 
0.10
%
Mosley Auto Group LLC dba America's Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038

 
221.5

 
213.7

 
217.6

 
0.11
%
Tortilla King Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2039

 
216.9

 
211.2

 
207.8

 
0.10
%
Daniel Gordon and Erin Gordon and Silver Lining Stables CT, LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
11/28/2037

 
223.8

 
211.1

 
219.0

 
0.11
%
BJ's Tavern LLC and BJ's Cabana Bar Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
212.5

 
210.9

 
205.9

 
0.10
%
Pioneer Windows Manufacturing Corp, Pioneer Windows
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/21/2022

 
275.0

 
209.8

 
207.4

 
0.10
%
Evans and Paul LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
223.8

 
208.2

 
198.7

 
0.10
%
Faith Memorial Chapel LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039

 
214.2

 
207.9

 
206.4

 
0.10
%

73
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Superior Disposal Service, Inc.
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
12/26/2023

 
240.5

 
204.4

 
200.8

 
0.10
%
952 Boston Post Road Realty, LLC and HNA LLC dba Styles International
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039

 
211.0

 
204.3

 
203.2

 
0.10
%
1 North Restaurant Corp dba 1 North Steakhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
212.5

 
204.3

 
207.8

 
0.10
%
Brandywine Picnic Park, Inc. and B.Ross Capps & Linda Capps
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/30/2031

 
231.5

 
204.2

 
210.9

 
0.10
%
Elan Realty, LLC and Albert Basse Asociates, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
9/30/2035

 
228.2

 
203.7

 
212.6

 
0.10
%
Modern Manhattan LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
220.0

 
203.3

 
171.5

 
0.08
%
AMG Holding, LLC and Stetson Automotive, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
208.0

 
202.7

 
208.6

 
0.10
%
JEJE Realty LLC and La Familia Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/10/2039

 
205.8

 
202.1

 
193.6

 
0.09
%
Gill Express Inc. dba American Eagle Truck Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/5/2027

 
286.9

 
200.4

 
206.1

 
0.10
%
Block and Grinder LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
200.0

 
200.0

 
196.6

 
0.10
%
Water Works Laundromat, L.L.C.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.25%
 
9/7/2027

 
267.3

 
194.8

 
195.3

 
0.10
%
Robert E. Caves, Sr. and American Plank dba Caves Enterprises
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2021

 
302.5

 
194.7

 
197.2

 
0.10
%
Spire Investment Partners, LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/28/2022

 
258.8

 
192.7

 
186.7

 
0.09
%
Douglas Printy Motorsports, Inc. dba Blackburn Trike
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/9/2040

 
191.8

 
189.5

 
180.5

 
0.09
%
8 Minute Oil Change of Springfield Corporation and John Nino
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/12/2038

 
196.8

 
188.0

 
191.7

 
0.09
%
Sapienzo Properties LLC (EPC) CNS Self-Storage Inc (OC)
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/27/2039

 
193.8

 
187.0

 
192.4

 
0.09
%
Greenbrier Technical Services, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/24/2023

 
240.1

 
183.0

 
183.2

 
0.09
%
Brothers International Desserts
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/26/2023

 
230.0

 
182.7

 
181.4

 
0.09
%
Majestic Contracting Services, Inc. dba Majestic Electric and Majestic Plumbing
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/26/2038

 
190.0

 
181.6

 
180.6

 
0.09
%

74
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2035

 
204.0

 
180.7

 
188.4

 
0.09
%
(EPC) Absolute Desire LLC and Mark H. Szierer (OC) Sophisticated Smile
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038

 
188.3

 
180.0

 
183.6

 
0.09
%
(EPC) Willowbrook Properties LLC (OC) Grove Gardens Landscaping Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038

 
186.3

 
177.8

 
183.5

 
0.09
%
Trip Consultants U.S.A. Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
175.0

 
175.0

 
147.4

 
0.07
%
Richmond Hill Mini Market, LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/27/2037

 
185.3

 
174.7

 
180.2

 
0.09
%
Beale Street Blues Company-West Palm Beach, LLC dba Lafayette Music Hall
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2024

 
187.5

 
174.5

 
153.2

 
0.08
%
KK International Trading Corporation
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/23/2028

 
190.0

 
174.0

 
172.1

 
0.08
%
Bryan Bantry Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/8/2021

 
400.0

 
174.0

 
173.0

 
0.08
%
Forno Italiano Di Nonna Randazzo, LLC dba Nonna Randazzo's Bakery
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/26/2037

 
183.8

 
173.9

 
178.5

 
0.09
%
Pioneer Window Holdings, Inc and Subsidiaries dba Pioneer Windows
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/20/2022

 
225.0

 
173.3

 
171.3

 
0.08
%
Douglas Posey and Sally Watkinson dba Audrey's Farmhouse
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/20/2040

 
174.1

 
172.6

 
170.5

 
0.08
%
Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/10/2024

 
187.5

 
172.3

 
150.6

 
0.07
%
Neyra Industries, Inc. and Edward Neyra
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
217.5

 
171.2

 
173.2

 
0.08
%
Chickamauga Properties,Inc., MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2035

 
189.5

 
171.1

 
178.5

 
0.09
%
R2 Tape Inc dba Presto Tape
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
176.3

 
170.8

 
160.6

 
0.08
%
Fran-Car Corporation dba Horizon Landscape Management
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/3/2028

 
407.8

 
170.5

 
175.8

 
0.09
%
BND Sebastian Limited Liability Company and Sebastian Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040

 
172.5

 
170.5

 
168.2

 
0.08
%
Silva Realty Holdings, LLC and MF-Silva Enterprises, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/11/2040

 
171.6

 
170.0

 
161.1

 
0.08
%
R & J Petroleum LLC (EPC) Manar USA, Inc. (OC)
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/20/2037

 
180.0

 
169.5

 
175.4

 
0.09
%

75
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
15 Frederick Place LLC & Pioneer Windows Holdings Inc & Subs
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/16/2021

 
250.0

 
168.6

 
169.3

 
0.08
%
South Park Properties LLC and Midlothian Hardware LLC dba Grill
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/6/2040

 
170.5

 
167.9

 
170.0

 
0.08
%
Spectrum Radio Fairmont, LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
187.5

 
164.3

 
164.3

 
0.08
%
Wilshire Media Systems Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/17/2024

 
186.3

 
163.4

 
151.7

 
0.07
%
Pine Belt Wood Products LLC
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
9/22/2040

 
163.8

 
163.3

 
147.9

 
0.07
%
Wise Forklift Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/1/2020

 
296.9

 
162.9

 
164.7

 
0.08
%
Labmates LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040

 
162.5

 
162.5

 
165.6

 
0.08
%
Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
4/25/2022

 
228.8

 
162.1

 
162.5

 
0.08
%
B & W Towing, LLC and Boychucks Fuel LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/17/2039

 
164.5

 
161.8

 
153.1

 
0.08
%
Hae M. and Jin S. Park dba Buford Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/15/2039

 
166.5

 
161.2

 
160.0

 
0.08
%
M & H Pinestraw, Inc. and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/15/2021

 
238.3

 
161.2

 
161.6

 
0.08
%
185 Summerfield Inc and Valcon Contracting Corp
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/24/2039

 
162.3

 
159.1

 
157.6

 
0.08
%
MMS Realty, LLC and Molecular MS Diagnostics LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2040

 
160.7

 
158.8

 
151.3

 
0.07
%
Carolina Flicks Inc dba The Howell Theater
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
12/23/2032

 
163.3

 
158.5

 
149.5

 
0.07
%
Spire Investment Partners, LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/22/2021

 
250.0

 
157.4

 
157.8

 
0.08
%
North Columbia LLC and Loop Liquor and Convenience Store LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/24/2039

 
159.3

 
155.9

 
153.6

 
0.08
%
Ramard Inc and Advanced Health Sciences Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/28/2023

 
187.5

 
154.3

 
140.5

 
0.07
%
South Florida Air Conditioning and Refrigeration Corp.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
155.5

 
153.7

 
153.3

 
0.08
%

76
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Golden Transaction Corporation dba Bleh Sunoco
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/30/2039

 
156.7

 
153.6

 
152.9

 
0.07
%
Avayaan2 LLC dba Island Cove
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/7/2039

 
157.5

 
152.7

 
154.1

 
0.08
%
RDT Enterprises LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
162.8

 
152.7

 
147.6

 
0.07
%
J3K LLC dba Ronan True Value Hardware
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025

 
152.5

 
150.6

 
126.8

 
0.06
%
RXSB, Inc dba Medicine Shoppe
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
5/30/2023

 
186.3

 
149.8

 
145.3

 
0.07
%
FirstVitals Health and Wellness Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/15/2025

 
150.0

 
148.1

 
124.7

 
0.06
%
Barber Investments LLC and Fieldstone Quickstop LLC and Maine Dollar Deals
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
150.0

 
147.2

 
131.7

 
0.06
%
Honeyspot Investors LLP and Pace Motor Lines Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/24/2039

 
150.0

 
146.4

 
147.7

 
0.07
%
Alejandro Rico dba Rico Motors and Golden West Motel and Alrima Co Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/25/2040

 
146.3

 
146.3

 
148.5

 
0.07
%
Teamnewman Enterprises LLC dba Newmans at 988 and John H. Newman
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/25/2039

 
148.8

 
146.1

 
139.8

 
0.07
%
Dantanna's Tavern LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
164.3

 
144.8

 
136.4

 
0.07
%
Cool Air Solutions, Inc. dba Graham Heating & Air Conditioning
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2%
 
12/27/2018

 
411.5

 
144.8

 
144.3

 
0.07
%
GDP Gourmet LLC dba Joe and John's Pizza Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/19/2040

 
145.0

 
144.4

 
140.6

 
0.07
%
Vernon & Stephanie Scott and Little Stars Day Care Center, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/18/2038

 
151.0

 
143.6

 
149.3

 
0.07
%
J. Kinderman & Sons Inc., dba BriteStar Inc.
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/20/2023

 
181.3

 
142.7

 
144.3

 
0.07
%
Barub Realty LLC and Barub LLC dba Woodlawn Cabinets
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/30/2040

 
143.0

 
142.6

 
144.3

 
0.07
%
Alpha Preparatory Academy LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
145.2

 
142.5

 
144.7

 
0.07
%
Ryan Crick and Pamela J. Crick and Crick Enterprises Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2039

 
145.5

 
142.4

 
144.6

 
0.07
%
Peter Thomas Roth Labs LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/26/2018

 
425.0

 
142.3

 
143.4

 
0.07
%

77
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Knowledge First Inc dba Magic Years of Learning and Kimberly Knox
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/21/2039

 
145.0

 
140.8

 
139.9

 
0.07
%
USI Properties LLC dba U Store It
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
5/23/2039

 
144.6

 
140.7

 
144.0

 
0.07
%
Wired LLC and Moulison North Corporation
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/3/2024

 
150.1

 
140.1

 
126.0

 
0.06
%
Gardner's Wharf Holdings LLC and Gardner's Wharf Seafood Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/8/2040

 
140.0

 
139.6

 
142.2

 
0.07
%
Stormrider Inc dba Shirley's Stormrider, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
150.0

 
138.6

 
115.1

 
0.06
%
Big Apple Entertainment Partners, LLC d/b/a Ripley's Believe It or Not
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/26/2022

 
180.0

 
138.4

 
134.2

 
0.07
%
ATC Fitness LLC dba Around the Clock Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2022

 
180.0

 
137.8

 
137.4

 
0.07
%
Choe Trade Group Inc dba Rapid Printers of Monterey
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024

 
159.3

 
137.6

 
137.4

 
0.07
%
Matchless Transportation LLC dba First Class Limo
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/3/2022

 
185.0

 
137.0

 
135.7

 
0.07
%
96 Mill Street LLC, Central Pizza LLC and Jason Bikakis George Bikaki
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/12/2039

 
141.3

 
137.0

 
140.9

 
0.07
%
3000 CSI Property LLC and Consulting Solutions Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/20/2040

 
137.5

 
136.9

 
137.1

 
0.07
%
Kemmer LLC and Apples Tree Top Liquors LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/4/2039

 
138.4

 
136.1

 
126.9

 
0.06
%
Spectrumit, Inc, (OC) dba LANformation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/31/2030

 
154.9

 
135.8

 
139.4

 
0.07
%
Grafio Inc dba Omega Learning Center-Acworth
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2023

 
156.3

 
135.0

 
126.3

 
0.06
%
CEM Autobody LLC dba Dawn's Autobody
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040

 
135.5

 
134.5

 
128.6

 
0.06
%
C& D Medical of Naples, Inc and Forever & Always of Naples, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/24/2040

 
135.0

 
134.2

 
124.0

 
0.06
%
Al-Mustafa Enterprise, Inc. and Al-Mustafa Enterprise Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/18/2040

 
134.0

 
133.9

 
131.3

 
0.06
%
DKB Transport Corp
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2038

 
138.8

 
133.9

 
137.6

 
0.07
%
West Cobb Enterprises, Inc and Advanced Eye Associates, L.L.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/12/2035

 
148.7

 
133.4

 
138.8

 
0.07
%

78
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
JPM Investments LLC and Carolina Family Foot Care P.A.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2039

 
136.1

 
133.1

 
134.9

 
0.07
%
1899 Tavern & Tap LLC and Ale House Tavern & Tap LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/9/2039

 
137.5

 
132.6

 
134.6

 
0.07
%
Haven Hospitality Group Inc. dba Haven Gastropub
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/20/2025

 
132.5

 
132.5

 
113.7

 
0.06
%
Mid-Land Sheet Metal Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
137.5

 
132.4

 
134.1

 
0.07
%
City Sign Service, Incorporated
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
165.8

 
132.1

 
134.7

 
0.07
%
Bay State Funeral Services, LLC (EPC) and Riley Funeral Home Inc(OC)
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/21/2039

 
134.9

 
131.6

 
135.4

 
0.07
%
Jade Automotive d/b/a Sears Hometown Store
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
10/6/2035

 
146.6

 
131.5

 
137.3

 
0.07
%
J&M Concessions, Inc.dba A-1 Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/3/2039

 
135.6

 
131.3

 
129.2

 
0.06
%
Modern on the Mile, LLC dba Ligne Roset
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
5/25/2021

 
212.5

 
131.1

 
131.5

 
0.06
%
Access Staffing, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2022

 
187.5

 
131.1

 
130.5

 
0.06
%
Grand Blanc Lanes, Inc. and H, H and H, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/31/2039

 
133.0

 
131.0

 
131.1

 
0.06
%
RDT Enterprises, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028

 
141.2

 
130.6

 
132.4

 
0.06
%
Demand Printing Solutions, Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
10/29/2034

 
147.5

 
128.7

 
133.9

 
0.07
%
Green Life Lawnscapes LLC dba Green Life Lawn Care
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/6/2025

 
127.3

 
127.3

 
122.4

 
0.06
%
R2 Tape, Inc. dba Presto Tape and Michael J.and Joyce Speeney
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/20/2020

 
224.4

 
126.6

 
127.6

 
0.06
%
Nelson Sargsyan dba HDA Trucking
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025

 
130.5

 
126.4

 
105.1

 
0.05
%
PTK, Incorporated dba Night N Day 24 HR Convenience Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
137.5

 
126.0

 
131.2

 
0.06
%
George S Cochran DDS Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/7/2025

 
130.0

 
125.1

 
104.4

 
0.05
%
Music Mountain Water Company, LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/25/2036

 
138.1

 
125.1

 
130.7

 
0.06
%

79
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Sarah Sibadan dba Sibadan Agency
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/27/2039

 
129.4

 
125.0

 
127.4

 
0.06
%
Japp Business Inc dba Pick and Eat and Japp Drink Corp.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
125.0

 
125.0

 
110.6

 
0.05
%
Smokeyard Inc dba Smokeyard BBQ and Chop Shop
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
125.0

 
125.0

 
107.6

 
0.05
%
Evans & Paul LLC and E&P Holdings I LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2025

 
125.0

 
125.0

 
110.9

 
0.05
%
Abitino's JFK LLC dba Abitino's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2022

 
125.0

 
124.9

 
110.4

 
0.05
%
The LAX Shop Inc
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/22/2025

 
125.0

 
125.0

 
124.9

 
0.06
%
Hascher Gabelstapler Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/26/2024

 
143.3

 
124.6

 
121.0

 
0.06
%
Maxiflex LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2023

 
153.5

 
124.1

 
125.6

 
0.06
%
Michael Rey Jr. and Lynn J. Williams (EPC) and GIG Petcare
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/3/2039

 
126.9

 
123.6

 
122.1

 
0.06
%
Geo Los Angeles LLC dba Geo Film Group
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2025

 
130.0

 
123.5

 
112.5

 
0.06
%
Naeem Khan LTD
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/17/2025

 
125.0

 
123.5

 
103.9

 
0.05
%
Naeem Khan LTD
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
125.0

 
123.5

 
104.0

 
0.05
%
Lake Area Autosound LLC and Ryan H. Whittington
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2039

 
125.0

 
122.9

 
122.9

 
0.06
%
Food & Fuel Company LLC dba Lowery Food Mart
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040

 
122.5

 
122.5

 
124.3

 
0.06
%
Lamjam LLC (EPC) Goldsmith Lambros Inc (OC)
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024

 
133.8

 
122.2

 
121.6

 
0.06
%
Trademark Equipment Company Inc and David A. Daniel
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/19/2036

 
133.6

 
122.1

 
126.9

 
0.06
%
Supreme Screw Products, Inc. and Misha Migdal
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/17/2019

 
308.2

 
121.6

 
122.7

 
0.06
%
Atlas Mountain Construction, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/13/2038

 
127.3

 
121.2

 
126.1

 
0.06
%
Medworxs LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/3/2025

 
125.0

 
121.1

 
101.6

 
0.05
%

80
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
LP Industries Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/29/2025

 
125.0

 
120.9

 
112.3

 
0.06
%
Bizzare Foods Inc dba Trooper Foods
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/12/2025

 
125.0

 
120.6

 
100.3

 
0.05
%
3 F Management LLC and ATC Port Charlotte LLC dba Around The Clock Fit
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/17/2024

 
131.3

 
120.4

 
106.2

 
0.05
%
JDR Industries Inc dba CST-The Composites Store, JetCat USA
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
1/21/2024

 
140.3

 
120.4

 
114.1

 
0.06
%
Prospect Kids Academy Inc
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038

 
124.3

 
119.2

 
120.5

 
0.06
%
Copper Beech Financial Group LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025

 
125.0

 
118.7

 
107.2

 
0.05
%
Knits R Us, Inc. dba NYC Sports / Mingle
 
Textile Mills
 
Term Loan
 
Prime plus 2.75%
 
2/11/2038

 
125.0

 
118.4

 
123.1

 
0.06
%
1258 Hartford TPKE, LLC (EPC) and Phelps and Sons, Inc (OC)
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
124.6

 
118.3

 
120.9

 
0.06
%
Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/18/2036

 
129.5

 
117.9

 
123.2

 
0.06
%
DC Real LLC and DC Enterprises LTD dba Lakeview True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/20/2039

 
119.4

 
117.8

 
116.3

 
0.06
%
Balthazar Management Virgin Islands LLC dba The Beach Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
123.3

 
117.1

 
116.6

 
0.06
%
Profile Performance, Inc. and Eidak Real Estate, L.L.C.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2036

 
127.5

 
115.7

 
120.8

 
0.06
%
Wilton Dental Care P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024

 
128.1

 
115.6

 
106.3

 
0.05
%
Top Properties LLC and LP Industries, Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
120.0

 
115.5

 
118.8

 
0.06
%
JRA Holdings LLC (EPC) Jasper County Cleaners Inc dba Superior Cleaner
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2038

 
121.0

 
115.5

 
120.1

 
0.06
%
Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/19/2021

 
187.5

 
114.2

 
114.2

 
0.06
%
Kemmer, LLC (EPC) and Pitts Package Store, Inc.(OC)
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
117.5

 
114.1

 
109.9

 
0.05
%
AS Boyals LLC dba Towne Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/29/2039

 
117.5

 
114.1

 
117.4

 
0.06
%
R2 Tape Inc dba Presto Tape
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2022

 
155.0

 
114.1

 
115.2

 
0.06
%

81
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Modern Manhattan, LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/20/2020

 
204.0

 
113.3

 
113.5

 
0.06
%
5091 LLC and TR/AL LLC d/b/a Cafe Africana
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/31/2037

 
121.3

 
113.2

 
117.8

 
0.06
%
Lemonberry Food Stores Inc dba Lemonberry Frozen Yogurt
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/29/2025

 
112.5

 
112.5

 
98.4

 
0.05
%
Katie Senior Care LLC dba Home Instead Senior Care
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2024

 
124.3

 
112.3

 
93.2

 
0.05
%
Shelton Incorporated dba Mrs. Winners
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040

 
112.5

 
111.2

 
112.1

 
0.05
%
Dosus Inc dba Perry's Pools
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/7/2025

 
112.5

 
110.9

 
95.2

 
0.05
%
Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/26/2024

 
121.0

 
109.5

 
98.8

 
0.05
%
Golden Gate Lodging LLC (OC)
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2038

 
115.0

 
109.2

 
112.6

 
0.06
%
Rainbow Dry Cleaners
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/13/2024

 
122.5

 
109.1

 
102.8

 
0.05
%
S.B.B. Enterprises Inc dba Williamston Hardware
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/19/2040

 
108.8

 
108.8

 
100.8

 
0.05
%
Sushiya, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/8/2025

 
108.8

 
108.8

 
97.2

 
0.05
%
Westville Seafood LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2038

 
112.3

 
107.7

 
107.6

 
0.05
%
Cormac Enterprises and Wyoming Valley Beverage Incorporated
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039

 
110.8

 
107.6

 
110.6

 
0.05
%
Excel RP Inc
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
130.3

 
107.2

 
105.9

 
0.05
%
Wallace Holdings LLC (EPC) GFA International Inc (OC)
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.5%
 
11/25/2023

 
125.0

 
105.2

 
96.5

 
0.05
%
Forever & Always of Naples Inc dba Island Animal Hospital
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/24/2025

 
107.5

 
104.7

 
94.8

 
0.05
%
Mustafa Inc dba Adiba Grocery
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025

 
103.8

 
103.8

 
103.7

 
0.05
%
Pooh's Corner Realty LLC and Pooh's Corner Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/23/2040

 
103.8

 
103.2

 
104.0

 
0.05
%
Ridge Road Equestrian LLC dba Ricochet Ridge Ranch Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/23/2040

 
102.5

 
102.5

 
102.3

 
0.05
%

82
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Seagate Group Holdings, Inc. dba Seagate Logistics, Inc.
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/28/2036

 
113.4

 
102.1

 
106.6

 
0.05
%
WPI, LLC
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2024

 
129.5

 
101.3

 
102.2

 
0.05
%
B and A Friction Materials Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/9/2025

 
102.5

 
101.2

 
85.2

 
0.04
%
Shorr Enterprises Inc dba New Design Furniture Manufacturers
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
106.5

 
101.2

 
92.8

 
0.05
%
Island Wide Realty LLC and Long Island Partners, Inc.
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
4/22/2039

 
103.8

 
100.9

 
103.8

 
0.05
%
Nancy & Karl Schmidt(EPC) Moments to Remember USA, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/15/2038

 
106.3

 
100.7

 
103.9

 
0.05
%
Firm Foundations Inc David S Gaitan Jr and Christopher K Daigle
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/3/2038

 
104.3

 
100.5

 
97.9

 
0.05
%
State Painting and Decorating Co Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025

 
100.0

 
100.0

 
84.2

 
0.04
%
Delta Aggregate, LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
100.0

 
100.0

 
99.9

 
0.05
%
Custom Exteriors, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/9/2025

 
100.0

 
100.0

 
87.3

 
0.04
%
Matthew Taylor and Landon Farm LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/4/2040

 
100.0

 
99.8

 
88.7

 
0.04
%
DNT Storage and Properties LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
10/10/2039

 
101.8

 
99.8

 
99.4

 
0.05
%
Little People's Village II LLC (OC) and Iliopoulos Realty LLC (EPC)
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
101.5

 
99.1

 
97.6

 
0.05
%
Bear Creek Entertainment, LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
106.3

 
99.0

 
98.6

 
0.05
%
Zinger Hardware and General Merchant Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/26/2024

