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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 September 30, 2015

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  x    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
 
¨
 
 
 
 
 
 
Non-accelerated filer
 
x
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 October 28, 2015 there were 12,653,335 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)
 
September 30, 2015
 
December 31, 2014
ASSETS
(Unaudited)
 
(Note 1)
Investments, at fair value
 
 
 
SBA unguaranteed non-affiliate investments (cost of $155,537 and $131,093, respectively; includes $138,426 and $120,990, respectively, related to securitization trust VIE)
$
144,290

 
$
121,477

Controlled investments (cost of $28,675 and $18,065, respectively)
100,726

 
77,499

SBA guaranteed non-affiliate investments (cost of $1,700 and $28,057, respectively)
1,920

 
31,486

Non-control/Non-affiliate investments (cost of $2,116 and $0, respectively)
2,116

 
—

Investments in money market funds (cost of $36 and $3,000, respectively)
36

 
3,000

Total investments at fair value
249,088

 
233,462

Cash and cash equivalents
3,098

 
17,813

Restricted cash
26,722

 
15,389

Broker receivable
22,238

 
—

Due from related parties
4,707

 
3,190

Servicing assets, at fair value
11,895

 
9,483

Credits in lieu of cash
1,207

 
2,229

Other assets (includes $2,599 and $2,550, respectively, related to securitization trust VIE)
12,916

 
20,266

Total assets
$
331,871

 
$
301,832

LIABILITIES AND NET ASSETS
 
 
 
Liabilities:
 
 
 
Bank notes payable
$
21,849

 
$
43,023

Notes due 2022
8,200

 
—

Notes payable - Securitization trust VIE
97,930

 
79,520

Notes payable - related parties
18,121

 
—

Due to related parties
1,751

 
2,867

Notes payable in credits in lieu of cash
1,207

 
2,229

Accounts payable, accrued expenses and other liabilities
8,080

 
7,775

Total liabilities
157,138

 
135,414

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, 10,353 and 10,206 issued and outstanding at September 30, 2015 and December 31, 2014, respectively, not including 17 shares held in escrow as of December 31, 2014)
207

 
205

Additional paid-in capital
163,005

 
165,532

Distributions in excess of net investment income
(8,786
)
 
(2,523
)
Net unrealized appreciation on investments
6,840

 
2,609

Net realized gains on investments
13,467

 
595

Total net assets (See Note 15 for discussion of October 1, 2015 NAV)
174,733

 
166,418

Total liabilities and net assets
$
331,871

 
$
301,832

Net asset value per common share (See Note 15 for discussion of October 1, 2015 NAV)
$
16.88

 
$
16.31

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)
 
As a Business Development Company
 
Prior to becoming a Business Development Company
 
As a Business Development Company
 
Prior to becoming a Business Development Company
 
Three Months Ended September 30, 2015
 
Three Months Ended September 30, 2014
 
Nine Months Ended September 30, 2015
 
Nine Months Ended September 30, 2014
Investment income:
 
 
 
 
 
 
 
From non-affiliate investments:
 
 
 
 
 
 
 
Interest income
$
2,153

 
$
—

 
$
6,509

 
$
—

Servicing income
1,262

 
—

 
3,373

 
—

Other income
472

 
—

 
1,331

 
—

Total investment income from non-affiliate investments
3,887

 
—

 
11,213

 
—

From controlled investments:
 
 
 
 
 
 
 
Interest income
58

 
—

 
202

 
—

Dividend income
3,093

 
—

 
5,967

 
—

Other income
—

 
—

 
12

 
—

Total investment income from controlled investments
3,151

 
—

 
6,181

 
—

Total investment income
7,038

 
—

 
17,394

 
—

Operating revenues:
 
 
 
 
 
 
 
Electronic payment processing
—

 
22,777

 
—

 
67,467

Web hosting and design
—

 
3,739

 
—

 
11,840

Premium income
—

 
5,801

 
—

 
15,930

Interest income
—

 
1,689

 
—

 
4,818

Servicing fee income – NSBF portfolio
—

 
915

 
—

 
2,661

Servicing fee income – external portfolios
—

 
1,711

 
—

 
5,248

Income from tax credits
—

 
11

 
—

 
39

Insurance commissions
—

 
471

 
—

 
1,272

Other income
—

 
1,052

 
—

 
3,106

Total operating revenues
—

 
38,166

 
—

 
112,381

Net change in fair value of:
 
 
 
 
 
 
 
SBA loans
—

 
(493
)
 
—

 
(1,640
)
Credits in lieu of cash and notes payable in credits in lieu of cash
—

 
(2
)
 
—

 
(2
)
Total net change in fair value
—

 
(495
)
 
—

 
(1,642
)
Expenses:
 
 
 
 
 
 
 
Electronic payment processing costs
—

 
19,147

 
—

 
57,084

Salaries and benefits
3,444

 
6,481

 
9,600

 
19,782

Interest
1,864

 
1,330

 
4,948

 
6,555

Depreciation and amortization
87

 
917

 
257

 
2,668

Provision for loan losses
—

 
14

 
—

 
(52
)
Other general and administrative costs
3,134

 
5,259

 
8,851

 
15,674

Total expenses
8,529

 
33,148

 
23,656

 
101,711

Net investment loss
(1,491
)
 
—

 
(6,262
)
 
—


2
Table of Contents

 
As a Business Development Company
 
Prior to becoming a Business Development Company
 
As a Business Development Company
 
Prior to becoming a Business Development Company
 
Three Months Ended September 30, 2015
 
Three Months Ended September 30, 2014
 
Nine Months Ended September 30, 2015
 
Nine Months Ended September 30, 2014
Net realized and unrealized gains (losses):
 
 
 
 
 
 
 
Net realized gain on non-affiliate investments
6,620

 
—

 
21,659

 
—

Net unrealized depreciation on SBA guaranteed non-affiliate investments
(48
)
 
—

 
(3,210
)
 
—

Net unrealized depreciation on SBA unguaranteed non-affiliate investments
(531
)
 
—

 
(1,667
)
 
—

Net unrealized appreciation on controlled investments
770

 
—

 
10,289

 
—

Net unrealized depreciation on servicing assets
(565
)
 
—

 
(1,177
)
 
—

Net unrealized depreciation on credits in lieu of cash and notes payable in credits in lieu of cash
(6
)
 
—

 
(4
)
 
—

Net realized and unrealized gains
6,240

 
—

 
25,890

 
—

Income before income taxes
—

 
4,523

 
—

 
9,028

Net increase in net assets
$
4,749

 
$
—

 
$
19,628

 
$
—

Provision for income taxes
—

 
1,934

 
—

 
3,694

Net income
—

 
2,589

 
—

 
5,334

Net loss attributable to non-controlling interests
—

 
55

 
—

 
95

Net income attributable to Newtek Business Services Corp.
$
—

 
$
2,644

 
$
—

 
$
5,429

Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
—

 
7,463

 
—

 
7,220

Diluted
—

 
7,699

 
—

 
7,688

Basic income per share
$
—

 
$
0.35

 
$
—

 
$
0.75

Diluted income per share
$
—

 
$
0.34

 
$
—

 
$
0.71

Net increase in net assets per share
$
0.46

 
$
—

 
$
1.92

 
$
—

Net investment loss per share
$
(0.14
)
 
$
—

 
$
(0.61
)
 
$
—

Dividends and distributions declared per common share
$
—

 
$
—

 
$
0.86

 
$
—

Weighted average shares outstanding
10,318

 
—

 
10,244

 
—

See accompanying notes to unaudited condensed consolidated financial statements.

3
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
(In Thousands)

 
Nine Months Ended September 30, 2015
Increase in net assets:
 
Net investment loss
$
(6,262
)
Net realized gain on investments
21,659

Net change in unrealized appreciation on investments
5,412

Net change in unrealized depreciation on servicing assets
(1,177
)
Net change in unrealized depreciation on credits in lieu of cash and notes payable in credits in lieu of cash
(4
)
Net increase in net assets
19,628

Distributions to stockholders:
 
Distributions to stockholders from net realized gains
(8,787
)
Total distributions to stockholders
(8,787
)
Capital share transactions:
 
Issuance of common stock under dividend reinvestment plan
87

Issuance of common stock in connection with acquisition of Premier Payments LLC
2,472

Issuance of common stock in connection with legal settlement
215

Net increase in net assets from capital share transactions
2,774

Other transactions:
 
Consolidation of Texas Whitestone Group, LLC and CCC Real Estate Holdings Co., LLC (1)
(33
)
Adjustment to 2014 offering costs
17

Reversal of deferred tax asset
(2,870
)
Distribution to members of Exponential of New York, LLC
(2,414
)
Net decrease in net assets from other transactions
(5,300
)
Total increase in net assets
8,315

Net assets at beginning of period
166,418

Net assets at end of period
$
174,733

Common shares outstanding at end of period
10,353

Capital share activity:
 
Shares issued under dividend reinvestment plan
5

Shares issued in connection with acquisition of Premier Payments LLC
131

Shares issued in connection with legal settlement
11

Net increase in capital activity
147


(1) During the quarter ended June 30, 2015 it was determined that Texas Whitestone Group, LLC and CCC Real Estate Holdings Co., LLC are controlled holding companies.
See accompanying notes to unaudited condensed consolidated financial statements.

4
Table of Contents


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
 
As a Business Development Company
 
Prior to becoming a Business Development Company
 
Nine Months Ended September 30, 2015
 
Nine Months Ended September 30, 2014
Cash flows from operating activities:
 
 
 
Net increase in net assets/net income
$
19,628

 
$
5,334

Adjustments to reconcile net increase in net assets/net income to net cash (used in) provided by operating activities:
 
 
 
Net unrealized appreciation on controlled investments
(10,289
)
 
—

Net unrealized depreciation on non-affiliate investments
4,877

 
—

Net unrealized depreciation on servicing assets
1,177

 
—

Realized gains on non-affiliate investments
(22,287
)
 
—

Realized losses on non-affiliate investments
628

 
—

Income from tax credits
(25
)
 
(39
)
Amortization of deferred financing costs and debt discount related to debt refinancing
—

 
1,905

Accretion of interest expense
21

 
37

Fair value adjustments on SBA loans
—

 
1,640

Fair value adjustment of credits in lieu of cash and notes payable in credits in lieu of cash
4

 
2

Deferred income taxes
—

 
(880
)
Depreciation and amortization
257

 
2,668

Purchase of loan from SBA
(703
)
 
—

Funding of controlled investments
(14,230
)
 
—

Funding of non-control/non-affiliate investments
(2,200
)
 
—

Originations of SBA guaranteed non-affiliate investments
(128,672
)
 
—

Principal payments received from controlled investments
800

 
—

Principal payments received from non-control/non-affiliate investments
84

 
—

Return of investment from controlled investment
2,965

 
—

Proceeds from sale of SBA guaranteed non-affiliate investments
176,973

 
—

Originations of SBA unguaranteed non-affiliate investments
(39,084
)
 
—

Payments received on SBA non-affiliate investments
14,191

 
—

Loss on sale of other real estate owned
(262
)
 
—

Accretion of discount
167

 
331

Provision for loan losses
—

 
(52
)
Other, net
982

 
1,340

Changes in operating assets and liabilities:
 
 
 
Net decrease in investments in money market funds
2,964

 
—

Originations of SBA loans held for sale
—

 
(103,658
)
Proceeds from sale of SBA loans held for sale
—

 
104,845

Broker receivable
(22,238
)
 
2,880

Due to/from related parties
(2,634
)
 
—

Accounts receivable
34

 
549


5
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
 
As a Business Development Company
 
Prior to becoming a Business Development Company
 
Nine Months Ended September 30, 2015
 
Nine Months Ended September 30, 2014
Prepaid expenses, accrued interest receivable and other assets
5,613

 
3,549

Accounts payable, accrued expenses, other liabilities and deferred revenue
656

 
3,570

Change in restricted cash
(6,797
)
 
(5,027
)
Capitalized servicing assets
(3,589
)
 
(2,660
)
Net cash (used in) provided by operating activities
(20,989
)
 
16,334

Cash flows from investing activities:
 
 
 
Investments in qualified businesses
—

 
(177
)
Purchase of fixed assets and customer accounts
(93
)
 
(1,313
)
SBA loans originated for investment, net
—

 
(33,301
)
Payments received on SBA loans
—

 
9,134

Proceeds from sale of loan held for investment
—

 
500

Net cash used in investing activities
(93
)
 
(25,157
)
Cash flows from financing activities:
 
 
 
Net (repayments)/borrowings on bank lines of credit
(12,007
)
 
4,029

Proceeds from term loan
—

 
10,000

Net borrowings from related party line of credit
18,121

 
—

Proceeds from notes due 2022
8,200

 
—

Payments on bank term note payable
(9,167
)
 
(11,007
)
Dividends paid
(8,787
)
 
—

Payments on senior notes
(13,786
)
 
(8,037
)
Issuance of senior notes, net of issuance costs
32,029

 
—

Change in restricted cash related to securitization
(4,536
)
 
6,439

Exponential of New York, LLC distribution to members
(2,414
)
 
—

Additions to deferred financing costs
(1,274
)
 
(513
)
Other, net
(12
)
 
(194
)
Net cash provided by financing activities
6,367

 
717

Net decrease in cash and cash equivalents
(14,715
)
 
(8,106
)
Cash and cash equivalents—beginning of period
17,813

 
12,508

Cash and cash equivalents—end of period
$
3,098

 
$
4,402

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
$
1,043

 
$
1,113

Increase in additional paid-in capital attributable to deferred tax adjustment on vested stock
$
—

 
$
166

Foreclosed real estate acquired
$
832

 
$
136

Reversal of deferred tax asset
$
2,870

 
$
—

Issuance of common shares in connection with acquisition of Premier Payments LLC
$
2,472

 
$
—

Issuance of common shares in connection with legal settlement
$
215

 
$
—


6
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
 
As a Business Development Company
 
Prior to becoming a Business Development Company
 
Nine Months Ended September 30, 2015
 
Nine Months Ended September 30, 2014
Issuance of common shares under dividend reinvestment plan
$
87

 
$
—

See accompanying notes to unaudited condensed consolidated financial statements.

7
Table of Contents



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recycling Consultants, Inc. and Prairie State Salvage and Recycling In
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2027

 
$
767.5

 
$
767.5

 
$
660.0

 
0.38
%
R.H. Hummer Jr., Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
375.0

 
375.0

 
347.0

 
0.20
%
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

 
143.0

 
142.2

 
0.08
%
Naeem Khan LTD
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
125.0

 
125.0

 
99.6

 
0.06
%
Accent Homes Services LLC dba Benjamin Franklin Plumbing of Kansas Cit
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/30/2028

 
66.5

 
66.5

 
62.2

 
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

 
31.2

 
24.8

 
0.01
%
Binky's Vapes LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
22.5

 
22.5

 
17.9

 
0.01
%
SCJEN Management Inc dba Bowl of Heaven
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
60.0

 
17.8

 
14.1

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

 
234.8

 
234.8

 
230.7

 
0.13
%
The Grasso Companies LLC and Grasso Pavement Maintenance LLC Veranda L
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/28/2025

 
518.8

 
518.8

 
501.5

 
0.29
%
RIM Investments LLC and RIM Architects LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040

 
399.0

 
399.0

 
374.8

 
0.21
%
Greensward of Marco Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040

 
87.5

 
87.5

 
82.7

 
0.05
%
Yachting Solutions LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
962.5

 
962.5

 
885.4

 
0.51
%
Sandlot Ventures LLC and Sandbox Ventures LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
442.5

 
442.5

 
408.1

 
0.23
%
Hemingway Custom Cabinetry LLC
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025

 
220.0

 
220.0

 
180.3

 
0.10
%
South Towne Dental Center, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025

 
50.0

 
50.0

 
49.4

 
0.03
%
Daniel W. Stark dba Mountain Valley Lodge and RV Park
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
13.5

 
13.5

 
13.6

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

 
9.8

 
9.8

 
8.7

 
—
%

8
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
St Lawrence Hotel Corp and Oheka Catering Inc dba Quality Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/24/2040

 
625.0

 
625.0

 
597.2

 
0.34
%
Hagerstown Muffler, Inc. and JMS Muffler, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/24/2040

 
327.5

 
327.5

 
328.7

 
0.19
%
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

 
21.0

 
20.8

 
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

 
152.5

 
121.5

 
0.07
%
Stormrider Inc dba Shirley's Stormrider Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025

 
67.5

 
67.5

 
53.8

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

 
62.5

 
62.5

 
59.7

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

 
50.0

 
50.0

 
39.8

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

 
320.0

 
320.0

 
306.2

 
0.18
%
Pine Belt Wood Products LLC
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
9/22/2040

 
163.8

 
163.8

 
141.6

 
0.08
%
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

 
15.8

 
13.4

 
0.01
%
IIoka Inc dba New Cloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025

 
665.0

 
665.0

 
529.9

 
0.30
%
Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025

 
50.0

 
50.0

 
42.6

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

 
15.8

 
15.8

 
12.6

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

 
687.5

 
687.5

 
683.6

 
0.39
%
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

 
134.0

 
128.2

 
0.07
%
Vanderhoof LLC dba Soxfords
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/18/2025

 
15.9

 
15.9

 
12.7

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

 
8.3

 
8.3

 
6.6

 
—
%
FirstVitals Health and Wellness Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/17/2025

 
150.0

 
150.0

 
119.5

 
0.07
%
Naeem Khan LTD
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/17/2025

 
125.0

 
125.0

 
99.6

 
0.06
%

9
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(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

 
407.5

 
400.9

 
0.23
%
Johnson Carwash LLC and Johnson Petroleum LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/14/2040

 
340.0

 
340.0

 
339.6

 
0.19
%
Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2025

 
62.5

 
62.5

 
59.7

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

 
50.0

 
50.0

 
41.2

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

 
102.5

 
102.5

 
81.7

 
0.05
%
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

 
140.0

 
140.5

 
0.08
%
Empowerschool LLC and Behavioral Therapy Center of Au
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/4/2040

 
685.0

 
685.0

 
687.4

 
0.39
%
AIG Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/4/2040

 
363.8

 
363.8

 
329.4

 
0.19
%
Higher Grounds Community Coffeehouse, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/2/2025

 
8.3

 
8.3

 
6.9

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

 
1,250.0

 
1,250.0

 
1,102.1

 
0.63
%
Delray Scrap Recycling LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2025

 
22.5

 
22.5

 
17.9

 
0.01
%
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

 
888.9

 
847.4

 
0.48
%
LAN Doctors Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
81.3

 
81.3

 
70.6

 
0.04
%
Trading Group 3 Inc
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
50.0

 
50.0

 
39.8

 
0.02
%
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

 
34.0

 
34.1

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

 
15.0

 
15.0

 
12.0

 
0.01
%
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

 
10.0

 
9.9

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

 
472.5

 
255.1

 
256.0

 
0.15
%
3000 CSI Property LLC and Consulting Solutions Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/20/2040

 
137.5

 
137.5

 
135.0

 
0.08
%

10
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
God Be Glorified Inc dba (*)GBG Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/20/2025

 
53.0

 
53.0

 
42.2

 
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

 
145.0

 
137.5

 
0.08
%
Gold Jet Corp dba The UPS Store
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
8/14/2025

 
68.3

 
68.3

 
59.6

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

 
47.0

 
47.0

 
37.9

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

 
84.8

 
84.8

 
68.7

 
0.04
%
Dosus Inc dba Perry's Pools
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/7/2025

 
112.5

 
112.5

 
91.9

 
0.05
%
Jennifer T Campbell
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/31/2025

 
9.8

 
9.7

 
7.7

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

 
125.0

 
123.2

 
111.0

 
0.06
%
Advanced Machine & Technology, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/29/2025

 
90.3

 
89.7

 
79.4

 
0.05
%
Pauley Tree and Lawn Care Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2025

 
65.8

 
65.3

 
55.9

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

 
135.0

 
134.8

 
119.5

 
0.07
%
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

 
106.8

 
93.2

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

 
66.3

 
65.8

 
55.0

 
0.03
%
Pooh's Corner Realty LLC and Pooh's Corner Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/23/2040

 
103.8

 
103.6

 
102.5

 
0.06
%
Smart Artists Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/23/2025

 
22.5

 
22.4

 
17.8

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

 
8.2

 
8.1

 
6.5

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

 
64.3

 
63.9

 
50.9

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

 
344.5

 
142.9

 
143.4

 
0.08
%
Union 2 LLC dba The Standard
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/10/2025

 
91.5

 
91.5

 
81.1

 
0.05
%

11
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
The Smile Place LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
283.9

 
283.0

 
271.6

 
0.16
%
Anglin Cultured Stone Products LLC dba Anglin Construction
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
281.8

 
278.3

 
234.5

 
0.13
%
Thrifty Market, Inc. dba Thrifty Foods
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2030

 
262.5

 
260.7

 
221.6

 
0.13
%
All About Smiles P A
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
237.7

 
237.0

 
227.4

 
0.13
%
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

 
211.9

 
202.5

 
0.12
%
Jonathan E Nichols and Nichols Fire and Security LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
75.0

 
74.1

 
68.0

 
0.04
%
Home Again Restaurant LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
59.0

 
58.8

 
57.1

 
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

 
53.8

 
47.8

 
0.03
%
Advanced Skincare Medcenter Inc dba Advanced Skincare Surgery
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
337.5

 
333.3

 
271.6

 
0.16
%
Summit Beverage Group LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/29/2030

 
291.9

 
289.9

 
252.8

 
0.14
%
R2 Tape Inc dba Presto Tape
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
176.3

 
174.1

 
160.2

 
0.09
%
North Atlanta RV Rentals LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
144.3

 
142.6

 
113.6

 
0.07
%
Myclean Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
15.9

 
15.7

 
12.5

 
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

 
378.9

 
358.5

 
0.21
%
CEM Autobody LLC dba Dawn's Autobody
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040

 
135.5

 
135.1

 
126.0

 
0.07
%
SofRep, Inc dba Force 12 Media
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025

 
66.3

 
65.4

 
52.1

 
0.03
%
E & G Enterprises LLC dba Comfort Keepers
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025

 
22.5

 
22.2

 
17.8

 
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

 
20.5

 
19.9

 
0.01
%
Ohs Auto Body, Inc. dba Ohs Body Shop
 
Repair and Maintenance
 
Term Loan
 
7.62%
 
6/25/2040

 
1,207.5

 
1,207.5

 
1,124.9

 
0.64
%
Wolf Enviro Interests, LLC and Enviromax Services Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2040

 
246.5

 
245.8

 
217.3

 
0.12
%
Amboy Group, LLC dba Tommy's Moloney's
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025

 
454.0

 
448.4

 
443.0

 
0.25
%

12
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Evinger PA One, Inc. dba Postal Annex, Falcon
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025

 
22.5

 
22.2

 
19.1

 
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

 
600.5

 
482.5

 
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

 
550.1

 
552.0

 
0.32
%
RJI Services, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2025

 
22.5

 
22.1

 
17.6

 
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

 
52.5

 
49.7

 
0.03
%
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

 
15.6

 
15.4

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

 
543.5

 
536.8

 
468.6

 
0.27
%
New Paltz Dental Care, PLLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
100.0

 
98.8

 
91.9

 
0.05
%
PM Cassidy Enterprises, Inc. dba Junk King
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
14.9

 
14.7

 
11.7

 
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

 
60.5

 
48.2

 
0.03
%
Square Deal Siding Company,LLC dba Square Deal Siding Company
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025

 
22.5

 
22.2

 
22.0

 
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

 
432.1

 
412.8

 
0.24
%
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

 
86.8

 
85.2

 
0.05
%
Nelson Sargsyan dba HDA Trucking
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025

 
130.5

 
128.9

 
102.7

 
0.06
%
Mirage Plastering Inc and Mpire LLC and Mpire II LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040

 
338.8

 
337.8

 
278.5

 
0.16
%
Anturio Marketing Inc dba Logic Consulting
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040

 
290.3

 
289.4

 
290.4

 
0.17
%
Bizzare Foods Inc dba Trooper Foods
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/12/2025

 
125.0

 
123.2

 
98.2

 
0.06
%
Eldredge Tavern LLC dba Gonyea's Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/8/2040

 
56.3

 
56.1

 
56.3

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

 
62.0

 
61.2

 
50.3

 
0.03
%

13
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
15.9

 
12.6

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

 
13.8

 
13.5

 
10.8

 
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

 
90.2

 
90.2

 
0.05
%
Medworxs LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/3/2025

 
125.0

 
123.5

 
99.4

 
0.06
%
DTM Parts Supply Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/2/2025

 
62.8

 
62.0

 
49.4

 
0.03
%
XCESSIVE THROTTLE, INC dba Jake's Roadhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2025

 
8.3

 
8.1

 
6.5

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

 
67.3

 
64.0

 
55.8

 
0.03
%
Villela CPA PL
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/27/2025

 
9.0

 
8.8

 
7.4

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

 
174.1

 
173.4

 
168.1

 
0.10
%
Pen Tex Inc dba The UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/20/2025

 
22.0

 
21.6

 
17.2

 
0.01
%
Opes Campitor Corporation dba Frux Documents
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/20/2025

 
16.5

 
16.2

 
13.2

 
0.01
%
Capstone Pediatrics PLLC and Capstone Healthcare Consulting LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/15/2025

 
717.3

 
704.0

 
578.7

 
0.33
%
15 McArdle LLC and No Other Impressions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/15/2040

 
257.1

 
256.0

 
232.7

 
0.13
%
E-Z Box Storage, Inc.
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
5/11/2025

 
89.3

 
87.6

 
86.5

 
0.05
%
Guard Dogs MFS LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/8/2025

 
65.0

 
63.8

 
51.4

 
0.03
%
Homegrown For Good LLC
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/8/2025

 
60.0

 
58.9

 
49.4

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

 
130.0

 
127.6

 
102.0

 
0.06
%
South Park Properties LLC and Midlothian Hardware LLC dba Gril
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/6/2040

 
170.5

 
168.6

 
168.3

 
0.10
%
200 North 8th Street Associates LLC and Enchanted Acres Fa
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/4/2028

 
494.6

 
488.2

 
484.2

 
0.28
%

14
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (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

 
75.8

 
65.8

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

 
81.9

 
79.3

 
79.5

 
0.05
%
Capitol Compliance Associates Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2025

 
15.9

 
15.5

 
12.4

 
0.01
%
RDRhonehouse ENT. LLC dba Chill Skinz
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/29/2025

 
88.9

 
86.7

 
69.0

 
0.04
%
Orchid Enterprises Inc dba Assisting Hands of Sussex County
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/24/2025

 
15.0

 
14.6

 
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

 
21.9

 
18.5

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

 
22.5

 
21.9

 
17.5

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

 
22.5

 
21.9

 
17.5

 
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

 
43.3

 
33.6

 
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

 
19.0

 
14.9

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

 
73.8

 
73.3

 
68.8

 
0.04
%
T and B Boots Inc dba Takkens
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
807.8

 
782.9

 
714.3

 
0.41
%
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

 
754.9

 
671.0

 
0.38
%
Mid-South Lumber Co. of Northwest Florida, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040

 
428.8

 
425.6

 
375.3

 
0.21
%
HAVANA CENTRAL NJ1, LLC dba Havana Central
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
250.0

 
250.0

 
238.9

 
0.14
%
Jatcoia 60056, LLC dba Style Encore
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
22.3

 
21.4

 
19.3

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

 
125.0

 
121.1

 
105.4

 
0.06
%
Delta Aggrigate LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025

 
90.0

 
90.0

 
88.7

 
0.05
%

15
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (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

 
1,199.7

 
929.8

 
0.53
%
Shellhorn and Hill Inc dba Total Fleet Service
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
1,040.3

 
1,032.6

 
910.6

 
0.52
%
Sunset Marine Resort LLC and GoXpeditions LLC and Lavon Gomes and Trac
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
301.8

 
299.5

 
299.7

 
0.17
%
South Florida Air Conditioning and Refrigeration Corp.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
155.5

 
154.4

 
150.8

 
0.09
%
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

 
119.4

 
117.7

 
0.07
%
Shorr Enterprises Inc dba New Design Furniture Manufacturers
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
106.5

 
103.2

 
90.6

 
0.05
%
Geo Los Angeles LLC dba Geo Film Group
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2025

 
130.0

 
126.0

 
110.8

 
0.06
%
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

 
53.6

 
52.5

 
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

 
804.1

 
793.7

 
0.45
%
Zero-In Media Inc
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2025

 
22.5

 
21.8

 
17.1

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

 
12.0

 
11.6

 
9.1

 
0.01
%
CML RW Security, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
3/20/2025

 
575.0

 
557.1

 
436.9

 
0.25
%
Shelton Incorporated dba Mrs. Winners
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040

 
112.5

 
111.7

 
110.6

 
0.06
%
Jaymie Hazard dba Indigo Hair Studio and Day Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040

 
42.9

 
42.6

 
39.7

 
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

 
84.8

 
84.9

 
0.05
%
MMS Realty, LLC and Molecular MS Diagnostics LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2040

 
160.7

 
159.5

 
147.2

 
0.08
%
Gurtej Singh and Ranjit Kaur dba Food Fair Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/18/2025

 
22.5

 
21.8

 
17.1

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

 
172.5

 
171.2

 
165.1

 
0.09
%
Royal Crest Motors LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040

 
91.3

 
90.6

 
85.3

 
0.05
%

16
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (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

 
78.7

 
66.9

 
0.04
%
Summit Treatment Services Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/11/2025

 
22.5

 
21.8

 
18.0

 
0.01
%
Douglas Printy Motorsports, Inc. dba Blackburn Trike
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/9/2040

 
191.8

 
190.4

 
175.7

 
0.10
%
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

 
10.9

 
10.7

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

 
952.8

 
916.4

 
763.0

 
0.44
%
J&M Concessions Inc dba A 1 Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
87.5

 
83.5

 
71.4

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

 
63.4

 
60.9

 
48.4

 
0.03
%
Road to Sedona Inc dba Thirteen
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
56.6

 
54.5

 
43.2

 
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

 
1,239.0

 
1,239.8

 
0.71
%
Pace Motor Lines, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/26/2025

 
66.2

 
63.8

 
62.3

 
0.04
%
Nelson Financial Services LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/24/2025

 
12.5

 
12.0

 
9.4

 
0.01
%
Kiddie Steps 4 You Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
2/19/2040

 
61.8

 
61.4

 
56.2

 
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

 
71.5

 
61.7

 
0.04
%
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

 
170.0

 
156.0

 
0.09
%
740 Barry Street Realty LLC and Wild Edibles Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/10/2040

 
492.5

 
488.1

 
488.4

 
0.28
%
Kostekos Inc dba New York Style Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/6/2040

 
66.3

 
65.7

 
61.6

 
0.04
%
DuCharme Realty LLC and DuCharme Enterprises LLC dba Specialty
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/2/2040

 
225.1

 
223.1

 
201.5

 
0.12
%
Dean 1021 LLC dba Pure Pita
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/29/2025

 
80.0

 
79.0

 
63.5

 
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

 
79.6

 
65.0

 
0.04
%
Palmabak Inc dba Mami Nora's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/22/2025

 
21.5

 
20.3

 
19.8

 
0.01
%

17
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (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

 
7.8

 
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

 
131.6

 
129.1

 
0.07
%
First Prevention and Dialysis Center LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
273.3

 
273.2

 
248.3

 
0.14
%
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

 
244.0

 
218.3

 
0.12
%
Evans and Paul LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
223.8

 
212.5

 
198.0

 
0.11
%
Bear Creek Entertainment, LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
106.3

 
100.9

 
99.4

 
0.06
%
Bowlerama Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2039

 
1,202.5

 
1,190.0

 
1,188.8

 
0.68
%
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

 
524.0

 
463.8

 
0.27
%
Thermoplastic Services Inc and Paragon Plastic Sheet, Inc
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
500.0

 
494.1

 
494.3

 
0.28
%
401 JJS Corporation and G. Randazzo Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
473.5

 
472.1

 
456.5

 
0.26
%
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

 
235.2

 
235.3

 
0.13
%
Carolina Flicks Inc dba The Howell Theater
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
12/23/2032

 
163.3

 
159.8

 
146.3

 
0.08
%
Beale Street Blues Company-West Palm Beach, LLC dba Lafayette Music Ha
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2024

 
187.5

 
178.1

 
149.7

 
0.09
%
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

 
1,189.7

 
945.9

 
0.54
%
B.S. Ventures LLC dba Dink's Market
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/19/2039

 
53.8

 
53.1

 
52.8

 
0.03
%
Will Zac Management LLC dba Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/19/2024

 
48.8

 
46.4

 
45.7

 
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

 
44.8

 
36.2

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

 
164.5

 
162.6

 
148.7

 
0.09
%

18
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
379.8

 
322.2

 
0.18
%
The Conibear Corporation and Conibear Trucking, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2024

 
12.0

 
11.8

 
10.2

 
0.01
%
Kemmer LLC and Apples Tree Top Liquors LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/4/2039

 
138.4

 
136.7

 
122.8

 
0.07
%
Homegrown For Good LLC
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/26/2024

 
230.0

 
219.9

 
192.6

 
0.11
%
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

 
51.9

 
43.5

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

 
22.5

 
21.2

 
16.7

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

 
228.0

 
225.9

 
226.1

 
0.13
%
Modern Manhattan LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
220.0

 
207.5

 
165.9

 
0.09
%
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

 
146.8

 
136.2

 
0.08
%
Stormrider Inc dba Shirley's Stormrider, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
150.0

 
141.5

 
111.0

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

 
13.2

 
12.5

 
11.9

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

 
767.9

 
721.9

 
582.4

 
0.33
%
Legacy Estate Planning Inc dba American Casket Enterprises
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024

 
42.0

 
39.6

 
31.1

 
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

 
118.3

 
114.2

 
0.07
%
MLM Enterprises LLC and Demand Printing Solutions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/18/2024

