BOCA RATON, Fla., March 22, 2021 (GLOBE NEWSWIRE) -- Newtek Business Services Corp., (Nasdaq: NEWT), an internally managed business development company (“BDC”), today announced that Newtek Business Lending, LLC (“NBL”), Newtek’s portfolio company that originates and funds SBA 504 loans, closed a $100 million credit facility with Deutsche Bank AG. The facility will be used to fund SBA 504 loans and has an initial two-year term.
Barry Sloane, Chairman, President and Chief Executive Officer said, “We greatly appreciate the opportunity for NBL to close this financing facility with Deutsche Bank. Combining this facility with NBL’s existing $75 million credit facility with Capital One Bank will leave NBL well positioned to grow its SBA 504 business. NBL’s SBA 504 lending opportunities are attractive in that NBL is able to sell the 504 loan and book gain-on-sale income. Specifically, NBL is able to sell the conventional first senior-secured lien, as well have the second lien taken out and financed by government debentures, with a goal of generating a gain-on-sale income and leaving nothing on the balance sheet. The financing facilities provide for seasoning of the loans and the warehouse to sell the loans. We anticipate that NBL can be a material contributor to the BDC’s dividend on a regular basis.”
Newtek Business Services Corp., Your Business Solutions Company®, is an internally managed BDC, which along with its controlled portfolio companies, provides a wide range of business and financial solutions under the Newtek® brand to the small- and medium-sized business (“SMB”) market. Since 1999, Newtek has provided state-of-the-art, cost-efficient products and services and efficient business strategies to SMB relationships across all 50 states to help them grow their sales, control their expenses and reduce their risk.
Newtek’s and its portfolio companies’ products and services include: Business Lending, SBA Lending Solutions, Electronic Payment Processing, Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting), eCommerce, Accounts Receivable Financing & Inventory Financing, Insurance Solutions, Web Services, and Payroll and Benefits Solutions.
Newtek® and Your Business Solutions Company®, are registered trademarks of Newtek Business Services Corp.
Note Regarding Forward Looking Statements
This press release contains certain forward-looking statements. Words such as “believes,” “intends,” “expects,” “projects,” “anticipates,” “forecasts,” “goal” and “future” or similar expressions are intended to identify forward-looking statements. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Such risks and uncertainties include, among others, intensified competition, operating problems and their impact on revenues and profit margins, anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. Risk factors, cautionary statements and other conditions, which could cause Newtek’s actual results to differ from management’s current expectations, are contained in Newtek’s filings with the Securities and Exchange Commission and available through http://www.sec.gov/. Newtek cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements.
SOURCE: Newtek Business Services Corp.
Investor Relations & Public Relations
Contact: Jayne Cavuoto
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Source: Newtek Business Services Corp.