 
110.5

 
98.4

 
94.9

 
0.05
%
Miss Cranston Diner II, LLC and Miss Cranston II Realty LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/17/2039

 
100.0

 
98.2

 
96.0

 
0.05
%
Keller Holdings LLC and David H Keller III and Carie C Keller
 
Scenic and Sightseeing Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2039

 
100.0

 
97.9

 
98.5

 
0.05
%
Lefont Theaters, Inc.
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
5/30/2022

 
137.0

 
97.9

 
98.4

 
0.05
%
G.M. Pop's, Inc. & S.D. Food, Inc. dba Popeyes Louisiana Kitchen
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/11/2022

 
127.1

 
97.6

 
95.4

 
0.05
%
New Paltz Dental Care, PLLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
100.0

 
97.5

 
92.5

 
0.05
%

83
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
California College of Communications, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/2/2020

 
172.5

 
97.2

 
97.3

 
0.05
%
986 Dixwell Avenue Holding Company, LLC(EPC) and Mughali Foods, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/7/2039

 
99.1

 
96.4

 
97.1

 
0.05
%
Anthony C Dinoto and Susan S P Dinoto and Anthony C Dinoto Funeral Home
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
100.0

 
96.0

 
98.7

 
0.05
%
Custom Software, Inc. a Colorado Corporation dba M-33 Access
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
4/30/2022

 
125.0

 
94.3

 
95.6

 
0.05
%
J and K Fitness L.L.C. dba Physiques Womens Fitness Center
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2041

 
93.8

 
93.7

 
93.2

 
0.05
%
First Steps Real Estate Company, LLC (EPC) and First Steps Preschool
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
97.6

 
93.6

 
92.5

 
0.05
%
A & A Auto Care, LLC d/b/a A & A Auto Care, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/12/2036

 
101.0

 
93.4

 
97.3

 
0.05
%
GIA Realty LLC and VRAJ GIA LLC dba Lakeview Laundromat
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2038

 
97.5

 
93.0

 
96.8

 
0.05
%
Key Products I&II, Inc. dba Dunkin' Donuts/Baskin-Robbins
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/10/2021

 
153.0

 
92.6

 
93.0

 
0.05
%
Metro Used Cars Inc. dba Metro Auto Center
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
1/14/2027

 
117.6

 
92.6

 
94.9

 
0.05
%
MRM Supermarkets, Inc. dba Constantin's Breads
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/10/2021

 
137.5

 
91.9

 
92.5

 
0.05
%
Union 2 LLC dba The Standard
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/10/2025

 
91.5

 
91.5

 
83.7

 
0.04
%
E.S.F.P. LLC dba Volusia Van and Storage
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/11/2025

 
91.3

 
91.2

 
78.6

 
0.04
%
U & A Food and Fuel, Inc. dba Express Gas & Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/21/2037

 
96.3

 
90.7

 
94.3

 
0.05
%
Sico & Walsh Insurance Agency Inc and The AMS Trust
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/6/2039

 
250.0

 
90.6

 
93.3

 
0.05
%
Royal Crest Motors LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040

 
91.3

 
90.1

 
87.5

 
0.04
%
Moochie's LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/13/2024

 
100.5

 
90.0

 
83.2

 
0.04
%
Video Vault & Tanning LLC and Mosaic Salon LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/4/2040

 
90.5

 
89.9

 
91.2

 
0.04
%
Little People's Village II LLC (OC) and Iliopoulos Realty LLC (EPC)
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
92.1

 
89.9

 
88.5

 
0.04
%
Lisle Lincoln II Limited Partnership dba Lisle Lanes LP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
100.0

 
89.2

 
89.2

 
0.04
%

84
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Ronny Ramirez RX Corp dba Naturxheal Family Pharmacy
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
11/20/2025

 
89.0

 
89.0

 
76.4

 
0.04
%
Angkor Restaurant Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/19/2038

 
93.0

 
88.9

 
90.5

 
0.04
%
Music Mountain Water Company,LLC dba Music Mountain Water Co.
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/29/2019

 
185.4

 
88.9

 
89.8

 
0.04
%
Seelan Inc dba Candleridge Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/27/2039

 
90.5

 
88.7

 
84.8

 
0.04
%
Delta Aggregate LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025

 
90.0

 
88.2

 
87.9

 
0.04
%
Advanced Machine & Technology, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/29/2025

 
90.3

 
88.0

 
80.6

 
0.04
%
The River Beas LLC and Punam Singh
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/8/2039

 
90.3

 
87.8

 
88.3

 
0.04
%
Manuel P. Barrera and Accura Electrical Contractor, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028

 
103.7

 
87.6

 
88.9

 
0.04
%
Navdeep B Martins and Busy Bubbles LLC dba Wishy Washy
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/24/2039

 
89.0

 
87.4

 
81.6

 
0.04
%
Greensward of Marco Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040

 
87.5

 
87.2

 
84.8

 
0.04
%
Kiddie Steps 4 You Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/25/2038

 
89.3

 
86.7

 
85.9

 
0.04
%
Tannehill Enterprises Inc dba Hobbytown USA Folsom
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
10/14/2025

 
87.4

 
86.5

 
72.9

 
0.04
%
AM PM Properties, LLC and AM PM Willington, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/17/2040

 
87.1

 
86.2

 
86.1

 
0.04
%
E-Z Box Storage, Inc.
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
5/11/2025

 
89.3

 
85.9

 
85.6

 
0.04
%
Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2024

 
126.5

 
85.7

 
87.2

 
0.04
%
Kurtis Sniezek dba Wolfe's Foreign Auto
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038

 
88.9

 
85.7

 
88.2

 
0.04
%
Bat Bridge Investments Inc dba Kalologie 360 Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
85.5

 
85.5

 
72.0

 
0.04
%
Sumad LLC dba BrightStar Care of Encinitas
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/2/2024

 
92.5

 
85.4

 
85.0

 
0.04
%
Doctors Express Management of Central Texas LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2024

 
105.0

 
85.2

 
80.8

 
0.04
%
RDRhonehouse ENT. LLC dba Chill Skinz
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/29/2025

 
88.9

 
85.0

 
70.7

 
0.03
%

85
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
R & R Security and Investigations Inc dba Pardners Lake Buchanan
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/19/2040

 
85.4

 
84.4

 
85.8

 
0.04
%
Tanner Optical Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2035

 
94.6

 
84.0

 
87.4

 
0.04
%
SKJ Inc dba Subway
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/13/2025

 
84.8

 
83.3

 
71.1

 
0.03
%
J&M Concessions Inc dba A 1 Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
87.5

 
81.9

 
73.0

 
0.04
%
Osceola River Mill, LLC(EPC) Ironman Machine, Inc.(OC)
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/20/2038

 
86.3

 
81.6

 
84.2

 
0.04
%
Bakhtar Group LLC dba Malmaison
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2023

 
103.8

 
81.7

 
79.2

 
0.04
%
Zephyr Seven Series LLC dba 18/8 Fine Men's Salon
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
81.3

 
81.3

 
70.0

 
0.03
%
209 North 3rd Street, LLC (EPC) Yuster Insurance Group Inc (OC)
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/29/2038

 
83.9

 
80.2

 
80.9

 
0.04
%
LAN Doctors Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
81.3

 
79.7

 
72.0

 
0.04
%
Peanut Butter & Co., Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/30/2023

 
100.0

 
79.4

 
77.3

 
0.04
%
Cares Inc dba Dumpling Grounds Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/1/2040

 
81.9

 
78.8

 
80.1

 
0.04
%
Hofgard & Co., Inc. dba HofgardBenefits
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022

 
107.3

 
78.1

 
78.0

 
0.04
%
Limameno LLC dba Sal's Italian Ristorante
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/23/2025

 
83.3

 
78.0

 
66.9

 
0.03
%
Dean 1021 LLC dba Pure Pita
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/29/2025

 
80.0

 
77.5

 
65.6

 
0.03
%
Firm Foundations Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/13/2025

 
81.3

 
77.2

 
68.3

 
0.03
%
L.M. Jury Enterprises, Inc dba Midwest Monograms
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
10/28/2025

 
77.0

 
76.5

 
65.8

 
0.03
%
39581 Garfield, LLC and Tri County Neurological Associates, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
83.3

 
76.2

 
79.1

 
0.04
%
Holloway & CO. P.L.L.C.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/16/2025

 
75.0

 
75.0

 
74.9

 
0.04
%
Moments to Remember USA LLC dba Retain Loyalty
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
75.0

 
75.0

 
68.2

 
0.03
%

86
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
M & H Pine Straw, Inc and Harris L. Maloy
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
6%
 
4/30/2020

 
183.3

 
75.0

 
75.7

 
0.04
%
Elegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2022

 
97.5

 
74.8

 
72.6

 
0.04
%
BVIP Limousine Service LTD
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/27/2038

 
76.5

 
73.7

 
74.7

 
0.04
%
Zog Inc.
 
Other Information Services
 
Term Loan
 
6%
 
3/17/2018

 
97.5

 
73.6

 
74.1

 
0.04
%
Kelly Auto Care LLC dba Shoreline Quick Lube and Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/18/2023

 
87.5

 
73.2

 
68.7

 
0.03
%
Faramarz Nikourazm dba Car Clinic Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/3/2040

 
73.8

 
72.9

 
70.4

 
0.03
%
B&P Diners LLC dba Engine House Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/10/2024

 
80.0

 
72.9

 
60.5

 
0.03
%
Awesome Pets II Inc dba Mellisa's Pet Depot
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
2/7/2024

 
83.2

 
72.7

 
68.1

 
0.03
%
Jonathan E Nichols and Nichols Fire and Security LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
75.0

 
72.7

 
68.2

 
0.03
%
Gerami Realty, LC (EPC) Sherrill Universal City Corral, LP
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/23/2027

 
78.8

 
72.0

 
72.3

 
0.04
%
Tri County Heating and Cooling Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2023

 
87.8

 
71.6

 
70.8

 
0.03
%
Bliss Coffee and Wine Bar, LLC
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
3/19/2018

 
87.5

 
71.4

 
71.8

 
0.04
%
SCJEN Management Inc dba Bowl of Heaven
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
71.3

 
71.3

 
60.0

 
0.03
%
LaHoBa, LLC d/b/a Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/3/2036

 
77.5

 
70.4

 
73.4

 
0.04
%
Triangle Trash LLC dba Bin There Dump That
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
2/18/2025

 
74.4

 
70.1

 
62.8

 
0.03
%
R2 Tape Inc dba Presto Tape
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/10/2024

 
78.8

 
69.1

 
69.5

 
0.03
%
Gold Jet Corp dba The UPS Store
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
8/14/2025

 
68.3

 
68.3

 
61.7

 
0.03
%
Vortex Automotive LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/5/2035

 
76.6

 
67.6

 
70.4

 
0.03
%
Chickamauga Properties, Inc., MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2035

 
74.3

 
67.3

 
70.3

 
0.03
%

87
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
New Life Holdings, LLC and Certified Collision Services, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2035

 
76.2

 
67.3

 
70.1

 
0.03
%
Kantz LLC and Kantz Auto LLC dba Kantz's Hometown Auto
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/29/2039

 
68.1

 
66.9

 
65.5

 
0.03
%
RM Hawkins LLC dba Pure Water Tech West and Robert M Hawkins
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/26/2023

 
85.8

 
66.9

 
67.1

 
0.03
%
Stormrider Inc dba Shirley's Stormrider Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025

 
67.5

 
66.7

 
56.1

 
0.03
%
I-90 RV & Auto Supercenter
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/29/2035

 
74.9

 
66.5

 
69.4

 
0.03
%
Accent Homes Services LLC dba Benjamin Franklin Plumbing of Kansas City
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/30/2028

 
66.5

 
65.9

 
63.2

 
0.03
%
Shree Om Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/2/2030

 
333.3

 
65.6

 
67.9

 
0.03
%
NVR Corporation dba Discount Food Mart
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/11/2039

 
68.3

 
65.4

 
67.3

 
0.03
%
Onofrio's Fresh Cut Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/6/2024

 
75.0

 
65.4

 
64.2

 
0.03
%
Orient Direct, Inc. dba Spracht, Celltek, ODI
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/12/2023

 
84.9

 
65.4

 
63.4

 
0.03
%
Kostekos Inc dba New York Style Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/6/2040

 
66.3

 
65.4

 
63.1

 
0.03
%
MLM Enterprises LLC and Demand Printing Solutions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/18/2024

 
70.5

 
65.1

 
60.3

 
0.03
%
Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/27/2037

 
69.8

 
65.0

 
67.7

 
0.03
%
Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2023

 
93.0

 
64.8

 
65.7

 
0.03
%
Beale Street Blues Company-West Palm Beach LLC dba Lafayette's-West Palm Beach
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/24/2025

 
66.3

 
64.6

 
56.5

 
0.03
%
SofRep, Inc dba Force 12 Media
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025

 
66.3

 
64.2

 
53.4

 
0.03
%
Pauley Tree and Lawn Care Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2025

 
65.8

 
64.1

 
57.1

 
0.03
%
Michael A.and HeatherR. Welsch dba Art & FrameEtc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/22/2038

 
67.5

 
64.1

 
66.0

 
0.03
%
Kidrose, LLC dba Kidville Riverdale
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/22/2023

 
78.8

 
63.3

 
62.3

 
0.03
%

88
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Yousef Khatib dba Y&M Enterprises
 
Wholesale Electronic Markets and Agents and Brokers
 
Term Loan
 
Prime plus 2.75%
 
11/15/2023

 
75.0

 
63.2

 
58.7

 
0.03
%
Free Ion Advisors LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/21/2025

 
64.3

 
62.7

 
52.8

 
0.03
%
Truth Technologies Inc dba Truth Technologies Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023

 
79.5

 
62.6

 
61.1

 
0.03
%
Guard Dogs MFS LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/8/2025

 
65.0

 
62.6

 
52.5

 
0.03
%
Joseph Nich and Tina M. Nich dba Vic's Greenhouses
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/4/2025

 
62.5

 
62.5

 
62.4

 
0.03
%
Sourceco Limited Liability Company
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025

 
62.5

 
62.5

 
54.5

 
0.03
%
Optima Health Care Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/23/2025

 
62.5

 
62.5

 
62.4

 
0.03
%
Pace Motor Lines, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/26/2025

 
66.2

 
62.5

 
62.0

 
0.03
%
God is Good LLC dba BurgerFi
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/27/2025

 
67.3

 
62.4

 
56.0

 
0.03
%
Kup’s Auto Spa, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/23/2025

 
62.5

 
62.1

 
60.2

 
0.03
%
Rutledge Enterprises Inc dba BLC Property Management
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/23/2040

 
62.5

 
61.8

 
60.6

 
0.03
%
Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2025

 
62.5

 
61.7

 
60.1

 
0.03
%
O'Rourkes Diner LLC dba O'Rourke's Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2037

 
65.5

 
61.5

 
62.9

 
0.03
%
Kiddie Steps 4 You Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
2/19/2040

 
61.8

 
61.1

 
57.8

 
0.03
%
DTM Parts Supply Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/2/2025

 
62.8

 
60.8

 
50.6

 
0.02
%
Polpo Realty, LLC(EPC) Polpo Restaurant, LLC (OC)
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/6/2038

 
62.5

 
60.5

 
62.2

 
0.03
%
ViAr Visual Communications, Inc. dba Fastsigns 281701
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/5/2025

 
62.0

 
60.1

 
51.2

 
0.03
%
Baystate Firearms and Training, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
63.4

 
59.7

 
50.1

 
0.02
%
Inverted Healthcare Staffing of Florida LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025

 
61.3

 
59.3

 
49.3

 
0.02
%

89
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Smith Spinal Care Center P.C. and James C. Smith
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2039

 
60.0

 
58.8

 
57.5

 
0.03
%
Home Again Restaurant LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
59.0

 
58.8

 
58.1

 
0.03
%
ALF, LLC (EPC) Mulit-Service Eagle Tires (OC)
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/31/2037

 
62.9

 
58.6

 
61.0

 
0.03
%
Emerald Ironworks Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/27/2023

 
72.0

 
58.5

 
57.3

 
0.03
%
Homegrown For Good LLC
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/8/2025

 
60.0

 
57.8

 
50.5

 
0.02
%
Metano IBC Services, Inc. and Stone Brook Leasing, LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
8/17/2017

 
315.0

 
57.1

 
57.4

 
0.03
%
Eco-Green Reprocessing LLC and Denali Medical Concepts, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/27/2023

 
67.2

 
56.7

 
52.5

 
0.03
%
University Park Retreat, LLC dba Massage Heights
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2022

 
76.0

 
56.5

 
57.1

 
0.03
%
Gordon E Rogers dba Stonehouse Motor Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
57.5

 
56.3

 
57.2

 
0.03
%
Eldredge Tavern LLC dba Gonyea's Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/8/2040

 
56.3

 
55.8

 
56.8

 
0.03
%
SuzyQue’s LLC dba Suzy Que’s
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/11/2036

 
61.0

 
55.3

 
57.7

 
0.03
%
Long Island Barber + Beauty LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2039

 
55.5

 
54.1

 
54.1

 
0.03
%
Global Educational Delivery Services LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/16/2024

 
60.0

 
54.0

 
54.3

 
0.03
%
Danny V, LLC dba Hugo's Taproom
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
54.0

 
53.6

 
49.2

 
0.02
%
D & D's Divine Beauty School of Esther, LLC
 
Educational Services
 
Term Loan
 
6%
 
8/1/2031

 
57.7

 
53.5

 
55.5

 
0.03
%
Handy 6391 LLC dba The UPS Store #6391
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2023

 
62.5

 
53.4

 
53.6

 
0.03
%
Road to Sedona Inc dba Thirteen
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
56.6

 
53.4

 
45.1

 
0.02
%
Joyce Outdoor Advertising NJ LLC and Joyce Outdoor Advertising LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2040

 
54.0

 
53.4

 
53.3

 
0.03
%
Modern Leather Goods Repair Shop Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2024

 
58.8

 
53.1

 
44.1

 
0.02
%
Jonesboro Health Food Center LLC
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
5/27/2024

 
60.0

 
52.9

 
48.6

 
0.02
%

90
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
B.S. Ventures LLC dba Dink's Market
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/19/2039

 
53.8

 
52.9

 
53.5

 
0.03
%
God Be Glorified Inc dba GBG Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/20/2025

 
53.0

 
52.0

 
43.8

 
0.02
%
Real Help LLC dba Real Help Decorative Concrete
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2025

 
53.1

 
51.5

 
49.6

 
0.02
%
Akshar Group, LLC
 
Accommodation
 
Term Loan
 
6%
 
11/5/2028

 
321.3

 
51.3

 
53.0

 
0.03
%
KMC RE, LLC & B&B Kennels
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2034

 
58.3

 
51.0

 
53.1

 
0.03
%
The Red Pill Management, Inc. dba UFC Gym Matthews
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
11/26/2024

 
54.3

 
50.9

 
44.6

 
0.02
%
Gregory P Jellenek OD and Associates PC dba Gregory P Jellenek OD
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/28/2023

 
63.5

 
50.9

 
50.4

 
0.02
%
Success Express,Inc. dba Success Express
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2020

 
91.8

 
50.6

 
50.6

 
0.02
%
D&G Capital LLC dba Miami Grill 277
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
83.8

 
50.5

 
49.7

 
0.02
%
Martin L Hopp, MD PHD A Medical Corp (OC) dba Tower ENT
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2022

 
66.3

 
50.5

 
49.7

 
0.02
%
Atlas Auto Body Inc dba Atlas Auto Sales
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/22/2039

 
51.6

 
50.4

 
48.3

 
0.02
%
Veliu LLC dba FASTSIGNS #15901
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/10/2025

 
50.0

 
50.0

 
43.2

 
0.02
%
K's Salon, LLC d/b/a K's Salon
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2021

 
73.6

 
49.8

 
49.5

 
0.02
%
Jacksonville Beauty Institute Inc. dba Beauty Institute's
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
10/23/2025

 
50.0

 
49.7

 
41.9

 
0.02
%
Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/12/2028

 
54.8

 
49.6

 
48.1

 
0.02
%
Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025

 
50.0

 
49.5

 
43.9

 
0.02
%
South Towne Dental Center, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025

 
50.0

 
49.4

 
49.3

 
0.02
%
Finish Strong Inc dba FASTSIGNS St Peters
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025

 
50.0

 
49.4

 
41.6

 
0.02
%
AGV Enterprises LLC dba Jet's Pizza #42
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
54.8

 
49.2

 
42.0

 
0.02
%
Southeast Chicago Soccer, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
51.3

 
49.1

 
50.5

 
0.02
%

91
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Trading Group 3 Inc
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
50.0

 
49.1

 
41.3

 
0.02
%
Java Warung, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/19/2038

 
51.0

 
48.4

 
50.0

 
0.02
%
DRV Enterprise, Inc. dba Cici's Pizza # 339
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/26/2022

 
65.0

 
48.2

 
48.8

 
0.02
%
Ryan D. Thornton and Thornton & Associates LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
5/24/2023

 
68.8

 
47.5

 
46.1

 
0.02
%
Highway Striping Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
53.1

 
47.3

 
44.4

 
0.02
%
Feel The World Inc dba Xero Shoes and Invisible Shoes
 
Leather and Allied Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/5/2024

 
51.9

 
47.3

 
40.4

 
0.02
%
CJR LLC (EPC) and PowerWash Plus, Inc. (OC)
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024

 
53.0

 
46.9

 
45.8

 
0.02
%
Alexandra Afentoulides dba Vi's Pizza Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/11/2040

 
46.3

 
46.3

 
47.1

 
0.02
%
Screenmobile Management Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/14/2025

 
47.0

 
46.1

 
39.2

 
0.02
%
Will Zac Management LLC dba Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/19/2024

 
48.8

 
46.1

 
45.9

 
0.02
%
Any Garment Cleaner-East Brunswick, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2023

 
53.8

 
45.7

 
44.8

 
0.02
%
CBA D&A Pope, LLC dba Christian Brothers Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/14/2018

 
144.9

 
45.6

 
45.9

 
0.02
%
Chickamauga Properties, Inc. and MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/19/2022

 
59.8

 
45.0

 
45.5

 
0.02
%
LABH, Inc. t/a Ramada Ltd.
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/27/2024

 
555.0

 
44.9

 
45.0

 
0.02
%
B for Brunette
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/10/2023

 
53.4

 
44.9

 
41.1

 
0.02
%
Delta Partners, LLC dba Delta Carwash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.5%
 
4/5/2029

 
280.9

 
44.8

 
45.7

 
0.02
%
Rudy & Louise Chavez dba Clyde's Auto and Furniture Upholstery
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035

 
50.1

 
44.7

 
46.6

 
0.02
%
Stellar Environmental LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2023

 
56.3

 
44.3

 
44.5

 
0.02
%
Alyssa Corp dba Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/30/2023

 
350.0

 
44.2

 
44.3

 
0.02
%
Jatcoia, LLC dba Plato's Closet
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
8/15/2023

 
65.0

 
44.2

 
44.3

 
0.02
%

92
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
MM and M Management Inc dba Pizza Artista
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/19/2025

 
46.3

 
44.0

 
37.4

 
0.02
%
Morning Star Trucking LLC and Morning Star Equipment and Leasing LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/17/2023

 
53.8

 
43.8

 
39.9

 
0.02
%
Sound Coaching Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
4/14/2025

 
44.4

 
42.5

 
35.3

 
0.02
%
Jaymie Hazard dba Indigo Hair Studio and Day Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040

 
42.9

 
42.4

 
40.7

 
0.02
%
Thomas P. Scoville dba Scoville Plumbing & Heating, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/16/2021

 
62.5

 
41.6

 
42.2

 
0.02
%
Stephen Frank, Patricia Frank and Suds Express LLC dba Frank Chiropra
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/25/2023

 
63.0

 
41.0

 
41.7

 
0.02
%
Lavertue Properties LLP dba Lavertue Properties
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/29/2036

 
44.8

 
40.9

 
42.8

 
0.02
%
Equity National Capital LLC & Chadbourne Road Capital, LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/26/2021

 
62.5

 
40.8

 
40.8

 
0.02
%
Excel RP, Inc./Kevin and Joann Foley
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/8/2028

 
50.0

 
40.1

 
41.2

 
0.02
%
Peanut Butter & Co., Inc. d/b/a Peanut Butter & Co.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/3/2021

 
65.5

 
39.8

 
40.0

 
0.02
%
Financial Network Recovery
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/26/2025