 
70.5

 
66.5

 
59.7

 
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

 
203.0

 
188.6

 
0.11
%
Joey O's LLC and Jennifer Olszewski
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/7/2024

 
13.1

 
8.4

 
6.6

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

 
15.0

 
14.1

 
10.9

 
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

 
471.9

 
452.6

 
0.26
%

19
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
M and C Renovations Inc
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/31/2024

 
20.3

 
19.0

 
14.8

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

 
156.7

 
154.6

 
150.6

 
0.09
%
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

 
67.1

 
64.0

 
0.04
%
Seelan Inc dba Candleridge Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/27/2039

 
90.5

 
89.2

 
82.6

 
0.05
%
185 Summerfield Inc and Valcon Contracting Corp
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/24/2039

 
162.3

 
159.8

 
154.9

 
0.09
%
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

 
87.8

 
79.0

 
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

 
123.0

 
103.9

 
0.06
%
One Hour Jewelry Repair Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/14/2024

 
20.6

 
19.3

 
15.1

 
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

 
1,237.3

 
1,237.9

 
0.71
%
Capitol Waste and Recycling Services LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
10/10/2024

 
257.8

 
241.5

 
206.7

 
0.12
%
Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/10/2024

 
187.5

 
176.0

 
147.0

 
0.08
%
DNT Storage and Properties LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
10/10/2039

 
101.8

 
100.2

 
97.8

 
0.06
%
Boilermaker Industries LLC dba PostNet
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/9/2024

 
18.8

 
17.8

 
15.9

 
0.01
%
Doctors Express Management of Central Texas LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2024

 
105.0

 
87.0

 
80.5

 
0.05
%
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

 
59.1

 
56.3

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

 
126.9

 
124.3

 
120.1

 
0.07
%
Sumad LLC dba BrightStar Care of Encinitas
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/2/2024

 
92.5

 
87.2

 
85.9

 
0.05
%
Route 130 SCPI Holdings LLC (EPC) Route 130 SCPI Operations LLC (OC) d
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2039

 
538.8

 
538.8

 
490.9

 
0.28
%
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

 
251.6

 
230.6

 
0.13
%
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

 
98.4

 
97.2

 
0.06
%

20
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
The Woods at Bear Creek LLC and Bear Creek Entertainment LLC dba The
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2039

 
513.3

 
505.6

 
504.2

 
0.29
%
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

 
320.8

 
320.9

 
0.18
%
Keys Phase One LLC dba The Grand Guesthouse
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
736.3

 
724.2

 
699.3

 
0.40
%
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

 
591.9

 
568.4

 
0.33
%
Gordon E Rogers dba Stonehouse Motor Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
57.5

 
56.6

 
56.6

 
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

 
20.9

 
17.3

 
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

 
445.1

 
386.9

 
0.22
%
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

 
156.6

 
150.8

 
0.09
%
R A Johnson Inc dba Rick Johnson Auto and Tire
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/23/2039

 
301.3

 
296.3

 
296.4

 
0.17
%
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

 
35.1

 
27.6

 
0.02
%
Utek Corporation dba Arcade Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/22/2039

 
405.5

 
402.1

 
397.7

 
0.23
%
Play and Stay LLC dba Zoom Room Tinton Falls
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/18/2024

 
42.1

 
39.7

 
31.1

 
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

 
143.1

 
143.2

 
0.08
%
Modern Leather Goods Repair Shop Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2024

 
58.8

 
54.2

 
42.5

 
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

 
420.8

 
403.3

 
0.23
%
Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/15/2024

 
272.5

 
253.6

 
215.4

 
0.12
%
RDT Enterprises LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
162.8

 
154.9

 
146.6

 
0.08
%
KW Zion, LLC and Key West Gallery Inc
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/12/2039

 
1,250.0

 
1,229.4

 
1,186.1

 
0.68
%
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

 
586.3

 
463.3

 
0.27
%
B&P Diners LLC dba Engine House Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/10/2024

 
80.0

 
74.4

 
58.3

 
0.03
%

21
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
48.3

 
39.3

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

 
911.3

 
885.0

 
885.2

 
0.51
%
Lamjam LLC (EPC) Goldsmith Lambros Inc (OC)
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024

 
133.8

 
123.7

 
121.8

 
0.07
%
Orange County Cleaning Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024

 
41.3

 
38.1

 
29.9

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

 
121.0

 
111.9

 
97.4

 
0.06
%
Atlas Auto Body Inc dba Atlas Auto Sales
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/22/2039

 
51.6

 
50.6

 
47.1

 
0.03
%
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

 
1,204.0

 
1,146.7

 
0.66
%
S&P Holdings of Daytona LLC (EPC) S&P Corporation of Daytona Beach db
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
433.5

 
424.4

 
424.5

 
0.24
%
Barber Investments LLC and Fieldstone Quickstop LLC and Maine Dollar D
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
150.0

 
147.7

 
125.9

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

 
145.2

 
143.2

 
143.3

 
0.08
%
Katie Senior Care LLC dba Home Instead Senior Care
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2024

 
124.3

 
114.8

 
89.9

 
0.05
%
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

 
188.4

 
186.2

 
186.2

 
0.11
%
Almost Home Property LLC and Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/7/2039

 
715.8

 
704.0

 
689.6

 
0.39
%
iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
379.1

 
361.2

 
312.9

 
0.18
%
AGV Enterprises LLC dba Jet's Pizza #42
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
54.8

 
50.3

 
40.8

 
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

 
22.1

 
22.1

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

 
22.5

 
20.6

 
16.5

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

 
150.0

 
147.3

 
146.0

 
0.08
%
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

 
98.7

 
94.1

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

 
150.1

 
143.0

 
123.9

 
0.07
%

22
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Honeyspot Investors LLP and Pace Motor Lines Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
875.3

 
859.5

 
851.5

 
0.49
%
iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
629.8

 
616.6

 
541.9

 
0.31
%
Wired LLC and Moulison North Corporation
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
500.0

 
473.1

 
410.1

 
0.23
%
AMG Holding, LLC and Stetson Automotive, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
208.0

 
203.7

 
203.7

 
0.12
%
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

 
91.2

 
88.2

 
0.05
%
Highway Striping Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
53.1

 
48.4

 
40.6

 
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

 
315.1

 
300.0

 
0.17
%
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

 
133.5

 
129.0

 
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

 
100.6

 
89.9

 
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

 
466.2

 
446.8

 
0.26
%
RDJ Maayaa Inc dba RDJ Distributors
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/23/2024

 
8.7

 
7.8

 
6.3

 
—
%
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

 
228.5

 
217.6

 
0.12
%
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

 
302.9

 
289.6

 
0.17
%
Nirvi Enterprises LLC dba Howard Johnson / Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/17/2039

 
920.3

 
900.9

 
900.9

 
0.52
%
Hotels of North Georgia LLC dba Comfort Inn and Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/17/2039

 
837.5

 
819.9

 
817.2

 
0.47
%
Global Educational Delivery Services LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/16/2024

 
60.0

 
55.1

 
54.3

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

 
122.5

 
111.6

 
94.5

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

 
68.3

 
66.0

 
66.0

 
0.04
%

23
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
95.9

 
95.9

 
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

 
20.5

 
17.0

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

 
55.5

 
54.3

 
50.9

 
0.03
%
CJR LLC (EPC) and PowerWash Plus, Inc. (OC)
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024

 
53.0

 
47.9

 
44.2

 
0.03
%
Pocono Coated Products, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024

 
22.5

 
20.3

 
18.9

 
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

 
922.8

 
922.8

 
0.53
%
Wilton Dental Care P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024

 
128.1

 
118.1

 
94.4

 
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

 
17.4

 
14.5

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

 
60.0

 
54.2

 
42.9

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

 
144.6

 
141.4

 
139.5

 
0.08
%
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

 
132.2

 
132.2

 
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

 
162.0

 
149.2

 
0.09
%
Moochie's LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/13/2024

 
100.5

 
92.0

 
74.5

 
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

 
88.2

 
83.8

 
0.05
%
AS Boyals LLC dba Towne Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/29/2039

 
117.5

 
114.7

 
114.7

 
0.07
%
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

 
448.7

 
353.0

 
0.20
%
Gerami Realty, LC (EPC) Sherrill Universal City Corral, LP dba Golden
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/23/2027

 
78.8

 
73.1

 
70.9

 
0.04
%
Complete Body & Paint, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/23/2039

 
20.8

 
20.3

 
20.3

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

 
103.8

 
101.4

 
101.4

 
0.06
%
Aiello's Pizzeria LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/18/2024

 
42.8

 
37.4

 
31.2

 
0.02
%

24
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Wilshire Media Systems Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/17/2024

 
186.3

 
167.2

 
136.7

 
0.08
%
R2 Tape Inc dba Presto Tape
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/10/2024

 
78.8

 
70.7

 
70.3

 
0.04
%
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

 
133.2

 
132.1

 
0.08
%
Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/31/2024

 
1,250.0

 
668.1

 
662.9

 
0.38
%
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

 
437.5

 
432.7

 
0.25
%
Dantanna's Tavern LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
164.3

 
148.1

 
133.2

 
0.08
%
RDT Enterprises, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028

 
141.2

 
132.3

 
132.3

 
0.08
%
Kemmer, LLC (EPC) and Pitts Package Store, Inc.(OC)
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
117.5

 
114.7

 
104.9

 
0.06
%
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

 
99.6

 
94.3

 
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

 
90.3

 
85.5

 
0.05
%
Wilban LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/28/2039

 
427.5

 
418.0

 
411.0

 
0.24
%
Lake Area Autosound LLC and Ryan H. Whittington
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2039

 
125.0

 
123.5

 
119.6

 
0.07
%
TC Business Enterprises LLC dba Sky Zone Indoor Trampoline Park
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/27/2024

 
290.1

 
263.4

 
231.6

 
0.13
%
Sapienzo Properties LLC (EPC) CNS Self-Storage Inc (OC)
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/27/2039

 
193.8

 
187.9

 
190.1

 
0.11
%
Hascher Gabelstapler Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/26/2024

 
143.3

 
127.5

 
120.1

 
0.07
%
Knowledge First Inc dba Magic Years of Learning and Kimberly Knox
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/21/2039

 
145.0

 
141.5

 
135.7

 
0.08
%
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

 
484.6

 
490.2

 
0.28
%
Cormac Enterprises and Wyoming Valley Beverage Incorporated
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039

 
110.8

 
108.1

 
109.3

 
0.06
%
Kinisi, Inc. dba The River North UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2024

 
41.3

 
34.0

 
31.7

 
0.02
%
Tortilla King, Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2029

 
1,033.1

 
987.2

 
915.8

 
0.52
%

25
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
398.7

 
401.8

 
0.23
%
Tortilla King Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2039

 
216.9

 
212.2

 
200.7

 
0.11
%
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

 
217.8

 
220.3

 
0.13
%
Avayaan2 LLC dba Island Cove
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/7/2039

 
157.5

 
153.5

 
150.8

 
0.09
%
Onofrio's Fresh Cut Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/6/2024

 
75.0

 
66.9

 
64.1

 
0.04
%
J&M Concessions, Inc.dba A-1 Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/3/2039

 
135.6

 
132.1

 
124.9

 
0.07
%
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

 
406.3

 
394.3

 
0.23
%
Summit Beverage Group LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024

 
350.6

 
310.0

 
289.3

 
0.17
%
Faith Memorial Chapel LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039

 
214.2

 
209.0

 
200.4

 
0.11
%
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

 
205.3

 
197.3

 
0.11
%
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

 
140.8

 
138.2

 
0.08
%
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

 
137.6

 
139.2

 
0.08
%
JWB Industries, Inc. dba Carteret Die Casting
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/11/2024

 
280.0

 
247.5

 
219.2

 
0.13
%
Sovereign Communications LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/7/2024

 
907.8

 
802.5

 
699.2

 
0.40
%
986 Dixwell Avenue Holding Company, LLC(EPC) and Mughali Foods, LLC db
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/7/2039

 
99.1

 
96.8

 
95.0

 
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

 
74.5

 
66.4

 
0.04
%
Robert Star Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/5/2024

 
46.8

 
41.4

 
41.1

 
0.02
%
Atlas Mountain Construction LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
1/28/2024

 
16.5

 
14.5

 
14.4

 
0.01
%
Sarah Sibadan dba Sibadan Agency
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/27/2039

 
129.4

 
125.6

 
125.3

 
0.07
%

26
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
3Fmanagement LLC and ATC Fitness Cape Coral, LLC dba Around the Cloc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
1/24/2024

 
425.0

 
372.9

 
334.5

 
0.19
%
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

 
123.0

 
111.9

 
0.06
%
Icore Enterprises Inc dba Air Flow Filters Inc
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/15/2024

 
21.8

 
19.1

 
19.0

 
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

 
883.1

 
846.7

 
0.48
%
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

 
665.2

 
662.1

 
0.38
%
S.Drake LLC dba Express Employment Professionals of Ann Arbor, Michiga
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/31/2023

 
18.8

 
15.1

 
13.1

 
0.01
%
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

 
579.5

 
575.6

 
0.33
%
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

 
312.7

 
298.1

 
0.17
%
Superior Disposal Service, Inc.
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
12/26/2023

 
240.5

 
209.4

 
200.7

 
0.11
%
KK International Trading Corporation
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/23/2028

 
190.0

 
176.2

 
169.7

 
0.10
%
Mosley Auto Group LLC dba America's Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038

 
221.5

 
214.8

 
214.0

 
0.12
%
Kurtis Sniezek dba Wolfe's Foreign Auto
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038

 
88.9

 
86.2

 
87.1

 
0.05
%
PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc., T
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/19/2038

 
555.3

 
538.3

 
520.0

 
0.30
%
Lefont Theaters Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/19/2023

 
14.4

 
12.5

 
11.5

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

 
405.0

 
392.7

 
381.3

 
0.22
%
Any Garment Cleaner-East Brunswick, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2023

 
53.8

 
46.8

 
44.8

 
0.03
%
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

 
16.3

 
14.8

 
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

 
188.9

 
188.7

 
0.11
%

27
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
405.4

 
410.0

 
0.23
%
DKB Transport Corp
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2038

 
138.8

 
134.5

 
136.1

 
0.08
%
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

 
475.0

 
436.7

 
0.25
%
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

 
101.1

 
94.1

 
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

 
337.1

 
309.8

 
0.18
%
BVIP Limousine Service LTD
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/27/2038

 
76.5

 
74.0

 
72.9

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

 
67.2

 
58.1

 
51.1

 
0.03
%
TNDV: Television LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
11/26/2038

 
253.8

 
245.6

 
239.3

 
0.14
%
Veterinary Imaging Specialists of Alaska, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/26/2023

 
162.6

 
144.9

 
139.9

 
0.08
%
Wallace Holdings LLC (EPC) GFA International Inc (OC)
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.5%
 
11/25/2023

 
125.0

 
107.8

 
93.7

 
0.05
%
AcuCall LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2023

 
15.8

 
13.6

 
11.7

 
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

 
1,210.1

 
1,114.9

 
0.64
%
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

 
39.6

 
34.8

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

 
396.7

 
379.9

 
380.9

 
0.22
%
Yousef Khatib dba Y&M Enterprises
 
Wholesale Electronic Markets and Agents and Brokers
 
Term Loan
 
Prime plus 2.75%
 
11/15/2023

 
75.0

 
64.8

 
57.1

 
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

 
7.2

 
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

 
60.8

 
61.2

 
0.04
%
Twinsburg Hospitality Group LLC dba Comfort Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
945.0

 
915.0

 
883.0

 
0.51
%

28
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Master CNC Inc & Master Properties LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
596.6

 
576.5

 
542.9

 
0.31
%
1 North Restaurant Corp dba 1 North Steakhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
212.5

 
205.3

 
204.2

 
0.12
%
Mid-Land Sheet Metal Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
137.5

 
133.1

 
131.5

 
0.08
%
Janice B. McShan and The Metropolitan Day School, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/31/2023

 
42.8

 
37.8

 
37.1

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

 
664.5

 
640.8

 
645.9

 
0.37
%
New Image Building Services Inc. dba New Image Repair Services; The Ma
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/29/2023

 
331.3

 
283.8

 
254.0

 
0.15
%
A-1 Quality Services Corporation
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/29/2023

 
8.9

 
7.6

 
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

 
238.0

 
227.3

 
0.13
%
TC Business Enterprises LLC dba Sky Zone Indoor Trampoline Park
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/24/2023

 
240.1

 
187.6

 
184.8

 
0.11
%
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

 
75.0

 
67.1

 
0.04
%
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

 
22.1

 
20.8

 
0.01
%
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

 
867.8

 
861.6

 
0.49
%
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

 
667.1

 
628.1

 
0.36
%
Cencon Properties LLC and Central Connecticut Warehousing Company, In
 
Warehousing and Storage
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
344.5

 
332.7

 
334.4

 
0.19
%
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

 
312.9

 
306.9

 
0.18
%
Onofrios Enterprises LLC (EPC) Onofrios Fresh Cut, Inc
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
312.5

 
303.1

 
298.7

 
0.17
%
Discount Wheel and Tire
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
223.8

 
215.7

 
208.6

 
0.12
%
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

 
116.2

 
117.5

 
0.07
%
First Steps Real Estate Company, LLC (EPC) and First Steps Preschool -
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
97.6

 
94.1

 
89.5

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

 
757.6

 
730.5

 
704.6

 
0.40
%

29
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038

 
335.1

 
323.1

 
316.0

 
0.18
%
Handy 6391 LLC dba The UPS Store #6391
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2023

 
62.5

 
54.7

 
54.4

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

 
463.8

 
447.1

 
452.1

 
0.26
%
HJ & Edward Enterprises,LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2023

 
262.5

 
230.4

 
217.4

 
0.12
%
Anthony C Dinoto and Susan S P Dinoto and Anthony C Dinoto Funeral Ho
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
100.0

 
96.5

 
97.6

 
0.06
%
Southeast Chicago Soccer, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
51.3

 
49.5

 
50.0

 
0.03
%
Kiddie Steps 4 You Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/25/2038

 
89.3

 
87.1

 
83.1

 
0.05
%
Diamond Memorials Incorporated
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2023

 
14.3

 
11.7

 
10.0

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

 
268.4

 
259.5

 
253.7

 
0.15
%
Serious-Fun in Alpharetta, LLC dba The Little Gym of Alpharetta
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2023

 
46.3

 
39.5

 
34.9

 
0.02
%
Westville Seafood LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2038

 
112.3

 
108.3

 
104.8

 
0.06
%
Maynard Enterprises Inc dba Fastsigns of Texarkana
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/18/2023

 
16.1

 
13.8

 
12.3

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

 
156.3

 
135.0

 
120.5

 
0.07
%
The Berlerro Group, LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/12/2023

 
421.3

 
369.6

 
327.4

 
0.19
%
Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/12/2028

 
54.8

 
50.2

 
47.0

 
0.03
%
Prospect Kids Academy Inc
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038

 
124.3

 
119.8

 
118.1

 
0.07
%
Alma J. and William R. Walton (EPC) and Almas Child Day Care Center, I
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038

 
39.5

 
38.1

 
38.5

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

 
53.4

 
46.0

 
39.7

 
0.02
%
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

 
214.9

 
207.6

 
0.12
%

30
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
IlOKA Inc dba Microtech Tel and NewCloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
687.5

 
579.8

 
524.6

 
0.30
%
ACI Northwest Inc.
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
906.3

 
577.3

 
550.0

 
0.31
%
Spectrum Radio Fairmont, LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
187.5

 
167.3

 
164.7

 
0.09
%
Excel RP Inc
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
130.3

 
109.9

 
106.3

 
0.06
%
Gulfport Academy Child Care and Learning Center, Inc. and Jennifer Sis
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
43.3

 
36.5

 
35.1

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

 
187.5

 
158.2

 
135.4

 
0.08
%
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

 
68.6

 
68.1

 
0.04
%
JSIL LLC dba Blackstones Hairdressing
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/16/2023

 
19.5

 
16.5

 
14.7

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

 
65.0

 
46.2

 
45.9

 
0.03
%
Caribbean Concepts, Inc. dba Quick Bleach
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/12/2023

 
22.5

 
19.1

 
16.8

 
0.01
%
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

 
80.6

 
78.9

 
0.05
%
Majestic Contracting Services, Inc. dba Majestic Electric and Majestic
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/26/2038

 
190.0

 
182.6

 
175.5

 
0.10
%
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

 
9.4

 
9.3

 
0.01
%
Angkor Restaurant Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/19/2038

 
93.0

 
89.4

 
89.0

 
0.05
%
Tri County Heating and Cooling Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2023

 
87.8

 
73.4

 
71.1

 
0.04
%
Harbor Ventilation Inc and Estes Investment, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2038

 
92.1

 
33.0

 
33.4

 
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

 
45.0

 
38.5

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

 
153.5

 
127.3

 
126.3

 
0.07
%
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

 
116.1

 
117.3

 
0.07
%

31
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
93.6

 
94.6

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

 
72.0

 
60.0

 
53.1

 
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

 
711.6

 
650.6

 
0.37
%
2161 Highway 6 Trail, LLC, (EPC) R. H. Hummer JR., Inc. (Co-Borrower)
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2026

 
1,250.0

 
861.8

 
859.3

 
0.49
%
CBlakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial Services
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/18/2028

 
875.0

 
790.9

 
790.5

 
0.45
%
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

 
285.2

 
248.2

 
0.14
%
Elite Structures Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/12/2038

 
932.8

 
878.5

 
883.9

 
0.51
%
(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

 
181.1

 
171.3

 
0.10
%
(EPC) Willowbrook Properties LLC (OC) Grove Gardens Landscaping Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038

 
186.3

 
178.7

 
176.2

 
0.10
%
RKP Service dba Rainbow Carwash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/31/2023

 
300.0

 
249.5

 
219.0

 
0.13
%
Europlast Ltd
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/31/2023

 
162.0

 
155.6

 
150.1

 
0.09
%
RXSB, Inc dba Medicine Shoppe
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
5/30/2023

 
186.3

 
153.8

 
131.6

 
0.08
%
Gregory P Jellenek OD and Associates PC dba Gregory P Jellenek OD and
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/28/2023

 
63.5

 
52.2

 
48.1

 
0.03
%
Ryan D. Thornton and Thornton & Associates LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
5/24/2023

 
68.8

 
49.8

 
42.6

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

 
17.1

 
14.1

 
12.0

 
0.01
%
Atlas Mountain Construction, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/13/2038

 
127.3

 
121.9

 
123.2

 
0.07
%
PowerWash Plus, Inc. and CJR, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/30/2038

 
550.0

 
525.8

 
507.6

 
0.29
%
Peanut Butter & Co., Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/30/2023

 
100.0

 
81.5

 
70.5

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

 
230.0

 
187.6

 
174.2

 
0.10
%

32
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Kidrose, LLC dba Kidville Riverdale
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/22/2023

 
78.8

 
65.0

 
58.6

 
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

 
144.4

 
146.0

 
0.08
%
Capital Scrap Metal, LLC and Powerline Investment, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
500.0

 
455.3

 
466.4

 
0.27
%
MRM Supermarkets Inc dba Constantins Breads; Dallas Gourmet Breads;
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
336.0

 
320.7

 
315.7

 
0.18
%
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

 
118.9

 
118.0

 
0.07
%
A & M Commerce, Inc. dba Cranberry Sunoco
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/27/2038

 
330.3

 
315.0

 
318.6

 
0.18
%
Xela Pack, Inc. and Aliseo and Catherine Gentile
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2028

 
271.8

 
242.5

 
245.1

 
0.14
%
Neyra Industries, Inc. and Edward Neyra
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
217.5

 
175.8

 
176.1

 
0.10
%
Gator Communications Group, LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
17.3

 
14.0

 
13.6

 
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

 
513.0

 
511.7

 
0.29
%
Michael A.and HeatherR. Welsch dba Art & FrameEtc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/22/2038

 
67.5

 
64.4

 
64.7

 
0.04
%
M & H Pine Straw Inc and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023

 
288.8

 
233.4

 
223.6

 
0.13
%
Truth Technologies Inc dba Truth Technologies Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023

 
79.5

 
64.3

 
60.4

 
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

 
146.5

 
146.9

 
0.08
%
Stellar Environmental LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2023

 
56.3

 
45.5

 
45.0

 
0.03
%
Sound Manufacturing, Inc. and Monster Power Equipment Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/15/2023

 
523.0

 
422.8

 
408.6

 
0.23
%
Golden Gate Lodging LLC (OC)
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2038

 
115.0

 
109.8

 
110.8

 
0.06
%
Aldine Funeral Chapel, LLC dba Aldine Funeral Chapel
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/8/2038

 
73.8

 
24.1

 
24.7

 
0.01
%
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

 
452.7

 
455.0

 
0.26
%

33
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Bakhtar Group LLC dba Malmaison
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2023

 
103.8

 
83.9

 
77.8

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

 
86.3

 
82.2

 
82.9

 
0.05
%
Java Warung, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/19/2038

 
51.0

 
48.7

 
49.2

 
0.03
%
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

 
101.3

 
102.2

 
0.06
%
Orient Express, Inc. dba Spracht, Celltek, ODI
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/12/2023

 
84.9

 
67.2

 
62.3

 
0.04
%
Knits R Us, Inc. dba NYC Sports / Mingle
 
Textile Mills
 
Term Loan
 
Prime plus 2.75%
 
2/11/2038

 
125.0

 
119.1

 
122.0

 
0.07
%
North Country Transport, LLC
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/6/2023

 
15.0

 
12.0

 
12.1

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

 
258.3

 
245.6

 
245.7

 
0.14
%
Sherill Universal City dba Golden Corral
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2038

 
440.5

 
420.6

 
421.4

 
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

 
477.1

 
488.6

 
0.28
%
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

 
242.1

 
232.8

 
0.13
%
Elegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2022

 
97.5

 
76.9

 
71.5

 
0.04
%
John Duffy Fuel Co., Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/28/2022

 
513.8

 
405.0

 
405.8

 
0.23
%
Babie Bunnie Enterprises Inc dba Triangle Mothercare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2022

 
46.3

 
36.4

 
33.7

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

 
517.5

 
494.7

 
506.6

 
0.29
%
Trailer One, Inc. and Trailer One Storage, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/27/2022

 
166.8

 
131.5

 
131.8

 
0.08
%
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

 
51.9

 
49.4

 
0.03
%
Ezzo Properties, LLC and Great Lakes Cleaning, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2027

 
389.6

 
343.1

 
327.2

 
0.19
%
Pioneer Window Holdings, Inc and Subsidiaries dba Pioneer Windows
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/20/2022

 
225.0

 
178.1

 
171.2

 
0.10
%
The Amendments Group LLC dba Brightstar
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/17/2022

 
22.5

 
17.7

 
17.7

 
0.01
%

34
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
G.M. Pop's, Inc. & S.D. Food, Inc. dba Popeyes Louisiana Kitchen and D
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/11/2022

 
127.1

 
100.3

 
94.5

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

 
387.5

 
294.5

 
272.8

 
0.16
%
Cheryle A Baptiste and Cheryle Baptiste DDS PLLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2037

 
286.5

 
271.6

 
274.8

 
0.16
%
Summit Treatment Services, Inc. dba Summit Treatment Services
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/30/2037

 
136.5

 
129.6

 
125.4

 
0.07
%
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

 
212.2

 
216.6

 
0.12
%
Richmond Hill Mini Market, LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/27/2037

 
185.3

 
175.7

 
177.4

 
0.10
%
D&L Rescources, Inc. dba The UPS Store
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/27/2022

 
9.8

 
7.6

 
7.0

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

 
65.0

 
49.6

 
49.7

 
0.03
%
Pioneer Windows Manufacturing Corp, Pioneer Windows
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/21/2022

 
275.0

 
215.7

 
207.2

 
0.12
%
U & A Food and Fuel, Inc. dba Express Gas & Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/21/2037

 
96.3

 
91.2

 
93.4

 
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

 
13.2

 
12.6

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

 
180.0

 
170.6

 
173.1

 
0.10
%
St Judes Physical Therapy P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2022

 
21.0

 
16.4

 
16.4

 
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

 
17.3

 
16.4

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

 
265.9

 
252.0

 
247.5

 
0.14
%
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

 
142.5

 
132.0

 
0.08
%
Chickamauga Properties, Inc. and MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/19/2022

 
59.8

 
46.2

 
46.3

 
0.03
%
LA Diner Inc dba Loukas L A Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/28/2037

 
677.5

 
644.6

 
659.9

 
0.38
%

35
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
198.4

 
183.7

 
0.11
%
ATC Fitness LLC dba Around the Clock Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2022

 
180.0

 
141.9

 
138.6

 
0.08
%
University Park Retreat, LLC dba Massage Heights
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2022

 
76.0

 
58.2

 
58.2

 
0.03
%
Europlast Ltd
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/26/2022

 
743.9

 
672.2

 
664.6

 
0.38
%
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

 
174.9

 
175.1

 
0.10
%
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

 
238.2

 
238.0

 
0.14
%
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

 
61.8

 
61.5

 
0.04
%
AdLarge Media LLC dba AdLarge Media LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2022

 
250.0

 
191.3

 
177.2

 
0.10
%
Vision Network Solutions, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/12/2022

 
19.5

 
14.9

 
13.8

 
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

 
346.4

 
354.6

 
0.20
%
R2 Tape Inc dba Presto Tape
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2022

 
155.0

 
117.5

 
117.7

 
0.07
%
AJK Enterprise LLC dba AJK Enterprise LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/27/2022

 
16.5

 
12.5

 
12.4

 
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

 
269.3

 
263.9

 
0.15
%
Suncoast Aluminum Furniture, Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/17/2037

 
360.0

 
339.4

 
347.0

 
0.20
%
Matchless Transportation LLC dba First Class Limo
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/3/2022

 
185.0

 
141.1

 
136.1

 
0.08
%
Hofgard & Co., Inc. dba HofgardBenefits
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022

 
107.3

 
80.5

 
78.7

 
0.05
%
Georgia Safe Sidewalks LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022

 
15.0

 
11.1

 
10.7

 
0.01
%

36
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Scoville Plumbing & Heating Inc and Thomas P. Scoville
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/25/2022

 
50.0

 
39.5

 
39.5

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

 
1,166.8

 
905.5

 
889.7

 
0.51
%
Central Tire, Inc. dba Cooper Tire & Auto Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/29/2037

 
288.5

 
270.6

 
270.5

 
0.15
%
WPI, LLC
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2024

 
129.5

 
103.6

 
99.6

 
0.06
%
Karykion, Corporation dba Karykion Corporation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2022

 
194.0

 
144.8

 
144.9

 
0.08
%
Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/27/2037

 
69.8

 
65.4

 
66.2

 
0.04
%
KIND-ER-ZZ Inc dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2022

 
50.0

 
36.8

 
34.2

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

 
20.3

 
15.1

 
13.7

 
0.01
%
TNDV: Television LLC
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
6/13/2022

 
127.5

 
94.9

 
92.0

 
0.05
%
Spectrumit, Inc, (OC) dba LANformation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/31/2030

 
154.9

 
137.3

 
136.7

 
0.08
%
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

 
113.9

 
115.2

 
0.07
%
ALF, LLC (EPC) Mulit-Service Eagle Tires (OC)
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/31/2037

 
62.9

 
59.0

 
59.4

 
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

 
26.4

 
26.4

 
0.02
%
Lefont Theaters, Inc.
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
5/30/2022

 
137.0

 
100.9

 
97.4

 
0.06
%
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

 
265.7

 
270.3

 
0.15
%
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

 
16.6

 
15.3

 
0.01
%
Bisson Transportation, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/7/2037

 
588.1

 
560.3

 
555.4

 
0.32
%
Bisson Moving & Storage Company Bisson Transportation Inc and BTG Real
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/7/2022

 
528.8

 
404.0

 
395.6

 
0.23
%
Fair Deal Food Mart Inc dba Neighbors Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/3/2037

 
381.3

 
357.0

 
365.4

 
0.21
%

37
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Custom Software, Inc. a Colorado Corporation dba M-33 Access
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
4/30/2022

 
125.0

 
96.2

 
96.1

 
0.05
%
Tanner Optical, Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/27/2022

 
8.3

 
6.0

 
5.9

 
—
%
Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
4/25/2022

 
228.8

 
167.2

 
159.1

 
0.09
%
Zane Filippone Co Inc dba Culligan Water Conditioning
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/12/2022

 
558.2

 
409.9

 
406.5

 
0.23
%
Indoor Playgrounds Limited Liability Company dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/5/2022

 
19.5

 
11.8

 
11.7

 
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

 
335.3

 
328.8

 
0.19
%
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

 
206.6

 
211.2

 
0.12
%
Access Staffing, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2022

 
187.5

 
135.4

 
130.9

 
0.07
%
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

 
728.3

 
0.42
%
Manuel P. Barrera and Accura Electrical Contractor, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028

 
103.7

 
88.8

 
87.9

 
0.05
%
Shweiki Media, Inc. dba Study Breaks Magazine
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/22/2027

 
1,178.8

 
990.6

 
986.8

 
0.56
%
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

 
314.9

 
305.7

 
0.17
%
ATC Fitness, LLC d/b/a Around the C
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2022

 
10.2

 
7.3

 
7.1

 
—
%
ATI Jet, Inc.
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/28/2026

 
852.8

 
696.3

 
696.8

 
0.40
%
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

 
461.1

 
475.1

 
0.27
%
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

 
51.5

 
49.8

 
0.03
%
15 Frederick Place LLC & Pioneer Windows Holdings Inc & Subs dba Pion
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/16/2021

 
250.0

 
174.2

 
171.9

 
0.10
%
GP Enterprises LLC and Gibson Performance Corporation
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2036

 
727.5

 
674.5

 
695.1

 
0.40
%
GP Enterprises, LLC and Gibson Performance Corporation
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2036

