BOCA RATON, Fla., April 27, 2020 (GLOBE NEWSWIRE) -- Newtek Business Services Corp., (Nasdaq: NEWT), an internally managed business development company (“BDC”), today announced that Newtek Small Business Finance, LLC (“NSBF”), the Company’s nationally licensed lender under the U.S. Small Business Administration (“SBA”) Section 7(a) Program, funded $518.2 million of Paycheck Protection Program (“PPP”) loans, as of 12:00 p.m. EDT today, from the first government allocation of $349 billion in PPP funding. NSBF estimates that these PPP loans resulted in approximately 66,000 employees being retained on the payroll of NSBF’s PPP borrowers.  NSBF estimates that it has an additional $24.9 million in PPP loans with SBA E-Tran (loan) numbers that are expected to fund this week, which would bring NSBF’s total PPP loan fundings to $543.1 million from the first government allocation of PPP funding.  NSBF has funded approximately 90% to 95% of the PPP loans for which NSBF received SBA E-Tran numbers.

In addition, NSBF currently has a pipeline of approximately $900 million of additional PPP loans that are internally approved and awaiting SBA E-Tran (loan) numbers.  These additional PPP loans are positioned for the second round - $320 billion - of government-approved PPP funding.  The Company presently estimates that based on its current pipeline of approximately $900 million of PPP loans, together with the $518.2 million of funded PPP loans, and the $24.9 million of PPP loans expected to fund this week, NSBF could fund upwards of $1.5 billion in PPP loans. While NSBF estimates it has approximately $900 million of PPP loans to be submitted to the SBA for E-Tran loan numbers, it cannot estimate the number of PPP loans that will ultimately receive SBA E-Tran numbers.  The Company estimates that approximately 130,000 employees could be retained on the payroll of NSBF’s PPP borrowers based on NSBF’s total potential funding of $1.5 billion in PPP loans.  Stifel Financial Corp. and UBS, as well as other existing partners of Newtek, are providing NSBF with referrals and financing to originate PPP loans. 

Barry Sloane, Chairman, President and Chief Executive Officer said, “We want to thank Stifel Financial Corp. and UBS for working with NSBF by referring clients and helping finance America’s small businesses, and we appreciate the essential role the SBA plays in supporting the small- and medium-sized business market. We are thrilled to presently estimate that we could provide funds to businesses to maintain or rehire an estimated 130,000 hardworking Americans across the U.S.  We applaud our partners in banking, the credit-union community and trade associations for partnering with Newtek, which enabled us to get an early jump on moving the funds to this important part of the U.S. economy.

About Newtek Business Services Corp.

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
Telephone: (212) 273-8179 / jcavuoto@newtekone.com

Source: Newtek Business Services Corp.