 
40.0

 
39.3

 
33.1

 
0.02
%
Jojan, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.25%
 
12/18/2031

 
204.8

 
39.2

 
39.4

 
0.02
%
All American Printing
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
10/26/2032

 
69.8

 
39.0

 
40.6

 
0.02
%
Play and Stay LLC dba Zoom Room Tinton Falls
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/18/2024

 
42.1

 
38.8

 
32.2

 
0.02
%
K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
10/26/2021

 
58.8

 
38.8

 
38.7

 
0.02
%
Legacy Estate Planning Inc dba American Casket Enterprises
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024

 
42.0

 
38.8

 
32.2

 
0.02
%

93
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Valiev Ballet Academy, Inc
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
8/12/2036

 
91.5

 
38.8

 
40.4

 
0.02
%
Kids in Motion of Springfield LLC dba The Little Gym of Springfield IL
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/18/2023

 
45.0

 
38.7

 
35.8

 
0.02
%
Serious-Fun in Alpharetta, LLC dba The Little Gym of Alpharetta
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2023

 
46.3

 
38.6

 
35.9

 
0.02
%
Scoville Plumbing & Heating Inc and Thomas P. Scoville
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/25/2022

 
50.0

 
38.3

 
38.7

 
0.02
%
Alma J. and William R. Walton (EPC) and Almas Child Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038

 
39.5

 
37.9

 
39.0

 
0.02
%
Lahoba,LLC dba Papa John's Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/30/2034

 
42.5

 
37.3

 
39.0

 
0.02
%
Orange County Cleaning Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024

 
41.3

 
37.3

 
31.0

 
0.02
%
Lodin Medical Imaging, LLC dba Watson Imaging Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/1/2020

 
66.4

 
37.3

 
37.7

 
0.02
%
Janice B. McShan and The Metropolitan Day School, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/31/2023

 
42.8

 
36.9

 
36.8

 
0.02
%
Aiello's Pizzeria LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/18/2024

 
42.8

 
36.5

 
34.2

 
0.02
%
M & H Pine Straw, Inc.and Harris Maloy
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
7/10/2020

 
67.5

 
36.2

 
36.5

 
0.02
%
ENI Inc. dba ENI Group, Inc
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2025

 
36.0

 
36.0

 
31.8

 
0.02
%
Capital Scrap Metal LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
36.0

 
36.0

 
30.7

 
0.02
%
KIND-ER-ZZ Inc dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2022

 
50.0

 
35.7

 
35.6

 
0.02
%
Gulfport Academy Child Care and Learning Center, Inc. and Jennifer Sis
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
43.3

 
35.6

 
35.1

 
0.02
%
Babie Bunnie Enterprises Inc dba Triangle Mothercare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2027

 
46.3

 
35.4

 
34.7

 
0.02
%
Dave Kris, and MDK Ram Corp.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/5/2026

 
221.0

 
35.0

 
35.9

 
0.02
%
Actknowledge,Inc dba Actknowledge
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2021

 
57.3

 
34.7

 
35.1

 
0.02
%
401 JJS, Corp and G. Randazzo's Trattoria Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/1/2040

 
52.8

 
34.3

 
35.0

 
0.02
%

94
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Andrene's LLC dba Andrene's Caribbean Soul Food Carry Out
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/23/2024

 
37.8

 
34.3

 
28.6

 
0.01
%
CPN Motel, L.L.C. dba American Motor Lodge
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
4/30/2024

 
379.0

 
34.0

 
34.1

 
0.02
%
Smooth Grounds, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
7.75%
 
10/11/2016

 
64.5

 
33.9

 
34.1

 
0.02
%
Naseeb Corporation
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
3/31/2024

 
402.5

 
33.1

 
33.1

 
0.02
%
Harbor Ventilation Inc and Estes Investment, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2038

 
92.1

 
32.8

 
33.7

 
0.02
%
Kino Oil of Texas, LLC dba Kino Oil
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/27/2020

 
60.0

 
32.6

 
32.9

 
0.02
%
My Jewels, LLC dba The UPS Store #6712
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/7/2025

 
56.3

 
32.4

 
27.3

 
0.01
%
Kinisi, Inc. dba The River North UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2024

 
41.3

 
32.2

 
31.2

 
0.02
%
Center-Mark Car Wash, Ltd
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/18/2024

 
221.3

 
30.7

 
31.4

 
0.02
%
Robert F. Schuler and Lori A. Schuler dba Bob’s Service Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/30/2035

 
34.0

 
30.5

 
31.8

 
0.02
%
Dream Envy, Ltd. d/b/a Massage Envy
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/9/2018

 
88.0

 
30.4

 
30.7

 
0.02
%
Deesha Corporation, Inc. dba Best Inn & Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
2/14/2025

 
250.0

 
30.0

 
30.1

 
0.01
%
Twietmeyer Dentistry PA
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2017

 
148.9

 
29.0

 
29.2

 
0.01
%
CMA Consulting dba Construction Management Associates
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
58.5

 
28.6

 
28.7

 
0.01
%
North Atlanta RV Rentals LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
144.3

 
28.2

 
23.5

 
0.01
%
Little People’s Village, LLC dba Little People’s Village
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2036

 
31.1

 
28.0

 
29.2

 
0.01
%
Maruti, Inc
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
11/25/2024

 
220.0

 
27.9

 
28.0

 
0.01
%
A & A Acquisition, Inc. dba A & A International
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/15/2018

 
100.0

 
26.8

 
27.0

 
0.01
%
ActKnowledge,Inc dba ActKnowledge
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2020

 
50.0

 
26.5

 
26.9

 
0.01
%
Planet Verte, LLC dba Audio Unlimited of Oceanside
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/28/2019

 
57.0

 
26.5

 
26.6

 
0.01
%

95
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Seven Stars Enterprises, Inc. dba Atlanta Bread Company
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2018

 
86.3

 
26.4

 
26.6

 
0.01
%
K & D Family and Associates, Inc. dba Philly Pretzel Factory
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
8/5/2018

 
81.3

 
26.3

 
26.5

 
0.01
%
39581 Garfield, LLC and Tricounty Neurological Associates, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
28.5

 
25.9

 
26.9

 
0.01
%
Craig R Freehauf d/b/a Lincoln Theatre
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
5/31/2022

 
47.9

 
25.3

 
25.7

 
0.01
%
Shree OM Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/17/2035

 
27.7

 
24.9

 
25.9

 
0.01
%
Lincoln Park Physical Therapy
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/20/2020

 
43.5

 
24.4

 
24.7

 
0.01
%
Aldine Funeral Chapel, LLC dba Aldine Funeral Chapel
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/8/2038

 
73.8

 
24.0

 
24.9

 
0.01
%
Parties By Pat, Inc. and Jose M. Martinez Jr.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/11/2017

 
93.1

 
22.8

 
23.0

 
0.01
%
B & J Manufacturing Corporation and Benson Realty Trust
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2%
 
3/30/2021

 
250.0

 
22.6

 
22.4

 
0.01
%
Gain Laxmi, Inc. dba Super 8 Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
5/31/2023

 
202.5

 
22.5

 
22.5

 
0.01
%
RDT Enterprises, L.L.C.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/12/2025

 
22.5

 
22.5

 
20.9

 
0.01
%
Medeiros Holdings Inc dba Outdoor Lighting Perspectives of the Triad
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025

 
22.5

 
22.5

 
19.0

 
0.01
%
AGR Foodmart Inc dba Nashua Road Mobil
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/11/2025

 
22.5

 
22.5

 
21.1

 
0.01
%
DC Enterprises Ltd. dba Lakeview True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2025

 
22.5

 
22.5

 
21.2

 
0.01
%
ADMO Inc dba Mid States Equipment
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/8/2025

 
22.5

 
22.4

 
19.3

 
0.01
%
Insurance Fire & Water Restorations, LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
10/23/2025

 
22.5

 
22.4

 
21.0

 
0.01
%
New Hampshire Precision Metal Fabricators, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/23/2025

 
22.5

 
22.4

 
22.3

 
0.01
%
Bisson Transportation Inc dba I & R Associates and Document Secutiry
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/30/2025

 
22.5

 
22.4

 
20.8

 
0.01
%
Binky's Vapes LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
22.5

 
22.2

 
18.7

 
0.01
%

96
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Planet Verte,LLC d/b/a Audio Unlimited
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2020

 
40.0

 
22.0

 
22.0

 
0.01
%
575 Columbus Avenue Holding Company, LLC and LA-ZE LLC dba EST EST EST
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/30/2039

 
22.5

 
22.0

 
22.3

 
0.01
%
Smart Artists Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/23/2025

 
22.5

 
21.9

 
18.5

 
0.01
%
Delray Scrap Recycling LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2025

 
22.5

 
21.8

 
18.4

 
0.01
%
Square Deal Siding Company,LLC dba Square Deal Siding Company
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025

 
22.5

 
21.8

 
21.7

 
0.01
%
Evinger PA One, Inc. dba Postal Annex, Falcon
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025

 
22.5

 
21.8

 
19.3

 
0.01
%
E & G Enterprises LLC dba Comfort Keepers
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025

 
22.5

 
21.8

 
18.2

 
0.01
%
Members Only Software
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020

 
40.3

 
21.8

 
21.9

 
0.01
%
RJI Services, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2025

 
22.5

 
21.6

 
18.0

 
0.01
%
KenBro Enterprises LLC dba Hearing Aids by Zounds-Cherry Hill
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
10/18/2023

 
25.8

 
21.5

 
20.9

 
0.01
%
Giacchino Maritime Consultants Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/17/2025

 
22.5

 
21.5

 
17.9

 
0.01
%
Ragazza Restaurant Group, Inc. dba Bambolina
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/21/2025

 
22.5

 
21.5

 
18.8

 
0.01
%
Diamond Solutions LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/21/2025

 
22.5

 
21.5

 
17.9

 
0.01
%
Gurtej Singh and Ranjit Kaur dba Food Fair Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/18/2025

 
22.5

 
21.4

 
17.8

 
0.01
%
Zero-In Media Inc
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2025

 
22.5

 
21.4

 
17.8

 
0.01
%
Pen Tex Inc dba The UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/20/2025

 
22.0

 
21.2

 
17.6

 
0.01
%
Trading Group 3, Inc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/26/2024

 
22.5

 
20.8

 
17.3

 
0.01
%
J.R. Wheeler Corporation dba Structurz Exhibits and Graphics
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/24/2025

 
21.0

 
20.7

 
20.7

 
0.01
%
Auto Shine Carwash Inc and AKM R. Hossain and Jessica F. Masud
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/26/2024

 
22.5

 
20.5

 
17.8

 
0.01
%

97
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Jatcoia 60056, LLC dba Style Encore
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
22.3

 
20.4

 
19.1

 
0.01
%
H.H. Leonards Trust and Potomac Fund LLC and The 2020 O Street Corporation
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
7/23/2020

 
62.0

 
20.3

 
20.5

 
0.01
%
TJU-DGT Inc dba The Lorenz Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/26/2029

 
20.6

 
20.2

 
20.0

 
0.01
%
L&S Insurance & Financial Services Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/25/2024

 
22.5

 
20.2

 
17.1

 
0.01
%
Complete Body & Paint, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/23/2039

 
20.8

 
20.2

 
20.7

 
0.01
%
Any Garment Cleaner-East Brunswick, Inc dba Any Garment Cleaner
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/18/2020

 
42.5

 
20.2

 
20.4

 
0.01
%
Sujata Inc dba Stop N Save Food Mart and Dhruvesh Patel
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/3/2024

 
22.5

 
20.0

 
18.7

 
0.01
%
Pocono Coated Products, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024

 
22.5

 
19.9

 
19.5

 
0.01
%
Palmabak Inc dba Mami Nora's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/22/2025

 
21.5

 
19.7

 
19.5

 
0.01
%
Diag, LLC dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/21/2020

 
37.5

 
19.4

 
19.5

 
0.01
%
One Hour Jewelry Repair Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/14/2024

 
20.6

 
18.9

 
15.7

 
0.01
%
MCF Forte LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/29/2025

 
18.8

 
18.8

 
16.0

 
0.01
%
Carolina Beefs, LLC dba Beef O'Brady's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/13/2025

 
19.5

 
18.6

 
15.5

 
0.01
%
Icore Enterprises Inc dba Air Flow Filters Inc
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/15/2024

 
21.8

 
18.6

 
18.7

 
0.01
%
Caribbean Concepts, Inc. dba Quick Bleach
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/12/2023

 
22.5

 
18.6

 
17.3

 
0.01
%
M and C Renovations Inc
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/31/2024

 
20.3

 
18.6

 
15.5

 
0.01
%
Tammy's Bakery, Inc. dba Tammy's Bakery
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/10/2017

 
71.8

 
18.5

 
18.6

 
0.01
%
Min Hui Lin
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2028

 
134.3

 
18.5

 
19.1

 
0.01
%
Major Queens Body & Fender Corp
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/10/2021

 
28.6

 
18.2

 
18.5

 
0.01
%
Shuttle Car Wash, Inc. dba Shuttle Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.25%
 
11/10/2028

 
109.8

 
18.2

 
18.2

 
0.01
%

98
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Gray Tree Service, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2018

 
50.0

 
18.2

 
18.3

 
0.01
%
Hattingh Incorporated dba Prosthetic Care Facility
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2025

 
18.0

 
18.0

 
16.0

 
0.01
%
Hurshell Leon Dutton dba High Jump Party Rentals
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
17.6

 
17.6

 
17.1

 
0.01
%
Boilermaker Industries LLC dba PostNet
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/9/2024

 
18.8

 
17.5

 
16.1

 
0.01
%
The Amendments Group LLC dba Brightstar
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/17/2022

 
22.5

 
17.2

 
17.4

 
0.01
%
EGM Food Services Inc dba Gold Star Chili
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024

 
19.2

 
17.0

 
15.9

 
0.01
%
Hi-Def Imaging, Inc. dba SpeedPro Imaging
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/9/2022

 
22.2

 
16.8

 
16.5

 
0.01
%
Tracey Vita-Morris dba Tracey Vita's School of Dance
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
5/10/2022

 
22.5

 
16.1

 
16.0

 
0.01
%
St Judes Physical Therapy P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2022

 
21.0

 
15.9

 
16.1

 
0.01
%
Tri-State Remodeling & Investments, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/11/2025

 
15.9

 
15.9

 
15.2

 
0.01
%
Panditos LLC dba White Lotus Home
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/28/2025

 
15.9

 
15.9

 
13.4

 
0.01
%
Opes Campitor Corporation dba Frux Documents
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/20/2025

 
16.5

 
15.9

 
13.5

 
0.01
%
JSIL LLC dba Blackstones Hairdressing
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/16/2023

 
19.5

 
15.8

 
14.9

 
0.01
%
Nancy Carapelluci & A & M Seasonal Corner Inc.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/1/2025

 
106.9

 
15.8

 
16.2

 
0.01
%
TOL LLC dba Wild Birds Unlimited
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/13/2023

 
18.0

 
15.8

 
15.0

 
0.01
%
Vanderhoof LLC dba Soxfords
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/18/2025

 
15.9

 
15.7

 
13.2

 
0.01
%
Vallmar Studios, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025

 
15.8

 
15.6

 
13.1

 
0.01
%
Frozen Treats of Hollywood FL, LLC dba Sub Zero Ice Cream
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/22/2025

 
15.8

 
15.6

 
13.8

 
0.01
%
Chitalian Fratelli LLC dba Francesca Brick Oven Pizza and Pasta
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/5/2025

 
16.1

 
15.5

 
12.9

 
0.01
%

99
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Myclean Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
15.9

 
15.4

 
12.8

 
0.01
%
Kings Laundry,LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/30/2017

 
64.5

 
15.3

 
15.4

 
0.01
%
Balthazar Management Virgin Islands, LLC dba The Beach Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/22/2025

 
15.8

 
15.3

 
15.2

 
0.01
%
Karis, Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2%
 
12/22/2023

 
148.8

 
15.0

 
14.9

 
0.01
%
Michael S. Decker & Janet Decker dba The Hen House Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2036

 
16.4

 
15.0

 
15.6

 
0.01
%
Bradley Stinson and Associates Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/19/2025

 
15.0

 
15.0

 
12.6

 
0.01
%
Elite Institute LLC dba Huntington Learning Center
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
15.0

 
14.9

 
12.6

 
0.01
%
Zouk, Ltd. dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/25/2020

 
27.5

 
14.7

 
14.9

 
0.01
%
Graphish Studio, Inc. and Scott Fishoff
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/14/2022

 
20.3

 
14.6

 
14.6

 
0.01
%
Jay Kevin Gremillion dba Dino Smiles Children's Cosmetic Dentistry
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
73.0

 
14.6

 
14.6

 
0.01
%
28 Cornelia Street Properties, LLC and Zouk, Ltd.dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/25/2021

 
22.5

 
14.6

 
14.8

 
0.01
%
Vision Network Solutions, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/12/2022

 
19.5

 
14.5

 
14.1

 
0.01
%
PM Cassidy Enterprises, Inc. dba Junk King
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
14.9

 
14.4

 
12.0

 
0.01
%
Orchid Enterprises Inc dba Assisting Hands of Sussex County
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/24/2025

 
15.0

 
14.3

 
12.0

 
0.01
%
Windsor Direct Distribution LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/26/2025

 
14.3

 
14.2

 
11.9

 
0.01
%
Atlas Mountain Construction LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
1/28/2024

 
16.5

 
14.1

 
14.2

 
0.01
%
Michael S. Korfe dba North Valley Auto Repair
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/24/2036

 
15.5

 
14.0

 
14.6

 
0.01
%
Burks & Sons Development LLC dba Tropical Smoothie Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/22/2018

 
49.8

 
13.9

 
14.0

 
0.01
%
Laura L. Smith dba Lisa Smith Studio
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/3/2024

 
15.0

 
13.8

 
11.4

 
0.01
%

100
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Insurance Problem Solvers LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
5/20/2023

 
17.1

 
13.7

 
13.3

 
0.01
%
Gator Communications Group, LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
17.3

 
13.7

 
13.6

 
0.01
%
Duttakrupa, LLC dba Birmingham Motor Court
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/8/2023

 
98.8

 
13.6

 
13.6

 
0.01
%
Maynard Enterprises Inc dba Fastsigns of Texarkana
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/18/2023

 
16.1

 
13.5

 
12.6

 
0.01
%
Daniel W. Stark dba Mountain Valley Lodge and RV Park
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
13.5

 
13.5

 
13.7

 
0.01
%
Willington Hills Equestrian Center LLC
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
10/19/2022

 
85.0

 
13.2

 
13.5

 
0.01
%
Atlanta Vascular Research Organization, Inc dba Atlanta Vascular Found
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/6/2020

 
24.3

 
13.2

 
13.4

 
0.01
%
AcuCall LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2023

 
15.8

 
13.1

 
12.0

 
0.01
%
Nicor LLC dba Fibrenew Sacramento
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/5/2022

 
13.8

 
13.1

 
10.9

 
0.01
%
John B. Houston Funeral Home, Inc. dba George E. Cushnie Funeral Home
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/19/2028

 
78.8

 
13.0

 
13.4

 
0.01
%
Clean Brothers Company Inc dba ServPro of North Washington County
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/21/2022

 
17.0

 
12.8

 
12.6

 
0.01
%
1911 East Main Street Holdings, Corp
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2032

 
15.8

 
12.8

 
13.3

 
0.01
%
WeaverVentures, Inc dba The UPS Store
 
Postal Service
 
Term Loan
 
Prime plus 2.75%
 
7/28/2020

 
23.8

 
12.8

 
12.9

 
0.01
%
Pegasus Automotive, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/23/2022

 
112.5

 
12.4

 
12.7

 
0.01
%
S.Drake LLC dba Express Employment Professionals of Ann Arbor, Michigan
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/31/2023

 
18.8

 
12.3

 
11.4

 
0.01
%
Blue Ox Trucking Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/4/2025

 
12.3

 
12.3

 
12.3

 
0.01
%
Lefont Theaters Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/19/2023

 
14.4

 
12.2

 
11.7

 
0.01
%
McCallister Venture Group, LLC and Maw's Vittles, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/30/2029

 
75.0

 
12.2

 
12.6

 
0.01
%
DeRidder Chiropractic LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
13.2

 
12.2

 
11.9

 
0.01
%

101
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
AJK Enterprise LLC dba AJK Enterprise LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/27/2022

 
16.5

 
12.2

 
12.2

 
0.01
%
P. Agrino, Inc. dba Andover Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/18/2021

 
150.0

 
12.0

 
12.2

 
0.01
%
Nelson Financial Services LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/24/2025

 
12.5

 
11.7

 
9.8

 
—
%
North Country Transport, LLC
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/6/2023

 
15.0

 
11.7

 
11.8

 
0.01
%
Abbondanza Market LLC dba Hampton Falls Village Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
73.8

 
11.7

 
11.7

 
0.01
%
Indoor Playgrounds Limited Liability Company dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/5/2022

 
19.5

 
11.5

 
11.6

 
0.01
%
Loriet LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/24/2025

 
12.0

 
11.4

 
9.5

 
—
%
Diamond Memorials Incorporated
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2023

 
14.3

 
11.3

 
10.3

 
0.01
%
DWeb Studio, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025

 
11.3

 
11.3

 
9.5

 
—
%
CJ Park Inc. dba Kidville Midtown West
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2020

 
26.4

 
11.1

 
11.2

 
0.01
%
Play and Learn Child Care and School Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/23/2025

 
11.1

 
11.1

 
11.1

 
0.01
%
Margab, Inc. dba Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/28/2017

 
44.0

 
11.0

 
11.1

 
0.01
%
Mala Iyer, MD dba Child and Family Wellness Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/11/2017

 
50.0

 
11.0

 
11.0

 
0.01
%
Learning Skills LLC and Christopher Shrope
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025

 
10.8

 
10.8

 
9.1

 
—
%
Georgia Safe Sidewalks LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022

 
15.0

 
10.8

 
10.7

 
0.01
%
Luigi's on Main LLC and Luigi's Main Street Pizza Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/4/2025

 
11.3

 
10.7

 
10.6

 
0.01
%
Kino Oil of Texas LLC dba Kino Company and B&D Oil
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/27/2035

 
12.0

 
10.5

 
10.9

 
0.01
%
Chong Hun Im dba Kim's Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.5%
 
2/27/2024

 
80.0

 
10.5

 
10.6

 
0.01
%
M. Krishna, Inc. dba Super 8 Motel
 
Accommodation
 
Term Loan
 
Prime plus 2%
 
3/20/2025

 
250.0

 
10.3

 
10.2

 
0.01
%
Demand Printing Solutions, Inc. and MLM Enterprises, LLC d/b/a Demand Printing Solutions
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/27/2021

 
16.5

 
10.3

 
10.4

 
0.01
%

102
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
K9 Bytes, Inc & Epazz, Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
9/30/2020

 
18.5

 
10.2

 
10.2

 
0.01
%
Prestigious LifeCare for Seniors LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025

 
9.8

 
9.7

 
8.8

 
—
%
Dirk's Trucking, L.L.C. dba Dirk's Trucking
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/17/2020

 
17.7

 
9.7

 
9.7

 
—
%
Taste of Inverness, Inc. dba China Garden
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2%
 
6/29/2025

 
73.8

 
9.6

 
9.5

 
—
%
Jennifer T Campbell
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/31/2025

 
9.8

 
9.5

 
8.0

 
—
%
Pedzik's Pets, LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
3/31/2030

 
53.5

 
9.4

 
9.8

 
—
%
Head To Toe Personalized Pampering, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/27/2031

 
52.0

 
9.4

 
9.7

 
—
%
Daniel W and Erin H Gordon and Silver Lining Stables CT, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/24/2023

 
11.3

 
9.2

 
9.2

 
—
%
Capitol Compliance Associates Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2025

 
15.9

 
9.0

 
7.5

 
—
%
It's A Buffalo
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/26/2016

 
219.8

 
8.9

 
9.0

 
—
%
Oz B. Zamir dba Zamir Marble & Granite
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.5%
 
8/6/2028

 
54.0

 
8.7

 
8.8

 
—
%
Villela CPA PL
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/27/2025

 
9.0

 
8.7

 
7.5

 
—
%
MiJoy Inc dba Imo's Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/18/2025