 
522.5

 
484.5

 
499.3

 
0.29
%

38
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
M & H Pinestraw, Inc. and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/15/2021

 
238.3

 
166.8

 
164.0

 
0.09
%
Taylor Transport, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/8/2021

 
515.5

 
332.4

 
331.6

 
0.19
%
City Sign Service, Incorporated
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
165.8

 
134.6

 
135.6

 
0.08
%
Scent-Sation, Inc. d/b/a Scent-Sation, Inc.
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
11/21/2021

 
337.5

 
261.7

 
263.2

 
0.15
%
Thomas P. Scoville dba Scoville Plumbing & Heating, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/16/2021

 
62.5

 
43.1

 
43.4

 
0.02
%
MRM Supermarkets, Inc. dba Constantin's Breads
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/10/2021

 
137.5

 
95.1

 
94.3

 
0.05
%
K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
10/26/2021

 
58.8

 
40.2

 
39.0

 
0.02
%
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

 
15.4

 
15.5

 
0.01
%
C & G Engines Corp.
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2021

 
1,041.5

 
700.7

 
686.8

 
0.39
%
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

 
204.2

 
205.1

 
0.12
%
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

 
126.8

 
130.1

 
0.07
%
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

 
76.7

 
78.3

 
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

 
26.1

 
26.5

 
0.02
%
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

 
718.2

 
693.8

 
0.40
%
Polymer Sciences, Inc. dba Polymer Sciences, Inc.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/28/2036

 
422.6

 
389.7

 
401.0

 
0.23
%
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

 
42.3

 
41.3

 
0.02
%
Bryan Bantry Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/8/2021

 
400.0

 
183.0

 
176.8

 
0.10
%
SBR Technologies d/b/a Color Graphics
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/31/2021

 
806.2

 
537.4

 
536.7

 
0.31
%

39
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
8/31/2021

 
575.0

 
365.1

 
361.7

 
0.21
%
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

 
15.1

 
15.5

 
0.01
%
Trademark Equipment Company Inc and David A. Daniel
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/19/2036

 
133.6

 
122.9

 
125.6

 
0.07
%
Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/19/2021

 
187.5

 
118.3

 
115.7

 
0.07
%
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

 
93.6

 
96.3

 
0.06
%
Valiev Ballet Academy, Inc
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
8/12/2036

 
91.5

 
39.0

 
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

 
70.8

 
72.9

 
0.04
%
Kelly Chon LLC dba Shi-Golf
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/29/2021

 
17.5

 
8.5

 
8.5

 
—
%
MTV Bowl, Inc. dba Legend Lanes
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2036

 
248.5

 
228.5

 
232.4

 
0.13
%
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

 
322.1

 
329.8

 
0.19
%
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

 
41.1

 
42.3

 
0.02
%
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

 
163.4

 
157.7

 
0.09
%
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

 
298.7

 
300.2

 
0.17
%
Red Star Incorporated dba Pro Import Company
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/15/2036

 
184.8

 
169.3

 
173.2

 
0.10
%
Pierce Developments, Inc. dba Southside Granite
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/13/2036

 
256.1

 
234.8

 
237.7

 
0.14
%
Major Queens Body & Fender Corp
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/10/2021

 
28.6

 
18.9

 
19.0

 
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

 
412.8

 
422.7

 
0.24
%

40
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
41.4

 
40.1

 
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

 
10.7

 
10.6

 
0.01
%
Modern on the Mile, LLC dba Ligne Roset
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
5/25/2021

 
212.5

 
136.3

 
132.0

 
0.08
%
MSM Healthcare Solutions, Inc. d/b/a BrightStar Care of Tinley Park
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/26/2021

 
46.0

 
29.2

 
28.2

 
0.02
%
Music Mountain Water Company, LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/25/2036

 
138.1

 
125.9

 
129.6

 
0.07
%
Profile Performance, Inc. and Eidak Real Estate, L.L.C.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2036

 
127.5

 
116.4

 
119.9

 
0.07
%
Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/18/2036

 
129.5

 
118.2

 
121.7

 
0.07
%
3 A Realty, LLC dba Interior Climate Solutions, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/13/2036

 
170.0

 
154.9

 
158.7

 
0.09
%
Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2021

 
3.8

 
2.4

 
2.4

 
—
%
Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2023

 
93.0

 
65.9

 
66.3

 
0.04
%
Michael S. Korfe dba North Valley Auto Repair
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/24/2036

 
15.5

 
14.1

 
14.6

 
0.01
%
Actknowledge,Inc dba Actknowledge
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2021

 
57.3

 
36.0

 
36.3

 
0.02
%
Stamford Car Wash d/b/a Stamford Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/11/2036

 
19.7

 
18.0

 
18.6

 
0.01
%
Food & Beverage Associates Of N.J. Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/11/2021

 
10.0

 
5.9

 
5.9

 
—
%
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

 
96.3

 
95.4

 
0.05
%
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

 
42.2

 
42.7

 
0.02
%
SuzyQue’s LLC dba Suzy Que’s
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/11/2036

 
61.0

 
55.7

 
57.5

 
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

 
28.2

 
29.1

 
0.02
%
Seagate Group Holdings, Inc. dba Seagate Logistics, Inc.
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/28/2036

 
113.4

 
102.7

 
106.2

 
0.06
%
Nicholas Dugger dba TNDV: Television LLC. 
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/24/2021

 
100.8

 
63.2

 
63.5

 
0.04
%

41
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Metro Used Cars Inc. dba Metro Auto Center
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
1/14/2027

 
117.6

 
94.1

 
95.5

 
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

 
4.5

 
4.5

 
—
%
Chickamauga Properties,Inc., MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2035

 
189.5

 
172.2

 
177.9

 
0.10
%
Chickamauga Properties, Inc., MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2035

 
74.3

 
67.7

 
69.9

 
0.04
%
Shree OM Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/17/2035

 
27.7

 
25.1

 
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

 
38.8

 
39.1

 
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

 
30.7

 
31.7

 
0.02
%
Justforfungames, Inc.
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
11/19/2035

 
50.0

 
44.5

 
46.0

 
0.03
%
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

 
21.0

 
21.2

 
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

 
134.3

 
137.8

 
0.08
%
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

 
132.1

 
132.1

 
0.08
%
Lincoln Park Physical Therapy
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/20/2020

 
43.5

 
25.5

 
25.6

 
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

 
132.4

 
136.9

 
0.08
%
Stamford Property Holdings, LLC & Stamford Car Wash,LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/4/2035

 
122.5

 
111.1

 
114.8

 
0.07
%
Wise Forklift Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/1/2020

 
296.9

 
170.5

 
171.6

 
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

 
205.0

 
211.8

 
0.12
%
K9 Bytes, Inc & Epazz, Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
9/30/2020

 
18.5

 
10.7

 
10.5

 
0.01
%
Success Express,Inc. dba Success Express
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2020

 
91.8

 
52.8

 
52.0

 
0.03
%
Adams & Hancock LLC dba Brightstar Overland Park & Jordon & Pippen, LL
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2020

 
19.8

 
7.1

 
7.1

 
—
%

42
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(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

 
118.4

 
116.8

 
0.07
%
Dirk's Trucking, L.L.C. dba Dirk's Trucking
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/17/2020

 
17.7

 
10.3

 
10.3

 
0.01
%
Newsome Trucking Inc and Kevin Newsome
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035

 
423.1

 
215.0

 
220.7

 
0.13
%
California College of Communications, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/2/2020

 
172.5

 
101.5

 
100.0

 
0.06
%
Rudy & Louise Chavez dba Clyde's Auto and Furniture Upholstery
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035

 
50.1

 
45.0

 
46.5

 
0.03
%
DDLK Investments LLC d/b/a Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020

 
7.5

 
3.7

 
3.7

 
—
%
Kino Oil of Texas, LLC dba Kino Oil
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/27/2020

 
60.0

 
34.1

 
34.3

 
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

 
10.6

 
10.8

 
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

 
22.9

 
22.6

 
0.01
%
Sunmar, Inc. dba Creative Cooking
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/19/2035

 
51.7

 
47.2

 
48.7

 
0.03
%
Members Only Software
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020

 
40.3

 
22.8

 
22.7

 
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

 
67.5

 
69.4

 
0.04
%
ActKnowledge,Inc dba ActKnowledge
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2020

 
50.0

 
27.8

 
28.0

 
0.02
%
I-90 RV & Auto Supercenter
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/29/2035

 
74.9

 
66.9

 
69.1

 
0.04
%
WeaverVentures, Inc dba The UPS Store
 
Postal Service
 
Term Loan
 
Prime plus 2.75%
 
7/28/2020

 
23.8

 
13.4

 
13.4

 
0.01
%
Zouk, Ltd. dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/25/2020

 
27.5

 
15.7

 
15.8

 
0.01
%
CJ Park Inc. dba Kidville Midtown West
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2020

 
26.4

 
11.7

 
11.5

 
0.01
%
Emotion in Motion Dance Center Limited Liability Company dba Emotio
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
7/25/2020

 
5.4

 
2.2

 
2.2

 
—
%
H.H. Leonards Trust and Potomac Fund LLC and The 2020 O Street Corpora
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
7/23/2020

 
62.0

 
21.2

 
21.4

 
0.01
%

43
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
B&B Fitness and Barbell, Inc. dba Elevations Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/22/2035

 
242.1

 
218.1

 
225.1

 
0.13
%
Tanner Optical Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2035

 
94.6

 
84.3

 
85.9

 
0.05
%
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

 
37.9

 
37.7

 
0.02
%
Excel RP, Inc./Kevin and Joann Foley
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/8/2028

 
50.0

 
40.6

 
41.1

 
0.02
%
ValleyStar, Inc. dba BrightStar Healthcare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020

 
7.5

 
4.1

 
4.1

 
—
%
ValleyStar, Inc. dba BrightStar HealthCare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020

 
0.6

 
3.4

 
3.3

 
—
%
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

 
13.8

 
13.9

 
0.01
%
Diag, LLC dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/21/2020

 
37.5

 
20.4

 
20.1

 
0.01
%
Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2035

 
204.0

 
181.6

 
187.4

 
0.11
%
M & H Pine Straw, Inc and Harris L. Maloy
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
6%
 
4/30/2020

 
183.3

 
79.9

 
80.3

 
0.05
%
New Economic Methods LLC dba Rita's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2020

 
24.8

 
1.0

 
1.0

 
—
%
Cocoa Beach Parasail Corp. dba Cocoa Beach Parasail
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/26/2020

 
6.3

 
3.3

 
3.4

 
—
%
JRJG, Inc. dba BrightStar HealthCare-Naperville/Oak Brook
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/23/2020

 
15.0

 
8.0

 
8.0

 
—
%
Caring Hands Pediatrics,P.C. dba Caring Hands Pediatrics
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/9/2020

 
14.5

 
7.8

 
7.8

 
—
%
Vortex Automotive LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/5/2035

 
76.6

 
68.2

 
70.4

 
0.04
%
Adams and Hancock,LLC dba BrightStar Overland Park
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2020

 
43.6

 
18.9

 
18.9

 
0.01
%
ATC Fitness LLC dba Around the Clock Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2019

 
15.0

 
6.7

 
6.7

 
—
%
Lahoba,LLC dba Papa John's Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/30/2034

 
42.5

 
37.6

 
38.9

 
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

 
93.7

 
94.3

 
0.05
%

44
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2024

 
126.5

 
87.8

 
88.6

 
0.05
%
CMA Consulting dba Construction Management Associates
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
58.5

 
29.9

 
29.8

 
0.02
%
David A. Nusblatt, D.M.D, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
9.0

 
4.5

 
4.5

 
—
%
KMC RE, LLC & B&B Kennels
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2034

 
58.3

 
51.4

 
53.0

 
0.03
%
Demand Printing Solutions, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/12/2019

 
10.0

 
5.0

 
5.0

 
—
%
Planet Verte, LLC dba Audio Unlimited of Oceanside
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/28/2019

 
57.0

 
27.9

 
26.4

 
0.02
%
Demand Printing Solutions, Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
10/29/2034

 
147.5

 
129.6

 
133.5

 
0.08
%
Supreme Screw Products, Inc. and Misha Migdal
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/17/2019

 
308.2

 
129.5

 
130.3

 
0.07
%
Gray Tree Service, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2018

 
50.0

 
19.1

 
19.2

 
0.01
%
Healthcare Interventions, Inc. dba Brightstar HealthCare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/15/2016

 
8.3

 
0.6

 
0.6

 
—
%
Envy Salon & Spa LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/4/2018

 
20.3

 
7.7

 
7.7

 
—
%
Gourmet to You, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2019

 
12.1

 
4.8

 
4.8

 
—
%
Grapevine Professional Services, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/22/2019

 
8.2

 
3.1

 
3.1

 
—
%
Inflate World Corporation
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/30/2018

 
7.5

 
2.1

 
2.2

 
—
%
Cool Air Solutions, Inc. dba Graham Heating & Air Conditioning
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2%
 
12/27/2018

 
411.5

 
155.8

 
154.2

 
0.09
%
Peter Thomas Roth Labs LL
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/26/2018

 
425.0

 
154.2

 
154.5

 
0.09
%
Dream Envy, Ltd. d/b/a Massage Envy
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/9/2018

 
88.0

 
32.8

 
32.9

 
0.02
%
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

 
28.5

 
28.6

 
0.02
%
Seven Stars Enterprises, Inc. dba Atlanta Bread Company
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2018

 
86.3

 
28.9

 
29.0

 
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

 
49.7

 
49.9

 
0.03
%

45
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Gilbert Chiropractic Clinic, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/7/2018

 
22.5

 
7.6

 
7.6

 
—
%
Beer Table, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/8/2018

 
10.5

 
2.4

 
2.4

 
—
%
D & D's Divine Beauty School of Esther, LLC
 
Educational Services
 
Term Loan
 
6%
 
8/1/2031

 
57.7

 
53.9

 
55.6

 
0.03
%
Daniel S. Fitzpatrick dba Danny's Mobile Appearance Reconditioning Ser
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/29/2018

 
9.4

 
2.9

 
2.9

 
—
%
Burks & Sons Development LLC dba Tropical Smoothie Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/22/2018

 
49.8

 
15.4

 
15.5

 
0.01
%
Shivsakti, LLC dba Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/20/2032

 
92.5

 
77.4

 
79.9

 
0.05
%
Bliss Coffee and Wine Bar, LLC
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
3/19/2018

 
87.5

 
71.8

 
72.1

 
0.04
%
Zog Inc.
 
Other Information Services
 
Term Loan
 
6%
 
3/17/2018

 
97.5

 
75.8

 
76.1

 
0.04
%
Saan M.Saelee dba Saelee's Delivery Service
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2018

 
9.8

 
3.0

 
3.0

 
—
%
A & A Acquisition, Inc. dba A & A International
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/15/2018

 
100.0

 
29.6

 
29.8

 
0.02
%
Enewhere Custom Canvas, LLC
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
2/15/2018

 
12.0

 
3.7

 
3.7

 
—
%
All American Printing
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
10/26/2032

 
69.8

 
39.1

 
40.4

 
0.02
%
Seo's Paradise Cleaners, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2018

 
9.8

 
2.3

 
2.3

 
—
%
Signs of Fortune, LLC dba FastSigns
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.5%
 
4/3/2023

 
434.4

 
337.4

 
339.3

 
0.19
%
Margab, Inc. dba Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/28/2017

 
44.0

 
12.4

 
12.4

 
0.01
%
RCB Enterprises, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2017

 
21.2

 
7.4

 
7.4

 
—
%
Timothy S. Strange dba Strange's Mobile Apperance Reconditioning Servi
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/17/2017

 
8.4

 
1.9

 
1.9

 
—
%
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

 
26.6

 
26.7

 
0.02
%
Tammy's Bakery, Inc. dba Tammy's Bakery
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/10/2017

 
71.8

 
20.6

 
20.7

 
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

 
5.0

 
5.0

 
—
%
MJ Mortgage & Tax Services, Inc.
 
Credit Intermediation and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/14/2017

 
6.9

 
1.7

 
1.7

 
—
%

46
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Kings Laundry,LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/30/2017

 
64.5

 
17.2

 
17.3

 
0.01
%
Quality Engraving Services Inc. and Ian M. Schnaitman
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
10/17/2017

 
15.0

 
3.9

 
3.9

 
—
%
Flourishing Fruits, LLC dba Edible Arrangements
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/29/2017

 
21.1

 
3.4

 
3.4

 
—
%
Louis B. Smith dba LAQ Funeral Coach
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/15/2017

 
12.6

 
3.2

 
3.2

 
—
%
Flint Batteries LLC dba Batteries Plus of Flint
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
8/29/2017

 
9.0

 
1.8

 
1.8

 
—
%
1911 East Main Street Holdings, Corp
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2032

 
15.8

 
12.9

 
13.4

 
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

 
64.8

 
65.0

 
0.04
%
Mala Iyer, MD dba Child and Family Wellness Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/11/2017

 
50.0

 
12.5

 
12.5

 
0.01
%
South Dade Restoration Corp. dba Servpro of Kendall/Pinecrest
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/10/2016

 
61.8

 
5.8

 
5.8

 
—
%
Twietmeyer Dentistry PA
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2017

 
148.9

 
34.4

 
34.5

 
0.02
%
Water Works Laundromat, L.L.C.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.25%
 
9/7/2027

 
267.3

 
196.7

 
196.0

 
0.11
%
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

 
2.5

 
2.5

 
—
%
Dave Kris, and MDK Ram Corp.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/5/2026

 
221.0

 
35.9

 
36.7

 
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

 
1.1

 
1.1

 
—
%
Eric R. Wise, D.C. dba Jamacha-Chase Chiropractic
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2017

 
15.6

 
0.8

 
0.8

 
—
%
No Thirst Software LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/26/2017

 
6.8

 
1.0

 
1.0

 
—
%
Zeroln Media LLC,
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
4/25/2017

 
7.5

 
1.6

 
1.6

 
—
%
CCIPTA, LLC
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
1/17/2017

 
47.0

 
1.8

 
1.9

 
—
%
Gill Express Inc. dba American Eagle Truck Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/5/2027

 
286.9

 
203.6

 
208.3

 
0.12
%

47
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Kyoshi Enterprises, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/29/2016

 
22.5

 
3.8

 
3.8

 
—
%
Spain Street LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/29/2017

 
63.0

 
3.2

 
3.2

 
—
%
Nora A. Palma and Julio O Villcas
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/27/2017

 
56.3

 
1.9

 
1.9

 
—
%
Jojan, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.25%
 
12/18/2031

 
204.8

 
39.8

 
39.6

 
0.02
%
Contractors Pumping Service, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/3/2016

 
9.9

 
0.5

 
0.5

 
—
%
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

 
0.5

 
0.5

 
—
%
Smooth Grounds, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
7.75%
 
10/11/2016

 
64.5

 
35.3

 
35.4

 
0.02
%
Nelson Financial Services, LLC
 
Scenic and Sightseeing Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/2/2016

 
57.0

 
1.7

 
1.7

 
—
%
Flint Batteries, LLC
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
7/21/2016

 
46.9

 
3.8

 
3.8

 
—
%
Tesserah Tile Design, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2016

 
7.1

 
0.6

 
0.6

 
—
%
It's A Buffalo
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/26/2016

 
219.8

 
17.7

 
17.7

 
0.01
%
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

 
1.5

 
1.5

 
—
%
Cocoa Beach Parasail Corp.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/5/2016

 
8.9

 
0.8

 
0.8

 
—
%
Maynard Enterprises, Inc.
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/22/2016

 
22.5

 
0.6

 
0.6

 
—
%
Fran-Car Corporation dba Horizon Landscape Management
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/3/2028

 
407.8

 
174.7

 
179.0

 
0.10
%
Head To Toe Personalized Pampering, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/27/2031

 
52.0

 
9.5

 
9.8

 
0.01
%
Olympia Fields Eyecare, Ltd.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/12/2016

 
15.0

 
0.4

 
0.4

 
—
%
Spencer Fitness, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/11/2016

 
6.0

 
0.1

 
0.1

 
—
%
Maxwell Place, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
6%
 
12/1/2015

 
1,076.8

 
816.2

 
816.7

 
0.47
%

48
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Tuan D. Dang, OD, PA
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.25%
 
12/7/2015

 
77.0

 
2.9

 
2.9

 
—
%
Christopher F. Bohon & Pamela D. Bohon
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/28/2026

 
14.2

 
3.5

 
3.6

 
—
%
Champion Pest Control Systems, Inc.
 
Administrative and Support Services
 
Term Loan
 
6%
 
1/15/2016

 
39.0

 
3.2

 
3.2

 
—
%
Shree Om Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/2/2030

 
333.3

 
66.0

 
67.9

 
0.04
%
Pedzik's Pets, LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
3/31/2030

 
53.5

 
9.5

 
9.8

 
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

 
16.2

 
16.5

 
0.01
%
Moonlight Multi Media Production, Inc.
 
Other Information Services
 
Term Loan
 
5.3%
 
2/1/2025

 
19.7

 
4.1

 
4.1

 
—
%
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

 
12.4

 
12.7

 
0.01
%
Computer Renaissance dba Dante IT Services, Inc.
 
Electronics and Appliance Stores
 
Term Loan
 
Prime plus 3.75%
 
3/1/2018

 
100.0

 
3.0

 
3.1

 
—
%
Chong Hun Im dba Kim's Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.5%
 
2/27/2024

 
80.0

 
10.8

 
10.8

 
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

 
13.2

 
13.5

 
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

 
904.3

 
0.52
%
Center-Mark Car Wash, Ltd
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/18/2024

 
221.3

 
31.4

 
32.0

 
0.02
%
Shuttle Car Wash, Inc. dba Shuttle Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.25%
 
11/10/2028

 
109.8

 
18.4

 
18.3

 
0.01
%
Akshar Group, LLC
 
Accommodation
 
Term Loan
 
6%
 
11/5/2028

 
321.3

 
51.8

 
53.2

 
0.03
%
Min Hui Lin
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2028

 
134.3

 
18.8

 
19.2

 
0.01
%
Delta Partners, LLC dba Delta Carwash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.5%
 
4/5/2029

 
280.9

 
45.4

 
45.9

 
0.03
%
Oz B. Zamir dba Zamir Marble & Granite
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.5%
 
8/6/2028

 
54.0

 
8.8

 
9.0

 
0.01
%
Rama, Inc. dba Staybridge Suites
 
Accommodation
 
Term Loan
 
Prime plus 2%
 
4/18/2026

 
750.0

 
423.9

 
417.3

 
0.24
%
B & J Manufacturing Corporation and Benson Realty Trust
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2%
 
3/30/2021

 
250.0

 
23.5

 
23.3

 
0.01
%

49
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
RAB Services, Inc. & Professional Floor Installations
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.5%
 
1/31/2023

 
62.5

 
8.2

 
8.2

 
—
%
Taste of Inverness, Inc. dba China Garden
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2%
 
6/29/2025

 
73.8

 
9.8

 
9.6

 
0.01
%
Ralph Werner dba Werner Transmissions
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/29/2021

 
26.6

 
2.8

 
2.9

 
—
%
M. Krishna, Inc. dba Super 8 Motel
 
Accommodation
 
Term Loan
 
Prime plus 2%
 
3/20/2025

 
250.0

 
10.5

 
10.4

 
0.01
%
OrthoQuest, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2%
 
3/12/2022

 
56.8

 
5.3

 
5.3

 
—
%
CPN Motel, L.L.C. dba American Motor Lodge
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
4/30/2024

 
379.0

 
34.8

 
34.7

 
0.02
%
Track Side Collision & Tire, Inc.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025

 
44.8

 
5.4

 
5.5

 
—
%
Duttakrupa, LLC dba Birmingham Motor Court
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/8/2023

 
98.8

 
13.9

 
13.9

 
0.01
%
Deesha Corporation, Inc. dba Best Inn & Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
2/14/2025

 
250.0

 
30.6

 
30.5

 
0.02
%
Maruti, Inc
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
11/25/2024

 
220.0

 
28.5

 
28.4

 
0.02
%
Willington Hills Equestrian Center LLC
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
10/19/2022

 
85.0

 
13.3

 
13.5

 
0.01
%
LABH, Inc. t/a Ramada Ltd.
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/27/2024

 
555.0

 
45.9

 
45.7

 
0.03
%
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

 
8.1

 
8.2

 
—
%
Gain Laxmi, Inc. dba Super 8 Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
5/31/2023

 
202.5

 
23.1

 
23.1

 
0.01
%
Naseeb Corporation
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
3/31/2024

 
402.5

 
33.9

 
33.8

 
0.02
%
La Granja Live Poultry Corp.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/26/2018

 
54.0

 
3.1

 
2.9

 
—
%
Stillwell Ave Prep School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/14/2023

 
72.0

 
7.4

 
7.5

 
—
%
Karis, Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2%
 
12/22/2023

 
148.8

 
15.4

 
15.2

 
0.01
%
Five Corners, Ltd.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
85.0

 
6.4

 
6.5

 
—
%
Alyssa Corp dba Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/30/2023

 
350.0

 
44.7

 
44.5

 
0.03
%
Bhailal Patel dba New Falls Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
100.0

 
4.8

 
4.8

 
—
%

50
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Pegasus Automotive, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/23/2022

 
112.5

 
12.8

 
13.0

 
0.01
%
Delyannis Iron Works
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
12/8/2022

 
16.0

 
1.5

 
1.5

 
—
%
P. Agrino, Inc. dba Andover Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/18/2021

 
150.0

 
12.6

 
12.8

 
0.01
%
Golden Elevator Co., Inc.
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
1/31/2022

 
50.0

 
1.8

 
1.9

 
—
%
Mohamed Live Poultry Inc.
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
12/6/2021

 
36.8

 
3.7

 
3.7

 
—
%
RJS Service Corporation
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
8/20/2021

 
79.0

 
7.6

 
7.7

 
—
%
Chez Rurene Bakery
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/20/2017

 
150.0

 
34.7

 
45.2

 
0.03
%
Total Performing SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
170,627.2

 
$
146,007.7

 
$
138,982.4

 
79.54
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Performing SBA Unguaranteed Investments (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*E & I Holdings, LP & PA Farm Products, LLC
 
Food Manufacturing
 
Term Loan
 
6%
 
4/30/2030

 
1,234.0

 
1,237.1

 
498.6

 
0.29
%
*Mojo Brands Media, LLC
 
Broadcasting (except Internet)
 
Term Loan
 
6%
 
8/28/2023

 
731.9

 
733.7

 
627.0

 
0.36
%
*DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
3/23/2037

 
708.2

 
710.0

 
666.6

 
0.38
%
*J Olson Enterprises LLC and Olson Trucking Direct, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/28/2025

 
666.7

 
668.3

 
224.8

 
0.13
%
*AUM Estates, LLC and Sculpted Figures Plastic Surgery Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
3/14/2038

 
602.4

 
603.9

 
368.0

 
0.21
%
*Harrelson Materials Management,Inc
 
Waste Management and Remediation Services
 
Term Loan
 
6%
 
6/24/2021

 
468.9

 
470.0

 
131.0

 
0.07
%
*Stormwise South Florida dba Stormwise Shutters
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
11/7/2036

 
406.6

 
407.6

 
379.2

 
0.22
%
*BCD Enterprises, LLC dba Progressive Tool and Nutmeg Tool
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
6/22/2026

 
290.3

 
290.9

 
76.2

 
0.04
%
*Feinman Mechanical, LLC
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
9/28/2028

 
251.6

 
252.2

 
—

 
—
%
*Hampton's Restaurant Holding Company, LLC/Hampton's Restaurant #1 LLC
Food Services and Drinking Places
 
Term Loan
 
6%
 
5/29/2023

 
243.2

 
243.9

 
—

 
—
%
*DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2022

 
213.9

 
214.4

 
209.9

 
0.12
%
Guzman Group,LLC
 
Rental and Leasing Services
 
Term Loan
 
6%
 
1/30/2016

 
201.4

 
201.9

 
193.2

 
0.11
%

51
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*Stormwise South Florida dba Stormwise Shutters
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
11/7/2036

 
201.1

 
201.6

 
—

 
—
%
Baker Sales, Inc. d/b/a Baker Sales, Inc.
 
Nonstore Retailers
 
Term Loan
 
6%
 
3/29/2036

 
181.5

 
182.0

 
97.9

 
0.06
%
*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

 
12.5

 
0.01
%
Lamson and Goodnow Manufacturing Co and Lamson and Goodnow LLC dba Lam
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/28/2037

 
168.1

 
168.2

 
127.3

 
0.07
%
*Milliken and Milliken, Inc. dba Milliken Wholesale Distribution
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
6%
 
6/10/2036

 
153.6

 
153.8

 
117.6

 
0.07
%
*Jenny's Wunderland, Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
6/29/2036

 
149.7

 
150.1

 
86.8

 
0.05
%
Dixie Transport, Inc. & Johnny D. Brown & Jimmy Brown & Maudain Brown
Support Activities for Transportation
 
Term Loan
 
5.25%
 
12/28/2035

 
141.7

 
141.9

 
79.4

 
0.05
%
*Professional Systems, LLC and Professional Cleaning
 
Administrative and Support Services
 
Term Loan
 
6%
 
7/30/2020

 
132.0

 
132.1

 
55.8

 
0.03
%
*Elite Treats Enterprises, Inc. dba Rochelle Dairy Queen
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
1/24/2032

 
131.2

 
131.5

 
94.0

 
0.05
%
*STK Ventures Inc dba JP Dock Service & Supply
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/9/2037

 
34.1

 
34.1

 
33.4

 
0.02
%
*EZ Towing, Inc.
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/31/2023

 
123.2

 
123.5

 
97.7

 
0.06
%
Stokes Floor Covering Company Inc. and Robert E. Rainey, Jr.
 
Furniture and Home Furnishings Stores
 
Term Loan
 
6%
 
12/29/2035

 
113.4

 
113.5

 
103.4

 
0.06
%
*Dill Street Bar and Grill Inc and WO Entertainment, Inc
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
9/27/2027

 
112.0

 
112.3

 
24.1

 
0.01
%
*Hybrid Racing LLC.
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/15/2023

 
100.1

 
100.3

 
94.2

 
0.05
%
Groundworks Unlimited LLC
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
12/17/2023

 
90.5

 
90.6

 
78.7

 
0.05
%
*E.W. Ventures, Inc. dba Swift Cleaners & Laundry
 
Personal and Laundry Services
 
Term Loan
 
0%
 
4/18/2017

 
91.4

 
91.6

 
1.3

 
—
%
*Bwms Management, LLC
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
7/7/2027

 
77.0

 
77.2

 
19.4

 
0.01
%
*Winter Ventures Inc and 214 N Franklin LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/29/2024

 
56.5

 
56.6

 
52.0

 
0.03
%
*LRCSL, LLC dba Daybreak Fruit and Vegetable Company
 
Food and Beverage Stores
 
Term Loan
 
6%
 
2/28/2021

 
52.4

 
52.4

 
—

 
—
%
*Las Torres Development LLC dba Houston Event Centers
 
Real Estate
 
Term Loan
 
6%
 
8/27/2028

 
51.0

 
51.0

 
48.7

 
0.03
%
*Sheikh M Tariq dba Selbyville Foodrite
 
Gasoline Stations
Term Loan
 
6%
 
3/13/2023

 
21.2

 
21.2

 
12.0

 
0.01
%
Morris Glass and Construction
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
3/7/2021

 
44.8

 
44.8

 
18.6

 
0.01
%

52
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NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*Parth Dev, Ltd dba Amerihost Inn Hotel-Kenton
 
Accommodation
 
Term Loan
 
5.25%
 
10/3/2028

 
38.3

 
38.3

 
19.2

 
0.01
%
*AWA Fabrication & Construction, L.L.C.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
4/30/2025

 
34.7

 
34.8

 
23.5

 
0.01
%
*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
%
*214 North Franklin, LLC and Winter Ventures, Inc.
 
Nonstore Retailers
Term Loan
 
Prime plus 2.75%
 
11/29/2037

 
146.0

 
146.1

 
134.3

 
0.08
%
*DocMagnet Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/23/2025

 
16.7

 
16.7

 
16.1

 
0.01
%
Grand Manor Realty, Inc. & Kevin LaRoe
 
Real Estate
 
Term Loan
 
6%
 
2/20/2023

 
18.9

 
19.0

 
14.6

 
0.01
%
*Robin C. & Charles E. Taylor & Brigantine Aquatic Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
9/14/2023

 
18.0

 
18.0

 
17.2

 
0.01
%
Tequila Beaches, LLC dba Fresco Restaurant
 
Food Services and Drinking Places
Term Loan
 
6%
 
9/16/2021

 
15.8

 
15.8

 
12.4

 
0.01
%
*Integrity Sports Group, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
6%
 
3/6/2018

 
14.7

 
14.7

 
12.4

 
0.01
%
*D'Elia Auto Repair Inc dba D'Elia Auto Body
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/26/2023

 
13.9

 
13.9

 
—

 
—
%
Event Mecca LLC
 
Other Information Services
 
Term Loan
 
6%
 
4/10/2023

 
13.3

 
13.3

 
5.6

 
—
%
United Woodworking, Inc
 
Wood Product Manufacturing
 
Term Loan
 
6%
 
12/20/2022

 
12.9

 
13.0

 
4.0

 
—
%
The Lucky Coyote, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
6%
 
5/8/2017

 
11.3

 
11.3

 
5.0

 
—
%
LJ Parker, LLC
 
Administrative and Support Services
 
Term Loan
 
7%
 
9/8/2014

 
10.7

 
10.8

 
3.4

 
—
%
Whirlwind Car Wash, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2%
 
4/9/2029

 
9.8

 
9.8

 
7.5

 
—
%
*Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/23/2024

 
149.1

 
149.3

 
—

 
—
%
*Krishna of Orangeburg, Inc.
 
Accommodation
 
Term Loan
 
6%
 
2/20/2032

 
10.3

 
10.3

 
5.6

 
—
%
*Barnum Printing & Publishing, Co.
 
Printing and Related Support Activities
 
Term Loan
 
6%
 
7/29/2015

 
9.8

 
9.8

 
9.4

 
0.01
%
*Pyramid Real Estate Holdings, LLC dba Hoteps
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
10/7/2022

 
8.9

 
8.9

 
5.5

 
—
%
*Houk Enterprises, Inc. d/b/a Max Muscle
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
10/27/2019

 
7.6

 
7.7

 
—

 
—
%
*The Alba Financial Group, Inc.
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/13/2015

 
7.4

 
7.4

 
3.1

 
—
%

53
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Shamrock Jewelers, Inc.
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
6%
 
12/14/2016

 
5.1

 
5.1

 
5.0

 
—
%
Auto Sales, Inc.
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6%
 
8/17/2023

 
4.7

 
4.7

 
4.2

 
—
%
Almeria Marketing 1, Inc.
 
Personal and Laundry Services
 
Term Loan
 
7.75%
 
10/15/2015

 
4.8

 
4.8

 
0.9

 
—
%
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

 
—
%
Goetzke Chiropractic, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
10/25/2017

 
3.0

 
3.0

 
2.5

 
—
%
David M. Goens dba Superior Auto Paint & Body, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/26/2024

 
1.2

 
1.2

 
1.1

 
—
%
*Dr. Francis E. Anders, DVM
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
8/9/2015

 
1.6

 
1.6

 
1.5

 
—
%
Island Nautical Enterprises, Inc. (OC) and Ingwall Holdings, LLC (EPC)
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/26/2024

 
333.7

 
334.6

 
242.7

 
0.14
%
*Top Class, Inc.
 
Personal and Laundry Services
 
Term Loan
 
6%
 
6/28/2016

 
1.3

 
1.3

 
0.1

 
—
%
*A + Quality Home Health Care, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/1/2016

 
1.3

 
1.3

 
1.2

 
—
%
Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/3/2029

 
134.4

 
134.5

 
103.6

 
0.06
%
Pure Water Innovations, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
9/6/2016

 
0.3

 
0.3

 
0.3

 
—
%
*TechPlayZone, Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/27/2016

 
—

 
—

 
—

 
—
%
Total Non-Performing SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
9,508.5

 
$
9,529.4

 
$
5,307.3

 
3.04
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
180,135.7

 
$
155,537.1

 
$
144,289.7

 
82.58
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performing SBA Guaranteed Investments (4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Murrayville Donuts, Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/15/2040

 
1,378.0

 
428.6

 
485.4

 
0.28
%
Landon Farm, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/3/2040

 
400.0

 
227.4

 
257.6

 
0.15
%
B & J Catering
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/27/2040

 
1,890.0

 
765.3

 
866.7

 
0.50
%
Zephyr Seven Series LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
325.0

 
30.0

 
33.1

 
0.02
%

54
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
J&K Fitnes, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/27/2041

 
375.0

 
102.1

 
115.6

 
0.07
%
Bat Bridge Investments
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
342.0

 
93.5

 
103.0

 
0.06
%
SCJEN Management
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
240.0

 
53.3

 
58.7

 
0.03
%
Total SBA Guaranteed Performing Investments
 
 
 
 
 
 
 
 
 
$
4,950.0

 
$
1,700.2

 
$
1,920.1

 
1.10
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed and Guaranteed Investments
 
 
 
 
 
 
 
 
 
$
185,085.7

 
$
157,237.3

 
$
146,209.8

 
83.68
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Controlled Investments (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advanced Cyber Security Systems, LLC (6), (13)                                         
 
Data processing, hosting and related services.
 
50% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
 
 
 
 
Term Loan
 
3%
 
 December 2014
 
1,120.0

 
381.0

 
—

 
—
%
*Automated Merchant Services, Inc. (7), (13)
 
Data processing, hosting and related services.
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
—

 
—
%
*Business Connect, LLC (8), (13)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
CDS Business Services, Inc. (9), (13)                                                                                         
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
1,771.0

 
1.01
%
CrystalTech Web Hosting, Inc. (14)                                                                                         
 
Data processing, hosting and related services.
 
100% Common Stock
 
—%
 
—

 
—

 
9,256.0

 
21,080.0

 
12.06
%
Exponential Business Development Co. Inc. (13)                                                                               
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
—

 
—
%
*First Bankcard Alliance of Alabama, LLC (10), (13)                                                               
 
Data processing, hosting and related services.
 
95% Membership Interests
 
—%
 
—

 
—

 
—

 
—

 
—
%
*Fortress Data Management, LLC (13)                                                                                    
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
Newtek Insurance Agency, LLC (13)                                                                           
 
Insurance Carriers and Related Activities
 
100% Membership Interests
 
—%
 
—

 
—

 
—

 
2,500.0

 
1.43
%
PMTWorks Payroll, LLC (11), (13)                                                                                    
 
Data processing, hosting and related services.
 
80% Membership Interests
 
—%
 
—

 
—

 
—

 
933.0

 
0.53
%
 
 
 
 
Term Loan
 
10%-12%
 
Various maturities through September 2016
 
935.0

 
935.0

 
—

 
—
%

55
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2015 (UNAUDITED)
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Secure CyberGateway Services, LLC (12), (13)                                                                                                                     
 
Data processing, hosting and related services.
 
66.7% Membership Interests
 
—%
 
—

 
—

 
—

 
—

 
—
%
 
 
 
 
Term Loan
 
7%
 
 December 2016
 
2,400.0

 
1,600.0

 
1,600.0

 
0.92
%
Small Business Lending, Inc. (13)                                                                       
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
5,500.0

 
3.15
%
*Summit Systems and Designs, LLC (8), (13)                                                                     
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
Premier Payments LLC (14)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
16,503.0

 
16,503.0

 
9.44
%
Universal Processing Services of Wisconsin, LLC (13) (14)                                           
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
50,839.0

 
29.10
%
Total Controlled Investments
 
 
 
 
 
 
 
 
 
$
4,455.0

 
$
28,675.0

 
$
100,726.0

 
57.65
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-control/Non-affiliate Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Titanium Asset Management LLC
 
Administrative and Support Services
 
Term Loan
 
3%
 
July 2017
 
$
2,200.0

 
$
2,116.0

 
$
2,116.0

 
1.21
%
 
 
 
 
Warrants
 
—%
 
—

 
—

 
—

 
—

 
—
%
 
 
 
 
 
 
 
 
 
 
$
2,200.0

 
$
2,116.0

 
$
2,116.0

 
1.21
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments in Money Market Funds
 
 
 
 
 
 
 
 
 
$
—

 
$
36.0

 
$
36.0

 
0.02
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Investments
 
 
 
 
 
 
 
 
 
$
191,740.7

 
$
188,064.3

 
$
249,087.8

 
142.55
%
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 September 30, 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

56
Table of Contents

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. owns more than 25% of the voting securities of such company. See Note 4 in the accompanying notes to the condensed consolidated financial statements for transactions during the nine months ended September 30, 2015 in which the Company is deemed to control.
(6) 50% owned by Exponential of New York, LLC (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) 100% owned by Wilshire Texas Partners I, LLC (a subsidiary of Newtek Business Services Corp.).
(9) 26.15% owned by Wilshire New York Partners IV, LLC (a subsidiary of Newtek Business Services Corp.), 6.17% owned by Exponential of New York, LLC (a subsidiary of Newtek Business Services Corp.), 23.83% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.) and 43.85% owned by Newtek Business Services Corp.
(10) 95% owned by Wilshire Alabama Partners, LLC (a subsidiary of Newtek Business Services Corp.), 5% owned by non-affiliate.
(11) 50% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.), 30% owned by Wilshire Holdings II, Inc. (a subsidiary of Newtek Business Services Corp.), and 20% owned by non-affiliate.
(12) 66.7% owned by Wilshire Texas Partners I, LLC (a subsidiary of Newtek Business Services Corp.), 33.3% owned by non-affiliate.
(13) 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.
(14) 100% owned by Newtek Business Services Holdco1., Inc. (a subsidiary of Newtek Business Services Corp.).
(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 September 30, 2015, 7.3% of total assets are non qualifying assets.

57
Table of Contents


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Performing SBA Unguaranteed Investments (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MLM Enterprises, LLC and Demand Printing Solutions Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/18/2024

 
70.5

 
70.5

 
63.3

 
0.04
%
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

 
93.9

 
94.0

 
0.06
%
Legacy Estate Planning Inc. dba American Casket Enterprises
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024

 
42.0

 
42.0

 
33.5

 
0.02
%
J&D Resources, LLC dba Aqua Science
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024

 
767.9

 
767.9

 
627.3

 
0.38
%
Teamnewman Enterprises, LLC dba Newmans at 988
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/25/2039

 
148.8

 
148.8

 
138.5

 
0.08
%
DeRidder Chiropractic, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
13.2

 
13.2

 
12.5

 
0.01
%
Stormrider Inc. dba Shirley's Stormrider, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
150.0

 
150.0

 
119.5

 
0.07
%
Modern Manhattan, LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
220.0

 
220.0

 
178.3

 
0.11
%
Meridian Hotels, LLC dba Best Western Jonesboro
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/25/2039

 
228.0

 
228.0

 
228.3

 
0.14
%
Trading Group 3, Inc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/26/2024

 
22.5

 
22.5

 
17.9

 
0.01
%
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

 
28.7

 
24.6

 
0.01
%
Homegrown For Good, LLC
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/26/2024

 
230.0

 
230.0

 
202.1

 
0.12
%
Kemmer, LLC and Apples Tree Top Liquors, LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/4/2039

 
138.4

 
138.4

 
125.1

 
0.08
%
The Conibear Corporation and Conibear Trucking, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2024

 
12.0

 
12.0

 
10.5

 
0.01
%
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

 
400.0

 
341.6

 
0.21
%
B & W Towing, LLC and Boychucks Fuel, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/17/2039

 
164.5

 
164.5

 
151.3

 
0.09
%
MM and M Management Inc. dba Pizza Artista
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/19/2025

 
46.3

 
46.3

 
37.8

 
0.02
%

58
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(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

 
53.8

 
53.4

 
0.03
%
Will Zac Management, LLC dba Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/19/2024

 
48.8

 
48.8

 
47.9

 
0.03
%
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

 
1,250.0

 
1,008.4

 
0.61
%
Beale Street Blues Company-West Palm Beach, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2024

 
187.5

 
187.5

 
158.8

 
0.10
%
401 JJS Corporation and G Randazzo's Trattoria Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
473.5

 
378.8

 
379.2

 
0.23
%
The Lodin Group, LLC and Lodin Health Imaging Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
530.3

 
530.3

 
472.9

 
0.28
%
Thermoplastic Services Inc. and Paragon Plastic Sheet, Inc
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
500.0

 
500.0

 
500.6

 
0.30
%
Winter Ventures Inc. dba Qualitybargainbooks and Qualitybargainmall
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/23/2024

 
156.1

 
156.1

 
132.5

 
0.08
%
Carolina Flicks Inc. dba The Howell Theater
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
12/23/2032

 
163.3

 
163.3

 
149.9

 
0.09
%
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

 
240.0

 
240.3

 
0.14
%
Bowlerama, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2039

 
1,202.5

 
1,202.5

 
1,199.9

 
0.72
%
Bear Creek Entertainment, LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
106.3

 
106.3

 
104.6

 
0.06
%
Evans and Paul, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
223.8

 
223.8

 
207.6

 
0.12
%
First Prevention and Dialysis Center, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
238.3

 
78.1

 
76.9

 
0.05
%
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

 
133.0

 
130.5

 
0.08
%
FHJE Ventures, LLC and Eisenreich II Inc. dba Breakneck Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/31/2039

 
245.5

 
161.6

 
161.8

 
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

 
205.8

 
191.9

 
0.12
%
Joey O's, LLC and Jennifer Olszewski
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/7/2024

 
13.1

 
13.0

 
10.3

 
0.01
%

59
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Laura L. Smith dba Lisa Smith Studio
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/3/2024

 
15.0

 
14.9

 
11.9

 
0.01
%
Frontier Bulk Solutions, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/31/2024

 
1,250.0

 
1,242.3

 
1,043.3

 
0.63
%
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

 
478.3

 
459.3

 
0.28
%
M and C Renovations Inc.
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/31/2024

 
20.3

 
20.1

 
16.2

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

 
156.7

 
156.5

 
152.5

 
0.09
%
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

 
68.0

 
65.0

 
0.04
%
Seelan Inc. dba Candleridge Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/27/2039

 
90.5

 
90.4

 
84.0

 
0.05
%
185 Summerfield Inc. and Valcon Contracting Corp.
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/24/2039

 
162.3

 
162.0

 
157.1

 
0.09
%
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

 
88.9

 
80.5

 
0.05
%
3 F Management, LLC and ATC Port Charlotte, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/17/2024

 
131.3

 
130.4

 
110.9

 
0.07
%
One Hour Jewelry Repair Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/14/2024

 
20.6

 
20.4

 
16.3

 
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

 
1,249.0

 
1,250.5

 
0.75
%
Capitol Waste and Recycling Services, LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
10/10/2024

 
257.8

 
256.2

 
220.3

 
0.13
%
Sound Manufacturing Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/10/2024

 
187.5

 
186.5

 
157.1

 
0.09
%
DNT Storage and Properties, LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
10/10/2039

 
101.8

 
101.6

 
99.2

 
0.06
%
Boilermaker Industries, LLC dba PostNet
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/9/2024

 
18.8

 
18.8

 
16.8

 
0.01
%
Doctors Express Management of Central Texas, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2024

 
105.0

 
92.4

 
85.0

 
0.05
%
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

 
59.9

 
57.2

 
0.03
%

60
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
126.4

 
122.2

 
0.07
%
Sumad, LLC dba BrightStar Care of Encinitas
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/2/2024

 
92.5

 
92.5

 
90.1

 
0.05
%
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

 
538.8

 
494.2

 
0.30
%
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

 
255.0

 
234.8

 
0.14
%
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

 
99.7

 
98.4

 
0.06
%
The Woods at Bear Creek, LLC and Bear Creek Entertainment, LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2039

 
513.3

 
512.5

 
513.0

 
0.31
%
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

 
324.6

 
324.7

 
0.20
%
Keys Phase One, LLC dba The Grand Guesthouse
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
736.3

 
734.1

 
709.4

 
0.43
%
Colts V, LLC and Nowatzke Service Center, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
601.8

 
600.0

 
576.8

 
0.35
%
Gordon E Rogers dba Stonehouse Motor Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
57.5

 
57.3

 
57.4

 
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

 
22.2

 
18.6

 
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

 
451.2

 
395.7

 
0.24
%
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

 
158.8

 
153.0

 
0.09
%
R A Johnson Inc. dba Rick Johnson Auto and Tire
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/23/2039

 
301.3

 
300.4

 
300.7

 
0.18
%
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

 
37.6

 
30.1

 
0.02
%
Utek Corporation dba Arcade Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/22/2039

 
405.5

 
405.0

 
400.6

 
0.24
%
Play and Stay, LLC dba Zoom Room Tinton Falls
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/18/2024

 
42.1

 
42.1

 
33.6

 
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

 
145.1

 
145.2

 
0.09
%
Modern Leather Goods Repair Shop Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2024

 
58.8

 
57.6

 
45.9

 
0.03
%
Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/15/2024

 
272.5

 
269.1

 
230.1

 
0.14
%

61
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Tavern Properties, LLC and Wildwood Tavern, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2039

 
425.0

 
312.0

 
312.3

 
0.19
%
RDT Enterprises, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
162.8

 
161.4

 
152.3

 
0.09
%
KW Zion, LLC and Key West Gallery Inc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/12/2039

 
1,250.0

 
1,246.4

 
1,203.3

 
0.72
%
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

 
622.4

 
499.6

 
0.30
%
B&P Diners, LLC dba Engine House Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/10/2024

 
80.0

 
79.0

 
63.0

 
0.04
%
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

 
51.3

 
42.2

 
0.03
%
Alberti and Cardoni, LLC dba Menchie's
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
8/29/2024

 
77.3

 
77.3

 
64.3

 
0.04
%
Delta Aggrigate, LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
8/28/2039

 
911.3

 
911.3

 
912.1

 
0.55
%
Lamjam, LLC (EPC) Goldsmith Lambros Inc. (OC)
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024

 
133.8

 
131.3

 
129.3

 
0.08
%
Orange County Cleaning Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024

 
41.3

 
40.5

 
32.3

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

 
121.0

 
118.9

 
103.7

 
0.06
%
Atlas Auto Body Inc. dba Atlas Auto Sales
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/22/2039

 
51.6

 
51.3

 
47.9

 
0.03
%
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

 
1,220.6

 
1,160.5

 
0.70
%
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

 
431.6

 
432.0

 
0.26
%
Barber Investments, LLC and Fieldstone Quickstop, LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
150.0

 
149.3

 
128.6

 
0.08
%
Katie Senior Care, LLC dba Home Instead Senior Care
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2024

 
124.3

 
121.9

 
97.2

 
0.06
%
Alpha Preparatory Academy, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
145.2

 
109.2

 
109.4

 
0.07
%
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

 
188.4

 
187.6

 
187.8

 
0.11
%
Almost Home Property, LLC and Almost Home Daycare, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/7/2039

 
715.8

 
713.6

 
698.8

 
0.42
%
iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
379.1

 
290.5

 
259.3

 
0.16
%

62
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
AGV Enterprises, LLC dba Jet's Pizza #42
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
54.8

 
53.5

 
43.9

 
0.03
%
575 Columbus Avenue Holding Company, LLC and LA-ZE, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/30/2039

 
22.5

 
22.4

 
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

 
21.9

 
17.8

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

 
150.0

 
149.1

 
147.6

 
0.09
%
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

 
91.3

 
91.3

 
88.4

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

 
150.1

 
146.4

 
126.6

 
0.08
%
Honeyspot Investors, LLP and Pace Motor Lines Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
875.3

 
870.1

 
859.1

 
0.52
%
iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
629.8

 
625.2

 
549.0

 
0.33
%
Wired, LLC and Moulison North Corporation
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
500.0

 
484.4

 
419.1

 
0.25
%
AMG Holding, LLC and Stetson Automotive, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
208.0

 
206.5

 
206.3

 
0.12
%
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

 
96.9

 
92.5

 
0.06
%
Highway Striping Inc.
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
53.1

 
51.5

 
43.1

 
0.03
%
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

 
319.6

 
303.4

 
0.18
%
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

 
135.5

 
130.5

 
0.08
%
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

 
107.1

 
94.9

 
0.06
%
Nikobella Properties, LLC and JPO Inc. dba Village Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/25/2039

 
476.3

 
472.8

 
451.7

 
0.27
%
RDJ Maayaa Inc. dba RDJ Distributors
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/23/2024

 
8.7

 
8.3

 
6.7

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

 
233.4

 
231.7

 
220.0

 
0.13
%

63
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
510 ROK Realty, LLC dba ROK Health and Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/19/2024

 
332.0

 
322.2

 
304.3

 
0.18
%
Nirvi Enterprises, LLC dba Howard Johnson / Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/17/2039

 
920.3

 
913.5

 
912.5

 
0.55
%
Hotels of North Georgia, LLC dba Comfort Inn and Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/17/2039

 
837.5

 
831.4

 
825.4

 
0.50
%
Global Educational Delivery Services, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/16/2024

 
60.0

 
58.3

 
57.3

 
0.03
%
GPG Real Estate Holdings, LLC and GPG Enterprises Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/13/2039

 
322.1

 
319.7

 
299.2

 
0.18
%
Rainbow Dry Cleaners
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/13/2024

 
122.5

 
118.7

 
100.1

 
0.06
%
GPG Real Estate Holdings, LLC (OC) GPG Enterprises Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/13/2039

 
162.5

 
40.4

 
40.4

 
0.02
%
NVR Corporation dba Discount Food Mart
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/11/2039

 
68.3

 
67.5

 
67.4

 
0.04
%
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

 
249.2

 
232.9

 
0.14
%
Sujata Inc. dba Stop N Save Food Mart
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/3/2024

 
22.5

 
21.8

 
18.0

 
0.01
%
Long Island Barber Institute Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2039

 
55.5

 
55.1

 
51.5

 
0.03
%
CJR LLC (EPC) and PowerWash Plus, Inc. (OC)
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024

 
53.0

 
51.0

 
46.6

 
0.03
%
Pocono Coated Products, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024

 
22.5

 
21.7

 
19.9

 
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

 
935.8

 
934.7

 
0.56
%
Wilton Dental Care P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024

 
128.1

 
125.6

 
100.4

 
0.06
%
EGM Food Services Inc. dba Gold Star Chili
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024

 
19.2

 
18.5

 
15.4

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

 
60.0

 
57.8

 
45.7

 
0.03
%
USI Properties, LLC dba U Store It
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
5/23/2039

 
144.6

 
143.4

 
141.0

 
0.08
%
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

 
134.1

 
133.9

 
0.08
%

64
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Hae M. and Jin S. Park dba Buford Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/15/2039

 
166.5

 
164.3

 
151.0

 
0.09
%
Moochie's, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/13/2024

 
100.5

 
97.9

 
79.3

 
0.05
%
The River Beas, LLC and Punam Singh
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/8/2039

 
90.3

 
89.5

 
84.8

 
0.05
%
AS Boyals, LLC dba Towne Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/29/2039

 
117.5

 
116.3

 
116.2

 
0.07
%
Winter Ventures Inc. and 214 N Franklin LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/29/2024

 
62.6

 
59.9

 
53.0

 
0.03
%
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

 
478.1

 
376.8

 
0.23
%
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

 
76.4

 
73.4

 
0.04
%
Complete Body & Paint, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/23/2039

 
20.8

 
20.6

 
20.5

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

 
103.8

 
102.7

 
102.6

 
0.06
%
Aiello's Pizzeria, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/18/2024

 
42.8

 
40.9

 
34.0

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

 
186.3

 
178.1

 
145.5

 
0.09
%
Family Ties Supply Corp. dba Best Cookies & More dba Cookie Factory Out
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/16/2024

 
53.1

 
50.8

 
39.8

 
0.02
%
R2 Tape Inc. dba Presto Tape
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/10/2024

 
78.8

 
75.3

 
74.0

 
0.04
%
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

 
135.2

 
130.7

 
0.08
%
Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/31/2024

 
1,250.0

 
712.3

 
689.3

 
0.41
%
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

 
443.7

 
427.6

 
0.26
%
Dantanna's Tavern, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
164.3

 
158.2

 
133.2

 
0.08
%
RDT Enterprises, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028

 
141.2

 
137.1

 
135.6

 
0.08
%
Kemmer, LLC (EPC) and Pitts Package Store, Inc.(OC)
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
117.5

 
116.3

 
99.7

 
0.06
%

65
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
100.9

 
91.1

 
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

 
91.5

 
82.6

 
0.05
%
Wilban, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/28/2039

 
427.5

 
422.5

 
403.8

 
0.24
%
Lake Area Autosound, LLC and Ryan H. Whittington
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2039

 
125.0

 
125.0

 
116.8

 
0.07
%
TC Business Enterprises, LLC dba Sky Zone Indoor Trampoline Park
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/27/2024

 
290.1

 
280.8

 
229.0

 
0.14
%
Sapienzo Properties, LLC (EPC) CNS Self-Storage Inc. (OC)
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/27/2039

 
193.8

 
190.6

 
190.4

 
0.11
%
Hascher Gabelstapler Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/26/2024

 
143.3

 
136.1

 
122.5

 
0.07
%
Knowledge First Inc. dba Magic Years of Learning and Kimberly Knox
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/21/2039

 
145.0

 
143.5

 
132.2

 
0.08
%
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

 
491.5

 
490.9

 
0.29
%
Cormac Enterprises and Wyoming Valley Beverage Incorporated
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039

 
110.8

 
109.6

 
109.5

 
0.07
%
Kinisi, Inc. dba The River North UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2024

 
41.3

 
38.4

 
33.8

 
0.02
%
Tortilla King, Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2029

 
1,033.1

 
1,011.0

 
903.2

 
0.54
%
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

 
404.4

 
400.5

 
0.24
%
Tortilla King Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2039

 
216.9

 
214.3

 
193.3

 
0.12
%
Bowl Mor, LLC dba Bowl Mor Lanes and Spare Lounge, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/13/2039

 
223.5

 
220.9

 
220.6

 
0.13
%
Avayaan2, LLC dba Island Cove
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/7/2039

 
157.5

 
155.6

 
148.6

 
0.09
%
Onofrio's Fresh Cut Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/6/2024

 
75.0

 
71.4

 
65.7

 
0.04
%
J&M Concessions, Inc.dba A-1 Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/3/2039

 
135.6

 
134.0

 
120.8

 
0.07
%
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

 
412.1

 
386.2

 
0.23
%

66
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Summit Beverage Group, LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024

 
350.6

 
330.8

 
293.6

 
0.18
%
Faith Memorial Chapel, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039

 
214.2

 
211.4

 
194.6

 
0.12
%
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

 
208.3

 
192.3

 
0.12
%
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

 
150.3

 
143.1

 
0.09
%
Pindar Associates, LLC, Pidar Vineyards, LLC, Duck Walk Vineyards Inc.
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/25/2024

 
712.3

 
672.0

 
659.9

 
0.40
%
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

 
139.4

 
139.2

 
0.08
%
JWB Industries, Inc. dba Carteret Die Casting
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/11/2024

 
280.0

 
264.1

 
217.5

 
0.13
%
Sovereign Communications, LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/7/2024

 
907.8

 
856.3

 
688.8

 
0.41
%
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

 
98.2

 
93.5

 
0.06
%
Awesome Pets II Inc. dba Mellisa's Pet Depot
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
2/7/2024

 
83.2

 
79.5

 
66.1

 
0.04
%
Robert Star Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/5/2024

 
46.8

 
44.2

 
43.4

 
0.03
%
Atlas Mountain Construction, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
1/28/2024

 
16.5

 
15.5

 
15.2

 
0.01
%
Sarah Sibadan dba Sibadan Agency
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/27/2039

 
129.4

 
127.5

 
124.3

 
0.07
%
3Fmanagement, LLC and ATC Fitness Cape Coral, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
1/24/2024

 
425.0

 
398.2

 
334.1

 
0.20
%
JDR Industries Inc dba CST-The Composites Store
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
1/21/2024

 
140.3

 
131.4

 
112.4

 
0.07
%
Icore Enterprises Inc. dba Air Flow Filters Inc.
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/15/2024

 
21.8

 
20.4

 
20.0

 
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

 
883.5

 
814.7

 
0.49
%
Carl R. Bieber, Inc. dba Bieber Tourways/Bieber Transportation
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2027

 
712.5

 
692.9

 
675.7

 
0.41
%
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

 
17.8

 
14.2

 
0.01
%

67
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
620.0

 
608.6

 
0.37
%
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

 
317.2

 
289.5

 
0.17
%
Superior Disposal Service, Inc.
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
12/26/2023

 
240.5

 
223.8

 
206.3

 
0.12
%
KK International Trading Corporation
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/23/2028

 
190.0

 
182.6

 
169.9

 
0.10
%
AIP Enterprises, LLC and Spider's Web Inc dba Black Widow Harley-Davidson
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038

 
962.5

 
946.7

 
936.7

 
0.56
%
JackRabbit Sports Inc.
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/20/2023

 
581.3

 
535.9

 
526.0

 
0.32
%
Mosley Auto Group, LLC dba America's Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038

 
221.5

 
217.9

 
212.2

 
0.13
%
Kurtis Sniezek dba Wolfe's Foreign Auto
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038

 
88.9

 
87.4

 
87.3

 
0.05
%
PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/19/2038

 
555.3

 
546.2

 
508.3

 
0.31
%
Lefont Theaters Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/19/2023

 
14.4

 
13.4

 
11.6

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

 
405.0

 
398.4

 
373.6

 
0.22
%
Any Garment Cleaner-East Brunswick, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2023

 
53.8

 
50.0

 
46.0

 
0.03
%
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

 
17.3

 
14.8

 
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

 
193.1

 
188.5

 
0.11
%
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

 
411.3

 
410.6

 
0.25
%
DKB Transport Corp.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2038

 
138.8

 
136.5

 
136.3

 
0.08
%
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

 
507.7

 
441.3

 
0.27
%
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

 
102.5

 
90.3

 
0.05
%

68
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Spectrum Development, LLC and Solvit Inc & Solvit North, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/2/2023

 
387.3

 
360.3

 
313.0

 
0.19
%
BVIP Limousine Service, LTD
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/27/2038

 
76.5

 
75.1

 
72.4

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

 
67.2

 
62.1

 
50.6

 
0.03
%
TNDV: Television, LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
11/26/2038

 
253.8

 
249.2

 
234.9

 
0.14
%
Veterinary Imaging Specialists of Alaska, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/26/2023

 
162.6

 
155.0

 
144.4

 
0.09
%
Wallace Holdings, LLC (EPC) GFA International Inc. (OC)
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.5%
 
11/25/2023

 
125.0

 
115.4

 
92.8

 
0.06
%
AcuCall, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2023

 
15.8

 
14.7

 
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

 
1,227.8

 
1,064.3

 
0.64
%
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

 
42.3

 
34.5

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

 
396.7

 
390.0

 
382.7

 
0.23
%
Yousef Khatib dba Y&M Enterprises
 
Wholesale Electronic Markets and Agents and Brokers
 
Term Loan
 
Prime plus 2.75%
 
11/15/2023

 
75.0

 
69.3

 
56.7

 
0.03
%
River Run Personnel, LLC dba Express Employment Professionals
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/15/2023

 
20.0

 
1.2

 
1.2

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

 
8.3

 
7.7

 
6.1

 
—
%
Armin and Kian Inc. dba The UPS Store 3714
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
11/13/2023

 
56.5

 
52.2

 
41.0

 
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

 
61.6

 
61.5

 
0.04
%
Twinsburg Hospitality Group, LLC dba Comfort Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
945.0

 
928.1

 
862.6

 
0.52
%
Master CNC Inc. & Master Properties, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
596.6

 
585.0

 
524.2

 
0.31
%
1 North Restaurant Corp. dba 1 North Steakhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
212.5

 
208.4

 
202.4

 
0.12
%

69
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Mid-Land Sheet Metal Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
137.5

 
135.0

 
129.9

 
0.08
%
Logistics Business Solutions Inc. dba The UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2023

 
50.0

 
46.5

 
41.8

 
0.03
%
Janice B. McShan and The Metropolitan Day School, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/31/2023

 
42.8

 
40.4

 
38.5

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

 
664.5

 
650.4

 
644.4

 
0.39
%
New Image Building Services Inc. dba New Image Repair Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/29/2023

 
331.3

 
303.9

 
254.1

 
0.15
%
A-1 Quality Services Corporation
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/29/2023

 
8.9

 
8.1

 
6.4

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

 
246.3

 
241.5

 
221.1

 
0.13
%
Greenbrier Technical Services, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/24/2023

 
240.1

 
221.6

 
208.6

 
0.13
%
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

 
80.3

 
67.2

 
0.04
%
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

 
23.6

 
21.3

 
0.01
%
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

 
956.4

 
938.7

 
0.56
%
Fieldstone Quick Stop, LLC (OC) Barber Investments, LLC (EPC)
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
676.3

 
667.1

 
598.7

 
0.36
%
Cencon Properties, LLC and Central Connecticut Warehousing Company
 
Warehousing and Storage
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
344.5

 
337.8

 
333.3

 
0.20
%
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

 
317.7

 
302.4

 
0.18
%
Onofrios Enterprises, LLC (EPC) Onofrios Fresh Cut, Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
312.5

 
306.8

 
294.3

 
0.18
%
Discount Wheel and Tire
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
223.8

 
219.0

 
204.2

 
0.12
%
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

 
117.9

 
117.7

 
0.07
%
AGS Talcott Partners, Inc.
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/30/2023

 
117.8

 
107.3

 
84.2

 
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

 
95.6

 
86.8

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

 
757.6

 
741.6

 
688.8

 
0.41
%

70
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman, DDS, PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038

 
335.1

 
328.0

 
310.9

 
0.19
%
Handy 6391, LLC dba The UPS Store #6391
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2023

 
62.5

 
58.3

 
57.3

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

 
463.8

 
453.9

 
453.1

 
0.27
%
HJ & Edward Enterprises, LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2023

 
262.5

 
246.8

 
222.6

 
0.13
%
Anthony C Dinoto and Susan S P Dinoto
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
100.0

 
98.0

 
97.8

 
0.06
%
Southeast Chicago Soccer Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
51.3

 
50.2

 
50.1

 
0.03
%
Kiddie Steps 4 You Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/25/2038

 
89.3

 
83.9

 
78.4

 
0.05
%
Diamond Memorials Incorporated
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2023

 
14.3

 
12.8

 
10.0

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

 
268.4

 
262.7

 
249.0

 
0.15
%
Serious-Fun in Alpharetta, LLC dba The Little Gym of Alpharetta
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2023

 
46.3

 
42.3

 
34.8

 
0.02
%
Westville Seafood, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2038

 
112.3

 
109.9

 
102.7

 
0.06
%
Maynard Enterprises Inc. dba Fastsigns of Texarkana
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/18/2023

 
16.1

 
14.8

 
12.3

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

 
156.3

 
142.3

 
118.8

 
0.07
%
The Berlerro Group, LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/12/2023

 
421.3

 
395.8

 
326.4

 
0.20
%
Sound Manufacturing Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/12/2028

 
54.8

 
52.1

 
46.6

 
0.03
%
Prospect Kids Academy Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038

 
124.3

 
121.6

 
116.6

 
0.07
%
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

 
38.7

 
38.6

 
0.02
%
B for Brunette, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/10/2023