 
8.3

 
8.1

 
6.9

 
—
%
Higher Grounds Community Coffeehouse, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/2/2025

 
8.3

 
8.1

 
7.1

 
—
%
Kelly Chon LLC dba Shi-Golf
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/29/2021

 
17.5

 
8.1

 
8.2

 
—
%
Joey O's LLC and Jennifer Olszewski
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/7/2024

 
13.1

 
8.0

 
6.7

 
—
%
Aaron Delgado and Associates Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/22/2025

 
8.2

 
8.0

 
6.7

 
—
%
XCESSIVE THROTTLE, INC dba Jake's Roadhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2025

 
8.3

 
7.9

 
6.6

 
—
%
Randall D. & Patricia D. Casaburi dba Pat's Pizzazz
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/13/2023

 
68.8

 
7.9

 
8.1

 
—
%

103
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
The Conibear Corporation and Conibear Trucking, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2024

 
12.0

 
7.9

 
7.4

 
—
%
RAB Services, Inc. & Professional Floor Installations
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.5%
 
1/31/2023

 
62.5

 
7.9

 
7.9

 
—
%
JRJG, Inc. dba BrightStar HealthCare-Naperville/Oak Brook
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/23/2020

 
15.0

 
7.7

 
7.7

 
—
%
RDJ Maayaa Inc dba RDJ Distributors
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/23/2024

 
8.7

 
7.6

 
7.0

 
—
%
Jung Design Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/20/2022

 
8.4

 
7.6

 
6.3

 
—
%
Cares, Inc dba Dumpling Grounds Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/10/2025

 
7.5

 
7.5

 
7.3

 
—
%
Caring Hands Pediatrics,P.C. dba Caring Hands Pediatrics
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/9/2020

 
14.5

 
7.4

 
7.5

 
—
%
A-1 Quality Services Corporation
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/29/2023

 
8.9

 
7.4

 
6.7

 
—
%
D&L Rescources, Inc. dba The UPS Store
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/27/2022

 
9.8

 
7.4

 
7.2

 
—
%
RJS Service Corporation
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
8/20/2021

 
79.0

 
7.3

 
7.4

 
—
%
Stillwell Ave Prep School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/14/2023

 
72.0

 
7.2

 
7.3

 
—
%
Envy Salon & Spa LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/4/2018

 
20.3

 
7.2

 
7.2

 
—
%
Howell Gun Works LLC
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
11/14/2023

 
8.3

 
7.1

 
6.4

 
—
%
ATC Fitness, LLC dba Around the Clock Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2022

 
10.2

 
7.1

 
7.1

 
—
%
Gilbert Chiropractic Clinic, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/7/2018

 
22.5

 
6.9

 
7.0

 
—
%
RCB Enterprises, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2017

 
21.2

 
6.6

 
6.6

 
—
%
ATC Fitness LLC dba Around the Clock Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2019

 
15.0

 
6.3

 
6.3

 
—
%
Five Corners, Ltd.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
85.0

 
6.1

 
6.2

 
—
%
Tanner Optical, Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/27/2022

 
8.3

 
5.8

 
5.9

 
—
%

104
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Food & Beverage Associates Of N.J. Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/11/2021

 
10.0

 
5.6

 
5.7

 
—
%
Track Side Collision & Tire, Inc.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025

 
44.8

 
5.2

 
5.4

 
—
%
OrthoQuest, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2%
 
3/12/2022

 
56.8

 
5.1

 
5.1

 
—
%
Demand Printing Solutions, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/12/2019

 
10.0

 
4.7

 
4.8

 
—
%
Bhailal Patel dba New Falls Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
100.0

 
4.6

 
4.7

 
—
%
Maria C. Sathre and David N. Sathre dba Black Forest Liquor Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/28/2017

 
18.6

 
4.5

 
4.5

 
—
%
Gourmet to You, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2019

 
12.1

 
4.5

 
4.5

 
—
%
David A. Nusblatt, D.M.D, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
9.0

 
4.3

 
4.3

 
—
%
South Dade Restoration Corp. dba Servpro of Kendall/Pinecrest
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/10/2016

 
61.8

 
4.0

 
4.0

 
—
%
ValleyStar, Inc. dba BrightStar Healthcare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020

 
7.5

 
4.0

 
4.0

 
—
%
Moonlight Multi Media Production, Inc.
 
Other Information Services
 
Term Loan
 
5.3%
 
2/1/2025

 
19.7

 
3.9

 
4.0

 
—
%
Patrageous Enterprises, LLC dba Incredibly Edible Delites of Laurel
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/29/2020

 
7.6

 
3.7

 
3.7

 
—
%
DDLK Investments LLC d/b/a Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020

 
7.5

 
3.6

 
3.6

 
—
%
Christopher F. Bohon & Pamela D. Bohon
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/28/2026

 
14.2

 
3.5

 
3.6

 
—
%
Enewhere Custom Canvas, LLC
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
2/15/2018

 
12.0

 
3.4

 
3.4

 
—
%
Quality Engraving Services Inc. and Ian M. Schnaitman
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
10/17/2017

 
15.0

 
3.3

 
3.3

 
—
%
ValleyStar, Inc. dba BrightStar HealthCare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020

 
0.6

 
3.2

 
3.2

 
—
%
Cocoa Beach Parasail Corp. dba Cocoa Beach Parasail
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/26/2020

 
6.3

 
3.2

 
3.2

 
—
%
Kyoshi Enterprises, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/29/2016

 
22.5

 
3.1

 
3.1

 
—
%
Champion Pest Control Systems, Inc.
 
Administrative and Support Services
 
Term Loan
 
6%
 
1/15/2016

 
39.0

 
3.0

 
—

 
—
%

105
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Grapevine Professional Services, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/22/2019

 
8.2

 
2.9

 
2.9

 
—
%
Louis B. Smith dba LAQ Funeral Coach
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/15/2017

 
12.6

 
2.8

 
2.8

 
—
%
Spain Street LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/29/2017

 
63.0

 
2.8

 
2.8

 
—
%
Computer Renaissance dba Dante IT Services, Inc.
 
Electronics and Appliance Stores
 
Term Loan
 
Prime plus 3.75%
 
3/1/2018

 
100.0

 
2.7

 
2.8

 
—
%
Ralph Werner dba Werner Transmissions
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/29/2021

 
26.6

 
2.7

 
2.8

 
—
%
Flourishing Fruits, LLC dba Edible Arrangements
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/29/2017

 
21.1

 
2.7

 
2.7

 
—
%
Saan M.Saelee dba Saelee's Delivery Service
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2018

 
9.8

 
2.7

 
2.7

 
—
%
Daniel S. Fitzpatrick dba Danny's Mobile Appearance Reconditioning Service
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/29/2018

 
9.4

 
2.6

 
2.7

 
—
%
Flint Batteries, LLC
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
7/21/2016

 
46.9

 
2.4

 
2.4

 
—
%
Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2021

 
3.8

 
2.3

 
2.4

 
—
%
L.C.N. Investments, L.L.C. dba Max Muscle Sports Nutrition
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
5/27/2017

 
12.8

 
2.1

 
2.2

 
—
%
Inflate World Corporation
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/30/2018

 
7.5

 
2.0

 
2.0

 
—
%
Seo's Paradise Cleaners, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2018

 
9.8

 
1.9

 
2.0

 
—
%
Timothy S. Strange dba Strange's Mobile Apperance Reconditioning Service
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/17/2017

 
8.4

 
1.6

 
1.7

 
—
%
Golden Elevator Co., Inc.
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
1/31/2022

 
50.0

 
1.6

 
1.7

 
—
%
Flint Batteries LLC dba Batteries Plus of Flint
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
8/29/2017

 
9.0

 
1.5

 
1.6

 
—
%
MJ Mortgage & Tax Services, Inc.
 
Credit Intermediation and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/14/2017

 
6.9

 
1.5

 
1.5

 
—
%
CCIPTA, LLC
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
1/17/2017

 
47.0

 
1.5

 
1.5

 
—
%
Nora A. Palma and Julio O Villcas
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/27/2017

 
56.3

 
1.4

 
1.5

 
—
%

106
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Delyannis Iron Works
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
12/8/2022

 
16.0

 
1.4

 
1.5

 
—
%
Zeroln Media LLC
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
4/25/2017

 
7.5

 
1.4

 
1.4

 
—
%
Nelson Financial Services, LLC
 
Scenic and Sightseeing Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/2/2016

 
57.0

 
1.3

 
1.3

 
—
%
Pro Levin Yoga, Incorporated d.b.a. Bikram's Yoga College of India Sug
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/12/2016

 
16.4

 
0.9

 
0.9

 
—
%
No Thirst Software LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/26/2017

 
6.8

 
0.9

 
0.9

 
—
%
New Economic Methods LLC dba Rita's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2020

 
24.8

 
0.9

 
0.9

 
—
%
Saul A. Ramirez and Norma L. Trujillo
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/31/2017

 
6.0

 
0.9

 
0.9

 
—
%
Eric R. Wise, D.C. dba Jamacha-Chase Chiropractic
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2017

 
15.6

 
0.6

 
0.6

 
—
%
Contractors Pumping Service, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/3/2016

 
9.9

 
0.4

 
0.4

 
—
%
Tesserah Tile Design, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2016

 
7.1

 
0.4

 
0.4

 
—
%
Healthcare Interventions, Inc. dba Brightstar HealthCare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/15/2016

 
8.3

 
0.4

 
0.4

 
—
%
Maynard Enterprises, Inc.
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/22/2016

 
22.5

 
0.3

 
0.4

 
—
%
Vincent Allen Fleece dba Living Well Accessories and Water Camel
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/1/2016

 
3.8

 
0.3

 
0.3

 
—
%
Spencer Fitness, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/11/2016

 
6.0

 
—

 
—

 
—
%
Chez Rurene Bakery
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/20/2017

 
150.0

 
31.6

 
45.2

 
0.02
%
Total Performing SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
181,518.3

 
$
155,980.4

 
$
152,157.7

 
74.61
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Performing SBA Unguaranteed Investments (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* 214 North Franklin, LLC and Winter Ventures, Inc.
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/29/2037

 
$
146.0

 
$
146.1

 
$
136.9

 
0.07
%
* A + Quality Home Health Care, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
8/1/2016

 
1.3

 
1.3

 
1.2

 
—
%
* Almeria Marketing 1, Inc.
 
Personal and Laundry Services
 
Term Loan
 
7.75%
 
10/15/2015

 
4.7

 
4.7

 
0.7

 
—
%

107
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
* AUM Estates, LLC and Sculpted Figures Plastic Surgery Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
3/14/2038

 
305.3

 
305.7

 
136.2

 
0.07
%
Auto Sales, Inc.
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6%
 
8/17/2023

 
4.3

 
4.3

 
3.8

 
—
%
* AWA Fabrication & Construction, L.L.C.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
4/30/2025

 
34.7

 
34.8

 
24.5

 
0.01
%
* Baker Sales, Inc. d/b/a Baker Sales, Inc.
 
Nonstore Retailers
 
Term Loan
 
6%
 
3/29/2036

 
181.5

 
182.0

 
99.9

 
0.05
%
* Barnum Printing & Publishing, Co.
 
Printing and Related Support Activities
 
Term Loan
 
6%
 
7/29/2015

 
9.8

 
9.8

 
8.2

 
—
%
* BCD Enterprises, LLC dba Progressive Tool and Nutmeg Tool
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
6/22/2026

 
290.3

 
290.9

 
—

 
—
%
* Bwms Management, LLC
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
7/7/2027

 
75.2

 
75.4

 
23.2

 
0.01
%
* DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
3/23/2037

 
697.8

 
699.5

 
563.2

 
0.28
%
* DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2022

 
206.1

 
206.6

 
182.4

 
0.09
%
* Dill Street Bar and Grill Inc and WO Entertainment, Inc
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
9/27/2027

 
104.4

 
104.6

 
23.6

 
0.01
%
Dixie Transport, Inc. & Johnny D. Brown & Jimmy Brown & Maudain Brown
 
Support Activities for Transportation
 
Term Loan
 
5.25%
 
12/28/2035

 
140.8

 
141.0

 
78.1

 
0.04
%
* DocMagnet Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/23/2025

 
16.3

 
16.3

 
—

 
—
%
* Dr. Francis E. Anders, DVM
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
8/9/2015

 
1.6

 
1.6

 
1.6

 
—
%
* E & I Holdings, LP & PA Farm Products, LLC
 
Food Manufacturing
 
Term Loan
 
6%
 
4/30/2030

 
1,234.0

 
1,237.1

 
487.3

 
0.24
%
E.W. Ventures, Inc. dba Swift Cleaners & Laundry
 
Personal and Laundry Services
 
Term Loan
 
0%
 
4/18/2017

 
91.0

 
91.2

 
1.3

 
—
%
* Elite Treats Enterprises, Inc. dba Rochelle Dairy Queen
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
1/24/2032

 
131.2

 
131.5

 
95.9

 
0.05
%
* Europlast Ltd
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/26/2022

 
327.6

 
328.5

 
314.5

 
0.15
%
* Europlast Ltd
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/31/2023

 
155.2

 
155.6

 
—

 
—
%
* Event Mecca LLC
 
Other Information Services
 
Term Loan
 
6%
 
4/10/2023

 
13.2

 
13.2

 
4.8

 
—
%
* EZ Towing, Inc.
 
Support Activities for Transportation
 
Term Loan
 
6%
 
1/31/2023

 
123.2

 
123.5

 
72.8

 
0.04
%

108
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
* Goetzke Chiropractic, Inc.
Ambulatory Health Care Services
 
Term Loan
 
6%
 
10/25/2017

 
2.9

 
2.9

 
2.4

 
—
%
* Gotta Dance Studio, Inc. dba Gotta Dance Studio Academy of Performing
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/16/2016

 
3.6

 
3.6

 
0.5

 
—
%
* Grand Manor Realty, Inc. & Kevin LaRoe
 
Real Estate
 
Term Loan
 
6%
 
2/20/2023

 
18.9

 
19.0

 
18.2

 
0.01
%
* Groundworks Unlimited LLC
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
12/17/2023

 
89.4

 
89.5

 
77.9

 
0.04
%
Guzman Group,LLC
 
Rental and Leasing Services
 
Term Loan
 
6%
 
1/30/2016

 
196.9

 
197.4

 
176.2

 
0.09
%
* Harrelson Materials Management,Inc
Waste Management and Remediation Services
 
Term Loan
 
6%
 
6/24/2021

 
464.5

 
465.7

 
133.7

 
0.07
%
* Hybrid Racing LLC.
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/15/2023

 
100.1

 
100.3

 
44.5

 
0.02
%
* Integrity Sports Group, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
6%
 
3/6/2018

 
14.7

 
14.7

 
12.6

 
0.01
%
Island Nautical Enterprises, Inc. (OC) and Ingwall Holdings, LLC (EPC)
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/14/2038

 
325.2

 
326.1

 
282.0

 
0.14
%
* J Olson Enterprises LLC and Olson Trucking Direct, Inc.
Truck Transportation
 
Term Loan
 
6%
 
6/28/2025

 
658.9

 
660.5

 
262.5

 
0.13
%
* Jenny's Wunderland, Inc.
 
Social Assistance
 
Term Loan
 
6%
 
6/29/2036

 
149.7

 
150.1

 
73.6

 
0.04
%
* Krishna of Orangeburg, Inc.
 
Accommodation
 
Term Loan
 
6%
 
2/20/2032

 
10.3

 
10.3

 
—

 
—
%
* Lamson and Goodnow Manufacturing Co and Lamson and Goodnow LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/28/2037

 
28.2

 
28.2

 
—

 
—
%
* Las Torres Development LLC dba Houston Event Centers
 
Real Estate
 
Term Loan
 
6%
 
8/27/2028

 
51.0

 
51.0

 
—

 
—
%
* LJ Parker, LLC
 
Administrative and Support Services
 
Term Loan
 
7%
 
9/8/2014

 
8.9

 
8.9

 
1.7

 
—
%
* Lucil Chhor dba Baja Fresh #159
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
12/28/2022

 
30.0

 
30.0

 
15.6

 
0.01
%
* Milliken and Milliken, Inc. dba Milliken Wholesale Distribution
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
6%
 
6/10/2036

 
152.8

 
152.9

 
116.3

 
0.06
%
* Mojo Brands Media, LLC
 
Broadcasting (except Internet)
 
Term Loan
 
6%
 
8/28/2023

 
731.9

 
733.7

 
421.1

 
0.21
%
* Morris Glass and Construction
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
3/7/2021

 
44.8

 
44.8

 
0.8

 
—
%
* Our Two Daughters L.L.C. dba Washington's Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
6/18/2026

 
169.8

 
170.3

 
12.7

 
0.01
%
* Parth Dev, Ltd dba Amerihost Inn Hotel-Kenton
 
Accommodation
 
Term Loan
 
5.25%
 
10/3/2028

 
38.3

 
38.3

 
20.4

 
0.01
%
* Professional Systems, LLC and Professional Cleaning
 
Administrative and Support Services
 
Term Loan
 
6%
 
7/30/2020

 
132.0

 
132.1

 
54.5

 
0.03
%
Pure Water Innovations, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
9/6/2016

 
0.2

 
0.2

 
0.2

 
—
%

109
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Robin C. & Charles E. Taylor & Brigantine Aquatic Center LLC
 
Amusement, Gambling, and Recreation Industries
Term Loan
 
6%
 
9/14/2023

 
16.4

 
16.4

 
13.6

 
0.01
%
* Sheikh M Tariq dba Selbyville Foodrite
 
Gasoline Stations
 
Term Loan
 
6%
 
3/13/2023

 
21.2

 
21.2

 
—

 
—
%
Shivsakti, LLC dba Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/20/2032

 
74.5

 
74.7

 
73.1

 
0.04
%
* Signs of Fortune, LLC dba FastSigns
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.5%
 
4/3/2023

 
321.0

 
321.8

 
83.3

 
0.04
%
* STK Ventures Inc dba JP Dock Service & Supply
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
5/9/2037

 
34.1

 
34.1

 
32.7

 
0.02
%
Stokes Floor Covering Company Inc. and Robert E. Rainey, Jr.
 
Furniture and Home Furnishings Stores
Term Loan
 
6%
 
12/29/2035

 
111.6

 
111.8

 
88.1

 
0.04
%
* Stormwise South Florida dba Stormwise Shutters
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
11/7/2036

 
406.6

 
407.6

 
353.6

 
0.17
%
* Stormwise South Florida dba Stormwise Shutters
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
11/7/2036

 
201.1

 
201.6

 
—

 
—
%
* Summit Treatment Services Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/11/2025

 
21.8

 
21.8

 
—

 
—
%
* Summit Treatment Services, Inc. dba Summit Treatment Services
 
Social Assistance
Term Loan
 
Prime plus 2.75%
 
11/30/2037

 
129.3

 
129.6

 
112.8

 
0.06
%
* Sunmar, Inc. dba Creative Cooking
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/19/2035

 
47.1

 
47.2

 
43.3

 
0.02
%
* Tequila Beaches, LLC dba Fresco Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
9/16/2021

 
15.8

 
15.8

 
12.0

 
0.01
%
The Alba Financial Group, Inc.
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
6%
 
1/10/2019

 
6.5

 
6.5

 
1.6

 
—
%
The Lucky Coyote, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
6%
 
5/8/2017

 
10.3

 
10.3

 
4.7

 
—
%
* Top Class, Inc.
 
Personal and Laundry Services
 
Term Loan
 
6%
 
6/28/2016

 
1.3

 
1.3

 
0.1

 
—
%
United Woodworking, Inc
 
Wood Product Manufacturing
 
Term Loan
 
6%
 
12/20/2022

 
12.5

 
12.5

 
10.5

 
0.01
%
* Whirlwind Car Wash, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2%
 
8/26/2024

 
4.9

 
4.9

 
3.8

 
—
%
* Winter Ventures Inc and 214 N Franklin LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/29/2024

 
56.5

 
56.6

 
28.7

 
0.01
%
* Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/23/2024

 
149.1

 
149.3

 
130.7

 
0.06
%
* Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/3/2029

 
134.4

 
134.5

 
29.4

 
0.01
%
* B&B Fitness and Barbell, Inc. dba Elevations Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/22/2035

 
217.8

 
218.1

 
200.0

 
0.10
%

110
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
* Hamer Road Auto Salvage, LLC and Scott T. Cook and Nikki J. Cook
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
8/8/2039

 
185.7

 
186.2

 
178.3

 
0.09
%
Capstone Pediatrics PLLC and Capstone Healthcare Consulting LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/15/2025

 
689.8

 
691.5

 
662.2

 
0.32
%
* Karykion, Corporation dba Karykion Corporation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2022

 
144.4

 
144.8

 
132.8

 
0.07
%
* David M. Goens dba Superior Auto Paint & Body, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/26/2024

 
15.7

 
15.7

 
14.4

 
0.01
%
* TechPlayZone, Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/27/2016

 
0.1

 
0.1

 
—

 
—
%
Total Non-Performing SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
10,748.0

 
$
10,771.6

 
$
6,197.2

 
3.04
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
192,266.3

 
$
166,752.0

 
$
158,354.9

 
77.64
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performing SBA Guaranteed Investments (4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jay Kevin Gremillion dba Dino Smiles Children's Cosmetic Dentistry
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
292.0

 
43.9

 
48.5

 
0.02
%
My Jewels, LLC dba The UPS Store #6712
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/7/2025

 
225.0

 
97.2

 
107.4

 
0.05
%
Abbondanza Market LLC dba Hampton Falls Village Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
295.0

 
34.9

 
38.7

 
0.02
%
D&G Capital LLC dba Miami Grill 277
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
417.6

 
151.6

 
167.6

 
0.08
%
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/23/2040

 
4,758.0

 
1,638.3

 
1,806.2

 
0.89
%
401 JJS, Corp and G. Randazzo's Trattoria Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/1/2040

 
211.0

 
102.9

 
115.4

 
0.06
%
Total SBA Guaranteed Performing Investments
 
 
 
 
 
 
 
 
 
$
6,198.6

 
$
2,068.8

 
$
2,283.8

 
1.12
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed and Guaranteed Investments
 
 
 
 
 
 
 
 
 
$
198,464.9

 
$
168,820.8

 
$
160,638.7

 
78.76
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Controlled Investments (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advanced Cyber Security Systems, LLC (6), (15)                                         
 
Data processing, hosting and related services.
 
50% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
 
 
 
 
Term Loan
 
3%
 
 December 2014
 
1,120.0

 
381.0

 
—

 
—
%
*Automated Merchant Services, Inc. (7), (15)
 
Data processing, hosting and related services.
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
—

 
—
%

111
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
CDS Business Services, Inc. (8) (15)                                                                                         
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—%
 
—

 
—

 
4,428.0

 
925.0

 
0.45
%
 
 
 
 
Line of Credit
 
Prime Plus 2.5%
 
August 2018
 
2,870.0

 
2,870.0

 
2,870.0

 
1.41
%
CrystalTech Web Hosting, Inc. (11)                                                                                         
 
Data processing, hosting and related services.
 
100% Common Stock
 
—%
 
—

 
—

 
8,764.0

 
21,413.9

 
10.50
%
Exponential Business Development Co. Inc. (15)                                                                               
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
—

 
—
%
*Fortress Data Management, LLC (15)                                                                                    
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
Newtek Insurance Agency, LLC (12) (15)                                                                           
 
Insurance Carriers and Related Activities
 
100% Membership Interests
 
—%
 
—

 
—

 
—

 
2,500.0

 
1.23
%
PMTWorks Payroll, LLC (9)                                                                                    
 
Data processing, hosting and related services.
 
90% Membership Interests
 
—%
 
—

 
—

 
700.1

 
1,020.0

 
0.50
%
 
 
 
 
Term Loan
 
10%-12%
 
Various maturities through September 2016
 
935.0

 
935.0

 
—

 
—
%
Secure CyberGateway Services, LLC (10), (15)                                                                                                                     
 
Data processing, hosting and related services.
 
66.7% Membership Interests
 
—%
 
—

 
—

 
—

 
—

 
—
%
 
 
 
 
Term Loan
 
7%
 
 December 2016
 
2,400.0

 
1,200.0

 
1,196.4

 
0.59
%
Small Business Lending, Inc. (13) (15)                                                                       
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
5,500.0

 
2.70
%
*Summit Systems and Designs, LLC (14) (15)                                                                     
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
Premier Payments LLC (11)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
16,503.0

 
16,503.0

 
8.09
%
Universal Processing Services of Wisconsin, LLC (11) (15)                                           
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
52,448.1

 
25.72
%
Total Controlled Investments
 
 
 
 
 
 
 
 
 
$
7,325.0

 
$
35,781.1

 
$
104,376.4

 
51.18
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-control/Non-affiliate Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Titanium Asset Management LLC
 
Administrative and Support Services
 
Term Loan
 
3%
 
July 2017
 
$
2,200.0

 
$
1,847.4

 
$
1,823.8

 
0.89
%
 
 
 
 
Warrants
 
—%
 
—

 
—

 
—

 
—

 
—
%

112
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
 
 
 
 
 
 
 
 
 
 
$
2,200.0

 
$
1,847.4

 
$
1,823.8

 
0.89
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments in Money Market Funds
 
 
 
 
 
 
 
 
 
$
—

 
$
35.0

 
$
35.0

 
0.02
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Investments
 
 
 
 
 
 
 
 
 
$
207,989.9

 
$
206,484.3

 
$
266,873.9

 
130.85
%

See accompanying notes to unaudited condensed consolidated financial statements

* Denotes non-income producing security.
(1) Newtek values each unguaranteed portion of SBA 7(a) performing loans (“Loan”) using a discounted cash flow analysis which projects future cash flows and incorporates projections for Loan pre-payments and Loan defaults using historical portfolio data. The data predicts future prepayment and default probability on curves which are based on Loan age. The recovery assumption for each Loan is specific to the discounted valuation of the collateral supporting that Loan. Each Loan’s cash flow is discounted at a rate which approximates a market yield. The Loans were originated under the SBA 7(a) program and conform to the underwriting guidelines in effect at their time of origination. Newtek has been awarded Preferred Lender Program (“PLP”) status from the SBA. The portions of these Loans are not guaranteed by the SBA. Individual loan participations can be sold to institutions which have been granted an SBA 750 license. Loans can also be sold as a pool of loans in a security form to qualified investors.
(2) Prime Rate is equal to 3.25% as of December 31, 2015.
(3) Newtek values non-performing SBA 7(a) loans using a discounted cash flow analysis of the underlying collateral which supports the loan. Net recovery of collateral, (fair value less cost to liquidate) is applied to the discounted cash flow analysis based upon a time to liquidate estimate. Modified loans are valued based upon current payment streams and are re-amortized at the end of the modification period.
(4) Newtek values guaranteed performing SBA 7(a) loans using the secondary SBA 7(a) market as a reference point. Newtek routinely sells performing SBA 7(a) loans into this secondary market. Guaranteed portions of SBA 7(a) loans partially funded as of the valuation date are valued using level two inputs as disclosed in Note 6.
(5) Controlled Investments are disclosed above as equity investments (except as otherwise noted) in those companies that are “Controlled Investments” of the Company as defined in the Investment Company Act of 1940. A company is deemed to be a “Controlled Investment” of Newtek Business Services Corp. if Newtek Business Services Corp. or its subsidiaries owns more than 25% of the voting securities of such company. See Note 4 in the accompanying notes to the consolidated financial statements for transactions during the year ended December 31, 2015 with affiliates the Company is deemed to control.
(6) 50% owned by Wilshire Holdings II, Inc. (a subsidiary of Newtek Business Services Corp.), 50% owned by non-affiliate. The term loan is past its original maturity date and currently in default. As such, the fair value of the investment is zero.
(7) 96.11% owned by Wilshire Partners, LLC (a subsidiary of Newtek Business Services Corp.), 3.89% owned by Newtek Business Services Corp.
(8) 28.20% owned by Wilshire New York Partners IV, LLC (a subsidiary of Newtek Business Services Corp.), 25.89% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.) and 45.91% owned by Newtek Business Services Corp.
(9) 25% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.), 65% owned by Wilshire Holdings II, Inc. (a subsidiary of Newtek Business Services Corp.), and 10% owned by non-affiliate.
(10) 66.7% owned by Wilshire Holdings II, Inc. (a subsidiary of Newtek Business Services Corp.), 33.3% owned by non-affiliate.
(11) 100% owned by Newtek Business Services Holdco1., Inc. (a subsidiary of Newtek Business Services Corp.).
(12) 100% owned by Wilshire Holdings II, Inc. (a subsidiary of Newtek Business Services Corp.).
(13) 100% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.).
(14) 100% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc. and Wilshire Holdings II, Inc., both subsidiaries of Newtek Business Services Corp.).

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(15) Zero cost basis is reflected as the portfolio company was organized by the Company and incurred internal legal costs to organize the entity and immaterial external filing fees which were expensed when incurred.
(16) All of the Company's investments are in entities which are organized under the Laws of the United States and have a principal place of business in the United States.
(17) Under the Investment Company Act of 1940, as amended, the Company may not acquire any non-qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. At December 31, 2015, 5.3% of total assets are non-qualifying assets.
As of December 31, 2015, the federal tax cost of investments was $200,004,000 resulting in estimated gross unrealized gains and losses of $81,538,000 and $14,669,000, respectively.


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NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION:

Newtek Business Services Corp. (the “Company” or “Newtek” ) is a Maryland corporation which was formed in August 2013 and is an internally managed, closed end investment company. The Company's investment strategy is to maximize the investment portfolio's return by generating current income from the debt investments the Company makes and generate dividend income from equity investments in controlled portfolio companies.

The Company has formed certain taxable subsidiaries (the “Taxable Subsidiaries”), which are taxed as corporations for federal income tax purposes. These Taxable Subsidiaries allow the Company to hold equity securities of portfolio companies organized as pass-through entities while continuing to satisfy the requirements of a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code (the “Code”).
The following wholly-owned subsidiaries are consolidated in the financial statements of the Company:
•
Newtek Small Business Finance, LLC
•
Newtek Asset Backed Securities, LLC
•
The Whitestone Group, LLC
•
Wilshire Colorado Partners, LLC
•
Wilshire DC Partners, LLC
•
Wilshire Holdings I, Inc.
•
Wilshire Louisiana Bidco, LLC
•
Wilshire Louisiana Partners II, LLC
•
Wilshire Louisiana Partners III, LLC
•
Wilshire Louisiana Partners IV, LLC
•
Wilshire New York Advisers II, LLC
•
Wilshire New York Partners III, LLC
•
Wilshire New York Partners IV, LLC
•
Wilshire New York Partners V, LLC
•
Wilshire Partners, LLC
•
CCC Real Estate Holdings, LLC
•
Newtek Business Services Holdco 1, Inc.


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The accompanying notes to the unaudited condensed consolidated financial statements should be read in conjunction with Newtek’s Annual Report for the year ended December 31, 2015 on Form 10-K. The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with U.S. GAAP. In the opinion of management, the condensed consolidated financial statements reflect all adjustments and reclassifications that are necessary for the fair presentation of financial results as of and for the periods presented. The results of operations for an interim period may not give a true indication of the results for the entire year. The December 31, 2015 consolidated statement of assets and liabilities has been derived from the audited financial statements as of that date. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation.
Except as otherwise noted, all financial information included in the tables in the following footnotes is stated in thousands, except per share data.
NOTE 2—SIGNIFICANT ACCOUNTING POLICIES:

Distributions

The Company currently intends to distribute net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually out of the assets legally available for such distributions. However, the Company may decide in the future to retain such capital gains for investment and elect to treat such gains as deemed distributions to stockholders. If this happens, stockholders will be treated for U.S. federal income tax purposes as if they had received an actual distribution of the capital gains that the Company retained and reinvested the net after tax proceeds in the Company. In this situation, stockholders would be eligible to claim a tax credit (or in certain circumstances a tax refund) equal to their allocable share of the tax the Company paid on the capital gains deemed distributed to them. The Company cannot assure stockholders that it will achieve results that will permit it to pay any cash distributions, and if it issues senior securities, it may be prohibited from making distributions if doing so would cause it to fail to maintain the asset coverage ratios stipulated by the Investment Company Act of 1940, as amended (the “1940 Act”) or if such distributions are limited by the terms of any of its borrowings.

Unless stockholders elect to receive distributions in cash, the Company intends to make such distributions in additional shares of its common stock under its dividend reinvestment plan. Although distributions paid in the form of additional shares of its common stock will generally be subject to U.S. federal, state and local taxes in the same manner as cash distributions, investors participating in the dividend reinvestment plan will not receive any corresponding cash distributions with which to pay any such applicable taxes.

Dividends and distributions to the Company's common stockholders are recorded on the declaration date. The timing and amount to be paid out as a dividend or distribution is determined by the Company's Board of Directors (the “Board”) each quarter and is generally based upon the taxable earnings estimated by management.
Fair Value

The Company applies fair value to certain of its financial instruments in accordance with Accounting Standards Codification (“ASC”) Topic 820 — Fair Value Measurements and Disclosures (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date. 

The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new, whether the product is traded on an active exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for financial instruments classified as Level 3. 

Any changes to the valuation methodology are reviewed by management and the Board to confirm that the changes are appropriate. As markets change, new products develop and the pricing for products becomes more or less transparent, the Company will continue to refine its valuation methodologies. See further description of fair value methodology in Note 6.
Use of Estimates


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The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expense during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are complete. Actual results could differ from those estimates.

Consolidation 

As provided under Regulation S-X and ASC Topic 946, the Company will generally not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. 

Assets related to transactions that do not meet ASC Topic 860 — Transfers and Servicing (“ASC Topic 860”) requirements for accounting sale treatment are reflected in the Company’s condensed consolidated statements of assets and liabilities as investments. Those assets are owned by the securitization trusts, and are included in the Company’s condensed consolidated financial statements. The creditors of the special purpose entities have received security interests in such assets and such assets are not intended to be available to the creditors of the Company.
 
Cash and Cash Equivalents

The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Invested cash is held almost exclusively at financial institutions of high credit quality. The Company invests cash not held in interest free checking accounts or bank money market accounts mainly in U.S. Treasury only money market instruments or funds and other investment-grade securities. As of March 31, 2016, cash deposits in excess of insured amounts totaled approximately $11,595,000.
Restricted Cash

Restricted cash includes cash collateral relating to a letter of credit, monies due on SBA loan-related remittances to third parties, cash reserves established as part of a voluntary agreement with the SBA, and cash reserves associated with securitization transactions.

Broker Receivable

Broker receivable represents amounts due from third parties for loans which have been traded at period end but have not yet settled.
Income Taxes

Deferred tax assets and liabilities are computed based upon the differences between the financial statement and income tax basis of assets and liabilities using the enacted tax rates in effect for the year in which those temporary differences are expected to be realized or settled. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized.

The Company’s U.S. federal and state income tax returns prior to fiscal year 2013 are closed, and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings.

The Company intends to elect to be treated as a RIC beginning with the 2015 tax year under the Code and intends to operate in a manner so as to qualify for the tax treatment applicable to RICs. The RIC tax return will include Newtek Business Services Corp. and Newtek Small Business Finance, LLC (“NSBF”), a single member LLC disregarded for tax purposes. None of the Company’s other subsidiaries are included in the RIC return. The Company will evaluate and record any deferred tax assets and liabilities of the subsidiaries that are not part of the RIC. In order to qualify for RIC tax treatment, among other things, the Company will be required to meet certain source of income and asset diversification requirements and timely distribute to its stockholders at least 90% of investment company taxable income, as defined by the Code, for each tax year. The Company intends to make the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal income taxes with respect to all income distributed to its stockholders.


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Depending on the level of taxable income earned in a tax year, the Company may choose to retain taxable income in excess of current year dividend distributions, and would distribute such taxable income in the next tax year. The Company would then pay a 4% excise tax on such income, as required. To the extent that the Company determines that it’s estimated current year annual taxable income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. For the three months ended March 31, 2016 and 2015, no U.S. federal excise taxes were due.

The Company’s Taxable Subsidiaries accrue income taxes payable based on the applicable corporate rates on the unrealized appreciation generated by the controlled investments held by the Taxable Subsidiaries. Such deferred tax liabilities amounted to $2,465,000 and $857,000 at March 31, 2016 and December 31, 2015, respectively, and are recorded as a deferred tax liability on the condensed consolidated statements of assets and liabilities. The change in deferred tax liabilities is included as a component of net unrealized appreciation (depreciation) on investments in the condensed consolidated statements of operations.

Share Repurchase Plan

The Company has a share repurchase program (the “Program”) which allows the Company to repurchase up to 150,000 of the Company’s outstanding common shares on the open market. The shares may be purchased from time to time at prevailing market prices through open market transactions, including block transactions. The Company expects the termination date of the Program to be June 3, 2016, but it may be extended at management's discretion. During the three months ended March 31, 2016, the Company repurchased and retired 70,000 common shares in open market transactions for approximately $866,000 as detailed in the table below:

Purchase date
Number of Shares Purchased
 
Price per Share
 
Total
March 10, 2016
10

 
$
12.34

 
$
123

March 18, 2016
20

 
12.45

 
249

March 18, 2016
30

 
12.48

 
375

March 23, 2016
10

 
11.88

 
119

Total
70

 


 
$
866


In addition, the Company, may from time to time purchase shares of its debt securities on the NASDAQ Global Market. The Company did not make any repurchases of its debt securities during the three months ended March 31, 2016.

Investment Income

Interest on debt investments is accrued and included in income based on contractual rates applied to principal amounts outstanding. Interest income is determined using a method that results in a level rate of return on principal amounts outstanding. When a loan becomes 90 days or more past due, or if we otherwise do not expect to receive interest and principal repayments, the loan is placed on non-accrual status and the recognition of interest income is discontinued. Interest payments received on loans that are on non-accrual status are treated as reductions of principal until the principal is repaid.

Dividend income is recognized on an accrual basis for preferred equity securities to the extent that such amounts are expected to be collected or realized. In determining the amount of dividend income to recognize, if any, from cash distributions on common equity securities, we will assess many factors including a portfolio company’s cumulative undistributed income and operating cash flow. Cash distributions from common equity securities received in excess of such undistributed amounts are recorded first as a reduction of our investment and then as a realized gain on investment.

We receive servicing income related to the guaranteed portions of SBA loan investments which we sell into the secondary market. These recurring fees are earned daily and recorded when earned. Servicing income is earned for the full term of the loan or until the loan is repaid.

We receive a variety of fees from borrowers in the ordinary course of conducting our business, including packaging, legal, late payment and prepayment fees. All other income is recorded when earned. Other income is generally non-recurring in nature and earned as “one time” fees in connection with the origination of new debt investments with non-affiliates.


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Recently Adopted Accounting Standards

In April 2015, the FASB issued ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” This update requires that debt issuance costs be presented in the balance sheet as a direct deduction from the debt liability. The Company adopted this standard with respect to its Notes payable - Securitization trusts and Notes due 2022.

New Accounting Standards

In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, “Leases”, which amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration of greater than one year. The ASU is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those periods. Early adoption is permitted. The Company has not completed its review of the new guidance; however, the Company anticipates that upon adoption of the standard it will recognize additional assets and corresponding liabilities related to leases on its condensed consolidated statements of assets and liabilities.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”, which, among other things, requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Additionally, the ASU changes the disclosure requirements for financial instruments. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those periods, and early adoption is permitted for certain provisions. The Company is currently evaluating the impact this ASU will have on its condensed consolidated financial statements and disclosures.

Segments

The Company has determined that it has a single reporting segment and operating unit structure. The Company issues debt and makes equity investments in portfolio companies in various industries. The Company separately evaluates the performance of each of its lending and investment relationships. However, because each of these debt and equity investment relationships have similar business and economic characteristics, they have been aggregated into a single lending and investment segment.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation.
NOTE 3—INVESTMENTS:

Investments, all of which are in portfolio companies in the United States, consisted of the following at:
 
 
March 31, 2016
 
December 31, 2015
 
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Money market funds
 
$
35

 
$
35

 
$
35

 
$
35

Non-affiliate debt investments
 
179,972

 
170,768

 
170,668

 
162,463

Controlled investments
 
 
 
 
 
 
 
 
Equity
 
30,395

 
103,998

 
30,395

 
100,310

Debt
 
4,086

 
3,203

 
5,386

 
4,066

Total investments
 
$
214,488

 
$
278,004

 
$
206,484

 
$
266,874

The following table shows the Company's portfolio investments by industry at March 31, 2016 and December 31, 2015:

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March 31, 2016
 
December 31, 2015
 
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Data Processing, Hosting and Related Services
 
$
28,205

 
$
96,525

 
$
28,506

 
$
92,600

Food Services and Drinking Establishments
 
15,852

 
15,044

 
15,241

 
14,453

Amusement, Gambling, and Recreation Industries
 
15,547

 
15,921

 
14,372

 
14,632

Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
6,730

 
8,607

 
8,057

 
10,031

Plastics and Rubber Products Manufacturing
 
2,821

 
2,398

 
2,857

 
2,687

Accommodation
 
6,870

 
6,896

 
6,940

 
6,974

Repair and Maintenance
 
10,604

 
10,494

 
9,440

 
9,337

Clothing and Clothing Accessories Stores
 
2,880

 
2,640

 
2,357

 
2,125

Ambulatory Health Care Services
 
10,029

 
9,116

 
8,858

 
8,214

Truck Transportation
 
6,250

 
5,795

 
6,142

 
5,699

Specialty Trade Contractors
 
8,313

 
7,507

 
8,492

 
7,718

Fabricated Metal Product Manufacturing
 
4,247

 
3,917

 
3,943

 
3,577

Professional, Scientific, and Technical Services
 
7,880

 
7,330

 
7,378

 
6,856

Food Manufacturing
 
5,328

 
4,554

 
5,386

 
4,630

Motor Vehicle and Parts Dealers
 
4,285

 
4,238

 
4,289

 
4,249

Merchant Wholesalers, Durable Goods
 
6,630

 
6,201

 
6,726

 
6,299

Gasoline Stations
 
4,024

 
4,035

 
4,040

 
4,008

Insurance Carriers and Related Activities
 
1,345

 
3,819

 
1,288

 
3,769

Social Assistance
 
4,056

 
3,962

 
3,955

 
3,845

Nonstore Retailers
 
2,294

 
1,881

 
2,328

 
2,002

Personal and Laundry Services
 
3,719

 
3,529

 
3,231

 
3,064

Apparel Manufacturing
 
258

 
215

 
536

 
467

Merchant Wholesalers, Nondurable Goods
 
2,681

 
2,649

 
3,015

 
2,981

Administrative and Support Services
 
4,473

 
4,229

 
4,797

 
4,566

Other
 
49,132

 
46,467

 
44,275

 
42,056

Total
 
$
214,453

 
$
277,969

 
$
206,449

 
$
266,839


NOTE 4—TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS:

Transactions with Affiliated Companies

An affiliated company is an entity in which the Company has an ownership of 5% or more of its voting securities. A controlled affiliate is an entity in which the Company owns more than 25% of its voting securities. Transactions related to our investments with controlled companies for the three months ended March 31, 2016 were as follows:

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Portfolio Company
 
Fair Value at December 31, 2015
 
Purchases (cost)
 
Principal received (cost)
 
Net realized gains/(losses)
 
Net unrealized gains/(losses)
 
Fair Value at March 31, 2016
 
Interest and other income
 
Dividend income
Controlled Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Small Business Lending, LLC
 
$
5,500

 
$
—

 
$
—

 
$
—

 
$
—

 
$
5,500

 
$
—

 
$
200

PMTWorks Payroll, LLC
 
1,020

 
435

 
—

 
—

 
—

 
1,455

 
26

 
—

Universal Processing Services of Wisconsin, LLC
 
52,448

 
—

 
—

 
—

 
2,800

 
55,248

 
—

 
1,300

CrystalTech Web Hosting, Inc.
 
21,414

 
—

 
—

 
—

 
—

 
21,414

 
—

 
330

CDS Business Services, Inc.
 
3,795

 
—

 
(1,000
)
 
—

 
(100
)
 
2,695

 
37

 
—

Exponential Business Development Co., Inc.
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Premier Payments LLC
 
16,503

 
—

 
—

 
—

 
988

 
17,491

 
—

 
450

Newtek Insurance Agency, LLC
 
2,500

 
—

 
—

 
—

 
—

 
2,500

 
—

 
—

Advanced Cyber Security Systems, LLC
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Secure CyberGateway Services, LLC
 
1,196

 
—

 
(300
)
 
—

 
2

 
898

 
19

 
13

Total Controlled Investments
 
$
104,376

 
$
435

 
$
(1,300
)
 
$
—

 
$
3,690

 
$
107,201

 
$
82

 
$
2,293


Related Party Transactions

The Company incurs expenses from certain controlled portfolio companies. For the three months ended March 31, 2016 and 2015, the Company incurred $211,000 and $145,000 in managed technology services expenses from CrystalTech Web Hosting, Inc. (“NTS”), respectively, $9,000 and $124,000 in loan processing and closing expenses from various related parties, respectively, and $5,000 and $5,000 in payroll processing fees from PMTWorks Payroll, LLC (“PMT”), respectively.

Amounts due from related parties and due to related parties were $2,819,000 and $552,000, respectively at March 31, 2016.

Managerial Assistance Fees from Controlled Investments

The Company provides managerial assistance to certain controlled portfolio companies. Amounts are charged based on estimates of time and effort spent by certain employees providing managerial services for certain controlled portfolio companies. Fees are recorded on a quarterly basis and are recurring in nature. The table below summarizes amounts charged to each controlled affiliate for the three months ended March 31, 2016 and 2015. The amounts are recorded as a reduction of salaries and benefits in the condensed consolidated statements of operations.

Portfolio Company
 
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
Universal Processing Services of Wisconsin, LLC
 
$
107

 
$
183

CrystalTech Web Hosting, Inc.
 
179

 
116

PMTWorks Payroll, LLC
 
25

 
50

Newtek Insurance Agency, LLC
 
65

 
63

Summit Systems and Designs, LLC
 
11

 
—

Premier Payments LLC
 
41

 
—

Small Business Lending, LLC
 
230

 
53

Total
 
$
658

 
$
465



NOTE 5—SERVICING ASSETS:

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At March 31, 2016 and December 31, 2015, servicing assets are measured at fair value. The Company earns servicing fees from SBA 7(a) loans it originates.
The following table summarizes the fair value and valuation assumptions related to servicing assets at March 31, 2016 and December 31, 2015:
 
March 31, 2016
 
December 31, 2015
Fair Value
$
13,644

 
$
13,042

Discount factor (1)
12.03
%
 
12.03
%
Cumulative prepayment rate
15.50
%
 
15.50
%
Average cumulative default rate
20.00
%
 
20.00
%
(1) Determined based on risk spreads and observable secondary market transactions.
Servicing fee income earned for the three months ended March 31, 2016 and 2015 was $1,371,000 and $1,043,000, respectively.
NOTE 6—FAIR VALUE MEASUREMENTS:

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, management uses various valuation approaches, all of which have been approved by the Company's Board. In accordance with GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.

The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and gives the lowest priority to unobservable inputs (Level 3). An asset or liability’s classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. The levels of the fair value hierarchy are as follows:
 
 
 
Level 1
  
Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets.
 
 
Level 2
  
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities, corporate debt securities, derivative contracts and residential mortgage loans held-for-sale.
 
 
Level 3
  
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly structured or long-term derivative contracts.


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In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company assesses the levels of assets and liabilities at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfers. There were no transfers among Level 1, 2 and 3 of the fair value hierarchy for assets and liabilities during the three months ended March 31, 2016 or 2015. The following section describes the valuation techniques used by the Company to measure different assets and liabilities at fair value and includes the level within the fair value hierarchy in which the assets and liabilities are categorized.

Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. Level 3 investments are valued at fair value as determined in good faith by the Board, based on input of management, the audit committee and independent valuation firms that have been engaged at the direction of the Board to assist in the valuation of certain portfolio investments without a readily available market quotation at least once during a trailing twelve-month period under a valuation policy and a consistently applied valuation process. 