 
53.4

 
49.3

 
39.1

 
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

 
217.8

 
202.8

 
0.12
%

71
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
ACI Northwest Inc.
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
906.3

 
680.0

 
613.9

 
0.37
%
IlOKA Inc. dba Microtech Tel and NewCloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
687.5

 
621.5

 
528.2

 
0.32
%
Spectrum Radio Fairmont, LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
187.5

 
169.5

 
163.9

 
0.10
%
Excel RP Inc.
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
130.3

 
117.8

 
110.1

 
0.07
%
Gulfport Academy Child Care and Learning Center, Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
43.3

 
39.1

 
36.3

 
0.02
%
Mojo Brands Media, LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
8/28/2023

 
784.0

 
750.1

 
603.7

 
0.36
%
Ramard Inc and Advanced Health Sciences Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/28/2023

 
187.5

 
169.5

 
133.0

 
0.08
%
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

 
73.6

 
72.3

 
0.04
%
JSIL LLC dba Blackstones Hairdressing
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/16/2023

 
19.5

 
17.7

 
14.8

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

 
65.0

 
52.3

 
51.0

 
0.03
%
Island Nautical Enterprises, Inc. (OC) and Ingwall Holdings, LLC (EPC)
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/14/2038

 
445.0

 
343.0

 
312.3

 
0.19
%
Caribbean Concepts, Inc. dba Quick Bleach
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/12/2023

 
22.5

 
20.5

 
16.7

 
0.01
%
VesperGroup, LLC dba The Wine Cellar
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/5/2023

 
45.0

 
40.7

 
33.9

 
0.02
%
Blacknorange2, LLC dba Popeyes Louisiana Kitchen
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2023

 
175.0

 
159.1

 
128.9

 
0.08
%
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

 
81.8

 
78.2

 
0.05
%
Majestic Contracting Services, Inc. dba Majestic Electric
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/26/2038

 
190.0

 
185.4

 
171.3

 
0.10
%
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

 
10.1

 
9.9

 
0.01
%
Angkor Restaurant Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/19/2038

 
93.0

 
90.8

 
88.3

 
0.05
%
Harbor Ventilation Inc. and Estes Investment, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2038

 
92.1

 
90.0

 
84.5

 
0.05
%

72
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Tri County Heating and Cooling Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2023

 
87.8

 
78.8

 
73.7

 
0.04
%
Morning Star Trucking. LLC and Morning Star Equipment and Leasing, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/17/2023

 
53.8

 
48.2

 
37.9

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

 
153.5

 
136.9

 
135.5

 
0.08
%
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

 
117.9

 
118.9

 
0.07
%
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

 
95.0

 
95.8

 
0.06
%
Emerald Ironworks Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/27/2023

 
72.0

 
64.4

 
56.4

 
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

 
764.3

 
690.4

 
0.41
%
2161 Highway 6 Trail, LLC (EPC)
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2026

 
1,250.0

 
912.6

 
903.4

 
0.54
%
CBlakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial Services
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/18/2028

 
875.0

 
821.3

 
819.1

 
0.49
%
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

 
306.2

 
263.6

 
0.16
%
Elite Structures Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/12/2038

 
932.8

 
901.3

 
901.2

 
0.54
%
(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

 
183.7

 
172.4

 
0.10
%
(EPC) Willowbrook Properties, LLC (OC) Grove Gardens Landscaping Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038

 
186.3

 
181.5

 
177.9

 
0.11
%
Maciver Corporation dba Indie Rentals and Division Camera
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
5/31/2023

 
440.8

 
390.3

 
363.0

 
0.22
%
RKP Service dba Rainbow Carwash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/31/2023

 
300.0

 
268.2

 
232.8

 
0.14
%
Europlast Ltd.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/31/2023

 
162.0

 
157.4

 
151.0

 
0.09
%
RXSB, Inc. dba Medicine Shoppe
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
5/30/2023

 
186.3

 
165.5

 
140.1

 
0.08
%
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

 
56.2

 
51.2

 
0.03
%
Ryan D. Thornton and Thornton & Associates, LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
5/24/2023

 
68.8

 
58.7

 
49.7

 
0.03
%

73
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(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

 
15.1

 
12.8

 
0.01
%
Hybrid Racing, LLC.
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/15/2023

 
116.3

 
103.4

 
92.8

 
0.06
%
Atlas Mountain Construction, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/13/2038

 
127.3

 
123.8

 
124.8

 
0.07
%
PowerWash Plus, Inc. and CJR, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/30/2038

 
550.0

 
534.1

 
512.2

 
0.31
%
Peanut Butter & Co., Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/30/2023

 
100.0

 
87.7

 
75.1

 
0.05
%
Brothers International Desserts
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/26/2023

 
230.0

 
201.8

 
185.1

 
0.11
%
Kidrose, LLC dba Kidville Riverdale
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/22/2023

 
78.8

 
69.9

 
62.3

 
0.04
%
SFAM Parsippany LLC dba Cups Frozen Yogurt
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
4/19/2023

 
121.3

 
46.3

 
45.8

 
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

 
146.7

 
147.9

 
0.09
%
Capital Scrap Metal, LLC and Powerline Investment, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
500.0

 
463.9

 
467.5

 
0.28
%
MRM Supermarkets Inc. dba Constantins Breads; Dallas Gourmet Breads
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
336.0

 
325.8

 
303.2

 
0.18
%
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

 
120.8

 
114.3

 
0.07
%
A & M Commerce, Inc. dba Cranberry Sunoco
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/27/2038

 
330.3

 
320.0

 
313.9

 
0.19
%
Xela Pack, Inc. and Aliseo and Catherine Gentile
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2028

 
271.8

 
252.1

 
250.6

 
0.15
%
Neyra Industries, Inc. and Edward Neyra
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
217.5

 
189.4

 
185.0

 
0.11
%
Gator Communications Group, LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
17.3

 
15.5

 
14.2

 
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

 
521.1

 
497.8

 
0.30
%
Michael A. and Heather R. Welsch dba Art & Frame Etc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/22/2038

 
67.5

 
65.4

 
63.9

 
0.04
%
M & H Pine Straw Inc. and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023

 
288.8

 
251.6

 
235.9

 
0.14
%

74
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(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

 
69.2

 
60.1

 
0.04
%
J. Kinderman & Sons Inc., dba BriteStar Inc.
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/20/2023

 
181.3

 
157.8

 
156.0

 
0.09
%
Stellar Environmental, LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2023

 
56.3

 
49.0

 
46.7

 
0.03
%
Sound Manufacturing, Inc. and Monster Power Equipment Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/15/2023

 
523.0

 
455.9

 
417.3

 
0.25
%
N.S and Z, Inc. dba Panos Pastry and Bakery and Jovinar's Chocolates
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/15/2038

 
129.3

 
125.5

 
126.5

 
0.08
%
Golden Gate Lodging, LLC (OC)
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2038

 
115.0

 
111.5

 
108.9

 
0.07
%
Aldine Funeral Chapel, LLC dba Aldine Funeral Chapel
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/8/2038

 
73.8

 
35.5

 
35.8

 
0.02
%
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

 
459.9

 
445.9

 
0.27
%
Bakhtar Group, LLC dba Malmaison
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2023

 
103.8

 
90.4

 
76.6

 
0.05
%
Osceola River Mill, LLC(EPC) Ironman Machine, Inc.(OC)
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/20/2038

 
86.3

 
83.5

 
81.5

 
0.05
%
Grand Manor Realty, Inc. & Kevin LaRoe
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
2/20/2023

 
21.8

 
19.0

 
16.1

 
0.01
%
Java Warung, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/19/2038

 
51.0

 
49.5

 
48.5

 
0.03
%
Pacheco Investments, LLC (EPC) Pacheco Brothers Gardening Inc. (OC)
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
2/15/2038

 
425.0

 
410.0

 
403.5

 
0.24
%
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

 
102.9

 
100.6

 
0.06
%
Orient Express, Inc. dba Spracht, Celltek, ODI
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/12/2023

 
84.9

 
72.4

 
61.3

 
0.04
%
Knits R Us, Inc. dba NYC Sports/Mingle
 
Textile Mills
 
Term Loan
 
Prime plus 2.75%
 
2/11/2038

 
125.0

 
121.0

 
122.0

 
0.07
%
North Country Transport, LLC
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/6/2023

 
15.0

 
13.0

 
12.8

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

 
258.3

 
249.6

 
239.6

 
0.14
%

75
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
EZ Towing, Inc.
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/31/2023

 
145.0

 
124.5

 
110.3

 
0.07
%
Sherill Universal City dba Golden Corral
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2038

 
440.5

 
427.4

 
411.7

 
0.25
%
Macho LLC (EPC) Madelaine Chocolate Novelties Inc(OC) dba The Madelai
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/31/2037

 
500.0

 
484.6

 
488.3

 
0.29
%
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

 
250.9

 
226.0

 
0.14
%
Elegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2022

 
97.5

 
83.0

 
70.8

 
0.04
%
John Duffy Fuel Co., Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/28/2022

 
513.8

 
437.5

 
428.7

 
0.26
%
Babie Bunnie Enterprises Inc. dba Triangle Mothercare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2022

 
46.3

 
39.3

 
33.3

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

 
517.5

 
500.9

 
504.8

 
0.30
%
Trailer One, Inc. and Trailer One Storage, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/27/2022

 
166.8

 
142.0

 
140.3

 
0.08
%
Martin L Hopp, MD PHD, A Medical Corp (OC)
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2022

 
66.3

 
56.2

 
50.0

 
0.03
%
Ezzo Properties, LLC and Great Lakes Cleaning, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2027

 
389.6

 
357.0

 
317.0

 
0.19
%
Pioneer Window Holdings, Inc. and Subsidiaries dba Pioneer Windows
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/20/2022

 
225.0

 
195.2

 
176.8

 
0.11
%
The Amendments Group, LLC dba Brightstar
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/17/2022

 
22.5

 
19.1

 
18.9

 
0.01
%
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

 
108.2

 
94.4

 
0.06
%
Color By Number 123 Designs, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2022

 
42.5

 
35.9

 
35.4

 
0.02
%
Aegis Creative Communications, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2022

 
387.5

 
302.5

 
256.0

 
0.15
%
Cheryle A Baptiste and Cheryle Baptiste DDS PLLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2037

 
286.5

 
277.1

 
272.1

 
0.16
%
Summit Treatment Services, Inc. dba Summit Treatment Services
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/30/2037

 
136.5

 
131.9

 
118.7

 
0.07
%
214 North Franklin, LLC and Winter Ventures, Inc.
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/29/2037

 
153.9

 
148.2

 
140.7

 
0.08
%

76
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
215.7

 
215.4

 
0.13
%
Richmond Hill Mini Market, LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/27/2037

 
185.3

 
178.6

 
174.8

 
0.11
%
D&L Rescources, Inc. dba The UPS Store
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/27/2022

 
9.8

 
8.2

 
7.0

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

 
65.0

 
53.6

 
53.0

 
0.03
%
Pioneer Windows Manufacturing Corp, Pioneer Windows
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/21/2022

 
275.0

 
236.7

 
214.2

 
0.13
%
U & A Food and Fuel, Inc. dba Express Gas & Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/21/2037

 
96.3

 
92.7

 
93.4

 
0.06
%
Clean Brothers Company Inc. dba ServPro of North Washington County
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/21/2022

 
17.0

 
14.3

 
12.7

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

 
180.0

 
173.3

 
171.3

 
0.10
%
PGH Groceries, LLC DBA The Great American Super
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/19/2037

 
68.8

 
66.3

 
64.9

 
0.04
%
St Judes Physical Therapy P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2022

 
21.0

 
17.7

 
17.5

 
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

 
18.7

 
16.5

 
0.01
%
Reidville Hydraulics & Mfg Inc. dba Summit Farms, LLC
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/2/2037

 
265.9

 
256.2

 
237.4

 
0.14
%
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

 
154.2

 
130.5

 
0.08
%
Chickamauga Properties, Inc. and MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/19/2022

 
59.8

 
50.0

 
49.4

 
0.03
%
LA Diner Inc. dba Loukas L A Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/28/2037

 
677.5

 
652.1

 
657.0

 
0.39
%
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

 
215.0

 
181.9

 
0.11
%
ATC Fitness, LLC dba Around the Clock Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2022

 
180.0

 
154.0

 
143.8

 
0.09
%
University Park Retreat, LLC dba Massage Heights
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2022

 
76.0

 
63.0

 
62.3

 
0.04
%

77
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Europlast Ltd.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/26/2022

 
743.9

 
680.4

 
655.1

 
0.39
%
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

 
177.7

 
171.1

 
0.10
%
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

 
242.1

 
232.1

 
0.14
%
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

 
62.9

 
59.7

 
0.04
%
AdLarge Media, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2022

 
250.0

 
207.7

 
175.7

 
0.11
%
Vision Network Solutions, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/12/2022

 
19.5

 
16.2

 
13.7

 
0.01
%
R2 Tape, Inc. dba Presto Tape
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2037

 
367.5

 
352.1

 
354.7

 
0.21
%
R2 Tape Inc. dba Presto Tape
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2022

 
155.0

 
127.5

 
125.9

 
0.08
%
AJK Enterprise, LLC dba AJK Enterprise, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/27/2022

 
16.5

 
13.6

 
13.1

 
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

 
273.7

 
252.7

 
0.15
%
Suncoast Aluminum Furniture, Inc.
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/17/2037

 
360.0

 
344.9

 
345.7

 
0.21
%
Matchless Transportation, LLC dba First Class Limo
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/3/2022

 
185.0

 
153.1

 
139.8

 
0.08
%
Hofgard & Co., Inc. dba HofgardBenefits
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022

 
107.3

 
87.4

 
81.8

 
0.05
%
Georgia Safe Sidewalks, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022

 
15.0

 
12.1

 
11.1

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

 
50.0

 
42.9

 
41.9

 
0.03
%
Havana Central (NY) 5, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/29/2022

 
1,166.8

 
984.7

 
956.2

 
0.57
%
Central Tire, Inc. dba Cooper Tire & Auto Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/29/2037

 
288.5

 
275.2

 
272.9

 
0.16
%
WPI, LLC
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2024

 
129.5

 
110.1

 
104.7

 
0.06
%

78
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Karykion, Corporation dba Karykion Corporation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2022

 
194.0

 
157.3

 
156.9

 
0.09
%
Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/27/2037

 
69.8

 
66.5

 
66.9

 
0.04
%
KIND-ER-ZZ Inc. dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2022

 
50.0

 
40.1

 
36.6

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

 
20.3

 
16.4

 
14.9

 
0.01
%
TNDV: Television, LLC
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
6/13/2022

 
127.5

 
103.2

 
98.8

 
0.06
%
Spectrumit, Inc, (OC) dba LANformation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/31/2030

 
154.9

 
141.7

 
140.0

 
0.08
%
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

 
115.8

 
116.4

 
0.07
%
ALF, LLC (EPC) Mulit-Service Eagle Tires (OC)
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/31/2037

 
62.9

 
59.9

 
59.9

 
0.04
%
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

 
31.8

 
31.7

 
0.02
%
Lefont Theaters, Inc.
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
5/30/2022

 
137.0

 
109.9

 
104.7

 
0.06
%
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

 
270.3

 
273.5

 
0.16
%
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

 
18.1

 
16.5

 
0.01
%
STK Ventures Inc. dba JP Dock Service & Supply
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/9/2037

 
131.8

 
126.1

 
125.3

 
0.08
%
Bisson Transportation, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/7/2037

 
588.1

 
570.2

 
560.0

 
0.34
%
Bisson Moving & Storage Company Bisson Transportation Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/7/2022

 
528.8

 
440.8

 
426.5

 
0.26
%
Fair Deal Food Mart Inc. dba Neighbors Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/3/2037

 
381.3

 
363.0

 
370.4

 
0.22
%
Custom Software, Inc. a Colorado Corporation dba M-33 Access
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
4/30/2022

 
125.0

 
103.1

 
101.7

 
0.06
%
Tanner Optical, Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/27/2022

 
8.3

 
6.6

 
6.4

 
—
%

79
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Gator Communications Group, LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
4/25/2022

 
228.8

 
187.7

 
176.1

 
0.11
%
Zane Filippone Co Inc. dba Culligan Water Conditioning
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/12/2022

 
558.2

 
447.7

 
429.7

 
0.26
%
Indoor Playgrounds Limited Liability Company dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/5/2022

 
19.5

 
12.9

 
12.4

 
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

 
378.5

 
355.0

 
0.21
%
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

 
212.5

 
215.1

 
0.13
%
Access Staffing, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2022

 
187.5

 
147.7

 
134.6

 
0.08
%
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

 
721.9

 
736.3

 
0.44
%
Manuel P. Barrera and Accura Electrical Contractor, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028

 
103.7

 
92.4

 
87.6

 
0.05
%
Shweiki Media, Inc. dba Study Breaks Magazine
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/22/2027

 
1,178.8

 
1,036.8

 
997.5

 
0.60
%
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

 
343.7

 
315.9

 
0.19
%
ATC Fitness, LLC d/b/a Around the C
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2022

 
10.2

 
8.0

 
7.7

 
—
%
ATI Jet, Inc.
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/28/2026

 
852.8

 
738.5

 
717.5

 
0.43
%
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

 
469.1

 
478.4

 
0.29
%
K's Salon 1, LLC d/b/a K's Salon
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2021

 
73.6

 
56.4

 
51.4

 
0.03
%
15 Frederick Place, LLC & Pioneer Windows Holdings Inc. & Subs
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/16/2021

 
250.0

 
194.1

 
193.3

 
0.12
%
GP Enterprises, LLC and Gibson Performance Corporation
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2036

 
727.5

 
686.5

 
700.0

 
0.42
%
GP Enterprises, LLC and Gibson Performance Corporation
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2036

 
522.5

 
493.1

 
502.8

 
0.30
%
M & H Pinestraw, Inc. and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/15/2021

 
238.3

 
183.0

 
172.7

 
0.10
%

80
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Maciver Corporation dba Indie Rentals & Division Camera
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/15/2021

 
130.8

 
99.9

 
97.5

 
0.06
%
Taylor Transport, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/8/2021

 
515.5

 
387.6

 
375.2

 
0.23
%
City Sign Service, Incorporated
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
165.8

 
142.0

 
140.3

 
0.08
%
Scent-Sation, Inc. d/b/a Scent-Sation, Inc.
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
11/21/2021

 
337.5

 
285.2

 
284.0

 
0.17
%
Thomas P. Scoville dba Scoville Plumbing & Heating, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/16/2021

 
62.5

 
47.4

 
47.2

 
0.03
%
MRM Supermarkets, Inc. dba Constantin's Breads
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/10/2021

 
137.5

 
104.4

 
96.1

 
0.06
%
K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc.
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
10/26/2021

 
58.8

 
44.2

 
40.7

 
0.02
%
Keans Korner, LLC d/b/a MobiMart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/25/2036

 
938.3

 
881.9

 
888.7

 
0.53
%
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

 
16.9

 
16.8

 
0.01
%
C & G Engines Corp.
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2021

 
1,041.5

 
773.8

 
726.5

 
0.44
%
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

 
224.8

 
221.6

 
0.13
%
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

 
129.0

 
130.2

 
0.08
%
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

 
78.1

 
79.5

 
0.05
%
39581 Garfield, LLC and Tricounty Neurological Associates, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
28.5

 
26.6

 
27.1

 
0.02
%
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

 
792.3

 
721.8

 
0.43
%
Polymer Sciences, Inc. dba Polymer Sciences, Inc.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/28/2036

 
422.6

 
396.8

 
403.0

 
0.24
%
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

 
46.5

 
43.4

 
0.03
%
Bryan Bantry Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/8/2021

 
400.0

 
203.3

 
185.3

 
0.11
%

81
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
SBR Technologies d/b/a Color Graphics
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/31/2021

 
806.2

 
586.2

 
572.0

 
0.34
%
Gator Communications Group, LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
8/31/2021

 
575.0

 
437.3

 
423.9

 
0.25
%
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

 
15.4

 
15.4

 
0.01
%
Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/19/2021

 
187.5

 
130.4

 
129.9

 
0.08
%
Trademark Equipment Company Inc. and David A. Daniel
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/19/2036

 
133.6

 
125.1

 
125.1

 
0.08
%
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

 
94.8

 
96.2

 
0.06
%
Valiev Ballet Academy, Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
8/12/2036

 
91.5

 
85.7

 
85.2

 
0.05
%
LaHoBa, LLC d/b/a Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/3/2036

 
77.5

 
72.1

 
73.5

 
0.04
%
Kelly Chon, LLC dba Shi-Golf
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/29/2021

 
17.5

 
9.4

 
9.4

 
0.01
%
MTV Bowl, Inc. dba Legend Lanes
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2036

 
248.5

 
232.3

 
234.7

 
0.14
%
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

 
326.7

 
335.6

 
0.20
%
Jenny's Wunderland, Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
6/29/2036

 
160.5

 
150.4

 
151.2

 
0.09
%
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

 
42.0

 
43.1

 
0.03
%
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

 
180.6

 
172.4

 
0.10
%
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

 
320.4

 
320.1

 
0.19
%
Red Star Incorporated dba Pro Import Company
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/15/2036

 
184.8

 
172.8

 
175.9

 
0.11
%

82
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Pierce Developments, Inc. dba Southside Granite
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/13/2036

 
256.1

 
239.1

 
240.4

 
0.14
%
Major Queens Body & Fender Corp.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/10/2021

 
28.6

 
20.9

 
20.9

 
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

 
421.0

 
428.6

 
0.26
%
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

 
45.8

 
43.8

 
0.03
%
Fleming Marketing, LLC dba Instant Imprints of Longmont
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/31/2021

 
7.5

 
5.4

 
5.3

 
—
%
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

 
11.8

 
11.9

 
0.01
%
Modern on the Mile, LLC dba Ligne Roset
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
5/25/2021

 
212.5

 
151.2

 
148.2

 
0.09
%
MSM Healthcare Solutions, Inc. d/b/a BrightStar Care of Tinley Park
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/26/2021

 
46.0

 
32.5

 
31.0

 
0.02
%
Music Mountain Water Company, LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/25/2036

 
138.1

 
128.2

 
131.7

 
0.08
%
Profile Performance, Inc. and Eidak Real Estate, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2036

 
127.5

 
118.6

 
121.8

 
0.07
%
Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/18/2036

 
129.5

 
120.4

 
123.7

 
0.07
%
3 A Realty, LLC dba Interior Climate Solutions, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/13/2036

 
170.0

 
157.6

 
158.6

 
0.10
%
Maciver Corporation dba Indie Rentals
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
4/4/2021

 
625.0

 
440.3

 
437.5

 
0.26
%
Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2021

 
3.8

 
2.7

 
2.7

 
—
%
Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2023

 
93.0

 
71.0

 
70.6

 
0.04
%
Michael S. Korfe dba North Valley Auto Repair
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/24/2036

 
15.5

 
14.4

 
14.8

 
0.01
%
Actknowledge, Inc. dba Actknowledge
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2021

 
57.3

 
40.1

 
38.2

 
0.02
%
Stamford Car Wash d/b/a Stamford Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/11/2036

 
19.7

 
18.3

 
18.8

 
0.01
%
Food & Beverage Associates Of N.J. Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/11/2021

 
10.0

 
6.8

 
6.8

 
—
%

83
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
107.0

 
103.1

 
0.06
%
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

 
45.9

 
46.1

 
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

 
56.7

 
58.0

 
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

 
28.7

 
29.5

 
0.02
%
Seagate Group Holdings, Inc. dba Seagate Logistics, Inc.
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/28/2036

 
113.4

 
104.7

 
107.5

 
0.06
%
Joseph the Worker, Inc. d/b/a BrightStar of Plymouth County
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/28/2021

 
12.5

 
8.6

 
8.2

 
—
%
Nicholas Dugger dba TNDV: Television LLC. 
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/24/2021

 
100.8

 
70.5

 
67.3

 
0.04
%
Metro Used Cars Inc. dba Metro Auto Center
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
1/14/2027

 
117.6

 
98.5

 
98.6

 
0.06
%
Patrageous Enterprises, LLC dba Incredibly Edible Delites of Laurel
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/29/2020

 
7.6

 
5.1

 
4.8

 
—
%
Chickamauga Properties, Inc., MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2035

 
189.5

 
174.9

 
179.6

 
0.11
%
Chickamauga Properties, Inc., MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2035

 
74.3

 
68.9

 
70.7

 
0.04
%
Marine Container Services, Inc. & Management Consulting Brokerage, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/21/2020

 
50.3

 
33.8

 
33.8

 
0.02
%
Shree OM Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/17/2035

 
27.7

 
25.5

 
26.0

 
0.02
%
Svetavots Corporation dba Brightstar Healthcare of Montgomery County
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2020

 
20.5

 
13.8

 
13.1

 
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

 
43.5

 
43.4

 
0.03
%
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

 
31.3

 
32.1

 
0.02
%
Justforfungames, Inc.
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
11/19/2035

 
50.0

 
45.3

 
46.4

 
0.03
%
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

 
23.7

 
23.7

 
0.01
%

84
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Lebenthal Holdings, LLC and Lebenthal & Co., LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/16/2020

 
200.0

 
133.4

 
127.2

 
0.08
%
West Cobb Enterprises, Inc. and Advanced Eye Associates, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/12/2035

 
148.7

 
136.9

 
138.2

 
0.08
%
R2 Tape, Inc. dba Presto Tape
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/20/2020

 
224.4

 
148.2

 
147.4

 
0.09
%
Lincoln Park Physical Therapy
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/20/2020

 
43.5

 
28.6

 
28.6

 
0.02
%
Jade Automotive d/b/a Sears Hometown Store
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
10/6/2035

 
146.6

 
135.0

 
138.6

 
0.08
%
Stamford Property Holdings, LLC & Stamford Car Wash, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/4/2035

 
122.5

 
113.2

 
116.2

 
0.07
%
Wise Forklift Inc.
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/1/2020

 
296.9

 
190.2

 
190.2

 
0.11
%
Elan Realty, LLC and Albert Basse Asociates, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
9/30/2035

 
228.2

 
209.1

 
214.5

 
0.13
%
K9 Bytes, Inc. & Epazz, Inc. dba K9 Bytes, Inc.
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
9/30/2020

 
18.5

 
12.0

 
11.5

 
0.01
%
Success Express, Inc. dba Success Express
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2020

 
91.8

 
59.6

 
56.8

 
0.03
%
Adams & Hancock, LLC dba Brightstar Overland Park & Jordon & Pippen, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2020

 
19.8

 
8.0

 
8.0

 
—
%
Modern Manhattan, LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/20/2020

 
204.0

 
133.1

 
127.6

 
0.08
%
Dirk's Trucking, LLC dba Dirk's Trucking
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/17/2020

 
17.7

 
11.4

 
11.1

 
0.01
%
Newsome Trucking Inc. and Kevin Newsome
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035

 
423.1

 
387.7

 
397.9

 
0.24
%
California College of Communications, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/2/2020

 
172.5

 
113.9

 
108.6

 
0.07
%
Rudy & Louise Chavez dba Clyde's Auto and Furniture Upholstery
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035

 
50.1

 
45.9

 
47.1

 
0.03
%
DDLK Investments, LLC d/b/a Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020

 
7.5

 
4.5

 
4.5

 
—
%
Kino Oil of Texas, LLC dba Kino Oil
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/27/2020

 
60.0

 
38.5

 
36.7

 
0.02
%

85
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Kino Oil of Texas, LLC dba Kino Company
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/27/2035

 
12.0

 
10.8

 
11.1

 
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

 
25.8

 
24.7

 
0.01
%
Sunmar, Inc. dba Creative Cooking
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/19/2035

 
51.7

 
47.4

 
48.6

 
0.03
%
Members Only Software
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020

 
40.3

 
25.7

 
25.1

 
0.02
%
New Life Holdings, LLC and Certified Collision Services, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2035

 
76.2

 
68.7

 
69.8

 
0.04
%
Quest Logic Investments, LLC dba Dairy Queen
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2035

 
105.0

 
95.8

 
98.6

 
0.06
%
ActKnowledge, Inc dba ActKnowledge
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2020

 
50.0

 
31.4

 
31.5

 
0.02
%
I-90 RV & Auto Supercenter
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/29/2035

 
74.9

 
68.2

 
70.3

 
0.04
%
WeaverVentures, Inc. dba The UPS Store
 
Postal Service
 
Term Loan
 
Prime plus 2.75%
 
7/28/2020

 
23.8

 
15.1

 
14.7

 
0.01
%
Zouk, Ltd. dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/25/2020

 
27.5

 
17.7

 
17.7

 
0.01
%
CJ Park Inc. dba Kidville Midtown West
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2020

 
26.4

 
13.3

 
12.9

 
0.01
%
Emotion in Motion Dance Center Limited Liability Company
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
7/25/2020

 
5.4

 
2.7

 
2.7

 
—
%
H.H. Leonards Trust and Potomac Fund, LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
7/23/2020

 
62.0

 
24.0

 
24.0

 
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

 
242.1

 
221.5

 
226.4

 
0.14
%
Tanner Optical Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2035

 
94.6

 
86.6

 
88.0

 
0.05
%
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

 
42.8

 
42.3

 
0.03
%
Excel RP, Inc./Kevin and Joann Foley
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/8/2028

 
50.0

 
42.1

 
42.8

 
0.03
%
ValleyStar, Inc. dba BrightStar Healthcare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020

 
7.5

 
4.7

 
4.6

 
—
%
ValleyStar, Inc. dba BrightStar HealthCare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020

 
0.6

 
3.8

 
3.7

 
—
%

86
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
15.6

 
15.6

 
0.01
%
Diag, LLC dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/21/2020

 
37.5

 
23.1

 
22.5

 
0.01
%
Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2035

 
204.0

 
185.2

 
188.7

 
0.11
%
M & H Pine Straw, Inc. and Harris L. Maloy
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
6%
 
4/30/2020

 
183.3

 
111.8

 
110.5

 
0.07
%
Clearbay Enterprises, Inc. dba First Class Kennels
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2034

 
60.0

 
53.9

 
55.4

 
0.03
%
New Economic Methods, LLC dba Rita's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2020

 
24.8

 
1.1

 
1.1

 
—
%
Cocoa Beach Parasail Corp. dba Cocoa Beach Parasail
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/26/2020

 
6.3

 
3.8

 
3.7

 
—
%
Marine Container Services, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/25/2020

 
142.6

 
76.4

 
76.4

 
0.05
%
JRJG, Inc. dba BrightStar HealthCare-Naperville/Oak Brook
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/23/2020

 
15.0

 
9.1

 
8.9

 
0.01
%
Caring Hands Pediatrics, P.C. dba Caring Hands Pediatrics
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/9/2020

 
14.5

 
8.9

 
8.6

 
0.01
%
Vortex Automotive, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/5/2035

 
76.6

 
69.4

 
71.0

 
0.04
%
Adams and Hancock, LLC dba BrightStar Overland Park
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2020

 
43.6

 
21.6

 
21.1

 
0.01
%
ATC Fitness, LLC dba Around the Clock Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2019

 
15.0

 
8.0

 
8.0

 
—
%
Lahoba, LLC dba Papa John's Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/30/2034

 
42.5

 
38.4

 
39.2

 
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

 
107.6

 
107.7

 
0.06
%
Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2024

 
126.5

 
94.9

 
94.4

 
0.06
%
Bonet Kidz Inc. dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/16/2020

 
15.5

 
6.4

 
6.3

 
—
%
CMA Consulting dba Construction Management Associates
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
58.5

 
32.9

 
32.0

 
0.02
%
David A. Nusblatt, D.M.D, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
9.0

 
5.2

 
5.2

 
—
%

87
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
KMC RE, LLC & B&B Kennels
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2034

 
58.3

 
52.4

 
53.5

 
0.03
%
Demand Printing Solutions, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/12/2019

 
10.0

 
5.7

 
5.7

 
—
%
Planet Verte, LLC dba Audio Unlimited of Oceanside
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/28/2019

 
57.0

 
32.2

 
31.4

 
0.02
%
Demand Printing Solutions, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
10/29/2034

 
147.5

 
132.4

 
136.1

 
0.08
%
Lebenthal Holdings, LLC and Lebenthal & Co., LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/29/2019

 
500.0

 
53.0

 
52.5

 
0.03
%
Supreme Screw Products, Inc. and Misha Migdal
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/17/2019

 
308.2

 
152.5

 
152.5

 
0.09
%
Gray Tree Service, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2018

 
50.0

 
23.7

 
23.7

 
0.01
%
Healthcare Interventions, Inc. dba Brightstar HealthCare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/15/2016

 
8.3

 
1.4

 
1.4

 
—
%
Envy Salon & Spa, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/4/2018

 
20.3

 
9.4

 
9.3

 
0.01
%
Gourmet to You, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2019

 
12.1

 
5.7

 
5.7

 
—
%
Carnagron, LLC dba GearBling
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/1/2018

 
6.9

 
3.1

 
3.1

 
—
%
Grapevine Professional Services, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/22/2019

 
8.2

 
3.8

 
3.7

 
—
%
Inflate World Corporation
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/30/2018

 
7.5

 
2.6

 
2.6

 
—
%
Cool Air Solutions, Inc. dba Graham Heating & Air Conditioning
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2%
 
12/27/2018

 
411.5

 
190.3

 
187.0

 
0.11
%
Peter Thomas Roth Labs, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/26/2018

 
425.0

 
189.0

 
188.5

 
0.11
%
Dream Envy, Ltd. d/b/a Massage Envy
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/9/2018

 
88.0

 
39.8

 
39.7

 
0.02
%
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

 
35.2

 
35.2

 
0.02
%
Seven Stars Enterprises, Inc. dba Atlanta Bread Company
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2018

 
86.3

 
36.0

 
36.0

 
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

 
61.5

 
61.3

 
0.04
%

88
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Gilbert Chiropractic Clinic, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/7/2018

 
22.5

 
9.1

 
9.1

 
0.01
%
Beer Table, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/8/2018

 
10.5

 
3.7

 
3.7

 
—
%
D & D's Divine Beauty School of Esther, LLC
 
Educational Services
 
Term Loan
 
6%
 
8/1/2031

 
57.7

 
53.9

 
55.4

 
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

 
3.7

 
3.7

 
—
%
Burks & Sons Development, LLC dba Tropical Smoothie Café
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/22/2018

 
49.8

 
19.6

 
19.7

 
0.01
%
Shivsakti, LLC dba Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/20/2032

 
92.5

 
78.9

 
81.2

 
0.05
%
Bliss Coffee and Wine Bar, LLC
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
3/19/2018

 
87.5

 
73.0

 
72.8

 
0.04
%
Zog Inc.
 
Other Information Services
 
Term Loan
 
6%
 
3/17/2018

 
97.5

 
81.9

 
81.6

 
0.05
%
Saan M.Saelee dba Saelee's Delivery Service
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2018

 
9.8

 
3.9

 
3.9

 
—
%
A & A Acquisition, Inc. dba A & A International
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/15/2018

 
100.0

 
37.7

 
37.7

 
0.02
%
Enewhere Custom Canvas, LLC
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
2/15/2018

 
12.0

 
4.7

 
4.7

 
—
%
All American Printing
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
10/26/2032

 
69.8

 
40.1

 
41.3

 
0.02
%
Seo's Paradise Cleaners, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2018

 
9.8

 
3.2

 
3.2

 
—
%
Signs of Fortune, LLC dba FastSigns
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.5%
 
4/3/2023

 
434.4

 
349.6

 
348.7

 
0.21
%
Margab, Inc. dba Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/28/2017

 
44.0

 
16.2

 
16.1

 
0.01
%
Ameritocracy, Inc dba Ben and Jerry's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/18/2017

 
168.8

 
59.7

 
59.7

 
0.04
%
RCB Enterprises, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2017

 
21.2

 
9.6

 
9.5

 
0.01
%
Timothy S. Strange dba Strange's Mobile Apperance Reconditioning Service
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/17/2017

 
8.5

 
2.4

 
2.4

 
—
%
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

 
33.4

 
33.2

 
0.02
%
Tammy's Bakery, Inc. dba Tammy's Bakery
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/10/2017

 
71.8

 
26.7

 
26.5

 
0.02
%

89
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
6.6

 
6.6

 
—
%
The Design Shop, LLC
 
Textile Mills
 
Term Loan
 
Prime plus 2.75%
 
11/27/2027

 
247.5

 
191.9

 
196.0

 
0.12
%
MJ Mortgage & Tax Services, Inc.
 
Credit Intermediation and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/14/2017

 
6.9

 
2.3

 
2.3

 
—
%
Kings Laundry, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/30/2017

 
64.5

 
23.0

 
23.0

 
0.01
%
Quality Engraving Services Inc. and Ian M. Schnaitman
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
10/17/2017

 
15.0

 
5.3

 
5.3

 
—
%
Flourishing Fruits, LLC dba Edible Arrangements
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/29/2017

 
21.1

 
5.6

 
5.6

 
—
%
Louis B. Smith dba LAQ Funeral Coach
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/15/2017

 
12.6

 
4.3

 
4.3

 
—
%
Flint Batteries, LLC dba Batteries Plus of Flint
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
8/29/2017

 
9.0

 
2.6

 
2.6

 
—
%
1911 East Main Street Holdings, Corp.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2032

 
15.8

 
13.3

 
13.7

 
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

 
87.2

 
87.3

 
0.05
%
Mala Iyer, MD dba Child and Family Wellness Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/11/2017

 
50.0

 
16.8

 
16.8

 
0.01
%
South Dade Restoration Corp. dba Servpro of Kendall/Pinecrest
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/10/2016

 
61.8

 
11.5

 
11.5

 
0.01
%
Twietmeyer Dentistry PA
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2017

 
148.9

 
47.1

 
47.1

 
0.03
%
Lynden Evans Clarke, Jr.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/16/2017

 
10.0

 
2.9

 
2.9

 
—
%
Water Works Laundromat, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.25%
 
9/7/2027

 
267.3

 
204.5

 
203.0

 
0.12
%
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

 
3.3

 
3.3

 
—
%
Dave Kris, and MDK Ram Corp.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/5/2026

 
221.0

 
37.6

 
38.3

 
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

 
1.6

 
1.6

 
—
%
Eric R. Wise, D.C. dba Jamacha-Chase Chiropractic
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2017

 
15.6

 
1.2

 
1.2

 
—
%

90
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
No Thirst Software, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/26/2017

 
6.8

 
1.5

 
1.5

 
—
%
Zeroln Media, LLC
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
4/25/2017

 
7.5

 
2.2

 
2.2

 
—
%
CCIPTA, LLC
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
1/17/2017

 
47.0

 
3.0

 
3.0

 
—
%
Gill Express Inc. dba American Eagle Truck Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/5/2027

 
286.9

 
213.1

 
217.6

 
0.13
%
Kyoshi Enterprises, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/29/2016

 
22.5

 
5.8

 
5.8

 
—
%
Spain Street, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/29/2017

 
63.0

 
4.5

 
4.5

 
—
%
Aillaud Enterprises, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/29/2017

 
13.8

 
0.9

 
0.9

 
—
%
Nora A. Palma and Julio O Villcas
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/27/2017

 
56.3

 
3.1

 
3.1

 
—
%
Jojan, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.25%
 
12/18/2031

 
204.8

 
41.0

 
40.7

 
0.02
%
Misri Liquors, Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/18/2016

 
67.5

 
16.7

 
16.7

 
0.01
%
Contractors Pumping Service, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/3/2016

 
9.9

 
0.9

 
0.9

 
—
%
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

 
0.8

 
0.8

 
—
%
Houk Enterprises, Inc. d/b/a Max Muscle
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
10/27/2019

 
46.3

 
8.1

 
8.2

 
—
%
Smooth Grounds, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
7.75%
 
10/11/2016

 
64.5

 
39.3

 
39.3

 
0.02
%
Barr-None Coating Applicators, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/20/2016

 
113.8

 
5.3

 
5.3

 
—
%
Nelson Financial Services, LLC
 
Scenic and Sightseeing Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/2/2016

 
57.0

 
3.0

 
3.0

 
—
%
A + Quality Home Health Care, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/1/2016

 
22.5

 
1.7

 
1.7

 
—
%
Flint Batteries, LLC
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
7/21/2016

 
46.9

 
7.9

 
7.9

 
—
%

91
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Tesserah Tile Design, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2016

 
7.1

 
1.1

 
1.1

 
—
%
It's A Buffalo
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/26/2016

 
219.8

 
39.6

 
39.6

 
0.02
%
Pro Levin Yoga, Incorporated d.b.a. Bikram's Yoga College
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/12/2016

 
16.4

 
3.1

 
3.1

 
—
%
Cocoa Beach Parasail Corp.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/5/2016

 
8.9

 
1.6

 
1.6

 
—
%
Maynard Enterprises, Inc.
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/22/2016

 
22.5

 
1.4

 
1.4

 
—
%
Fran-Car Corporation dba Horizon Landscape Management
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/3/2028

 
407.8

 
179.8

 
184.0

 
0.11
%
Head To Toe Personalized Pampering, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/27/2031

 
52.0

 
9.8

 
10.0

 
0.01
%
Olympia Fields Eyecare, Ltd.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/12/2016

 
15.0

 
1.9

 
1.9

 
—
%
Spencer Fitness, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/11/2016

 
6.0

 
0.3

 
0.3

 
—
%
Maxwell Place, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
6%
 
12/1/2015

 
1,076.8

 
861.1

 
860.1

 
0.52
%
Hillside Fence Company, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.25%
 
2/1/2020

 
206.5

 
61.5

 
61.2

 
0.04
%
The K Dreyer Company
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
12/20/2015

 
62.5

 
2.0

 
2.0

 
—
%
Tuan D. Dang, OD, PA
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.25%
 
12/7/2015

 
77.0

 
11.4

 
11.4

 
0.01
%
Christopher F. Bohon & Pamela D. Bohon
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/28/2026

 
14.2

 
3.7

 
3.8

 
—
%
Champion Pest Control Systems, Inc.
 
Administrative and Support Services
 
Term Loan
 
6%
 
10/20/2015

 
39.0

 
4.0

 
4.0

 
—
%
JackRabbit Sports, Inc.
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
10/13/2015

 
125.0

 
14.1

 
14.0

 
0.01
%
Polaris Press, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
9/29/2015

 
21.5

 
0.7

 
0.7

 
—
%
Shree Om Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/2/2030

 
333.3

 
67.1

 
68.9

 
0.04
%
Jenchad, Inc and Chadjen, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.125%
 
4/7/2025

 
462.5

 
55.9

 
55.2

 
0.03
%

92
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Pedzik's Pets, LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
3/31/2030

 
53.5

 
9.9

 
10.1

 
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

 
17.1

 
17.4

 
0.01
%
Saralar Corporated dba The UPS Store #5232
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
1/21/2015

 
40.3

 
0.1

 
0.1

 
—
%
Major Queens Body & Fender Corp.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 3.75%
 
12/17/2014

 
71.1

 
0.1

 
—

 
—
%
Moonlight Multi Media Production, Inc.
 
Other Information Services
 
Term Loan
 
5.3%
 
2/1/2025

 
19.7

 
4.5

 
4.6

 
—
%
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

 
12.8

 
13.1

 
0.01
%
Computer Renaissance dba Dante IT Services, Inc.
 
Electronics and Appliance Stores
 
Term Loan
 
Prime plus 3.75%
 
3/1/2018

 
100.0

 
3.8

 
3.9

 
—
%
Prince Co., Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 1.5%
 
3/18/2029

 
187.5

 
31.7

 
30.0

 
0.02
%
Chong Hun Im dba Kim's Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.5%
 
2/27/2024

 
80.0

 
11.4

 
11.5

 
0.01
%
H & G Investments, L.C. dba Kwick Kar Josey Lane
 
Repair and Maintenance
 
Term Loan
 
5%
 
12/22/2028

 
317.5

 
92.1

 
88.7

 
0.05
%
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

 
13.7

 
14.0

 
0.01
%
Center-Mark Car Wash, Ltd
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/18/2024

 
221.3

 
33.5

 
34.0

 
0.02
%
Shuttle Car Wash, Inc. dba Shuttle Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.25%
 
11/10/2028

 
109.8

 
19.1

 
19.0

 
0.01
%
Akshar Group, LLC
 
Accommodation
 
Term Loan
 
6%
 
11/5/2028

 
321.3

 
54.2

 
55.6

 
0.03
%
Min Hui Lin
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2028

 
134.3

 
19.5

 
20.0

 
0.01
%
Delta Partners, LLC dba Delta Carwash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.5%
 
4/5/2029

 
280.9

 
47.1

 
47.5

 
0.03
%
Oz B. Zamir dba Zamir Marble & Granite
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.5%
 
8/6/2028

 
54.0

 
9.2

 
9.3

 
0.01
%
D & M Seafood, LLC d/b/a Rick's Seafood
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/10/2015

 
400.0

 
1.5

 
1.5

 
—
%
Rama, Inc. dba Staybridge Suites
 
Accommodation
 
Term Loan
 
Prime plus 2%
 
4/18/2026

 
750.0

 
445.9

 
437.4

 
0.26
%
B & J Manufacturing Corporation and Benson Realty Trust
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2%
 
3/30/2021

 
250.0

 
26.2

 
25.9

 
0.02
%

93
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
RAB Services, Inc. & Professional Floor Installations
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.5%
 
1/31/2023

 
62.5

 
8.8

 
8.9

 
0.01
%
Taste of Inverness, Inc. dba China Garden
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2%
 
6/29/2025

 
73.8

 
10.4

 
10.2

 
0.01
%
Ralph Werner dba Werner Transmissions
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/29/2021

 
26.6

 
3.1

 
3.1

 
—
%
M. Krishna, Inc. dba Super 8 Motel
 
Accommodation
 
Term Loan
 
Prime plus 2%
 
3/20/2025

 
250.0

 
11.1

 
11.0

 
0.01
%
OrthoQuest, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2%
 
3/12/2022

 
56.8

 
6.0

 
5.9

 
—
%
CPN Motel, LLC dba American Motor Lodge
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
4/30/2024

 
379.0

 
37.1

 
36.9

 
0.02
%
Track Side Collision & Tire, Inc.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025

 
44.8

 
5.7

 
5.8

 
—
%
Duttakrupa, LLC dba Birmingham Motor Court
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/8/2023

 
98.8

 
14.4

 
14.3

 
0.01
%
Deesha Corporation, Inc. dba Best Inn & Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
2/14/2025

 
250.0

 
32.5

 
32.3

 
0.02
%
Maruti, Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
11/25/2024

 
220.0

 
30.3

 
30.1

 
0.02
%
Willington Hills Equestrian Center, LLC
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
10/19/2022

 
85.0

 
13.7

 
13.8

 
0.01
%
LABH, Inc. t/a Ramada Ltd.
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/27/2024

 
555.0

 
48.8

 
48.5

 
0.03
%
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

 
8.7

 
8.9

 
0.01
%
Gain Laxmi, Inc. dba Super 8 Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
5/31/2023

 
202.5

 
24.9

 
24.8

 
0.01
%
Naseeb Corporation
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
3/31/2024

 
402.5

 
36.2

 
36.0

 
0.02
%
La Granja Live Poultry Corp.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/26/2018

 
54.0

 
3.8

 
3.8

 
—
%
Stillwell Ave Prep School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/14/2023

 
72.0

 
8.0

 
8.1

 
—
%
Karis, Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2%
 
12/22/2023

 
148.8

 
16.6

 
16.3

 
0.01
%
Five Corners, Ltd.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
85.0

 
7.4

 
7.5

 
—
%
Mimoza LLC, dba Tally Ho Inn
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.25%
 
10/7/2023

 
105.0

 
13.4

 
13.3

 
0.01
%

94
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Alyssa Corp dba Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/30/2023

 
350.0

 
46.1

 
45.8

 
0.03
%
Bhailal Patel dba New Falls Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
100.0

 
5.4

 
5.4

 
—
%
Pegasus Automotive, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/23/2022

 
112.5

 
13.8

 
14.0

 
0.01
%
Delyannis Iron Works
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
12/8/2022

 
16.0

 
1.8

 
1.8

 
—
%
P. Agrino, Inc. dba Andover Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/18/2021

 
150.0

 
14.6

 
14.8

 
0.01
%
Golden Elevator Co., Inc.
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
1/31/2022

 
50.0

 
2.6

 
2.7

 
—
%
Mohamed Live Poultry Inc.
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
12/6/2021

 
36.8

 
4.0

 
4.0

 
—
%
RJS Service Corporation
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
8/20/2021

 
79.0

 
8.4

 
8.5

 
0.01
%
Chez RuRene Bakery
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/20/2017

 
150.0

 
49.4

 
51.0

 
0.03
%
Total SBA Unguaranteed Performing Investments
 
 
 
 
 
 
 
 
 
$
144,082.5

 
$
121,505.9

 
$
115,175.0

 
69.21
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SBA Unguaranteed Non-Performing Investments (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United Woodworking, Inc.
 
Wood Product Manufacturing
 
Term Loan
 
6%
 
12/20/2022

 
17.3

 
13.6

 
13.2

 
0.01
%
Top Class, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/29/2020

 
4.7

 
3.3

 
—

 
—
%
Top Class, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2016

 
5.0

 
1.3

 
0.4

 
—
%
Tequila Beaches, LLC dba Fresco Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
9/16/2021

 
21.0

 
15.8

 
11.8

 
0.01
%
* Stormwise South Florida dba Stormwise Shutters
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
11/7/2036

 
427.5

 
412.0

 
347.8

 
0.21
%
* Stormwise South Florida dba Stormwise Shutters
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
11/7/2036

 
204.0

 
201.6

 
172.2

 
0.10
%
Sheikh M Tariq dba Selbyville Foodrite
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/13/2023

 
63.1

 
48.4

 
36.3

 
0.02
%
Shamrock Jewelers, Inc.
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
6%
 
12/14/2016

 
90.5

 
23.6

 
22.8

 
0.01
%
Pyramid Real Estate Holdings, LLC dba Hoteps
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
10/7/2022

 
12.7

 
8.9

 
8.8

 
0.01
%

95
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Pure Water Innovations, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/6/2016

 
3.4

 
1.0

 
1.0

 
—
%
Professional Systems, LLC and Professional Cleaning
 
Administrative and Support Services
 
Term Loan
 
6%
 
7/30/2020

 
159.4

 
132.1

 
58.4

 
0.04
%
Parth Dev, Ltd dba Amerihost Inn Hotel-Kenton
 
Accommodation
 
Term Loan
 
5.25%
 
10/3/2028

 
54.9

 
38.3

 
18.7

 
0.01
%
Our Two Daughters LLC dba Washington's Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
6/18/2026

 
225.0

 
170.3

 
13.8

 
0.01
%
Morris Glass and Construction
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
3/7/2021

 
49.8

 
44.8

 
0.8

 
—
%
Momentum Medical Group, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
7.75%
 
9/30/2015

 
244.2

 
159.7

 
5.0

 
—
%
Midway Plaza 6, LLC & Adventure World Family Fun Center, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
12/19/2029

 
200.0

 
167.6

 
134.0

 
0.08
%
Lucil Chhor dba Baja Fresh #159
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/28/2022

 
49.1

 
30.0

 
15.4

 
0.01
%
Las Torres Development, LLC dba Houston Event Centers
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
8/27/2028

 
405.8

 
391.6

 
378.2

 
0.23
%
Lamson and Goodnow Manufacturing Co. and Lamson and Goodnow, LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/28/2037

 
197.1

 
187.0

 
116.1

 
0.07
%
Krishna of Orangeburg, Inc.
 
Accommodation
 
Term Loan
 
6%
 
2/20/2032

 
41.8

 
10.3

 
10.0

 
0.01
%
J Olson Enterprises LLC and Olson Trucking Direct, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/28/2025

 
737.6

 
704.5

 
692.4

 
0.42
%
Hot Buckles, Inc.
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/27/2018

 
57.6

 
26.9

 
25.9

 
0.02
%
Harrelson Materials Management, Inc.
 
Waste Management and Remediation Services
 
Term Loan
 
6%
 
6/24/2021

 
537.5

 
470.0

 
108.1

 
0.06
%
Hampton's Restaurant Holding Company, LLC/Hampton's Restaurant #1, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2023

 
398.0

 
255.7

 
20.4

 
0.01
%
Goetzke Chiropractic, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
10/25/2017

 
7.3

 
3.1

 
0.6

 
—
%
Franvest, Inc. dba Texas Hydro-Equipment Co.
 
Chemical Manufacturing
 
Term Loan
 
6%
 
8/23/2018

 
125.0

 
119.3

 
99.5

 
0.06
%
Feinman Mechanical, LLC
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
9/28/2028

 
323.0

 
305.2

 
70.6

 
0.04
%
E & I Holdings, LP & PA Farm Products, LLC
 
Food Manufacturing
 
Term Loan
 
6%
 
4/30/2030

 
1,248.8

 
1,238.0

 
481.4

 
0.29
%
Dixie Transport, Inc. & Johnny D. Brown & Jimmy Brown & Maudain Brown
 
Support Activities for Transportation
 
Term Loan
 
5.25%
 
12/28/2035

 
145.9

 
144.6

 
53.1

 
0.03
%
Dill Street Bar and Grill, Inc. and WO Entertainment, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/27/2027

 
122.9

 
112.3

 
41.7

 
0.03
%

96
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Design Video Communciations, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
2/18/2036

 
92.4

 
19.0

 
6.8

 
—
%
D'Elia Auto Repair Inc. dba D'Elia Auto Body
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/26/2023

 
15.0

 
13.9

 
2.2

 
—
%
DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
3/23/2037

 
778.0

 
757.0

 
718.6

 
0.43
%
DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2022

 
376.0

 
258.5

 
245.4

 
0.15
%
Crystal K. Bruens dba Howards Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/20/2020

 
6.2

 
2.8

 
2.8

 
—
%
Bamboo Palace, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
11/20/2022

 
56.7

 
40.2

 
38.9

 
0.02
%
Baker Sales, Inc. d/b/a Baker Sales, Inc.
 
Nonstore Retailers
 
Term Loan
 
6%
 
3/29/2036

 
490.0

 
467.0

 
406.5

 
0.24
%
AWA Fabrication & Construction, LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
4/30/2025

 
152.2

 
34.8

 
7.2

 
—
%
AUM Estates, LLC and Sculpted Figures Plastic Surgery, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/12/2023

 
87.5

 
83.7

 
—

 
—
%
AUM Estates, LLC and Sculpted Figures Plastic Surgery Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/14/2038

 
618.7

 
603.9

 
355.2

 
0.21
%
Dr. Francis E. Anders, DVM
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
8/9/2015

 
4.6

 
1.6

 
1.6

 
—
%
Elite Treats Enterprises, Inc. dba Rochelle Dairy Queen
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/24/2032

 
141.3

 
131.5

 
122.7

 
0.07
%
LRCSL, LLC dba Daybreak Fruit and Vegetable Company
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/28/2021

 
75.1

 
53.0

 
32.6

 
0.02
%
Harry B Gould dba Lake Athens Marina and Bait Shop
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/28/2025

 
132.9

 
116.2

 
112.3

 
0.07
%
* The Alba Financial Group, Inc.
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/13/2015

 
16.2

 
8.0

 
7.7

 
—
%
* Milliken and Milliken, Inc. dba Milliken Wholesale Distribution
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
6%
 
6/10/2036

 
191.0

 
157.1

 
135.3

 
0.08
%
* Almeria Marketing 1, Inc.
 
Personal and Laundry Services
 
Term Loan
 
7.75%
 
10/15/2015

 
10.2

 
5.0

 
4.8

 
—
%
* Whirlwind Car Wash, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2%
 
4/9/2029

 
31.5

 
24.0

 
20.0

 
0.01
%

97
Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
* West Experience, Inc., West Mountain Equipment Rental, Inc., Ski West Lodge
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
6/5/2026

 
68.9

 
50.2

 
43.8

 
0.03
%
* The Lucky Coyote, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
6%
 
5/8/2017

 
44.9

 
14.4

 
11.8

 
0.01
%
* TechPlayZone, Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/27/2016

 
7.6

 
1.0

 
0.9

 
—
%
* Stokes Floor Covering Company Inc. and Robert E. Rainey, Jr.
 
Furniture and Home Furnishings Stores
 
Term Loan
 
6%
 
12/29/2035

 
122.0

 
110.4

 
94.1

 
0.06
%
* Robin C. & Charles E. Taylor & Brigantine Aquatic Center, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
9/14/2023

 
33.1

 
22.8

 
20.1

 
0.01
%
* LJ Parker, LLC dba Kwik Kopy Business Center 120
 
Administrative and Support Services
 
Term Loan
 
7%
 
9/8/2014

 
61.8

 
33.2

 
26.6

 
0.02
%
* Integrity Sports Group, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
6%
 
3/6/2018

 
62.1

 
17.3

 
13.4

 
0.01
%
* Guzman Group, LLC
 
Rental and Leasing Services
 
Term Loan
 
6%
 
1/30/2016

 
251.7

 
211.7

 
195.1

 
0.12
%
* Groundworks Unlimited, LLC
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
12/17/2023

 
116.1

 
97.1

 
85.0

 
0.05
%
* Gotta Dance Studio, Inc. dba Gotta Dance Studio Academy of Performing
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/16/2016

 
10.3

 
4.0

 
3.5

 
—
%
* Furniture Company, LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
7%
 
10/30/2015

 
6.4

 
1.4

 
1.3

 
—
%
* Event Mecca, LLC
 
Other Information Services
 
Term Loan
 
6%
 
4/10/2023

 
14.3

 
13.3

 
8.9

 
0.01
%
* E.W. Ventures, Inc. dba Swift Cleaners & Laundry
 
Personal and Laundry Services
 
Term Loan
 
—%
 
4/18/2017

 
209.1

 
92.7

 
76.0

 
0.05
%
* DUCO Energy Services, a Limited Liability Company
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/20/2023

 
11.8

 
10.8

 
7.3

 
—
%
* David M. Goens dba Superior Auto Paint & Body, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/26/2024

 
11.5

 
6.6

 
6.0

 
—
%
* CCS, Services, Inc.
 
Administrative and Support Services
 
Term Loan
 
6%
 
2/28/2015

 
2.3

 
0.1

 
0.1

 
—
%
* Camilles of Washington Inc.
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
10/28/2015

 
16.4

 
1.5

 
1.5

 
—
%
* Bwms Management, LLC
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
7/7/2027

 
109.1

 
82.5

 
66.4

 
0.04
%
* BCD Enterprises, LLC dba Progressive Tool and Nutmeg Tool
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/22/2026

 
506.9

 
418.3

 
333.1

 
0.20
%

98
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NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
* Barnum Printing & Publishing, Co.
 
Printing and Related Support Activities
 
Term Loan
 
6%
 
7/29/2015

 
44.7

 
11.9

 
11.7

 
0.01
%
* Auto Sales, Inc.
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6%
 
8/17/2023

 
13.9

 
6.7

 
6.2

 
—
%
* Anmor Machining Company, LLC dba Anmor Machining Company
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
11/18/2026

 
192.5

 
146.5

 
110.5

 
0.07
%
KroBro Inc. d/b/a Village Coffee
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
3/12/2020

 
200.0

 
10.0

 
—

 
—
%
Konversashens Coffee LLC
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
6/28/2016

 
64.4

 
4.9

 
—

 
—
%
Total SBA Unguaranteed Non-Performing Investments
 
 
 
 
 
 
 
 
 
$
11,637.2

 
$
9,587.3

 
$
6,302.3

 
3.79
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
155,719.7

 
$
131,093.2

 
$
121,477.3

 
73.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SBA Guaranteed Performing Investments (4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BS Ventures, LLC dba Dink's Market
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/19/2039

 
161.3

 
161.3

 
182.9

 
0.11
%
M & MM Management
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/19/2025

 
138.8

 
138.8

 
155.0

 
0.09
%
The Jeweler's Inc.
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/19/2024

 
3,750.0

 
3,750.0

 
4,157.8

 
2.50
%
Will Zak Management, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/19/2024

 
146.3

 
146.3

 
163.3

 
0.10
%
Winter Ventures, Inc.
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/23/2024

 
1,404.9

 
1,404.9

 
1,564.7

 
0.94
%
Atlantis of Daytona, LLC
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
720.0

 
720.0

 
816.3

 
0.49
%
Thermoplastic Services, Inc.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
4,500.0

 
4,500.0

 
5,060.5

 
3.04
%
The Lodin Group, LLC and Lodin Health
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
1,590.8

 
1,590.8

 
1,797.6

 
1.08
%
Bowlerama Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2039

 
3,607.5

 
3,607.5

 
4,058.4

 
2.44
%
Beale Street Blues Company
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2024

 
562.5

 
562.5

 
628.2

 
0.38
%
Bear Creek Entertainment, LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
318.8

 
318.8

 
361.6

 
0.22
%

99
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NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Evans & Paul, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
671.3

 
671.3

 
749.6

 
0.45
%
B & W Towing, LLC & Boychuck's Fuel, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/17/2039

 
493.5

 
493.5

 
559.9

 
0.34
%
Grand Blanc Lanes, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/31/2039

 
399.0

 
399.0

 
452.7

 
0.27
%
Homegrown for Good, LLC
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/26/2024

 
2,070.0

 
2,070.0

 
2,297.1

 
1.38
%
Lake Area Autosound, LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2039

 
375.0

 
375.0

 
425.4

 
0.26
%
FHJE Ventures, LLC and Eisenreich II, Inc. dba Breakneck Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/27/2039

 
962.3

 
965.3

 
1,084.6

 
0.65
%
Meridian Hotels, LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/25/2039

 
684.0

 
684.0

 
776.0

 
0.47
%
Carolina Flicks dba The Howell Theatre
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
12/23/2032

 
489.8

 
489.8

 
538.7

 
0.32
%
Kiddie Steps for You, Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/25/2038

 
267.8

 
254.8

 
286.7

 
0.17
%
401 JJS Corp. and G Randazzo Trattoria Corp.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
1,136.3

 
1,136.3

 
1,285.4

 
0.77
%
FHJE Ventures, LLC and Eisenreich II, Inc. dba Breakneck Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/31/2039

 
736.5

 
484.8

 
545.7

 
0.33
%
Miss Cranston Diner II, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/17/2039

 
273.8

 
273.8

 
308.8

 
0.19
%
Wildwood Tavern dba Tavern Properties
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2039

 
1,275.0

 
936.0

 
1,058.9

 
0.64
%
iFood, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
1,137.3

 
871.6

 
973.4

 
0.58
%
Alpha Prepatory Academy, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
435.7

 
327.7

 
371.8

 
0.22
%
GPG Real Estate Holdings, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/3/2024

 
487.5

 
121.6

 
137.9

 
0.08
%
First Prevention & Dialysis Center, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
714.8

 
234.2

 
261.5

 
0.16
%
The Red Pill Management, Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
11/26/2024

 
162.8

 
86.1

 
96.2

 
0.06
%
DC Real, LLC and DC Enterprises LTD
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/20/2039

 
358.1

 
281.7

 
329.5

 
0.20
%

100
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NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Total SBA Guaranteed Performing Investments
 
 
 
 
 
 
 
 
 
$
30,031.4

 
$
28,057.4

 
$
31,486.1

 
18.92
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed and Guaranteed Investments
 
 
 
 
 
 
 
 
 
$
185,751.1

 
$
159,150.6

 
$
152,963.4

 
91.92
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Controlled Investments (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advanced Cyber Security Systems, LLC (6) (13)
 
Data processing, hosting and related services.
 
50% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
 
 
 
 
Term Loan
 
3%
 
 December 2014
 
1,120

 
381

 
—

 
—
%
* Automated Merchant Services, Inc. (7) (13)
 
Data processing, hosting and related services.
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
—

 
—
%
* Business Connect, LLC (8) (13)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
* CCC Real Estate Holdings Co., LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
CDS Business Services, Inc. (9) (13)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
496

 
0.30
%
 
 
 
 
Term Loan
 
1%
 
Various maturities through August 2016
 
4,228

 
4,228

 
1,483

 
0.89
%
CrystalTech Web Hosting, Inc.
 
Data processing, hosting and related services.
 
100% Common Stock
 
—%
 
—

 
—

 
9,256.0

 
21,500.0

 
12.92
%
* OnLAN, LLC (15) (17)
 
Professional, Scientific, and Technical Services
 
49% Membership Interests
 
—%
 
—

 
—

 
800.0

 
—

 
—
%
* Exponential Business Development Co. Inc. (13)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
—

 
—
%
* Bankcard Alliance of Alabama, LLC (10) (13)
 
Data processing, hosting and related services.
 
95% Membership Interests
 
—%
 
—

 
—

 
—

 
—

 
—
%
* Fortress Data Management, LLC (13)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%

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NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2014
(In Thousands)

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Newtek Insurance Agency, LLC (13)
 
Insurance Carriers and Related Activities
 
100% Membership Interests
 
—%
 
—

 
—

 
—

 
2,300.0

 
1.38
%
PMTWorks Payroll, LLC (11) (13)
 
Data processing, hosting and related services.
 
80% Membership Interests
 
—%
 
—

 
—

 
—

 
920.0

 
0.55
%
 
 
 
 
Term Loan
 
12%
 
 August 2015
 
935

 
935

 
—

 
—
%
Secure CyberGateway Services, LLC (12) (13)
 
Data processing, hosting and related services.
 
66.7% Membership Interests
 
—%
 
—

 
—

 
—

 
—

 
—
%
 
 
 
 
Term Loan
 
7%
 
 December 2016
 
2,400.0

 
2,400.0

 
2,400.0

 
1.44
%
Small Business Lending, Inc. (13)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
2,900.0

 
1.74
%
* Summit Systems and Designs, LLC (8) (13)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
* Texas Whitestone Group, LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 
—%
 
—

 
—

 
65.0

 
—

 
—
%
Universal Processing Services of Wisconsin, LLC (13)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
45,500.0

 
27.34
%
* Where Eagles Fly, LLC (13) (14)
 
Theatrical productions
 
95% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
Total Controlled Investments
 
 
 
 
 
 
 
 
 
$
8,683

 
$
18,065

 
$
77,499

 
46.57
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment in Money Market Funds
 
 
 
 
 
 
 
 
 
$
—

 
$
3,000

 
$
3,000

 
1.80
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Investments
 
 
 
 
 
 
 
 
 
$
194,434.1

 
$
180,215.6

 
$
233,462.4

 
140.29
%

* Denotes non-income producing security.
(1) Newtek values each SBA 7(a) performing unguaranteed 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 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, 2014.
(3) Newtek values SBA 7(a) non-performing 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

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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 SBA 7(a) performing loans using the secondary SBA 7(a) market as a reference point. Newtek routinely sells into this secondary market. Guaranteed portions, 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. owns more than 25% of the voting securities of such company.
(6) 100% wholly-owned by Exponential of New York, LLC.
(7) 95% owned by Wilshire Partners, LLC., 5% owned by non-affiliate.
(8) 100% owned by Wilshire Texas Partners I, LLC.
(9) 49.482% owned by Wilshire New York Partners IV, LLC, 24.611% owned by Exponential of New York, LLC and 25.907% owned by Newtek Business Services Corp.
(10) 95% owned by Wilshire Alabama Partners, LLC., 5% owned by non-affiliate.
(11) 80% owned by Wilshire New York Partners IV, LLC, 20% owned by non-affiliate.
(12) 66.7% owned by Wilshire Texas Partners I, LLC, 33.3% owned by non-affiliate.
(13) 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.
(14) 95% owned by Wilshire DC Partners, LLC, 5% owned by non-affiliate.
(15) 49% owned by Wilshire Colorado Partners, LLC, 51% owned by non-affiliate
(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) Denotes a non-controlled entity.