When determining fair value of Level 3 debt and equity investments, the Company may take into account the following factors, where relevant: the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons to publicly traded securities, changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made and other relevant factors. The primary methods for determining enterprise value include a discounted cash flow analysis and a multiple analysis whereby appropriate multiples are applied to the portfolio company’s net income before net interest expense, income tax expense, depreciation and amortization (“EBITDA”) or revenue. The enterprise value analysis is performed to determine the value of equity investments and to determine if debt investments are credit impaired. If debt investments are credit impaired, the Company will use the enterprise value analysis or a liquidation basis analysis to determine fair value. For debt investments that are not determined to be credit impaired, the Company uses a market interest rate yield analysis to determine fair value. 

In addition, for certain debt investments, the Company may base its valuation on quotes provided by an independent third party broker. 

Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded. 

The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded.

The following tables present fair value measurements of the Company’s assets and liabilities measured at fair value and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values as of March 31, 2016 and December 31, 2015:

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Fair Value Measurements at March 31, 2016 Using:
 
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total Gains
and (Losses)
Assets:
 
 
 
 
 
 
 
 
 
Investments in money markets funds
$
35

 
$
35

 
$
—

 
$
—

 
$
—

Credits in lieu of cash
646

 
—

 
646

 
—

 
—

SBA unguaranteed non-affiliate investments
166,786

 
—

 
—

 
166,786

 
(1,027
)
SBA guaranteed non-affiliate investments
2,536

 
—

 
2,536

 
—

 
—

Controlled investments
107,201

 
—

 
—

 
107,201

 
3,690

Other real estate owned (1)
1,001

 
—

 
1,001

 
—

 
—

Non-control/non-affiliate investments
1,446

 
—

 
—

 
1,446

 
(16
)
Servicing assets
13,644

 
—

 
—

 
13,644

 
(403
)
Total assets
$
293,295

 
$
35

 
$
4,183

 
$
289,077

 
$
2,244

Liabilities:
 
 
 
 
 
 
 
 
 
Notes payable in credits in lieu of cash
$
646

 
$
—

 
$
646

 
$
—

 
$
—


(1) Included in Other Assets on the Condensed Consolidated Statements of Assets and Liabilities

 
Fair Value Measurements at December 31, 2015 Using:
 
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total Gains
and (Losses)
Assets:
 
 
 
 
 
 
 
 
 
Investments in money markets funds
$
35

 
$
35

 
$
—

 
$
—

 
$
—

Credits in lieu of cash
860

 
—

 
860

 
—

 
(7
)
SBA unguaranteed non-affiliate investments
158,355

 
—

 
—

 
158,355

 
(8,410
)
SBA guaranteed non-affiliate investments
2,284

 
—

 
2,284

 
—

 
215

Controlled investments
104,376

 
—

 
—

 
104,376

 
12,250

Other real estate owned (1)
989

 
—

 
989

 
—

 
(221
)
Non-control/non-affiliate investments
1,824

 
—

 
—

 
1,824

 
(24
)
Servicing assets
13,042

 
—

 
—

 
13,042

 
(428
)
Total assets
$
281,765

 
$
35

 
$
4,133

 
$
277,597

 
$
3,375

Liabilities:
 
 
 
 
 
 
 
 
 
Notes payable in credits in lieu of cash
$
860

 
$
—

 
$
860

 
$
—

 
$
(3
)

(1) Included in Other Assets on the Condensed Consolidated Statements of Assets and Liabilities

The following table represents the changes in investments and other assets measured at fair value using Level 3 inputs for the three months ended March 31, 2016 and 2015:

 
Three Months Ended March 31, 2016
 
SBA Unguaranteed Investments
 
Controlled Investments
 
Non-Control/Non-Affiliate Investments
 
Servicing Assets
Fair value, beginning of period
$
158,355

 
$
104,376

 
$
1,824

 
$
13,042

Net change in unrealized appreciation (depreciation)
(1,026
)
 
3,690

 
(17
)
 
(403
)
SBA unguaranteed non-affiliate investments, originated
13,358

 
—

 
—

 
—

Foreclosed real estate acquired
(83
)
 
—

 
—

 
—

Transfer from due from related parties
—

 
435

 
—

 
—

Principal payments received on debt investments
(3,818
)
 
(1,300
)
 
(361
)
 
—

Additions to servicing assets
—

 
—

 
—

 
1,005

Fair value, end of period
$
166,786

 
$
107,201

 
$
1,446

 
$
13,644


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Three Months Ended March 31, 2015
 
SBA Unguaranteed Investments
 
Controlled Investments
 
Servicing Assets
Fair value, beginning of period
$
121,477

 
$
77,499

 
$
9,483

Net change in unrealized appreciation (depreciation)
(666
)
 
7,500

 
(356
)
Realized loss
(47
)
 
—

 
—

SBA unguaranteed non-affiliate investments, originated
12,340

 
—

 
—

Foreclosed real estate acquired
(409
)
 
—

 
—

Funding of investments
—

 
200

 
—

Principal payments received on debt investments
(4,144
)
 
(300
)
 
—

Additions to servicing assets
—

 
—

 
1,236

Fair value, end of period
$
128,551

 
$
84,899

 
$
10,363




The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of March 31, 2016 and December 31, 2015. In addition to the techniques and inputs noted in the table below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The tables below are not intended to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements at March 31, 2016 and December 31, 2015.

 
 
 
 
 
 
 
 
 
 
Range
 
 
Fair Value as of March 31, 2016
 
Valuation Techniques
 
Unobservable Input
 
Weighted Average
 
Minimum
 
Maximum
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
SBA unguaranteed non-affiliate investments - performing loans
 
$
160,070

 
Discounted cash flow
 
Market yields
 
5.30
%
 
5.30
%
 
5.30
%
SBA unguaranteed non-affiliate investments - non-performing loans
 
$
6,716

 
Discounted cash flow
 
Market yields
 
8.37
%
 
8.37
%
 
8.37
%
Controlled equity investments (A)(B)
 
$
103,998

 
Market comparable companies
 
EBITDA multiples
 
6.10x

 
3.00x

 
7.00x

 
 
 
 
Market comparable companies
 
Revenue multiples
 
1.08x

 
0.50x

 
3.00x

 
 
 
 
Discounted cash flow
 
Weighted average cost of capital
 
12.80
%
 
11.10
%
 
15.10
%
Controlled debt investments
 
$
3,203

 
Discounted cash flow
 
Market yields
 
6.82
%
 
5.75
%
 
10.00
%
Non-control/non-affiliate debt investments
 
$
1,446

 
Liquidation value
 
Asset value
 
N/A

 
N/A

 
N/A

Servicing assets
 
$
13,644

 
Discounted cash flow
 
Market yields
 
12.03
%
 
12.03
%
 
12.03
%

(A) In determining the fair value of the Company's controlled equity investments as of March 31, 2016, the proportion of the market comparable companies valuation technique and the discounted cash flow valuation technique were 47.2% and 52.8%, respectively, on a weighted average basis.

(B) The Company valued $96,653,000 of investments using a 50/50 weighting of EBITDA and revenue multiples and $1,020,000 of investments using only revenue multiples in the overall valuation approach which included the use of market comparable companies. The Company valued $6,325,000 of investments using only discounted cash flows.


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Range
 
 
Fair Value as of December 31, 2015
 
Valuation Techniques
 
Unobservable Input
 
Weighted Average
 
Minimum
 
Maximum
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
SBA unguaranteed non-affiliate investments - performing loans
 
$
152,158

 
Discounted cash flow
 
Market yields
 
5.30
%
 
5.30
%
 
5.30
%
SBA unguaranteed non-affiliate investments - non-performing loans
 
$
6,197

 
Discounted cash flow
 
Market yields
 
8.76
%
 
8.76
%
 
8.76
%
Controlled equity investments (A)(B)
 
$
100,310

 
Market comparable companies
 
EBITDA multiples
 
6.00x

 
3.00x

 
7.00x

 
 
 
 
Market comparable companies
 
Revenue multiples
 
1.08x

 
0.50x

 
3.00x

 
 
 
 
Discounted cash flow
 
Weighted average cost of capital
 
12.37
%
 
11.30
%
 
15.60
%
Controlled debt investments
 
$
4,066

 
Discounted cash flow
 
Market yields
 
6.26
%
 
5.75
%
 
7.50
%
Non-control/non-affiliate debt investments
 
$
1,824

 
Liquidation value
 
Asset value
 
N/A

 
N/A

 
N/A

Servicing assets
 
$
13,042

 
Discounted cash flow
 
Market yields
 
12.03
%
 
12.03
%
 
12.03
%

(A) In determining the fair value of the Company's controlled equity investments as of December 31, 2015, the proportion of the market comparable companies valuation technique and the discounted cash flow valuation technique were 47.1% and 52.9%, respectively, on a weighted average basis.

(B) The Company valued $92,865,000 of investments using a 50/50 weighting of EBITDA and revenue multiples and $1,020,000 of investments using only revenue multiples in the overall valuation approach which included the use of market comparable companies. The Company valued $6,425,000 of investments using only discounted cash flows.
 
NOTE 7—BORROWINGS:

At March 31, 2016 and December 31, 2015, the Company had borrowings comprised of the following:
 
March 31, 2016
 
December 31, 2015
 
Commitments
 
Borrowings Outstanding
 
Weighted Average Interest Rate
 
Commitments
 
Borrowings Outstanding
 
Weighted Average Interest Rate
Capital One line of credit - guaranteed (1)
$
50,000

 
$
21,275

 
4.25
%
 
$
50,000

 
$
29,100

 
4.25
%
Capital One line of credit - unguaranteed (1)
—

 
11,054

 
5.13
%
 
—

 
—

 
—
%
Notes due 2022
8,324

 
7,745

 
7.50
%
 
8,324

 
7,770

 
7.50
%
Note payable - related parties
38,000

 
10,817

 
7.50
%
 
38,000

 
5,647

 
7.50
%
Notes payable - Securitization Trusts
85,886

 
83,531

 
3.51
%
 
91,745

 
89,244

 
3.29
%
Total
$
182,210

 
$
134,422

 
4.31
%
 
$
188,069

 
$
131,761

 
3.93
%

(1) Total combined commitments of the guaranteed and unguaranteed lines of credit are $50,000,000 at March 31, 2016 and December 31, 2015.

Outstanding borrowings under the Notes due 2022 and Notes payable - Securitization Trusts consisted of the following:


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March 31, 2016
 
December 31, 2015
 
Notes Due 2022
 
Notes Payable- Securitization Trusts
 
Notes Due 2022
 
Notes Payable- Securitization Trusts
Principal (1)
$
8,324

 
$
85,886

 
$
8,324

 
$
91,745

Unamortized debt issuance costs
(579
)
 
(2,355
)
 
(554
)
 
(2,501
)
Net carrying amount
$
7,745

 
$
83,531

 
$
7,770

 
$
89,244


(1) See Recent Developments - Notes Due 2021

At March 31, 2016 and December 31, 2015, the carrying amount of the Company's borrowings under the Capital One lines of credit, Notes payable - related parties and Notes payable - Securitization Trusts approximates fair value due to their variable interest rates. The fair value of the fixed rate Notes due 2022 is based on the closing public share price on the date of measurement. On March 31, 2016, the closing price of the Notes due 2022 was $24.89 per note, or $8,287,000. These borrowings are not recorded at fair value on a recurring basis.
Total interest expense for the three months ended March 31, 2016 and 2015 on all Company borrowings was $1,488,000 and $1,356,000, respectively.
NOTE 8—COMMITMENTS AND CONTINGENCIES:
Legal Matters

We may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise. Furthermore, third parties may try to seek to impose liability on us in connection with the activities of our portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, we do not expect any current matters will materially affect our financial condition or results of operations; however, there can be no assurance whether any pending legal proceedings will have a material adverse effect on our financial condition or results of operations in any future reporting period.
Guarantees
The Company is a guarantor on a bank line of credit held at CDS Business Services, Inc. (“NBC”), a controlled portfolio company. Maximum borrowings under the line of credit are $10,000,000 with a maturity date of February 2017. At March 31, 2016, total principal and accrued interest owed by NBC was $4,790,000. In addition, the Company deposited $750,000 to collateralize the guarantee. On August 27, 2015, NBC entered into Amendment No. 2 (the “Amendment”) to the Loan and Security Agreement, dated February 28, 2011 (as amended through August 27, 2015, including the Amendment, the “Agreement”), by and between Sterling National Bank (“Sterling”) and NBC. The Amendment permits NBC to use a portion of the warehouse line of credit provided by Sterling under the Agreement to fund inventory financing arrangements NBC may provide to its clients. The Amendment also removed certain restrictions placed upon the Company in connection with its guaranty of the credit facility provided under the Agreement. At March 31, 2016, the Company determined that it is not probable that payments would be required to be made under the guarantee.

NBC also entered into an additional Loan and Security Agreement with Sterling on August 27, 2015 (the “504 Loan Agreement”), pursuant to which Sterling and any future participant lenders agreed to provide NBC another line of credit to fund SBA 504 loans extended by NBC (the “504 Facility”). Maximum borrowings under the 504 Facility are $35,000,000, depending upon syndication. At March 31, 2016, total principal owed by NBC was $1,208,000. The 504 Loan Agreement specifies certain events of default, pursuant to which all outstanding amounts under the 504 Facility could become immediately due and payable. In addition, the Company has guaranteed NBC’s obligations under the 504 Loan Agreement, pursuant to a Guaranty dated as of August 27, 2015. At March 31, 2016, the Company determined that it is not probable that payments would be required to be made under the guarantee.

On June 23, 2015, Universal Processing Services of Wisconsin, LLC (“UPS”) and NTS (together, the “Borrowers”), each a controlled portfolio company of the Company, entered into a Credit and Guaranty Agreement (the “Agreement”), dated June 23, 2015, with Goldman Sachs Bank USA (“GS Bank”), as Administrative Agent, Collateral Agent and Lead Arranger, pursuant to which GS Bank agreed to extend the Borrowers a term loan facility up to an aggregate principal amount of $38,000,000 (the “Facility” and each term loan made thereunder, a “Term Loan”). On September 18, 2015, the Agreement was amended to add Premier Payments LLC (“Premier”) as a borrower. The Company, Newtek Business Services Holdco 1, Inc., a

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wholly owned subsidiary of the Company (“Intermediate Holdings”), and certain subsidiaries of Intermediate Holdings party to the Agreement from time to time, have agreed to guarantee the repayment of the Facility and are parties to the Agreement as “Guarantors” thereunder. At March 31, 2016, $22,000,000 was outstanding under this Facility. At March 31, 2016, the Company determined that it is not probable that payments would be required to be made under the guarantee.

NOTE 9—FINANCIAL HIGHLIGHTS:

The financial highlights for the Company are as follows:

 
 
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
Per share data (1)
 
 
Net asset value at beginning of period
 
$
14.06

 
$
16.31

Dividends from capital gains
 
(0.35
)
 
(0.39
)
Net investment loss
 
(0.10
)
 
(0.24
)
Net realized gain on investments
 
0.44

 
0.75

Net unrealized appreciation on investments
 
0.19

 
0.50

Net unrealized depreciation on servicing assets
 
(0.03
)
 
(0.03
)
Change in provision for deferred taxes
 
(0.11
)
 
—

Reversal of deferred tax asset
 
—

 
(0.29
)
Net asset value at end of period
 
$
14.10

 
$
16.61

 
 
 
 
 
Per share market value at end of period
 
$
12.50

 
$
16.53

Total return based on market value (3)
 
(7.47
)%
 
14.63
 %
Total return based on average net asset value (2)
 
10.98
 %
 
7.36
 %
Shares outstanding at end of period (in thousands)
 
14,452

 
10,206

 
 
 
 
 
Ratios/Supplemental Data:
 
 
 
 
Ratio of expenses to average net assets (2)
 
16.04
 %
 
17.21
 %
Ratio of net investment loss to average net assets
 
(0.68
)%
 
(1.47
)%
Net assets at end of period
 
$
203,762

 
$
169,566

Average debt outstanding
 
$
133,092

 
$
121,093

Average debt outstanding per share
 
$
9.21

 
$
11.86

Asset coverage ratio
 
251
 %
 
225
 %
Portfolio turnover
 
23.92
 %
 
29.34
 %

(1) Based on actual number of shares outstanding at the end of the corresponding period or the weighted average shares outstanding for the period, unless otherwise noted, as appropriate.
(2) Annualized.
(3) Assumes dividends are reinvested.
NOTE 10—EARNINGS PER SHARE:

The following table summarizes the calculations for the net increase in net assets per common share for the three months ended March 31, 2016 and 2015:
 
 
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
Net increase in net assets
 
$
5,604

 
$
10,003

Weighted average shares outstanding (in thousands)
 
14,509

 
10,206

Net increase in net assets per common share
 
$
0.39

 
$
0.98


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NOTE 11—DIVIDENDS AND DISTRIBUTIONS:

The Company's dividends and distributions are recorded on the declaration date. The following table summarizes the Company's dividend declarations and distributions during the three months ended March 31, 2016 and 2015.

Date Declared
 
Record Date
 
Payment Date
 
Amount Per Share
 
Cash Distribution
 
DRIP Shares Issued
 
DRIP Shares Value
March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
February 25, 2016
 
March 22, 2016
 
March 31, 2016
 
$
0.35

 
$
4,708

 
29

 
$
362

March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
March 19, 2015
 
March 30, 2015
 
April 13, 2015
 
$
0.39

 
$
3,985

 
—

 
$
—

NOTE 12—SUPPLEMENTAL FINANCIAL DATA:
Summarized Financial Information of Our Unconsolidated Subsidiaries

The Company holds a controlling interest, as defined by the 1940 Act, as amended, in portfolio companies that are not consolidated in the Company's condensed consolidated financial statements. Below is a brief description of a portfolio company that is required to have supplemental disclosure incorporated in our financial statements in accordance with Regulation S-X section 4-08(g), along with summarized financial information as of March 31, 2016 and 2015.

Universal Processing Services of Wisconsin, LLC

UPS markets credit and debit card processing services, check approval services and ancillary processing equipment and software to merchants who accept credit cards, debit cards, checks and other non-cash forms of payment. The Company generated $1,300,000 and $800,000 in dividend income from UPS and recorded $2,800,000 and $2,600,000 in unrealized appreciation on controlled investment for the three months ended March 31, 2016 and 2015, respectively.

The summarized financial information of our unconsolidated subsidiary is as follows:
Balance Sheets - Universal Processing Services of Wisconsin, LLC
 
As of March 31, 2016
 
As of December 31, 2015
Current assets
 
$
6,185

 
$
6,126

Noncurrent assets
 
10,852

 
11,288

Total assets
 
$
17,037

 
$
17,414

Current liabilities
 
3,522

 
3,911

Noncurrent liabilities
 
16,999

 
16,999

Total liabilities
 
$
20,521

 
$
20,910

Total deficit
 
$
(3,484
)
 
$
(3,496
)
Statements of Income - Universal Processing Services of Wisconsin, LLC
 
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
Revenue
 
$
24,470

 
$
23,087

Expenses
 
22,856

 
21,671

Income from operations
 
$
1,614

 
$
1,416

Interest (expense) income, net
 
(301
)
 
2

Net income
 
$
1,313

 
$
1,418


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NOTE 13—SUBSEQUENT EVENTS:

Notes Due 2021
In April 2016, the Company and U.S. Bank, N.A. (the “Trustee”), entered into the Second Supplemental Indenture (the “Second Supplemental Indenture”) to the Base Indenture between the Company and the Trustee, relating to the Company’s issuance, offer and sale of $35,000,000 aggregate principal amount of 7.0% Notes due 2021 (the “2021 Notes”). The Company granted an overallotment option of up to $5,250,000 in aggregate principal amount of the 2021 Notes. The sale of the Notes generated proceeds of approximately $33,750,000, net of underwriter's fees and expenses. In May 2015, the underwriters exercised their option to purchase $5,250,000 in aggregate principal amount of notes for an additional $5,066,000 in net proceeds.

The Notes will mature on March 31, 2021 and may be redeemed in whole or in part at the Company’s option at any time or from time to time on or after April 22, 2017, at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption. The 2021 Notes bear interest at a rate of 7.0% per year payable quarterly on March 31, June 30, September 30, and December 31 of each year, commencing on June 30, 2016, and trade on the NASDAQ Global Market under the trading symbol “NEWTL.”







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Newtek Business Services Corp. and Subsidiaries
Schedule of Investments In and Advances to Affiliates
Three Months Ended March 31, 2016

Portfolio Company/Type of Investment (1)
 
Amount of Interest, Fees or Dividends Credited in Income
 
Fair Value at December 31, 2015
 
Gross Additions (2)
 
Gross Reductions (3)
 
Fair Value at March 31, 2016
Control Investments
 
 
 
 
 
 
 
 
 
 
Advanced Cyber Security Systems, LLC
 
 
 
 
 
 
 
 
 
 
50% Membership Interest
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Term Loan
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Automated Merchant Services, Inc.
 
 
 
 
 
 
 
 
 
 
100% Common Stock
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
CDS Business Services, Inc.
 
 
 
 
 
 
 
 
 
 
100% Common Stock
 
—

 
925

 
—

 
(100
)
 
825

Line of Credit
 
37

 
2,870

 
 
 
(1,000
)
 
1,870

 
 
 
 
 
 
 
 
 
 
 
CrystalTech Web Hosting, Inc.
 
 
 
 
 
 
 
 
 
 
100% Common Stock
 
330

 
21,414

 
—

 
—

 
21,414

 
 
 
 
 
 
 
 
 
 
 
Exponential Business Development Co. Inc.
 
 
 
 
 
 
 
 
 
 
100% Common Stock
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Fortress Data Management, LLC
 
 
 
 
 
 
 
 
 
 
100% Membership Interest
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Newtek Insurance Agency, LLC
 
 
 
 
 
 
 
 
 
 
100% Membership Interest
 
—

 
2,500

 
—

 
—

 
2,500

 
 
 
 
 
 
 
 
 
 
 
PMTWorks Payroll, LLC
 
 
 
 
 
 
 
 
 
 
90% Membership Interest
 
—

 
1,020

 
—

 
—

 
1,020

Term Loan
 
26

 
—

 
435

 
—

 
435

 
 
 
 
 
 
 
 
 
 
 
Secure CyberGateway Services, LLC
 
 
 
 
 
 
 
 
 
 
66.7% Membership Interest
 
13

 
—

 
—

 
—

 
—

Term Loan
 
19

 
1,196

 
2

 
(300
)
 
898

 
 
 
 
 
 
 
 
 
 
 
Premier Payments LLC
 
 
 
 
 
 
 
 
 
 
100% Membership Interest
 
450

 
16,503

 
988

 
—

 
17,491

 
 
 
 
 
 
 
 
 
 
 
Small Business Lending, LLC
 
 
 
 
 
 
 
 
 
 
100% Membership Interest
 
200

 
5,500

 
—

 
—

 
5,500

 
 
 
 
 
 
 
 
 
 
 
Summit Systems and Designs, LLC
 
 
 
 
 
 
 
 
 
 
100% Membership Interest
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 

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Portfolio Company/Type of Investment (1)
 
Amount of Interest, Fees or Dividends Credited in Income
 
Fair Value at December 31, 2015
 
Gross Additions (2)
 
Gross Reductions (3)
 
Fair Value at March 31, 2016
Universal Processing Services of Wisconsin, LLC
 
 
 
 
 
 
 
 
 
 
100% Membership Interest
 
1,300

 
52,448

 
2,800

 
—

 
55,248

 
 
 
 
 
 
 
 
 
 
 
Total Control Investments
 
$
2,375

 
$
104,376

 
$
4,225

 
$
(1,400
)
 
$
107,201

 
 
 
 
 
 
 
 
 
 
 
This schedule should be read in connection with the Company's Condensed Consolidated Financial Statements, including the Consolidated Schedule of Investments and Notes to the Condensed Consolidated Financial Statements.

(1) The principal amount and ownership detail as shown in the Company's Consolidated Schedule of Investments.
(2) Gross additions includes increases in the cost basis of investments resulting from new portfolio investments, follow-on investments and the exchange of one or more existing securities for one or more new securities. Gross additions also includes net increases in unrealized appreciation or net decreases in unrealized depreciation.
(3) Gross reductions include decreases in the cost basis of investments resulting from principal payments or sales and exchanges of one or more existing securities for one or more new securities. Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation.



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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward-Looking Statements

The matters discussed in this report, as well as in future oral and written statements by management of Newtek Business Services Corp., that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward- looking statements. Forward-looking statements relate to future events or our future financial performance. We generally identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Important assumptions include our ability to originate new investments, achieve certain margins and levels of profitability, the availability of additional capital, and the ability to maintain certain debt to asset ratios. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans or objectives will be achieved. The forward-looking statements contained in this report include statements as to:
 
•
our future operating results;
•
our business prospects and the prospects of our prospective portfolio companies;
•
the impact of investments that we expect to make;
•
our informal relationships with third parties
•
the dependence of our future success on the general economy and its impact on the industries in which we invest;
•
our ability to access debt markets and equity markets;
•
the ability of our portfolio companies to achieve their objectives;
•
our expected financings and investments;
•
our regulatory structure and tax status;
•
our ability to operate as a BDC and a RIC;
•
the adequacy of our cash resources and working capital;
•
the timing of cash flows, if any, from the operations of our portfolio companies;
•
the timing, form and amount of any dividend distributions;
•
the impact of fluctuations in interest rates on our business;
•
the valuation of any investments in portfolio companies, particularly those having no liquid trading market; and
•
our ability to recover unrealized losses.

The following discussion should be read in conjunction with our condensed consolidated financial statements and related notes and other financial information appearing elsewhere in this report. In addition to historical information, the following discussion and other parts of this report contain forward-looking information that involves risks and uncertainties. Our actual results could differ materially from those anticipated by such forward-looking information due to the factors discussed under Item 1A-“Risk Factors” of Part II of this quarterly report on Form 10-Q, Item 1A-“Risk Factors” of our annual report on Form 10-K filed with the SEC on March 15, 2016 and under “Forward-Looking Statements” of this Item 2.
Overview

We are a leading national non-bank lender and own and control certain portfolio companies (our “controlled portfolio companies,” as defined below) that provide a wide range of business and financial products to small- and medium-sized businesses (“SMBs”). In particular, we and our controlled portfolio companies provide comprehensive lending, payment processing, managed technology, personal and commercial insurance, and payroll solutions to over 100,000 SMB accounts, across all industries. We have an established and reliable platform that is not limited by client size, industry type, or location. As a result, we have a strong and diversified client base across every state in the U.S and across a variety of different industries. In addition, we have developed a financial and technology based business model that enables us and our controlled portfolio companies to acquire and process our SMB clients in a very cost effective manner. This capability is supported in large part by NewTracker®, our patented prospect management technology software, which is similar to but better than the system popularized by Salesforce.com. We believe that this technology and business model distinguishes us from our competitors.

We are an internally-managed, closed-end, investment company that has elected to be regulated as a business development company (“BDC”) under the 1940 Act. In addition, for U.S. federal income tax purposes, we intend to elect to be treated as a RIC under the Code beginning in the 2015 tax year. As a BDC and a RIC, we are also subject to certain constraints, including limitations imposed by the 1940 Act and the Code. We converted to a BDC in November 2014. As a result, previously

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consolidated subsidiaries are now recorded as investments in controlled portfolio companies, at fair value. Newtek Small Business Finance, LLC is a consolidated subsidiary and originates loans under the SBA's 7(a) program. 

Our common shares are currently listed on the NASDAQ Global Market under the symbol “NEWT”.

NSBF has been granted Preferred Lender Program (“PLP”) status and originates, sells and services small business loans and is authorized to place SBA guarantees on loans without seeking prior SBA review and approval. Being a national lender, PLP status allows NSBF to expedite loans since NSBF is not required to present applications to the SBA for concurrent review and approval. The loss of PLP status could adversely impact our marketing efforts and ultimately loan origination volume which could negatively impact our results of operations.

As a BDC, our investment objective is to generate both current income and capital appreciation primarily through loans originated by our small business finance platform and our equity investments in certain portfolio companies that we control.

We target our debt investments, which are principally made through our small business finance platform under the SBA 7(a) program, to produce a coupon rate of prime plus 2.75% which enables us to generate rapid sales of loans in the secondary market. We typically structure our debt investments with the maximum seniority and collateral along with personal guarantees from portfolio company owners, in many cases collateralized by other assets including real estate. In most cases, our debt investment will be collateralized by a first lien on the assets of the portfolio company and a first or second lien on assets of guarantors, in both cases primarily real estate. All SBA loans are made with personal guarantees from any owner(s) of 20% or more of the portfolio company’s equity.

We typically structure our debt investments to include non-financial covenants that seek to minimize our risk of capital loss such as lien protection and prohibitions against change of control. Our debt investments have strong protections, including default penalties, information rights and, in some cases, board observation rights and affirmative, negative and financial covenants. Debt investments in portfolio companies, including the controlled portfolio companies, have historically and are expected to continue to comprise the majority of our overall investments in number and dollar volume.

While the vast majority of our investments have been structured as debt, we have in the past and expect in the future to make selective equity investments primarily as either strategic investments to enhance the integrated operating platform or, to a lesser degree, under the Capco programs. For investments in our controlled portfolio companies, we focus more on tailoring them to the long term growth needs of the companies than to immediate return. Our objectives with these companies is to foster the development of the businesses as a part of the integrated operational platform of serving the SMB market, so we may reduce the burden on these companies to enable them to grow faster than they would otherwise and as another means of supporting their development.

We regularly engage in discussions with third parties with respect to various potential transactions. We may acquire an investment or a portfolio of investments or an entire company or sell a portion of our portfolio on an opportunistic basis. We, our subsidiaries or our affiliates may also agree to manage certain other funds that invest in debt, equity or provide other financing or services to companies in a variety of industries for which we may earn management or other fees for our services. We may also invest in the equity of these funds, along with other third parties, from which we would seek to earn a return and/or future incentive allocations. Some of these transactions could be material to our business. Consummation of any such transaction will be subject to completion of due diligence, finalization of key business and financial terms (including price) and negotiation of final definitive documentation as well as a number of other factors and conditions including, without limitation, the approval of our board of directors and required regulatory or third party consents and, in certain cases, the approval of our stockholders. Accordingly, there can be no assurance that any such transaction would be consummated. Any of these transactions or funds may require significant management resources either during the transaction phase or on an ongoing basis depending on the terms of the transaction.

Revenues

We generate revenue in the form of interest, dividend, servicing and other fee income on debt and equity investments. Our debt investments typically have a term of 10 to 25 years and bear interest at prime plus a margin. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we receive repayments of some of our debt investments prior to their scheduled maturity date. The frequency or volume of these repayments fluctuates significantly from period to period. Our portfolio activity also reflects the proceeds of sales of securities. We receive servicing income related to the guaranteed portions of SBA investments which we sell into the secondary market. These recurring fees are earned daily and recorded when earned. In addition, we may generate revenue in the form of packaging, prepayment, legal and late fees. We record such fees related to loans as other income. Dividends are recorded as

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dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income is recorded at the time dividends are declared. Distributions of earnings from portfolio companies are evaluated to determine if the distribution is income, return of capital or realized gain.
We recognize realized gains or losses on investments based on the difference between the net proceeds from the disposition and the cost basis of the investment without regard to unrealized gains or losses previously recognized. We record current period changes in fair value of investments and assets that are measured at fair value as a component of the net change in unrealized appreciation (depreciation) on investments or servicing assets, as appropriate, in the condensed consolidated statements of operations.

Expenses

Our primary operating expenses are salaries and benefits, interest expense and other general and administrative costs, such as professional fees, marketing, loan related costs and rent. Since we are an internally-managed BDC with no outside adviser or management company, the BDC incurs all the related costs to operate the Company.

Loan Portfolio Asset Quality and Composition
The following tables set forth distribution by business type of the Company’s SBA 7(a) loan portfolio at March 31, 2016 and December 31, 2015, respectively (in thousands):
As of March 31, 2016
Distribution by Business Type
 
 
 
 
 
 
 
 
Business Type
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Existing Business
 
744

 
$
138,961

 
$
187

 
78.9
%
Business Acquisition
 
152

 
27,949

 
184

 
15.9
%
Start-Up Business
 
121

 
9,317

 
77

 
5.2
%
Total
 
1,017

 
$
176,227

 
$
173

 
100.0
%
As of December 31, 2015
Distribution by Business Type
 
 
 
 
 
 
 
 
Business Type
 
# of Loans
 
Balance
 
Average Balance
 
% of Balance
Existing Business
 
679

 
$
130,692

 
$
192

 
78.4
%
Business Acquisition
 
144

 
26,763

 
186

 
16.0
%
Start-Up Business
 
125

 
9,297

 
74

 
5.6
%
Total
 
948

 
$
166,752

 
$
176

 
100.0
%
The following tables set forth distribution by borrower’s credit score of the Company’s SBA 7(a) loan portfolio at March 31, 2016 and December 31, 2015, respectively (in thousands):
As of March 31, 2016

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Distribution by Borrower Credit Score
 
 
 
 
 
 
 
 
Credit Score
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
500 to 550
 
13

 
$
1,245

 
$
96

 
0.7
%
551 to 600
 
34

 
5,026

 
148

 
2.9
%
601 to 650
 
127

 
25,176

 
198

 
14.3
%
651 to 700
 
290

 
47,644

 
164

 
27.0
%
701 to 750
 
308

 
57,709

 
187

 
32.7
%
751 to 800
 
203

 
32,168

 
158

 
18.3
%
801 to 850
 
36

 
4,984

 
138

 
2.8
%
Not available
 
6

 
2,275

 
379

 
1.3
%
Total
 
1,017

 
$
176,227

 
$
173

 
100.0
%
As of December 31, 2015
Distribution by Borrower Credit Score
 
 
 
 
 
 
 
 
Credit Score
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
500 to 550
 
12

 
$
1,085

 
$
90

 
0.6
%
551 to 600
 
32

 
4,957

 
155

 
3.0
%
601 to 650
 
113

 
22,597

 
200

 
13.6
%
651 to 700
 
262

 
41,901

 
160

 
25.1
%
701 to 750
 
291

 
57,101

 
196

 
34.2
%
751 to 800
 
198

 
31,870

 
161

 
19.1
%
801 to 850
 
34

 
4,942

 
145

 
3.0
%
Not available
 
6

 
2,299

 
383

 
1.4
%
Total
 
948

 
$
166,752

 
$
176

 
100.0
%
The following tables set forth distribution by primary collateral type of the Company’s SBA 7(a) loan portfolio at March 31, 2016 and December 31, 2015, respectively (in thousands):
As of March 31, 2016
Distribution by Primary Collateral Type
 
 
 
 
 
 
 
 
Collateral Type
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Commercial Real Estate
 
470

 
$
98,993

 
$
211

 
56.2
%
Machinery and Equipment
 
179

 
34,196

 
191

 
19.4
%
Residential Real Estate
 
220

 
16,984

 
77

 
9.6
%
Other
 
41

 
12,173

 
297

 
6.9
%
Accounts Receivable and Inventory
 
70

 
12,522

 
179

 
7.1
%
Liquid Assets
 
12

 
444

 
37

 
0.3
%
Furniture and Fixtures
 
8

 
282

 
35

 
0.2
%
Unsecured
 
17

 
633

 
37

 
0.3
%
Total
 
1,017

 
$
176,227

 
$
173

 
100.0
%
As of December 31, 2015

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Distribution by Primary Collateral Type
 
 
 
 
 
 
 
 
Collateral Type
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Commercial Real Estate
 
444

 
$
94,013

 
$
212

 
56.5
%
Machinery and Equipment
 
173

 
32,423

 
187

 
19.4
%
Residential Real Estate
 
197

 
15,545

 
79

 
9.3
%
Other
 
40

 
11,284

 
282

 
6.8
%
Accounts Receivable and Inventory
 
66

 
12,583

 
191

 
7.5
%
Liquid Assets
 
12

 
451

 
38

 
0.3
%
Unsecured
 
9

 
240

 
27

 
0.1
%
Furniture and Fixtures
 
7

 
213

 
30

 
0.1
%
Total
 
948

 
$
166,752

 
$
176

 
100.0
%
The following tables set forth distribution by days delinquent of the Company’s SBA 7(a) loan portfolio at March 31, 2016 and December 31, 2015, respectively (in thousands):
As of March 31, 2016
Distribution by Days Delinquent
 
 
 
 
 
 
 
 
Delinquency Status
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Current
 
907

 
$
156,431

 
$
172

 
88.8
%
1 to 30 days
 
31

 
6,596

 
213

 
3.7
%
31 to 60 days
 
12

 
2,064

 
172

 
1.2
%
61 to 90 days
 
4

 
146

 
37

 
0.1
%
91 days or greater
 
63

 
10,990

 
174

 
6.2
%
Total
 
1,017

 
$
176,227

 
$
173

 
100.0
%
As of December 31, 2015
Distribution by Days Delinquent
 
 
 
 
 
 
 
 
Delinquency Status
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Current
 
856

 
$
151,950

 
$
178

 
91.2
%
1 to 30 days
 
23

 
3,525

 
153

 
2.1
%
31 to 60 days
 
10

 
2,190

 
219

 
1.3
%
61 to 90 days
 
—

 
—

 
—

 
—
%
91 days or greater
 
59

 
9,087

 
154

 
5.4
%
Total
 
948

 
$
166,752

 
$
176

 
100.0
%
Consolidated Results of Operations

As a BDC and based on our intention to qualify as a RIC, we are subject to certain constraints on our operations, including limitations imposed by the 1940 Act and the Code. The condensed consolidated results of operations described below may not be indicative of the results we report in future periods.
Comparison of the three months ended March 31, 2016 and 2015

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Investment Income
(in thousands)
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
 
Change
Investment income:
 
 
 
 
 
Interest income
$
2,533

 
$
2,213

 
$
320

Dividend income
2,293

 
1,087

 
1,206

Servicing income
1,371

 
1,043

 
328

Other income
597

 
407

 
190

Total investment income
$
6,794

 
$
4,750

 
$
2,044

Interest Income
The increase in interest income was attributable to the average outstanding performing portfolio of SBA non-affiliate investments increasing to $158,140,000 from $124,994,000 for the three months ended March 31, 2016 and 2015, respectively. The increase in the average outstanding performing portfolio resulted from the origination of new SBA non-affiliate investments period over period.
Dividend Income
The increase in dividend income is primarily related to dividends received from Premier of $450,000 during the three months ended March 31, 2016, an increase of $500,000 of dividend income from UPS and $126,000 increase in dividends from Small Business Lending, LLC (“SBL”). Dividend income is dependent on portfolio company earnings. Current quarter dividend income may not be indicative of future period dividend income.
NSBF Servicing Portfolio and Related Servicing Income
The following table represents NSBF originated servicing portfolio and servicing income earned for the three months ended March 31, 2016 and 2015:
(in thousands):
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
 
 Change
Total NSBF originated servicing portfolio (1)
$
797,167

 
$
659,705

 
$
137,462

Total servicing income earned
$
1,371

 
$
1,043

 
$
328

(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $590,961,000 and $483,619,000 for the three months ended March 31, 2016 and 2015, respectively.
The increase in servicing income was attributable to the increase in total portfolio investments for which we earn servicing income. The portfolio earning servicing income increased $107,342,000 period over period. The increase was a direct result of increased investments in SBA non-affiliate investments from 2015 to 2016.
Other Income
Other income relates primarily to legal, packaging, prepayment, and late fees earned from SBA loans. The increase is related to the increase in loans originated to 102 for the three months ended March 31, 2016 from 61 during the three months ended March 31, 2015.
Adjusted Net Investment Income

We utilize adjusted net investment income as a measure of our current and future financial performance. Adjusted net investment income is a non-GAAP financial measure and is not intended as an alternative measure of investment income as determined in accordance with GAAP. In addition, our calculation of adjusted net investment income is not necessarily comparable to similar measures as calculated by other companies that do not use the same definition or implementation guidelines. The table below reconciles net investment loss to adjusted net investment income.

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(in thousands)
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
Net investment loss
$
(1,380
)
 
$
(2,476
)
Net realized gains on SBA non-affiliate debt investments
6,276

 
7,699

Adjusted net investment income
$
4,896

 
$
5,223


We believe this is a useful measure as it depicts the current income generated from our investment activities during the period. We include net realized gains on non-affiliate debt investments because they are recurring income related to the sale of SBA guaranteed non-affiliate investments in the secondary market.

The decrease in adjusted net investment income is a result of less realized gains from SBA non-affiliate debt investments offset by a decrease in net investment loss period over period. Net realized gains from SBA non-affiliate debt investments decreased as a result of the Company holding $31,486,000 of guaranteed SBA non-affiliate debt investments at December 31, 2014 and selling them into the secondary market during the three months ended March 31, 2015, generating approximately $3,900,000 in realized gains. At December 31, 2015, $2,284,000 of guaranteed SBA non-affiliate investments were held and sold into the secondary market during the three months ended March 31, 2016. See table below under Net Realized Gains on SBA Non-Affiliate Investments for additional detail.
Expenses
(in thousands)
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
 
Change
Expenses:
 
 
 
 
 
Salaries and benefits
$
3,344

 
$
3,023

 
$
321

Interest
1,488

 
1,356

 
132

Depreciation and amortization
40

 
85

 
(45
)
Other general and administrative costs
3,302

 
2,762

 
540

Total expenses
$
8,174

 
$
7,226

 
$
948

Salaries and Benefits
The increase in salaries and benefits in primarily related to an increase in headcount at NSBF. The additional headcount relates primarily to employees performing loan processing, loan closing or loan servicing functions as a result of the increase in loan originations over the twelve month period. Included in salaries and benefits are managerial assistance fees charged to controlled affiliates. These amounts are recorded as a reduction of salaries and benefits. The increase in salaries and benefits was offset by a $193,000 increase in managerial assistance fees charged during the three months ended March 31, 2016.
Interest Expense
(in thousands)
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
 
Change
Securitization Trusts
$
959

 
$
890

 
$
69

Capital One lines of credit (NSBF)
217

 
270

 
(53
)
Capital One term loan and line of credit (NBS)
—

 
162

 
(162
)
Notes due 2022
178

 
—

 
178

Related party note
122

 
—

 
122

Capco
12

 
19

 
(7
)
Other
—

 
15

 
(15
)
Total interest expense (1)
$
1,488

 
$
1,356

 
$
132


(1) See Recent Developments - Notes Due 2021


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Interest expense related to securitizations increased as a result of an additional securitization transaction completed in September 2015. In June 2015, the Company received $19,119,000 under an unsecured revolving line of credit extended by UPS and NTS and incurred $122,000 in interest expense during the three months ended March 31, 2016. In June 2014,  the Company entered into a four year $20,000,000 credit agreement with Capital One, N.A. (“Capital One”) consisting of a $10,000,000 term loan and a revolving line of credit of up to $10,000,000. The NBS Capital One term loan and line of credit were paid in full and extinguished in June 2015, and as such, no interest expense was incurred during the three months ended March 31, 2016. In addition, $178,000 of interest expense was incurred on the Notes due 2022 which closed in September 2015, during the three months ended March 31, 2016.
Other General and Administrative Costs
Other general and administrative costs include professional fees, marketing, loan related costs and rent. The increase in other general and administrative costs is primarily related to an increase in loan related costs. Loan related costs include referral fees, appraisal fees, legal fees, search fees and other collateral preservation costs. Loan related costs increase as the number of loans we originate and service increase. At March 31, 2016, our loan portfolio consists of 1,017 SBA 7(a) loans as compared to 796 at March 31, 2015.
Net Realized Gains and Net Unrealized Appreciation and Depreciation

Net realized gains or losses on investments are measured by the difference between the net proceeds from the repayment or sale and the cost basis of our investments without regard to unrealized appreciation or depreciation previously recognized and includes investments charged off during the period, net of recoveries. Realized gains for the three months ended March 31, 2016 and 2015 were $6,276,000 and $7,746,000, respectively. Realized losses were $0 and $47,000 during the three months ended March 31, 2016 and 2015, respectively. The net change in unrealized appreciation or depreciation on investments primarily reflects the change in portfolio investment fair values during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.

Net Realized Gains on SBA Non-Affiliate Investments
 
Three Months Ended
 
March 31, 2016
 
March 31, 2015
(in thousands)
# of Debt Investments
 
$ Amount
 
# of Debt Investments
 
$ Amount
SBA non-affiliate investments originated during the quarter
102

 
$
56,058

 
61

 
$
49,629

SBA guaranteed non-affiliate investments sold during the quarter
99

 
$
42,493

 
58

 
$
52,349

Realized gains recognized on sale of SBA guaranteed non-affiliate investments
—

 
$
6,276

 
—

 
$
7,746

Average sale price as a percent of principal balance (1)
 
 
112.41
%
 
—

 
112.44
%

(1) Realized gains greater than 110.00% must be split 50/50 with the SBA in accordance with SBA regulations. The realized gains recognized above reflects amounts net of split with SBA.

Net Unrealized Appreciation (Depreciation) on Investments

(in thousands)
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
 
Change
Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments
$
62

 
$
(1,698
)
 
$
1,760

Net unrealized depreciation on SBA unguaranteed non-affiliate investments
(1,027
)
 
(666
)
 
(361
)
Net unrealized appreciation on controlled investments
3,690

 
7,500

 
(3,810
)
Change in provision for deferred taxes on unrealized gains on investments
(1,608
)
 
—

 
(1,608
)
Net unrealized depreciation on non-control/non-affiliate investments
(16
)
 
—

 
(16
)
Total net unrealized appreciation on investments
$
1,101

 
$
5,136

 
$
(4,035
)


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Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments relates to guaranteed portions of SBA debt investments made which the Company sells into a secondary market. Unrealized appreciation of SBA guaranteed investments represents the fair value adjustment of guaranteed portions of loans which have not yet been sold.

Net unrealized depreciation on SBA unguaranteed non-affiliate investments resulted from fair value adjustments on new investments. The increase is related to new loans originated during the three months ended March 31, 2016 which are discounted at a market yield of 5.30%.

Net unrealized appreciation on controlled investments decreased $3,810,000. During the three months ended March 31, 2015, we recorded a $5,100,000 unrealized gain on our investment in SBL as a result of the addition of a new third-party servicing contract which provides a longer-term revenue stream. During the three months ended March 31, 2016, no unrealized gains were recorded related to the investment in SBL. During the three months ended March 31, 2016, the Company recorded unrealized gains of $2,800,000 and $988,000 on its investments in UPS and Premier, respectively. The primary driver of these increases were increases in multiples of comparable companies.

Provision for Deferred Taxes on Unrealized Appreciation of Investments

Certain consolidated subsidiaries of ours are subject to U.S. federal and state income taxes. These taxable subsidiaries are not consolidated with the Company for income tax purposes, but are consolidated for GAAP purposes, and may generate income tax liabilities or assets from temporary differences in the recognition of items for financial reporting and income tax purposes at the subsidiaries. During the three months ended March 31, 2016, the Company recognized a provision for deferred taxes on unrealized gains of $1,608,000.

Net Unrealized Depreciation on Servicing Assets
(in thousands)
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
 
Change
Net unrealized depreciation on servicing assets
$
(403
)
 
$
(356
)
 
$
(47
)

The increase in unrealized depreciation on servicing assets is primarily related to the increase in the discount rate from 11.57% to 12.03% offset by decreases in the assumed cumulative prepayment and average cumulative default rates. The assumed cumulative prepayment rate decreased from 19% to 15.5% and the assumed average cumulative default rate decreased from 25% to 20%.

Liquidity and Capital Resources
Overview
Cash requirements and liquidity needs over the next twelve months are anticipated to be funded primarily through operating results, available cash and cash equivalents, existing credit lines, proposed new credit lines, additional securitizations of the Company’s SBA lender’s unguaranteed loan portions and additional issuances of common stock.

Public Offerings

In April 2016, the Company and U.S. Bank, N.A. (the “Trustee”), entered into the Second Supplemental Indenture (the “Second Supplemental Indenture”) to the Base Indenture between the Company and the Trustee, relating to the Company’s issuance, offer and sale of $35,000,000 aggregate principal amount of 7.0% Notes due 2021 (the “2021 Notes”). The Company granted an overallotment option of up to $5,250,000 in aggregate principal amount of the 2021 Notes. The sale of the Notes generated proceeds of approximately $33,750,000, net of underwriter's fees and expenses. In May 2015, the underwriters exercised their option to purchase $5,250,000 in aggregate principal amount of notes for an additional $5,066,000 in net proceeds.