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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:

On November 12, 2014, Newtek Business Services, Inc. merged with and into Newtek Business Services Corp. (“NBS”), a newly-formed Maryland corporation, for the purpose of reincorporating in Maryland (the “Merger”), and thereafter filed an election to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (“1940 Act”). This transaction is referred to as the “Conversion” or “BDC Conversion”. All subsidiaries and controlled portfolio companies became the property of Newtek Business Services Corp. as part of the Merger. Except as otherwise noted, the terms “we,” “us,” “our,” “Company” and “Newtek” refer to Newtek Business Services, Inc. prior to the Conversion and its successor, Newtek Business Services Corp. following the Conversion.
Description of Business and Basis of Presentation for the Nine Months Ended September 30, 2014 (Prior to BDC Conversion)
Prior to the Conversion, Newtek Business Services, Inc. was a holding company for several wholly and majority-owned subsidiaries, including twelve certified capital companies which are referred to as Capcos, and several portfolio companies in which the Capcos own non-controlling or minority interests. The Company provides a “one-stop-shop” for business services to the small and medium-sized business market and uses state of the art web-based proprietary technology to be a low cost acquirer and provider of products and services. The Company partners with companies, credit unions, and associations to offer its services.
The Company’s principal business segments were:
Electronic Payment Processing: Marketing third party credit card processing and check approval services to the small and medium-sized business market under the name of Newtek Merchant Solutions.
Managed Technology Solutions: CrystalTech Web Hosting, Inc., d/b/a Newtek Technology Services (“NTS”), offers shared and dedicated web hosting, data storage and backup services, cloud computing plans and related services to the small and medium-sized business market.
Small Business Finance: The segment was comprised of Small Business Lending, Inc., (“SBL”) a lender service provider for third-parties that primarily services government guaranteed U.S. Small Business Administration (“SBA”) loans and non-SBA loans; Newtek Small Business Finance, LLC (“NSBF”), a nationally licensed, SBA lender that originates, sells and services loans to qualifying small businesses, which are partially guaranteed by the SBA, and CDS Business Services, Inc. d/b/a Newtek Business Credit (“NBC”) which provides receivable financing and management services.
All Other: Businesses formed from investments made through Capco programs and others which could not be aggregated with other operating segments, including insurance and payroll processing.
Corporate Activities: Corporate implements business strategy, directs marketing, provides technology oversight and guidance, coordinates and integrates activities of the segments, contracts with alliance partners, acquires customer opportunities, and owns our proprietary NewTracker® referral system. This segment includes revenue and expenses not allocated to other segments, including interest income, Capco management fee income and corporate operations expenses.
Capco: Twelve certified capital companies which invest in small and medium-sized businesses. They generate non-cash income from tax credits and non-cash interest expense and insurance expenses in addition to cash management fees.
The condensed consolidated financial statements of Newtek Business Services Corp., its subsidiaries and consolidated entities have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include all wholly and majority-owned subsidiaries and several portfolio companies in which the Capcos own non-controlling interest, or those variable interest entities of which Newtek is considered to be the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Non-controlling interests are reported below net income (loss) under the heading “Net loss attributable to non-controlling interests” in the unaudited condensed consolidated statements of income prior to the BDC Conversion.

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Table of Contents

Description of Business and Basis of Presentation for the Nine Months Ended September 30, 2015 (Post BDC Conversion)
Newtek Business Services Corp. 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 following wholly-owned subsidiaries are consolidated in the financial statements of the Company:
•
Newtek Small Business Finance, LLC
•
The Whitestone Group, LLC
•
Wilshire Alabama Partners, LLC
•
Wilshire Colorado Partners, LLC
•
Wilshire DC Partners, LLC
•
Wilshire Holdings I, Inc.
•
Wilshire Holdings II, 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
•
Wilshire Texas Partners I, LLC
•
CCC Real Estate Holdings Co., LLC
•
The Texas Whitestone Group, LLC
•
Newtek Business Services Holdco 1, Inc.
In addition to the wholly owned entities consolidated above, Exponential of New York, LLC is consolidated as the Company is determined to be the primary beneficiary.

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, 2014 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

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a true indication of the results for the entire year. The December 31, 2014 consolidated balance sheet 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.
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 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 Board each quarter and is generally based upon the earnings estimated by management.
Fair Value

The Company applies fair value to certain of its financial instruments in accordance with 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 Company’s board of directors (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
The preparation of consolidated financial statements in conformity with GAAP 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

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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 consolidated statements of assets and liabilities as investments. Those assets are owned by the securitization trusts, and are included in the Company’s 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 September 30, 2015, cash deposits in excess of FDIC deposit insurance and Securities Investor Protection Corporation (“SIPC”) insurance totaled approximately $22,165,000.
Restricted Cash
Restricted cash includes cash collateral relating to a letter of credit; monies due on SBA loan-related remittances to third parties; a cash reserve 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 the sale of SBA guaranteed non-affiliate investments which have been traded at period end but have not yet settled.
Income Taxes

The Company will elect to be treated as a regulated investment company (“RIC”) beginning with the 2015 tax year under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”) and will operate in a manner so as to qualify for the tax treatment applicable to RICs. In order to qualify as a RIC, 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.

As a result of the Company’s conversion to a BDC and its intention to elect RIC status when it files its 2015 tax return, the Company reversed the balance of its deferred tax asset as of December 31, 2014, through additional paid-in capital on January 1, 2015.
 
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 its 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 and nine months ended September 30, 2015, no U.S. federal excise taxes were accrued.

Investment Income


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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 recorded at the time dividends are declared. Distributions of earnings from portfolio companies are evaluated to determine if the distribution is income or a return of capital.

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, 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.

Investment transactions are accounted for on a trade-date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the cost basis of investment, without regard to unrealized gains or losses previously recognized. The Company reports current period changes in the fair value of investments as a component of the net change in unrealized appreciation (depreciation) on investments in the condensed consolidated statements of operations.
New Accounting Standards

In September 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-16 “Simplifying the Accounting for Measurement-Period Adjustments.” The update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The update requires that the acquirer record in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. This ASU is effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods.The Company does not expect this update to have a material impact on our condensed consolidated financial statements and disclosures.

In August 2015, the FASB issued ASU 2015-15 “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” The update allows debt issuance costs related to a line-of-credit arrangement to be deferred as an asset and subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. As the Company currently presents such debt issuance costs in accordance with the update, the Company does not expect this update to have a material impact on our condensed consolidated financial statements and disclosures.

In May 2015, the FASB issued ASU 2015-07 “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” The update changes the requirements for the presentation of certain investments using the net asset value, providing a practical expedient to exclude such investments from categorization within the fair value hierarchy and make a separate disclosure. This ASU is effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods. The Company does not expect this guidance to have a material impact on our condensed consolidated financial statements and disclosures.

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. This ASU is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company is evaluating the impact of this update to its condensed consolidated financial statements and disclosures.

Segments

As a BDC, 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.

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Reclassifications
Certain prior period amounts have been reclassified to conform to the current year presentation.
NOTE 3—INVESTMENTS:

Investments, all of which are with portfolio companies in the United States, consisted of the following at:
 
 
September 30, 2015
 
December 31, 2014
 
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Money market funds
 
$
36

 
$
36

 
$
3,000

 
$
3,000

Non-affiliate debt investments
 
159,353

 
148,326

 
159,151

 
152,963

Controlled investments
 
 
 
 
 
 
 
 
Equity
 
25,759

 
99,126

 
10,120

 
73,616

Debt
 
2,916

 
1,600

 
7,944

 
3,883

Total investments
 
$
188,064

 
$
249,088

 
$
180,215

 
$
233,462


On July 23, 2015, the Company acquired 100% of Premier Payments LLC (“Premier”). Premier was owned 100% by a related party of the Company.  The total purchase price was approximately $16,483,000, of which $14,011,000 was paid in cash and $2,472,000 was paid in newly issued restricted shares of Newtek common stock. A total of 130,959 shares were issued on the date of acquisition which may not be sold or transferred for six months from the acquisition date. The Company’s Board, including a majority of independent directors, approved the transaction.

On July 6, 2015, the Company made a loan to Titanium Asset Management LLC evidenced by a promissory note to the Company in the amount of $2,200,000, which bears interest at 3% per annum and matures in July 2017. The fair value of the investment at September 30, 2015 is approximately $2,116,000 and is included in Non-control/Non-affiliate investments on the condensed consolidated statements of assets and liabilities.
The following table shows the Company's portfolio investments by industry at September 30, 2015 and December 31, 2014:

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September 30, 2015
 
December 31, 2014
 
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Data Processing, Hosting and Related Services
 
$
28,675

 
$
90,955

 
$
13,772

 
$
70,322

Food Services and Drinking Establishments
 
14,167

 
13,019

 
15,816

 
15,442

Amusement, Gambling, and Recreation Industries
 
10,585

 
10,442

 
13,495

 
13,621

Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
781

 
7,981

 
5,278

 
5,771

Plastics and Rubber Products Manufacturing
 
3,211

 
3,115

 
7,690

 
8,120

Accommodation
 
7,112

 
6,997

 
7,240

 
7,240

Repair and Maintenance
 
8,965

 
8,577

 
7,250

 
7,023

Clothing and Clothing Accessories Stores
 
2,409

 
2,092

 
6,709

 
6,958

Ambulatory Health Care Services
 
6,657

 
5,899

 
6,777

 
6,225

Truck Transportation
 
6,118

 
5,501

 
5,621

 
5,494

Specialty Trade Contractors
 
8,108

 
6,997

 
6,298

 
5,414

Fabricated Metal Product Manufacturing
 
5,276

 
4,912

 
5,627

 
5,258

Professional, Scientific, and Technical Services
 
7,280

 
6,702

 
5,438

 
4,939

Food Manufacturing
 
5,445

 
4,587

 
4,757

 
3,793

Motor Vehicle and Parts Dealers
 
4,167

 
4,029

 
3,759

 
3,755

Merchant Wholesalers, Durable Goods
 
5,657

 
3,051

 
3,763

 
3,729

Gasoline Stations
 
3,667

 
3,551

 
3,895

 
3,727

Insurance Carriers and Related Activities
 
1,277

 
3,724

 
1,417

 
3,622

Social Assistance
 
3,956

 
3,806

 
3,537

 
3,474

Nonstore Retailers
 
2,348

 
1,935

 
2,878

 
2,923

Personal and Laundry Services
 
3,148

 
2,990

 
2,759

 
2,609

Apparel Manufacturing
 
545

 
454

 
2,330

 
2,528

Merchant Wholesalers, Nondurable Goods
 
3,127

 
5,207

 
2,541

 
2,459

Administrative and Support Services
 
4,816

 
4,539

 
2,663

 
2,400

Other
 
40,531

 
37,990

 
35,905

 
33,616

Total
 
$
188,028

 
$
249,052

 
$
177,215

 
$
230,462


NOTE 4—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 nine months ended September 30, 2015 were as follows:

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Portfolio Company
 
Fair Value at December 31, 2014
 
Purchases (cost)
 
Principal received (cost)
 
Net realized gains/(losses)
 
Net unrealized gains/(losses)
 
Fair Value at September 30, 2015
 
Interest and other income
 
Dividend income
Controlled Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Small Business Lending, Inc.
 
$
2,900

 
$
—

 
$
(2,965
)
 
$
—

 
$
5,565

 
$
5,500

 
$
—

 
$
348

PMTWorks Payroll, LLC
 
920

 
—

 
—

 
—

 
13

 
933

 
79

 
—

Universal Processing Services of Wisconsin, LLC
 
45,500

 
—

 
—

 
—

 
5,339

 
50,839

 
4

 
3,600

CrystalTech Web Hosting, Inc.
 
21,500

 
—

 
—

 
—

 
(420
)
 
21,080

 
—

 
600

CDS Business Services, Inc. (1)                                                                                        
 
1,979

 
200

 
—

 
—

 
(408
)
 
1,771

 
8

 
—

Exponential Business Development Co., Inc.
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1,080

Premier Payments LLC
 
—

 
16,503

 
—

 
—

 
—

 
16,503

 
—

 
300

Newtek Insurance Agency, LLC
 
2,300

 
—

 
—

 
—

 
200

 
2,500

 
—

 
—

Advanced Cyber Security Systems, LLC
 
—

 
—

 
—

 
—

 
—

 
—

 
14

 
—

Secure CyberGateway Services, LLC
 
2,400

 
—

 
(800
)
 
—

 
—

 
1,600

 
105

 
39

Business Connect, LLC
 
—

 
—

 
—

 
—

 
—

 
—

 
4

 
—

Total Controlled Investments
 
$
77,499

 
$
16,703

 
$
(3,765
)
 
$
—

 
$
10,289

 
$
100,726

 
$
214

 
$
5,967


(1) During the nine months ended September 30, 2015, the Company converted all of its debt investments in CDS Business Services, Inc. to equity.

In addition to the transactions above, the Company incurs expenses from certain controlled portfolio companies. For the three months ended September 30, 2015, the Company incurred $159,000 in managed technology services expenses from NTS, $82,000 in loan processing and closing expenses from Business Connect, LLC, and $5,000 in payroll processing fees from certain of its controlled portfolio companies. For the three months ended September 30, 2015, the Company earned $18,000 in consulting and other income from certain controlled portfolio companies.

For the nine months ended September 30, 2015, the Company incurred $448,000 in managed technology services expenses from NTS, $197,000 in loan processing and closing expenses from Business Connect, LLC, and $17,000 in payroll processing fees from certain of its controlled portfolio companies. For the nine months ended September 30, 2015, the Company earned $51,000 in consulting and other income from certain controlled portfolio companies. Amounts due from and due to related parties are $4,707,000 and $1,751,000, respectively at September 30, 2015.

The Company allocates portions of salaries for management and certain other employees that perform services for certain controlled portfolio companies. Amounts are allocated based on estimates of time and effort spent by certain employees performing services for certain controlled portfolio companies. Allocations are recorded on a quarterly basis and are recurring in nature. Amounts allocated for the three and nine months ended September 30, 2015 were $425,000 and $1,366,000, respectively. No amounts were allocated for the three and nine months ended September 30, 2014 as the controlled portfolio companies were consolidated subsidiaries.
NOTE 5—SERVICING ASSETS:
For the three months ended September 30, 2015 and 2014, servicing fees received on the Company’s SBA non-affiliate investments totaled $1,262,000 and $915,000, respectively. For the nine months ended September 30, 2015 and 2014, servicing

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fees received on the Company’s SBA non-affiliate investments totaled $3,373,000 and $2,661,000, respectively. The total servicing fee income recognized for loans serviced for others for the three and nine months ended September 30, 2014 was $1,711,000 and $5,248,000, respectively. As a result of the BDC Conversion, no servicing fee income was recognized for loans serviced for others for the three and nine months ended September 30, 2015. This revenue, which was previously included in consolidated results prior to the BDC Conversion, is recognized and earned by one of the Company's controlled portfolio companies, SBL.
The estimated fair values of capitalized servicing assets were $11,895,000 and $9,483,000 at September 30, 2015 and December 31, 2014, respectively. Inherent risks related to the fair value of servicing assets include prepayment and default risks. An increase in either of these factors could have a negative impact on the fair value of servicing assets on the condensed consolidated statement of assets and liabilities. Additionally, a decrease in servicing spread would also have a negative impact on the estimated fair value of servicing assets.
The estimated fair value of capitalized servicing assets at September 30, 2015 was determined using a discount factor that is a blended approach of the weighted average cost of capital and the weighted average servicing spread of 11.57%, prepayment speed of 19%, and an average cumulative default rate of 25%. The estimated fair value of servicing assets at December 31, 2014 was determined using a discount factor that is a blended approach of the weighted average cost of capital and the weighted average servicing spread of 11.58%, prepayment speed of 19%, and an average cumulative default rate of 25%. Changes in the estimated fair value of servicing assets are included in the condensed consolidated statements of operations under the caption “net unrealized depreciation on servicing assets.”
NOTE 6—FAIR VALUE MEASUREMENTS:

In accordance with GAAP, 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.

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’s 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

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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 and nine months ended September 30, 2015 and 2014. 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 method for determining enterprise value uses 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 September 30, 2015 and December 31, 2014:
 
Fair Value Measurements at September 30, 2015 Using:
(in thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total Gains
and (Losses)
Assets:
 
 
 
 
 
 
 
 
 
Investments in money markets funds
$
36

 
$
36

 
$
—

 
$
—

 
$
—

Credits in lieu of cash
1,207

 
—

 
1,207

 
—

 
(4
)
SBA unguaranteed non-affiliate investments
144,290

 
—

 
—

 
144,290

 
(11,260
)
SBA guaranteed non-affiliate investments
1,920

 
—

 
1,920

 
—

 
206

Controlled investments
100,726

 
—

 
—

 
100,726

 
10,289

Non-control/Non-affiliate investments
2,116

 
—

 
—

 
2,116

 
—

Servicing assets
11,895

 
—

 
—

 
11,895

 
(337
)
Total assets
$
262,190

 
$
36

 
$
3,127

 
$
259,027

 
$
(1,106
)
Liabilities:
 
 
 
 
 
 
 
 
 
Notes payable in credits in lieu of cash
$
1,207

 
$
—

 
$
1,207

 
$
—

 
$
—



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Fair Value Measurements at December 31, 2014 Using:
(in thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total Gains
and (Losses)
Assets:
 
 
 
 
 
 
 
 
 
Investments in money markets funds
$
3,000

 
$
3,000

 
$
—

 
$
—

 
$
—

Credits in lieu of cash
2,229

 
—

 
2,229

 
—

 
(13
)
SBA unguaranteed non-affiliate investments
121,477

 
—

 
—

 
121,477

 
(9,605
)
SBA guaranteed non-affiliate investments
31,486

 
—

 
31,486

 
—

 
3,429

Controlled investments
77,499

 
—

 
—

 
77,499

 
—

Servicing assets
9,483

 
—

 
—

 
9,483

 
(120
)
Total assets
$
245,174

 
$
3,000

 
$
33,715

 
$
208,459

 
$
(6,309
)
Liabilities:
 
 
 
 
 
 
 
 
 
Notes payable in credits in lieu of cash
$
2,229

 
$
—

 
$
2,229

 
$
—

 
$
5



The following table presents the changes in investments and other assets measured at fair value using Level 3 inputs for the nine months ended September 30, 2015:

 
Nine Months Ended September 30, 2015
(in thousands)
SBA Unguaranteed Investments
 
Controlled Investments
 
Non-Control/Non-Affiliate Investments
 
Servicing Assets
Fair value, beginning of period
$
121,477

 
$
77,499

 
$
—

 
$
9,483

Net change in unrealized appreciation (depreciation)
(1,667
)
 
10,289

 
—

 
(1,177
)
Realized loss
(628
)
 
—

 
—

 
—

SBA unguaranteed non-affiliate investments, originated
39,084

 
—

 
—

 
—

Foreclosed real estate acquired
(832
)
 
—

 
—

 
—

Funding of investments
—

 
16,703

 
2,200

 
—

Purchase of loan from SBA
703

 
—

 
—

 
—

Return of investment
—

 
(2,965
)
 
—

 
—

Principal payments received on debt investments
(13,847
)
 
(800
)
 
(84
)
 
—

Additions to servicing assets
—

 
—

 
—

 
3,589

Fair value, end of period
$
144,290

 
$
100,726

 
$
2,116

 
$
11,895


The following table presents changes in SBA Unguaranteed Investments measured at fair value using Level 3 inputs for the nine months ended September 30, 2014:
 
Nine Months Ended September 30, 2014
Fair value, beginning of period
$
78,951

Realized loss
(1,519
)
SBA unguaranteed investments, originated
33,192

Investments transferred to other real estate owned
(33
)
Proceeds from principal payments
(7,763
)
Fair value, end of period
$
102,828


Prior to the Company's conversion to a BDC, the Company did not account for its controlled investments, non-control/non-affiliate investments and servicing assets at fair value.

The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of September 30, 2015 and December 31, 2014. 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

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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 September 30, 2015 and December 31, 2014.

 
 
 
 
 
 
 
 
 
 
Range
 
 
Fair Value as of September 30, 2015
 
Valuation Techniques
 
Unobservable Input
 
Weighted Average
 
Minimum
 
Maximum
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Performing SBA unguaranteed non-affiliate investments
 
$
138,983

 
Discounted cash flow
 
Market yields
 
5.38
%
 
5.38
%
 
5.38
%
Non-performing SBA unguaranteed non-affiliate investments
 
$
5,307

 
Discounted cash flow
 
Market yields
 
8.50
%
 
8.50
%
 
8.50
%
Controlled equity investments (A)(B)
 
$
99,126

 
Market comparable companies
 
EBITDA multiples
 
5.60x

 
3.00x

 
6.50x

 
 
 
 
Market comparable companies
 
Revenue multiples
 
1.09x

 
0.50x

 
3.00x

 
 
 
 
Discounted cash flow
 
Weighted average cost of capital
 
12.50
%
 
11.70
%
 
15.80
%
Non-SBA debt investments (B)
 
$
3,716

 
Discounted cash flow
 
Market yields
 
4.72
%
 
3.00
%
 
7.00
%
Servicing assets
 
$
11,895

 
Discounted cash flow
 
Market yields
 
11.57
%
 
11.57
%
 
11.57
%

(A) In determining the fair value of the Company's controlled equity investments as of September 30, 2015, the proportion of the market comparable companies valuation technique and the discounted cash flow valuation technique were 46.6% and 53.4%, respectively, on a weighted average basis.
(B) Includes $10,987,000 of equity interests and debt investments valued using discounted cash flows and $91,855,000 of equity interests valued using a combination of discounted cash flows and market comparable companies.

 
 
 
 
 
 
 
 
 
 
Range
 
 
Fair Value as of December 31, 2014
 
Valuation Techniques
 
Unobservable Input
 
Weighted Average
 
Minimum
 
Maximum
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Performing SBA unguaranteed non-affiliate investments
 
$
115,175

 
Discounted cash flow
 
Market yields
 
5.38
%
 
5.38
%
 
5.38
%
Non-performing SBA unguaranteed non-affiliate investments
 
$
6,302

 
Discounted cash flow
 
Market yields
 
7.00
%
 
7.00
%
 
7.00
%
Controlled investments (A)
 
$
77,499

 
Market comparable companies
 
EBITDA multiples
 
5.50x

 
3.00x

 
9.00x

 
 
 
 
Market comparable companies
 
Revenue multiples
 
0.80x

 
0.40x

 
3.00x

 
 
 
 
Discounted cash flow
 
Weighted average cost of capital
 
12.60
%
 
10.70
%
 
16.00
%
Servicing assets
 
$
9,483

 
Discounted cash flow
 
Market yields
 
11.58
%
 
11.58
%
 
11.58
%

(A) In determining the fair value of the Company's controlled investments as of December 31, 2014, the proportion of the market comparable companies valuation technique and the discounted cash flow valuation technique were 48.1% and 51.9%, respectively, on a weighted average basis.
NOTE 7—BORROWINGS:

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At September 30, 2015 and December 31, 2014, the Company had borrowings comprised of the following :
 
September 30, 2015
 
December 31, 2014
Bank notes payable:
 
 
 
Capital One lines of credit (NSBF)
 
 
 
Guaranteed line
$
19,549

 
$
28,722

Unguaranteed line
2,300

 
5,134

Capital One term loan (NBS)
 
 
 
Term loan
—

 
9,167

Total bank notes payable
21,849

 
43,023

Notes due 2022
8,200

 
—

Note payable – related parties
18,121

 
—

Note payable – Securitization trust VIE
97,930

 
79,520

Total borrowings
$
146,100

 
$
122,543

Total interest expense for the three months ended September 30, 2015 and 2014 on all Company borrowings was $1,864,000 and $1,330,000, respectively. Total interest expense for the nine months ended September 30, 2015 and 2014 on all Company borrowings was $4,948,000 and $6,555,000, respectively.
7.5% Notes Due 2022
In September 2015, the Company and U.S. Bank, N.A. (the “Trustee”), entered into the First Supplemental Indenture (the “First Supplemental Indenture”) to the Base Indenture between the Company and the Trustee, dated September 23, 2015, relating to the Company’s issuance, offer and sale of $8,200,000 aggregate principal amount of 7.5% notes due 2022. In October 2015, the underwriters issued notification to exercise their over-allotment option for an additional $124,000 in aggregate principal amount of the Notes. The sale of the Notes generated net proceeds of approximately $7,913,000.

The 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. The Notes bear interest at a rate of 7.5% per year payable quarterly on March 31, June 30, September 30, and December 31 of each year, commencing on December 31, 2015, and trade on the NASDAQ Global Market under the trading symbol “NEWTZ.”

The Notes will be the Company’s direct unsecured obligations and will 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 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; (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.

The Base Indenture, as supplemented by the First Supplemental Indenture, contains certain covenants including covenants requiring the Company to comply with (regardless of whether it is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act and to comply with the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act. These covenants are subject to important limitations and exceptions that are described in the Base Indenture, as supplemented by the First Supplemental Indenture. The Base Indenture, as supplemented by the First Supplemental Indenture, also contains certain reporting requirements, including a requirement that the Company provide financial information to the holders of the Notes and the Trustee if the Company should no longer be subject to the reporting requirements under the Securities Exchange Act of 1934. The Base Indenture provides for customary events of default. As of September 30, 2015, the Company was in compliance with the terms of the Base Indenture as supplemented by the First Supplemental Indenture.

At both September 30, 2015 and December 31, 2014, the Notes had an outstanding principal balance of $8,200,000 and $0, respectively. For the three and nine months ended September 30, 2015, interest expense and amortization of related deferred financing costs were $13,677 and $1,600, respectively.

Securitization Notes

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In September 2015, NSBF 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.
Note Payable - Related Parties
In June 2015, the Company received $19,119,000 under an unsecured line of credit extended by UPS and NTS. Maximum borrowings under the line of credit are $38,000,000. The outstanding balance shall bear 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 350 basis points, plus (z) 6%. The interest rate in effect is equal to the interest rate on the term loan between UPS, NTS, Premier and Goldman Sachs Bank USA as discussed in Note 8. At September 30, 2015, 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 September 30, 2015 were $18,121,000. Interest expense for the three and nine months ended September 30, 2015 was approximately $461,000 and $491,000, respectively, which is included in interest expense in the condensed consolidated statements of operations. No interest expense was incurred in 2014.
Capital One Line of Credit (NBS)
In June 2015, the Company paid off and retired the Capital One term loan and revolving line of credit. The proceeds used to pay down the Capital One term loan and accrued interest of $8,879,000 as of June 23, 2015 were received from two controlled portfolio companies. There was no amount due on the revolving line of credit with Capital One at September 30, 2015.
NOTE 8—COMMITMENTS AND CONTINGENCIES:
Legal Matters

In the ordinary course of business, the Company and its wholly owned portfolio companies may from time to time be party to lawsuits and claims. The Company evaluates such matters on a case by case basis and its policy is to contest vigorously any claims it believes are without compelling merit. The Company’s wholly owned portfolio companies are currently involved in various litigation matters. 

On January 21, 2014, NCMIC Finance Corporation (“NCMIC”) filed a complaint against Universal Processing Services of Wisconsin, LLC (“UPS”), the Company’s merchant processing portfolio company, in the United States District Court for the Southern District of Iowa. The complaint asserts claims against UPS for breach of the UPS and NCMIC agreement for the processing of credit card transactions, and seeks monetary relief. The Company believes that the claims asserted in the complaint are wholly without merit and intends to vigorously defend the action. Trial is currently set for December 2015.

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.

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. On November 18, 2014, the Court issued an Order granting the FTC’s motion for summary judgment against UPS on the single count. Subsequently, the FTC filed motions for a permanent injunction and equitable monetary relief against UPS and the other remaining defendants. Prior to the Court hearing on the motions, UPS and the FTC reached a settlement on the FTC’s motion for a permanent injunction. On February 11, 2015, the Court granted the FTC’s motion for equitable relief against UPS and the other remaining defendants, ordering that the remaining defendants pay $1,735,000 in equitable monetary relief. UPS had previously recorded a reserve for the full amount of the potential loss. 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.


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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 case is in the discovery phase. UPS intends to vigorously pursue its claims against the former sales agent and defend the counterclaims asserted.

Management has reviewed all other legal claims against the Company with counsel and has taken into consideration the views of such counsel, as to the outcome of the claims. In management’s opinion, final disposition of all such claims will not have a material adverse effect on the results of operations, cash flows or financial position of the Company.
Management has determined that, in the aggregate, all pending legal actions should not have a material adverse effect on our consolidated results of operations, cash flows or financial condition. In addition, we believe that any amount that could be reasonably estimated of potential loss or range of potential loss is not material.
Guarantees
The Company is a guarantor on a bank line of credit held at NBC, a controlled portfolio company. Maximum borrowings under the line of credit are $10,000,000 with a maturity date of February 2016. At September 30, 2015, total principal and accrued interest owed by NBC was $4,187,000. 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 September 30, 2015, 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”). The maximum amount of the 504 Facility is up to $35,000,000, depending upon syndication. 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 September 30, 2015, the Company determined that it is not probable that payments would be required to be made under the guarantee.

On June 23, 2015, 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 as a borrower. The Company, Newtek Business Services Holdco 1, Inc., a 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 September 30, 2015, $22,000,000 was outstanding under this Facility. At September 30, 2015, 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:


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Nine Months Ended September 30, 2015 (1)
Per share data (2)
 
Net asset value at beginning of period
 
$
16.31

Dividends from capital gains
 
(0.86
)
Net investment loss
 
(0.61
)
Net realized gain on investments
 
2.12

Net unrealized appreciation on investments
 
0.53

Net unrealized loss on servicing assets
 
(0.11
)
Exponential of New York, LLC distribution to members
 
(0.22
)
Reversal of deferred tax asset
 
(0.28
)
Net asset value at end of period (See Note 15 for discussion of October 1, 2015 NAV)
 
$
16.88

 
 
 
Per share market value at end of period
 
$
16.43

Total return based on market value (4)
 
17.14
 %
Total return based on average net asset value (3)
 
4.61
 %
Shares outstanding at end of period
 
10,353

 
 
 
Ratios/Supplemental Data:
 
 
Ratio of expenses to average net assets (3)
 
18.49
 %
Ratio of net investment loss to average net assets
 
(3.67
)%
Net assets at end of period
 
$
174,733

Average debt outstanding
 
$
134,322

Average debt outstanding per share
 
$
12.97

Asset coverage ratio
 
219
 %
Portfolio turnover
 
88.53
 %

(1) Years prior to the Company becoming a business development company are not presented in the financial highlights as the information would not be meaningful.
(2) 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.
(3) Annualized.
(4) 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 and nine months ended September 30, 2015 and income per share for the three and nine months ended September 30, 2014:
 
 
Three months ended September 30, 2015
 
Nine months ended September 30, 2015
Net increase in net assets
 
$
4,749

 
$
19,628

Weighted average shares outstanding
 
10,318

 
10,244

Net increase in net assets per common share
 
$
0.46

 
$
1.92



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Three months ended September 30, 2014
 
Nine months ended September 30, 2014
Numerator for basic and diluted EPS - income available to common stockholders
 
$
2,644

 
$
5,429

Denominator for basic EPS - weighted average shares
 
7,463

 
7,220

Effect of dilutive securities
 
236

 
468

Denominator for diluted EPS - weighted average shares
 
7,699

 
7,688

Basic earnings per share
 
$
0.35

 
$
0.75

Diluted earnings per share
 
$
0.34

 
$
0.71

The amount of anti-dilutive shares/units excluded from above is as follows:
 
 
 
 
Stock options and restricted shares
 
5

 
5

Contingently issuable shares
 
17

 
17

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 nine months ended September 30, 2015. There were no dividend declarations or distributions for the nine months ended September 30, 2014.