The Notes will mature on March 31, 2021 and may be redeemed in whole or in part at the Company’s option at any time or from time to time on or after April 22, 2017, at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption. The 2021 Notes bear interest at a rate of 7.0% per year payable quarterly on March 31, June 30, September 30, and December 31 of each year, commencing on June 30, 2016, and trade on the NASDAQ Global Market under the trading symbol “NEWTL.”


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On October 15, 2015 we completed a public offering of 2,000,000 shares of our common stock at a public offering price of $16.50 per share. We also sold an additional 300,000 shares of common stock at a public offering price of $16.50 per share pursuant to the underwriter's full exercise of the over-allotment option. Proceeds, net of offering costs and expenses were $35,290,000.

In September 2015, we issued $8,324,000, including the underwriter's partial exercise of their over-allotment option, in aggregate principal amount of the 7.5% Notes due 2022 (the “2022 Notes”). The 2022 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2022 Notes; (iii) effectively subordinated to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries. The 2022 Notes will mature on September 30, 2022 and may be redeemed in whole or in part at the Company’s option at any time or from time to time on or after September 23, 2018, at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption. Proceeds net of offering costs and expenses were $7,747,000.

On November 18, 2014 we completed a public offering of 2,200,000 shares of our common stock at a public offering price of $12.50 per share. We also sold an additional 330,000 shares of common stock at a public offering price of $12.50 per share pursuant to the underwriter's full exercise of the over-allotment option. Proceeds, net of offering costs and expenses were $27,883,000.

Capital One Facilities

NSBF has a $50,000,000 credit facility with Capital One. The facility provides for a 55% advance rate on the non-guaranteed portions of the SBA 7(a) loans it originates, and a 90% advance rate on the guaranteed portions of SBA 7(a) loans it originates. The interest rate on the portion of the facility, collateralized by the government guaranteed portion of SBA 7(a) loans, is set at Prime plus 1.00%, and there is a quarterly facility fee equal to 0.25% on the unused portion of the revolving credit calculated as of the end of each calendar quarter. The interest rate on the portion of the facility, collateralized by the non-guaranteed portion of SBA 7(a) loans, is set at Prime plus 1.875%, and there is a quarterly facility fee equal to 0.25% on the unused portion of the revolving credit calculated as of the end of each calendar quarter. In June 2015, we amended the existing facility to eliminate the fixed charge coverage ratio in exchange for a debt service ratio, new EBITDA minimums, the elimination of restrictions on our ability to pay dividends to stockholders, as well as the release of the guarantees of our former subsidiaries (now treated as portfolio companies). In addition, the amendment extended the date on which the facility will convert to a term loan from May 16, 2016 to May 16, 2017 and extended the maturity date of the facility to May 16, 2019. At March 31, 2016, we had $11,054,000 and $21,275,000 outstanding under the unguaranteed and guaranteed lines of credit, respectively. At March 31, 2016, we were in full compliance with all applicable loan covenants.

Related Party Notes Payable

In June 2015, we entered into an unsecured revolving line of credit agreement with UPS and NTS. Maximum borrowings under the line of credit are $38,000,000. The outstanding balance bears interest at a rate equal to (a) the greater of LIBOR or 50 basis points plus (b) 7% or at a rate equal to (y) the greater of the Prime Rate or 3.5%, plus (z) 6%. At March 31, 2016, the line of credit bears interest at a rate of 7.5%. The revolving line of credit has a maturity date of June 21, 2019. The outstanding borrowings at March 31, 2016 were $10,817,000.

Securitization Transactions

In December 2010, we created a financing channel for the sale of the unguaranteed portions of SBA 7(a) loans held on our balance sheet. We transferred the unguaranteed portions of SBA loans of $19,615,000, and an additional $3,000,000 in loans issued subsequent to the transaction, to a special purpose entity created for this purpose, Newtek Small Business Loan Trust 2010-1 (the “Trust”), which in turn issued notes (the “securitization notes”) for the par amount of $16,000,000 against the assets in a private placement. The Trust is only permitted to purchase the unguaranteed portion of SBA 7(a) loans, issue asset-backed securities, and make payments on the securities. The Trust issued a single series of securitization notes to pay for the unguaranteed portions it acquired from us and will be dissolved when those securities have been paid in full. The primary source for repayment of the securitization notes is the cash flows generated from the unguaranteed portion of SBA 7(a) loans now owned by the Trust. Principal on the securitization notes will be paid by cash flow in excess of that needed to pay various fees related to the operation of the Trust and interest on the debt. The securitization notes have an expected maturity of about five years based on the expected performance of the underlying collateral and structure of the debt and a legal maturity of 30

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years from the date of issuance. The assets of the Trust are legally isolated and are not available to pay our creditors. We continue to retain rights to cash reserves and all residual interests in the Trust and will receive servicing income. Proceeds from this transaction were used to repay a Capital One loan and for general corporate and lending purposes. Because we determined we are the primary beneficiary of the Trust we needed to consolidate the Trust into our financial statements. We continue to recognize the securitization notes in Notes payable. The investors and the Trust have no recourse to any of our other assets for failure if the Trust has insufficient funds to pay its obligations when due; however, Newtek, has provided a limited guaranty to the investors in the Trust in an amount not to exceed 10% of the original issuance amount, to be used after all of the assets of the Trust have been exhausted. The notes were issued with an “AA” rating from S&P based on the underlying collateral.

In December 2011, we entered into a Supplemental Indenture by which the original $16,000,000 of securitization notes were amended to reflect a new principal amount of $12,880,000, as a result of principal payments made, and additional notes were issued in an initial principal amount of $14,899,000, so that the initial aggregate principal amount of all notes as of December 31, 2011 totaled $27,779,000. The notes are backed by approximately $40,500,000 of the unguaranteed portions of loans originated, and include an additional $5,000,000 to be originated and issued to the Trust by us under the SBA loan program. The notes retained their “AA” rating under S&P, and the final maturity date of the amended notes is March 22, 2037. The proceeds of the transaction have been and will be used to repay debt and originate new loans.

In March 2013, we transferred the unguaranteed portions of SBA loans of $23,569,000, and an additional $5,900,000 in loans issued subsequent to the transaction, to a special purpose entity, Newtek Small Business Loan Trust 2013-1 (the “ 2013 Trust”). The 2013 Trust in turn issued securitization notes for the par amount of $20,909,000 against the assets in a private placement. The notes received an “A” rating by S&P; and the final maturity date of the amended notes is June 25, 2038. The proceeds of the transaction have been used to repay debt and originate new loans.

In December 2013, we completed an additional transaction whereby the unguaranteed portions of SBA loans of $23,947,000, and an additional $3,642,000 in loans issued subsequent to the transaction, was transferred to a Trust. The Trust in turn issued securitization notes for the par amount of $24,433,000 against the assets in a private placement. The notes received an “A” rating by S&P, and the final maturity date of the amended notes is April 25, 2039. The proceeds of the transaction have been used to repay debt and originate new loans.

In December 2014, we completed an additional transaction which resulted in the transfer of $36,000,000 of unguaranteed portions of SBA loans and an additional $7,500,000 in loans which were issued subsequent to the transaction.  The Trust in turn issued securitization notes for the par amount of $31,700,000 against the assets in a private placement. The notes received an “A” rating by S&P, and the final maturity date of the notes is April 2040. The proceeds of the transaction have been used to repay debt and originate new loans.

In September 2015, we issued additional unguaranteed SBA 7(a) loan-backed notes as part of an upsizing of the Newtek Small Business Loan Trust, Series 2010-1. Note principal amounts of the original and exchanged notes were approximately $8,771,000 with additional notes which totaled approximately $32,028,000 as part of the upsizing. The initial aggregate amount of the senior notes issued by the Trust were approximately $40,800,000 on the closing date. The notes are collateralized by approximately $46,458,000 of SBA 7(a) unguaranteed portions and include a prefunded amount of $14,679,000 to be originated and transferred subsequently to the Trust. The notes retained their “AA” rating under S&P, and the final maturity of the amended notes is February 25, 2041.
Cash Flows and Liquidity
As of March 31, 2016, the Company’s unused sources of liquidity consisted of $5,293,000 available through the combined Capital One facilities; $8,301,000 available through notes payable with related parties; $3,614,000 in unrestricted cash and $35,000 in money market funds.

Restricted cash of $18,971,000 as of March 31, 2016 is primarily held in NSBF. The majority, or $18,201,000 of restricted cash, is related to NSBF, and includes reserves in the event payments are insufficient to cover interest and/or principal with respect to securitizations, payments collected which are due to loan participants, a reserve established as part of a voluntary agreement with the SBA and amounts owed to the SBA.


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In summary, the Company generated and used cash as follows:
(in thousands)
Three months ended March 31, 2016
 
Three months ended March 31, 2015
Net cash provided by (used in) operating activities
$
8,793

 
$
(10,432
)
Net cash used in investing activities
(76
)
 
(12
)
Net cash (used in) provided by financing activities
(9,411
)
 
1,224

Net decrease in cash and cash equivalents
(694
)
 
(9,220
)
Cash and cash equivalents, beginning of period
4,308

 
17,813

Cash and cash equivalents, end of period
$
3,614

 
$
8,593


For the three months ended March 31, 2016, we experienced a net decrease in cash and cash equivalents of $694,000 which is primarily the net result of $8,793,000 of cash provided by operating activities and $9,411,000 used in financing activities.
During the three months ended March 31, 2016, operating activities provided cash of $8,793,000, consisting primarily of (i) the decrease in broker receivables which arise from the guaranteed portions of SBA 7(a) loans that were traded but had not settled before period end and represent the amount of cash due from the purchasing broker; the amount varies depending on loan origination volume and timing of sales at period end, (ii) $5,497,000 of principal payments from affiliate and non-affiliate investments, (iii) a decrease in restricted cash of $4,016,000, and (iv) $48,769,000 of proceeds from the sale of SBA 7(a) investments. These increases were offset by $56,058,000 of SBA 7(a) loan investments.
Contractual Obligations
The following chart represents the Company’s significant obligations and commitments as of March 31, 2016:
(in thousands)
Payments due by period
Contractual Obligations (2)
Total
 
Less than 1 year
 
1-3 years
 
3-5 years
 
More than 5 years
Bank notes payable
$
32,329

 
$
21,275

 
$
11,054

 
$
—

 
$
—

Securitization notes payable (1)
85,866

 
—

  
—

  
—

 
85,866

Notes due 2022 (1)
8,324

 
—

 
—

 
—

 
8,324

Notes payable - related parties
10,817

 
—

 
—

 
10,817

 
—

Employment agreements
1,125

 
844

 
281

 
—

 
—

Operating leases
14,385

 
838

 
3,368

 
2,416

 
7,763

Totals
$
152,846

 
$
22,957

  
$
14,703

  
$
13,233

 
$
101,953

(1) Amounts represent principal only and are not shown net of unamortized debt issuance costs. See note 7.
(2) See Recent Developments - Notes Due 2021
Critical Accounting Policies and Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies.
Fair Value Measurements

We value investments for which market quotations are readily available at their market quotations. However, a readily available market value is not expected to exist for many of the investments in our portfolio, and we value these portfolio investments at fair value as determined in good faith by our Board under our valuation policy and process. We may seek pricing information with respect to certain of our investments from pricing services or brokers or dealers in order to value such investments. We also employ independent third party valuation firms for certain of our investments for which there is not a readily available market value. 


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The application of our valuation methods may include comparisons of our portfolio companies to peer companies that are public, the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings, discounted cash flow, the markets in which the portfolio company does business and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we will consider the pricing indicated by the external event to corroborate the private equity valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a readily available market value existed for such investments and may differ materially from values that may ultimately be received or settled.

Our Board is ultimately and solely responsible for determining, in good faith, the fair value of investments that are not publicly traded, whose market prices are not readily available on a quarterly basis or any other situation where portfolio investments require a fair value determination.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels for disclosure purposes. The Company carries all investments at fair value. Additionally, the Company carries its credits in lieu of cash, notes payable in credits in lieu of cash, and servicing assets at fair value. The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and gives the lowest priority to unobservable inputs (Level 3). An asset or liability’s classification within the fair value hierarchy is based on the lowest level of the significant input to its valuation. The levels of the fair value hierarchy are as follows:
Level 1        
  
Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets.
 
 
 
Level 2
  
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities, corporate debt securities, derivative contracts and residential mortgage loans held-for-sale.
 
 
 
Level 3
  
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly structured or long-term derivative contracts.
Valuation of Investments

Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. Level 3 investments are valued at fair value as determined in good faith by the Board, based on input of management, the audit committee and independent valuation firms that have been engaged at the direction of the Board to assist in the valuation of certain portfolio investments without a readily available market quotation at least once during a trailing twelve-month period under a valuation policy and a consistently applied valuation process.

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Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded. 

The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded.

Income Recognition

Interest on loan investments is accrued and included in income based on contractual rates applied to principal amounts outstanding. Interest income is determined using a method that results in a level rate of return on principal amounts outstanding. When a loan becomes 90 days or more past due, or if we otherwise do not expect to receive interest and principal repayments, the loan is placed on non-accrual status and the recognition of interest income is discontinued. Interest payments received on loans that are on non-accrual status are treated as reductions of principal until the principal is repaid.

We receive servicing income related to the guaranteed portions of SBA loan investments which we sell into the secondary market. These recurring fees are earned daily and recorded when earned. Servicing income is earned for the full term of the loan or until the loan is repaid.

We receive a variety of fees from borrowers in the ordinary course of conducting our business, including packaging fees, late fees and prepayment fees. All other income is recorded when earned.

Dividend income is recorded at the time dividends are declared. Distributions of earnings from a portfolio companies are evaluated to determine if the distribution is income, return of capital or realized gain.

Income Taxes
 
We intend to elect to be treated as a RIC under Subchapter M of the Code and operate in a manner so as to qualify for the tax treatment applicable to RICs. In order to qualify for tax treatment as a RIC, we are required to meet certain source of income and asset diversification requirements, and timely distribute to our stockholders at least 90% of investment company taxable income, as defined by the Code, for each tax year. We have made and intend to continue to make the requisite distributions to our stockholders, which will generally relieve us from U.S. federal income taxes. 

Depending on the level of taxable income earned in a tax year, we may choose to retain taxable income in excess of current year distributions into the next tax year in an amount less than what would trigger payments of federal income tax under Subchapter M of the Code. We would then pay a 4% excise tax on such income, as required. To the extent that we determine that our estimated current year annual taxable income may exceed estimated current year distributions, we accrue excise tax, if any, on estimated excess taxable income as taxable income is earned. 

Because federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified within capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.
New Accounting Standards


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In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, “Leases”, which amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration of greater than one year. The ASU is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those periods. Early adoption is permitted. The Company has not completed its review of the new guidance; however, the Company anticipates that upon adoption of the standard it will recognize additional assets and corresponding liabilities related to leases on its condensed consolidated statements of assets and liabilities.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”, which, among other things, requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Additionally, the ASU changes the disclosure requirements for financial instruments. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those periods, and early adoption is permitted for certain provisions. The Company is currently evaluating the impact this ASU will have on its condensed consolidated financial statements and disclosures.
Off Balance Sheet Arrangements
There were no off balance sheet arrangements as of March 31, 2016.
Recent Developments
Notes Due 2021

In April 2016, the Company and U.S. Bank, N.A. (the “Trustee”), entered into the Second Supplemental Indenture (the “Second Supplemental Indenture”) to the Base Indenture between the Company and the Trustee, relating to the Company’s issuance, offer and sale of $35,000,000 aggregate principal amount of 7.0% Notes due 2021 (the “2021 Notes”). The Company granted an overallotment option of up to $5,250,000 in aggregate principal amount of the 2021 Notes. The sale of the Notes generated proceeds of approximately $33,750,000, net of underwriter's fees and expenses. In May 2015, the underwriters exercised their option to purchase $5,250,000 in aggregate principal amount of notes for an additional $5,066,000 in net proceeds.
The Notes will mature on March 31, 2021 and may be redeemed in whole or in part at the Company’s option at any time or from time to time on or after April 22, 2017, at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption. The 2021 Notes bear interest at a rate of 7.0% per year payable quarterly on March 31, June 30, September 30, and December 31 of each year, commencing on June 30, 2016, and trade on the NASDAQ Global Market under the trading symbol “NEWTL.”
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
We consider the principal types of risk in our investing activities to be fluctuations in interest rates and loan portfolio valuations and the availability of the secondary market for our SBA loans. Risk management systems and procedures are designed to identify and analyze our risks, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs.
NSBF primarily lends at an interest rate of prime, which resets on a quarterly basis, plus a fixed margin. The Capital One revolver lines as well as the securitization notes are on a prime plus a fixed factor basis. As a result, the Company believes it has matched its cost of funds to its interest income in its financing activities. However, because of the differential between the amount lent and the smaller amount financed a significant change in market interest rates will have a material effect on our income. In periods of sharply rising interest rates, our cost of funds will increase at a slower rate than the interest income earned on the loans we have made; this should improve our net investment income, holding all other factors constant. However, a reduction in interest rates will result in the Company experiencing a reduction in investment income; that is, its interest income will decline more quickly than interest expense resulting in a net reduction of benefit to investment income.
NSBF depends on the availability of secondary market purchasers for the guaranteed portions of SBA loans and the premium received on such sales to support its lending operations. At this time the secondary market for the guaranteed portions of SBA loans is robust but during the 2008 and 2009 financial crisis the Company had difficulty selling its loans for a premium; although not expected at this time, if such conditions did recur NSBF would most likely cease making new loans and could experience a substantial reduction in profitability.
We do not have significant exposure to changing interest rates on invested cash (includes cash and cash equivalents, restricted cash and money market funds) which was approximately $22,620,000 at March 31, 2016. We do not purchase or hold
derivative financial instruments for trading purposes. All of our transactions are conducted in U.S. dollars and we do not have any foreign currency or foreign exchange risk. We do not trade commodities or have any commodity price risk.
We believe that we have placed our demand deposits, cash investments and their equivalents with high credit-quality financial institutions. Invested cash is held almost exclusively at financial institutions of high credit quality. The Company invests cash not held in interest free checking accounts or bank money market accounts mainly in U.S. Treasury only money market instruments or funds and other investment-grade securities. As of March 31, 2016, cash deposits in excess of insured amounts totaled approximately $11,595,000.
ITEM 4. CONTROLS AND PROCEDURES.

As of the period covered by this report, we, including our chief executive officer and chief accounting officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act). Based on our evaluation, our management, including the chief executive officer and chief accounting officer, concluded that our disclosure controls and procedures were effective in timely alerting management, including the chief executive officer and chief accounting officer, of material information about us required to be included in our periodic SEC filings. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, are based upon certain assumptions about the likelihood of future events and can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. There has not been any change in our internal controls over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.


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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.

We may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise. Furthermore, third parties may try to seek to impose liability on us in connection with the activities of our portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, we do not expect any current matters will materially affect our financial condition or results of operations; however , there can be no assurance whether any pending legal proceedings will have a material adverse effect on our financial condition or results of operations in any future reporting period.  The Company’s controlled portfolio companies are currently involved in various litigation matters, as follows:

As previously disclosed, on January 21, 2014, NCMIC Finance Corporation (‘‘NCMIC’’) filed a complaint against Universal Processing Services of Wisconsin LLC (‘‘UPS’’), one of Newtek Business Services Corp.’s (the ‘‘Company’’) merchant processing controlled portfolio companies, in the United States District Court for the Southern District of Iowa.  Additionally, on October 13, 2015, UPS filed an action against NCMIC and NCMIC related entities seeking, among other things, indemnification in connection with the claims asserted by NCMIC against UPS, as well as for monetary damages for breach of contract and fraud. In March 2016, in order to avoid the additional expense, inconvenience and distraction of continued litigation and trial, UPS paid NCMIC $200,000 in exchange for NCMIC’s agreement to dismiss its claims against UPS. UPS also agreed to dismiss its indemnification and monetary damages claims against NCMIC.

As previously disclosed, during the quarter ended June 30, 2013, the Federal Trade Commission (the ‘‘FTC’’) amended an existing complaint in the matter Federal Trade Commission v. WV Universal Management, LLC et al., pending in the United States District Court for the Middle District of Florida (the ‘‘Court’’), to add UPS as an additional defendant on one count of providing substantial assistance in violation of the Telemarketing Sales Rule. UPS and the FTC reached a settlement on the FTC’s motion for a permanent injunction. On May 19, 2015, the Court entered an equitable monetary judgment against UPS for approximately $1,735,000, which has been deposited with the Court pending the outcome of UPS’ appeal of the judgment.

UPS instituted an action against a former independent sales agent in Wisconsin state court for, among other things, breach of contract. The former sales agent answered the complaint and filed counterclaims against UPS. The court recently granted certain aspects of defendants’ motions for summary judgment, dismissing certain of the claims asserted by UPS. The case is set for trial in late 2016. UPS intends to vigorously pursue its claims against the former sales agent and defend the counterclaims asserted.

In October 2015, CrystalTech Web Hosting, Inc. (‘‘NTS’’) was served with an amended complaint filed by a former customer of NTS alleging claims in connection with a server leased by the customer from NTS.  In April 2016, the court denied NTS’ motion to dismiss the action.  NTS believes that the claims are covered by insurance and that the claims are without merit and intends to vigorously defend the action. 

ITEM 1A. RISK FACTORS.

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K are not the only risks we face. Additional risks and uncertainties that are not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. There have been no material changes from the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2015.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

None.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.
Number
 
Description
11
 
Computation of Per Share Earnings (included in the notes to the condensed consolidated financial statements in this report).
 
 
 
10.1
 
Employment Agreement with Barry Sloane, dated March 1, 2016, (Incorporated by reference to Exhibit 99.1 to Newtek’s Current Report on Form 8-K filed March 23, 2016).
 
 
 
10.2
 
Employment Agreement with Jennifer C. Eddelson, dated March 1, 2016 (Incorporated by reference to Exhibit 99.2 to Newtek’s Current Report on Form 8-K filed March 23, 2016).
 
 
 
10.3
 
Employment Agreement with Michael A. Schwartz, dated March 1, 2016, (Incorporated by reference to Exhibit 99.3 to Newtek’s Current Report on Form 8-K filed March 23, 2016).
 
 
 
31.1
 
Certification by Principal Executive Officer required by Rule 13a-14 under the Securities Exchange Act of 1934, as amended, filed herewith.
 
 
 
31.2
 
Certification by Principal Financial Officer required by Rule 13a-14 under the Securities Exchange Act of 1934, as amended, filed herewith.
 
 
 
32.1
 
Certification by Principal Executive and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith.

148
Table of Contents

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
NEWTEK BUSINESS SERVICES CORP.
 
 
 
Date: May 10, 2016
By:
/S/    BARRY SLOANE        
 
 
Barry Sloane
 
 
Chairman and Chief Executive Officer
(Principal Executive Officer)
 
 
 
Date: May 10, 2016
By:
/S/    JENNIFER EDDELSON        
 
 
Jennifer Eddelson
 
 
Chief Accounting Officer
(Principal Financial Officer and Principal Accounting Officer)



149
Exhibit


Exhibit 31.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Barry Sloane, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Newtek Business Services Corp. (the “registrant”).
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
 
/S/    BARRY SLOANE        
 
Barry Sloane
 
Principal Executive Officer
Date: May 10, 2016


Exhibit


Exhibit 31.2
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Jennifer Eddelson, certify that:
1. I have reviewed this report on Form 10-Q of Newtek Business Services Corp. (the “registrant”).
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
 
/S/    JENNIFER EDDELSON        
 
Jennifer Eddelson
 
Principal Financial Officer
Date: May 10, 2016



Exhibit


Exhibit 32.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the period ended March 31, 2016 (the “Report”) of Newtek Business Services Corp. (the “Company”), as filed with the Securities and Exchange Commission on the date hereof, Barry Sloane, as Principal Executive Officer, and Jennifer Eddelson, as Principal Financial Officer, of the Company, each hereby certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to each officer’s knowledge:
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of the operations of the Company.
 
 
/S/    BARRY SLOANE        
 
Barry Sloane,
 
Principal Executive Officer
 
/S/    JENNIFER EDDELSON        
 
Jennifer Eddelson,
 
Principal Financial Officer
May 10, 2016