Date Declared
 
Record Date
 
Payment Date
 
Amount Per Share
 
Cash Distribution
 
DRIP Shares Issued
DRIP Shares Value
March 19, 2015
 
March 30, 2015
 
April 13, 2015
 
$
0.39

 
$
3,985

 
—

$
—

June 15, 2015
 
June 29, 2015
 
July 15, 2015
 
$
0.47

 
$
4,715

 
5

$
87

NOTE 12—STOCK OPTIONS AND RESTRICTED STOCK:

The Company had one and three share-based compensation plans as of September 30, 2015 and 2014, respectively. For the nine months ended September 30, 2014, share-based compensation expense was $610,000 of which $499,000 is included in salaries and benefits, and $111,000 is included in other general and administrative costs. During the nine months ended September 30, 2014, approximately 14,300 shares awarded under the plans were forfeited due to early termination or resignation by certain employees. The total forfeiture credit recognized for the nine months ended September 30, 2014 was approximately $69,000 and is included in share-based compensation expense. There were no share-based awards outstanding as of September 30, 2015 therefore no share-based compensation expense was recorded for the three and nine months ended September 30, 2015.
NOTE 13—SEGMENT REPORTING:

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Operating segments are organized internally primarily by the type of services provided. Prior to converting to a BDC, the Company aggregated similar operating segments into six reportable segments: Electronic payment processing, Managed technology solutions, Small business finance, All other, Corporate and Capcos.
The Electronic payment processing segment is a processor of credit card transactions, as well as a marketer of credit card and check approval services to the small and medium-sized business market. Expenses include direct costs (included in a separate line captioned electronic payment processing costs), professional fees, salaries and benefits, and other general and administrative costs, all of which are included in the respective caption on the consolidated statements of operations.
The Small business finance segment consists of Small Business Lending, Inc., a lender service provider for third-parties that primarily services government guaranteed SBA loans and non-SBA loans; Texas Whitestone Group which manages the Company’s Texas Capco; Newtek Small Business Finance, LLC, a nationally licensed SBA lender that originates, sells and services loans to qualifying small businesses; and Newtek Business Credit which provides accounts receivable financing, billing and accounts receivable maintenance services to businesses. NSBF generates revenues from sales of loans, servicing income for those loans retained and interest income earned on the loans themselves. The lender generates expenses for interest, professional fees, salaries and benefits, depreciation and amortization, and provision for loan losses, all of which are included in the respective caption on the consolidated statements of operations. NSBF also has expenses such as loan recovery expenses, loan processing costs, and other expenses that are all included in the other general and administrative costs caption on the consolidated statements of operations.
The Managed technology solutions segment consists of NTS which was acquired in July 2004. NTS’s revenues are derived primarily from web hosting services and consist of web hosting and set up fees. NTS generates expenses such as professional fees, payroll and benefits, and depreciation and amortization, which are included in the respective caption on the accompanying consolidated statements of operations, as well as licenses and fees, rent, and general office expenses, all of which are included in other general and administrative costs in the respective caption on the consolidated statements of operations.
The All other segment includes revenues and expenses primarily from qualified businesses that received investments made through the Company’s Capcos which cannot be aggregated with other operating segments. The three largest entities in the segment are Newtek Insurance Agency, LLC, an insurance sales operation, PMTWorks Payroll, LLC, a provider of payroll processing services and Business Connect, LLC, a provider of sales and processing services.
Corporate activities represent revenue and expenses not allocated to our segments. Revenue includes interest income and management fees earned from Capcos (and included in expenses in the Capco segment). Expenses primarily include corporate operations related to broad-based sales and marketing, legal, finance, information technology, corporate development and additional costs associated with administering the Capcos.
The Capco segment, which consists of the twelve Capcos, generates non-cash income from tax credits, interest income and gains from investments in qualified businesses which are included in other income. Expenses primarily include non-cash interest and insurance expense, management fees paid to Newtek (and included in Corporate activities revenues), legal, audit fees and losses from investments in qualified businesses.
Management had considered the following characteristics when making its determination of its operating and reportable segments:
•
the nature of the product and services;
•
the type or class of customer for their products and services;
•
the methods used to distribute their products or provide their services; and
•
the nature of the regulatory environment (for example, banking, insurance, or public utilities).
The accounting policies of the segments are the same as those described in the summary of significant accounting policies.
The Company no longer has six reportable segments after November 11, 2014 as a result of the Conversion. The segment information presented below represents results for the three and nine months ended September 30, 2014. For the three and nine months ended September 30, 2015, there is only one reportable segment.

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The following table presents the Company’s segment information for the three and nine months ended September 30, 2014, (in thousands):
 
 
For the three months ended September 30, 2014
 
For the nine months ended September 30, 2014
Third Party Revenue
 
 
 
Electronic payment processing
$
22,777

 
$
67,468

Small business finance
10,949

 
31,222

Managed technology solutions
3,818

 
12,068

All Other
739

 
1,946

Corporate activities
272

 
673

Capcos
102

 
312

Total reportable segments
38,657

 
113,689

Eliminations
(491
)
 
(1,308
)
Consolidated Total
$
38,166

 
$
112,381

Inter Segment Revenue
 
 
 
Electronic payment processing
$
1,121

 
$
3,165

Small business finance
117

 
402

Managed technology solutions
152

 
446

All Other
407

 
1,248

Corporate activities
970

 
2,953

Capco
202

 
590

Total reportable segments
2,969

 
8,804

Eliminations
(2,969
)
 
(8,804
)
Consolidated Total
$
—

 
$
—

Income (loss) before income taxes
 
 
 
Electronic payment processing
$
2,210

 
$
6,089

Small business finance
4,244

 
10,809

Managed technology solutions
804

 
2,476

All Other
(368
)
 
(1,067
)
Corporate activities
(2,037
)
 
(8,316
)
Capco
(229
)
 
(688
)
Total reportable segments
4,624

 
9,303

Eliminations
(101
)
 
(275
)
Totals
$
4,523

 
$
9,028

Depreciation and Amortization
 
 
 
Electronic payment processing
$
73

 
$
193

Small business finance
419

 
1,206

Managed technology solutions
337

 
1,004

All Other
51

 
154

Corporate activities
37

 
111

Capco
—

 
—

Totals
$
917

 
$
2,668


NOTE 14—SUPPLEMENTAL FINANCIAL DATA:

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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 September 30, 2015.

Universal Processing Services of Wisconsin, LLC

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 $3,600,000 in dividend income from UPS and recorded $600,000 and $5,339,000 in unrealized appreciation on investment for the three and nine months ended September 30, 2015, respectively.

The summarized financial information of our unconsolidated subsidiary is as follows:
Balance Sheets - Universal Processing Services of Wisconsin, LLC
 
As of September 30, 2015
 
As of December 31, 2014
Current assets
 
$
10,876

 
$
7,330

Noncurrent assets
 
16,312

 
2,636

Total assets
 
$
27,188

 
$
9,966

Current liabilities
 
5,391

 
5,424

Noncurrent liabilities
 
16,999

 
1,005

Total liabilities
 
$
22,390

 
$
6,429

Total equity
 
$
4,798

 
$
3,537

Statements of Income - Universal Processing Services of Wisconsin, LLC
 
Three Months Ended September 30, 2015
 
Three Months Ended September 30, 2014
 
Nine Months Ended September 30, 2015
 
Nine Months Ended September 30, 2014
Revenue
 
$
24,248

 
$
23,102

 
$
72,603

 
$
66,980

Expenses
 
23,091

 
21,009

 
68,132

 
61,696

Income from operations
 
$
1,157

 
$
2,093

 
$
4,471

 
$
5,284

Interest income
 
364

 
963

 
391

 
2,673

Net income
 
$
1,521

 
$
3,056

 
$
4,862

 
$
7,957

NOTE 15—SUBSEQUENT EVENTS:

Quarterly Dividend
On October 1, 2015 the Company declared a quarterly cash dividend of $0.50 per share payable on November 3, 2015 to stockholders of record as of October 22, 2015. The dividend will be paid in cash or shares of the Company's common stock through participation in the Company's dividend reinvestment plan, at the election of stockholders.
Special Dividend/NAV
On October 1, 2015, the Company declared a one-time special dividend of approximately $34,000,000 or $3.29 per share payable on December 31, 2015 to stockholders of record as of November 18, 2015. As a result of the completion of the Company's sale of 2,300,000 common shares on October 15, 2015, as discussed below, the special dividend per share has been adjusted to $2.69 per share. This special dividend was declared as a result of the Company’s intention to elect RIC status for tax year 2015, as it must distribute 100% of its accumulated earnings and profits through December 31, 2014 in order to qualify as a RIC.  The special dividend amount of approximately $34,000,000 was computed based on the final earnings and profits analysis completed through December 31, 2014.
The dividend will be paid in cash or shares of the Company's common stock at the election of each stockholder. The total amount of cash to be distributed to all stockholders will be limited to 27% of the total dividend to be paid to stockholders. The

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remainder of the dividend (approximately 73%) will be paid in the form of shares of the Company's common stock. The exact distribution of cash and stock to any given stockholder will be dependent upon their election as well as elections of other stockholders, subject to the pro-rata limitation described above.
As a result of its declaring the special dividend, and the resulting obligation, as well as the Board’s assessment as to whether any other material change in the Company’s net asset value (“NAV”) has occurred since the Company disclosed NAV in its Form 10-Q for the quarter ended June 30, 2015 with the Securities and Exchange Commission, the Board adjusted the Company’s NAV on the declaration date of the special dividend to reflect the total obligation. As the number of shares of the Company’s common stock to be distributed to shareholders was undeterminable on the date of declaration, the Company recorded the entire amount of the special dividend obligation as a liability on October 1, 2015, with a corresponding reduction in NAV and NAV per share. As a further result, the Board declared an adjusted NAV of $135.6 million and NAV per share of $13.10, based on the Company’s common shares outstanding as of October 1, 2015. Further, when the special dividend is paid, the resulting impact to NAV may be an increase in NAV based on the number of shares of the Company’s common stock issued at the election of shareholders and the market value of the shares upon issuance.

Pursuant to Board determination, the following is the Company's NAV, and NAV per share on September 30, 2015 and the Company's NAV and NAV per share on October 1, 2015 (in thousands, except per share amounts):

 
 
NAV
 
NAV Per Share*
NAV, September 30, 2015
 
$
174,733

 
$
16.88

Declaration of special dividend, October 1, 2015
 
(34,035
)
 
(3.29
)
Declaration of third quarter dividend, October 1, 2015
 
(5,174
)
 
(0.50
)
NAV, October 1, 2015
 
$
135,524

 
$
13.10

* amounts may not foot due to rounding
7.5% Notes Due 2022
On October 15, 2015, in connection with the public offering of the Notes Due 2022, the underwriters exercised their option to purchase $124,000 in aggregate principal amount of notes for an additional $119,660 in net proceeds.
Equity Offering
On October 15, 2015 the Company completed an offering of 2,300,000 shares of common stock at a public offering price of $16.50 per share. Total proceeds received less underwriter discounts, commissions and offering costs was approximately $35,450,000.






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Newtek Business Services Corp. and Subsidiaries
Schedule of Investments In and Advances to Affiliates
(In thousands, except share and per share amounts, percentages and as otherwise indicated)
Nine Months Ended September 30, 2015

Portfolio Company/Type of Investment (1)
 
Amount of Interest, Fees or Dividends Credited in Income
 
Fair Value at December 31, 2014
 
Gross Additions (2)
 
Gross Reductions (3)
 
Fair Value at September 30, 2015
Control Investments
 
 
 
 
 
 
 
 
 
 
Advanced Cyber Security Systems, LLC
 
 
 
 
 
 
 
 
 
 
50% Membership Interest
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Term loan
 
14

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Automated Merchant Services, Inc.
 
 
 
 
 
 
 
 
 
 
100% Common Stock
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Business Connect, LLC
 
 
 
 
 
 
 
 
 
 
100% Membership Interest
 
4

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
CDS Business Services, Inc.
 
 
 
 
 
 
 
 
 
 
100% Common Stock
 
8

 
1,979

 
200

 
(408
)
 
1,771

 
 
 
 
 
 
 
 
 
 
 
CrystalTech Web Hosting, Inc.
 
 
 
 
 
 
 
 
 
 
100% Common Stock
 
600

 
21,500

 
—

 
(420
)
 
21,080

 
 
 
 
 
 
 
 
 
 
 
OnLAN, LLC (4)
 
 
 
 
 
 
 
 
 
 
49% Membership Interest
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Exponential Business Development Co. Inc.
 
 
 
 
 
 
 
 
 
 
100% Common Stock
 
1,080

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
First Bankcard Alliance of Alabama, LLC
 
 
 
 
 
 
 
 
 
 
95% Membership Interest
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Fortress Data Management, LLC
 
 
 
 
 
 
 
 
 
 
100% Membership Interest
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Newtek Insurance Agency, LLC
 
 
 
 
 
 
 
 
 
 
100% Membership Interest
 
—

 
2,300

 
200

 
—

 
2,500

 
 
 
 
 
 
 
 
 
 
 
PMTWorks Payroll, LLC
 
 
 
 
 
 
 
 
 
 
80% Membership Interest
 
—

 
920

 
13

 
—

 
933

Term Loan
 
79

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Secure CyberGateway Services, LLC
 
 
 
 
 
 
 
 
 
 

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Portfolio Company/Type of Investment (1)
 
Amount of Interest, Fees or Dividends Credited in Income
 
Fair Value at December 31, 2014
 
Gross Additions (2)
 
Gross Reductions (3)
 
Fair Value at September 30, 2015
66.7% Membership Interest
 
—

 
—

 
—

 
—

 
—

Term Loan
 
144

 
2,400

 
—

 
(800
)
 
1,600

 
 
 
 
 
 
 
 
 
 
 
Premier Payments LLC
 
 
 
 
 
 
 
 
 
 
100% Membership Interest
 
300

 
—

 
16,503

 
—

 
16,503

 
 
 
 
 
 
 
 
 
 
 
Small Business Lending, Inc.
 
 
 
 
 
 
 
 
 
 
100% Common Stock
 
348

 
2,900

 
5,565

 
(2,965
)
 
5,500

 
 
 
 
 
 
 
 
 
 
 
Summit Systems and Designs, LLC
 
 
 
 
 
 
 
 
 
 
100% Membership Interest
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Universal Processing Services of Wisconsin, LLC
 
 
 
 
 
 
 
 
 
 
100% Membership Interest
 
3,604

 
45,500

 
5,339

 
—

 
50,839

 
 
 
 
 
 
 
 
 
 
 
Where Eagles Fly, LLC (5)                                                                                   
 
 
 
 
 
 
 
 
 
 
95% Membership Interest
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Total Control Investments
 
$
6,181

 
$
77,499

 
$
27,820

 
$
(4,593
)
 
$
100,726

 
 
 
 
 
 
 
 
 
 
 
This schedule should be read in connection with the Company's Condensed Consolidated Financial Statements, including the Consolidated Schedule of Investments and Notes to 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.
(4) In September 2015, the Company sold its 49% membership interest in OnLAN, LLC for $100,000 payable over 50 months.
(5) In September 2015, the Company sold its 95% membership interest in Where Eagles Fly, LLC.


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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Overview

On November 12, 2014, Newtek Business Services, Inc. merged with and into Newtek Business Services Corp. (“NBS”), a newly-formed Maryland corporation, for the purpose of reincorporating in Maryland (the “Merger”), and thereafter filed an election to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (“1940 Act”). This transaction is referred to as the “Conversion” or “BDC Conversion”. All subsidiaries and controlled portfolio companies became the property of Newtek Business Services Corp. as part of the Merger. Except as otherwise noted, the terms “we,” “us,” “our,” “Company” and “Newtek” refer to Newtek Business Services, Inc. prior to the Conversion and its successor, Newtek Business Services Corp. following the Conversion.

We are an internally-managed, closed-end, investment company that has elected to be regulated as a BDC under the 1940 Act. In addition, for U.S. federal income tax purposes, we intend to elect to be treated as a regulated invested company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986 as amended (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 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 shares are currently listed on The NASDAQ Global Market under the symbol “NEWT”.

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, producing gains with a yield on investment in excess of 30%. 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 businesses 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 business of serving the SMB market, so we may reduce the burden on these companies to enable them to grow faster than they would otherwise as another means of supporting their development and that of the integrated whole.
In September 2015, the Company completed a public offering of $8,200,000 in aggregate principal amount of 7.5% notes due 2022 (the “Notes”). The Notes mature on September 30, 2022 and may be redeemed in whole or in part at any time or from time to time at the Company's option on or after September 23, 2018. The Notes bear interest at a rate of 7.5% per year payable quarterly on March 31, June 30, September 30 and December 31, of each year, beginning December 31, 2015 and trade on the NASDAQ Global Select Market under the trading symbol “NEWTZ.” Subsequent to September 30, 2015, the underwriters exercised their option to purchase additional notes for an additional $119,660 in net proceeds. See Note 7 “Borrowings” for additional detail.

On July 23, 2015, the Company acquired 100% of Premier Payments LLC (“Premier”). Premier was owned 100% by a related party of the Company.  The total purchase price was approximately $16,483,000, of which $14,011,000 was paid in cash and $2,472,000 was paid in newly issued restricted shares of Newtek common stock. A total of 130,959 shares were issued on the date of acquisition which may not be sold or transferred for six months. The Company’s board of directors, including a majority of independent directors, approved the transaction.


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In Capco investments, we often make debt investments in conjunction with being granted equity in the company in the same class of security as the business owner receives upon funding. We generally seek to structure our equity investments to provide us with minority rights provisions and event-driven put rights. We also seek to obtain limited registration rights in connection with these investments, which may include “piggyback” registration rights.

In May 2015, Exponential of New York, LLC received notice from the state of New York that the Company's request to be decertified as a Capco had been granted. The State of New York acknowledged that the Company had met the required level of qualified investments and satisfied all investment obligations.

In June 2015, Wilshire Texas Partners I, LLC received notice from the state of Texas that the Company's request to be decertified as a Capco had been granted. The State of Texas acknowledged that the Company had met the required level of qualified investments and satisfied all investment obligations.

On June 23, 2015, Universal Processing Services of Wisconsin, LLC and CrystalTech Web Hosting, Inc. (the “Borrowers”) entered into a four year credit agreement (the “Agreement”) with Goldman Sachs Bank USA (“Goldman Sachs”) where Goldman Sachs agreed to extend a term loan facility up to an aggregate principal amount of $38,000,000. A portion of the proceeds or $19,119,000 was disbursed to the Company under a revolving line of credit. The Company used a portion of the proceeds from the line to repay the outstanding balance of the Company's term loan and accrued interest with Capital One in the amount of $8,879,000. The remainder of the proceeds are to be used to finance future growth and for general corporate purposes. The term loan provides for monthly payments of interest with a balloon payment at the end of the term. Each term loan shall either be a “Base Rate Loan” or “LIBOR Rate Loan” at the Borrowers' election. Each LIBOR Rate Loan shall bear interest on the outstanding balance at a rate equal to (a) the greater of LIBOR or 50 basis points plus (b) 7% and each Base Rate Loan shall bear interest on the outstanding balance at a rate equal to (y) the greater of the Prime Rate or 350 basis points, plus (z) 6%. On September 8, 2015, the Agreement was amended to include Premier as a Borrower. The credit agreement has a maturity date of June 21, 2019. As of September 30, 2015, the outstanding principal is $22,000,000.
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.

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”). The maximum amount of the 504 Facility is up to $35,000,000, depending upon syndication. 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.

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 dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividends on common equity securities are recorded as dividend income on the declaration date for private portfolio companies.

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.

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Expenses
Our primary operating expenses are salaries and benefits, interest expense and other general and administrative fees, 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 September 30, 2015 and December 31, 2014, respectively (in thousands):
As of September 30, 2015
Distribution by Business Type
 
 
 
 
 
 
 
 
Business Type
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Existing Business
 
632

 
$
121,988

 
$
193

 
78.4
%
Business Acquisition
 
133

 
24,746

 
186

 
15.9
%
Start-Up Business
 
132

 
8,803

 
67

 
5.7
%
Total
 
897

 
$
155,537

 
$
173

 
100.0
%
As of December 31, 2014
Distribution by Business Type
 
 
 
 
 
 
 
 
Business Type
 
# of Loans
 
Balance
 
Average Balance
 
% of Balance
Existing Business
 
529

 
$
104,673

 
$
198

 
79.8
%
Business Acquisition
 
112

 
17,969

 
160

 
13.7
%
Start-Up Business
 
130

 
8,448

 
65

 
6.5
%
Total
 
771

 
$
131,090

 
$
170

 
100.0
%
The following tables set forth distribution by borrower’s credit score of the Company’s SBA 7(a) loan portfolio at September 30, 2015 and December 31, 2014, respectively (in thousands):
As of September 30, 2015
Distribution by Borrower Credit Score
 
 
 
 
 
 
 
 
Credit Score
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
500 to 550
 
12

 
$
1,084

 
$
90

 
0.7
%
551 to 600
 
29

 
4,906

 
169

 
3.2
%
601 to 650
 
112

 
23,584

 
211

 
15.2
%
651 to 700
 
240

 
37,552

 
156

 
24.1
%
701 to 750
 
273

 
52,667

 
193

 
33.9
%
751 to 800
 
193

 
30,552

 
158

 
19.6
%
801 to 850
 
32

 
2,871

 
90

 
1.8
%
Not available
 
6

 
2,321

 
387

 
1.5
%
Total
 
897

 
$
155,537

 
$
173

 
100.0
%
As of December 31, 2014

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Distribution by Borrower Credit Score
 
 
 
 
 
 
 
 
Credit Score
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
500 to 550
 
11

 
$
1,454

 
$
132

 
1.1
%
551 to 600
 
27

 
3,336

 
124

 
2.5
%
601 to 650
 
96

 
21,186

 
221

 
16.2
%
651 to 700
 
202

 
34,389

 
170

 
26.2
%
701 to 750
 
231

 
40,952

 
177

 
31.2
%
751 to 800
 
169

 
25,003

 
148

 
19.1
%
801 to 850
 
29

 
3,676

 
127

 
2.8
%
Not available
 
6

 
1,094

 
182

 
0.9
%
Total
 
771

 
$
131,090

 
$
170

 
100.0
%
The following tables set forth distribution by primary collateral type of the Company’s SBA 7(a) loan portfolio at September 30, 2015 and December 31, 2014, respectively (in thousands):
As of September 30, 2015
Distribution by Primary Collateral Type
 
 
 
 
 
 
 
 
Collateral Type
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Commercial Real Estate
 
422

 
$
88,508

 
$
210

 
56.9
%
Machinery and Equipment
 
165

 
31,081

 
188

 
20.0
%
Residential Real Estate
 
184

 
13,546

 
74

 
8.7
%
Other
 
38

 
10,900

 
287

 
7.0
%
Accounts Receivable and Inventory
 
62

 
10,713

 
173

 
6.9
%
Liquid Assets
 
11

 
439

 
40

 
0.3
%
Furniture and Fixtures
 
8

 
222

 
28

 
0.1
%
Unsecured
 
7

 
128

 
18

 
0.1
%
Total
 
897

 
$
155,537

 
$
173

 
100.0
%
As of December 31, 2014
Distribution by Primary Collateral Type
 
 
 
 
 
 
 
 
Collateral Type
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Commercial Real Estate
 
370

 
$
76,796

 
$
208

 
58.6
%
Machinery and Equipment
 
136

 
25,446

 
187

 
19.4
%
Residential Real Estate
 
175

 
13,648

 
78

 
10.4
%
Other
 
34

 
8,458

 
249

 
6.5
%
Accounts Receivable and Inventory
 
38

 
5,691

 
150

 
4.3
%
Liquid Assets
 
11

 
838

 
76

 
0.6
%
Furniture and Fixtures
 
7

 
213

 
30

 
0.2
%
Total
 
771

 
$
131,090

 
$
170

 
100.0
%
The following tables set forth distribution by days delinquent of the Company’s SBA 7(a) loan portfolio at September 30, 2015 and December 31, 2014, respectively (in thousands):
As of September 30, 2015

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Distribution by Days Delinquent
 
 
 
 
 
 
 
 
Delinquency Status
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Current
 
812

 
$
143,093

 
$
176

 
92.0
%
1 to 30 days
 
25

 
3,221

 
129

 
2.1
%
31 to 60 days
 
6

 
1,158

 
193

 
0.7
%
61 to 90 days
 
—

 
—

 
—

 
—
%
91 days or greater
 
54

 
8,065

 
149

 
5.2
%
Total
 
897

 
$
155,537

 
$
173

 
100.0
%
As of December 31, 2014
Distribution by Days Delinquent
 
 
 
 
 
 
 
 
Delinquency Status
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Current
 
676

 
$
117,517

 
$
174

 
89.6
%
1 to 30 days
 
24

 
3,002

 
125

 
2.3
%
31 to 60 days
 
15

 
2,127

 
142

 
1.6
%
61 to 90 days
 
2

 
58

 
29

 
—
%
91 days or greater
 
54

 
8,386

 
155

 
6.5
%
Total
 
771

 
$
131,090

 
$
170

 
100.0
%
Consolidated Results of Operations

The consolidated results below show the Company's results as a business development company for the three and nine months ended September 30, 2015 and as an operating company for the three and nine months ended September 30, 2014. The consolidated results for 2014 include the operations of subsidiaries which are reflected as investments in controlled portfolio companies in 2015. As such, their results of operations are not included in the condensed consolidated results of operations for the three and nine months ended September 30, 2015.

As a BDC and 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.

The condensed consolidated results of operations for the three and nine months ended September 30, 2015 and 2014 were as follows:
 
Three Months Ended September 30, 2015
 
Three Months Ended September 30, 2014
 
Nine Months Ended September 30, 2015
 
Nine Months Ended September 30, 2014
Investment income/operating revenue:
 
 
 
 
 
 
 
Interest income
$
2,211

 
$
—

 
$
6,711

 
$
—

Dividend income
3,093

 
—

 
5,967

 
—

Servicing income
1,262

 
—

 
3,373

 
—

Other income
472

 
—

 
1,343

 
—

Electronic payment processing
—

 
22,777

 
—

 
67,467

Web hosting and design
—

 
3,739

 
—

 
11,840

Premium income
—

 
5,801

 
—

 
15,930

Interest income
—

 
1,689

 
—

 
4,818

Servicing fee income – NSBF portfolio
—

 
915

 
—

 
2,661


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Three Months Ended September 30, 2015
 
Three Months Ended September 30, 2014
 
Nine Months Ended September 30, 2015
 
Nine Months Ended September 30, 2014
Servicing fee income – external portfolios
—

 
1,711

 
—

 
5,248

Income from tax credits
—

 
11

 
—

 
39

Insurance commissions
—

 
471

 
—

 
1,272

Other income
—

 
1,052

 
—

 
3,106

Total investment income/operating revenue
7,038

 
38,166

 
17,394

 
112,381

Net change in fair value of:
 
 
 
 
 
 
 
SBA loans
—

 
(493
)
 
—

 
(1,147
)
Credits in lieu of cash and notes payable in credits in lieu of cash
—

 
(2
)
 
—

 
—

Total net change in fair value
—

 
(495
)
 
—

 
(1,147
)
Expenses:
 
 
 
 
 
 
 
Electronic payment processing costs
—

 
19,147

 
—

 
57,084

Salaries and benefits
3,444

 
6,481

 
9,600

 
19,782

Interest
1,864

 
1,330

 
4,948

 
6,555

Depreciation and amortization
87

 
917

 
257

 
2,668

Provision for loan losses
—

 
14

 
—

 
(52
)
Other general and administrative costs
3,134

 
5,259

 
8,851

 
15,674

Total expenses
8,529

 
33,148

 
23,656

 
101,711

Net investment loss
(1,491
)
 
—

 
(6,262
)
 
—

Net realized gains on non-affiliate investments
6,620

 
—

 
21,659

 
—

Net unrealized depreciation on SBA guaranteed non-affiliate investments
(48
)
 
—

 
(3,210
)
 
—

Net unrealized depreciation on SBA unguaranteed non-affiliate investments
(531
)
 
—

 
(1,667
)
 
—

Net unrealized appreciation on controlled investments
770

 
—

 
10,289

 
—

Net unrealized depreciation on servicing assets
(565
)
 
—

 
(1,177
)
 
—

Net unrealized depreciation on credits in lieu of cash and notes payable in credits in lieu of cash
(6
)
 
—

 
(4
)
 
—

Net realized and unrealized gains
6,240

 
—

 
25,890

 
—

Income before income taxes
—

 
4,523

 
—

 
9,523

Net increase in net assets
$
4,749

 
$
—

 
$
19,628

 
$
—

Provision for income taxes
—

 
1,934

 
—

 
3,694

Net income
—

 
2,589

 
—

 
5,829

Net loss attributable to non-controlling interests
—

 
55

 
—

 
95

Net income attributable to Newtek Business Services Corp.
$
—

 
$
2,644

 
$
—

 
$
5,924

Comparison for the three months ended September 30, 2015 and 2014
Investment Income
Investment income for the three months ended September 30, 2015 was $7,038,000 compared with total operating revenues of $38,166,000 for the three months ended September 30, 2014. As a result of the BDC Conversion, there is no electronic payment processing revenue, web hosting and design revenue, servicing fee income from external portfolios, insurance

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commission revenue, and other income related to our payroll processing and accounts receivable financing and billing services included in the results for the three months ended September 30, 2015.
Interest Income
Substantially all interest income for the three months ended September 30, 2015 and 2014 was derived from SBA non-affiliate investments/loans. Interest income derived from SBA non-affiliate investments was $2,134,000 and $1,688,000 for the three months ended September 30, 2015 and 2014, respectively. The increase in interest income was attributable to the average outstanding performing portfolio of SBA non-affiliate investments/loans increasing to $140,702,000 from $106,398,000 for the three months ended September 30, 2015 and 2014, respectively. The increase in the average outstanding performing portfolio resulted from the origination of new SBA non-affiliate investments period over period.
NSBF Servicing Portfolio and Related Servicing Income
The following table represents NSBF originated servicing portfolio and servicing income earned for the three months ended September 30, 2015 and 2014:
 
Three months ended September 30,
 
 
 
 
(In thousands):
2015
 
2014
 
$ Change
 
% Change
Total NSBF originated servicing portfolio (1)
$
723,778

 
$
578,269

 
$
145,509

 
25
%
Total servicing income earned
$
1,262

 
$
915

 
$
347

 
38
%
(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $532,817,000 and $430,938,000 for the three months ended September 30, 2015 and 2014, respectively.
Servicing fee income from the NSBF originated portfolio increased by $347,000 to $1,262,000 for the three months ended September 30, 2015 compared to 2014. The increase was attributable to the increase in total portfolio investments for which we earn servicing income. The portfolio increased $145,509,000 period over period. The increase was a direct result of increased investments in SBA non-affiliate investments from 2014 to 2015. There was no servicing fee income recognized for loans serviced for third parties for the three months ended September 30, 2015. This third party servicing revenue, which was previously included in consolidated results, is recognized and earned by one of the Company's controlled portfolio companies, Small Business Lending, Inc.
Dividend Income
Dividend income was $3,093,000 for the three months ended September 30, 2015 and represents $1,300,000 received from Universal Processing Services of Wisconsin, LLC (“UPS”), $1,080,000 from Exponential Business Development Co., Inc. $200,000 from CrystalTech Web Hosting, Inc. (“NTS”), $300,000 from Premier Payments LLC (“Premier”) and $200,000 from Small Business Lending, Inc. (“SBL”) All dividends were received from controlled portfolio companies.
Other Income
Other income of $472,000 for the three months ended September 30, 2015 relates primarily to legal, packaging, prepayment, and late fees earned from SBA loans. Other income is not comparable period over period as 2014 amounts include revenue from certain controlled portfolio companies which were consolidated subsidiaries at September 30, 2014.
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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Three months ended September 30, 2015
Net investment loss
$
(1,491
)
Net realized gain on investments
6,620

Adjusted net investment income
$
5,129


For the three months ended September 30, 2014, the Company did not operate as a BDC and therefore did not have net investment or adjusted net investment income. 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 investments because they are recurring income related to the sale of SBA guaranteed non-affiliate investments in the secondary market.
Expenses
Total expenses decreased from $33,148,000 to $8,529,000 for the three months ended September 30, 2014 to 2015 as a result of the conversion to a BDC in November 2014. Electronic payment processing costs, salaries and benefits, depreciation and amortization, and other general and administrative expenses related to certain subsidiaries in 2014 are not included in 2015 results. As previously discussed, certain consolidated subsidiaries in 2014 are now reflected as investments in controlled portfolio companies and their results of operations are not included in 2015.
Interest expense increased by $534,000 for the three months ended September 30, 2015 compared to 2014. The following table highlights the components of interest expense for each period:
 
Three months ended
 
 
 
September 30, 2015
 
September 30, 2014
 
Change
Securitization Trust VIE (NSBF)
$
971

 
$
724

 
$
247

Summit Partners Credit Advisors, L.P. (NBS)
—

 
18

 
(18
)
Capital One Lines of Credit (NSBF)
376

 
291

 
85

Capital One Term Loan and Line of Credit (NBS)
—

 
176

 
(176
)
Notes due 2022
15

 
—

 
15

Related party note
461

 
—

 
461

Sterling Line of Credit (NBC)
—

 
85

 
(85
)
Capco
27

 
19

 
8

Other
14

 
17

 
(3
)
Total
$
1,864

 
$
1,330

 
$
534

Interest expense related to securitizations increased as a result of an additional securitization transaction completed in December 2014. In June 2015, the Company received $19,119,000 under an unsecured revolving line of credit extended by UPS and NTS and incurred $461,000 in interest expense during the three months ended September 30, 2015. 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 Capital One term loan and line of credit were paid in full and extinguished in June 2015. In addition, $15,000 in interest expense was incurred on the Notes Due 2022. For the three months ended September 30, 2015, the Company did not incur interest expense related to the Sterling line of credit as it relates to Newtek Business Credit, a non-consolidated controlled portfolio company. Prior to the BDC Conversion, Newtek Business Credit was a consolidated subsidiary.
Net Realized Gains and Net Unrealized Appreciation and Depreciation

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 September 30, 2015 were approximately $6,848,000 offset by approximately $228,000 of realized losses. The net change in unrealized appreciation or depreciation on investments primarily reflects the change in portfolio investment fair values during the

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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
 
For the three months ended September 30,
 
2015
 
2014
(In thousands):
# of Debt Investments
 
$ Amount
 
# of Debt Investments
 
$ Amount
SBA non-affiliate investments originated during the quarter
75

 
$
64,245

 
47

 
$
48,685

SBA guaranteed non-affiliate investments sold during the quarter
76

 
$
50,155

 
39

 
$
36,523

Realized gains recognized on sale of SBA guaranteed non-affiliate investments
—

 
$
6,848

 
—

 
$
—

Premium income recognized
 
 
$
—

 
 
 
$
5,801

Average sale price as a percent of principal balance (1)
 
 
111.34
%
 
 
 
113.19
%

(1) Realized gains/premiums greater than 110.00% must be split 50/50 with the SBA in accordance with SBA regulations. The realized gains/premium income recognized above reflects amounts net of split with SBA.

Net realized gains for the three months ended September 30, 2015 were $6,620,000 compared to zero for the three months ended September 30, 2014. Net realized gains for the three months ended September 30, 2015 are comparable to premium income for the three months ended September 30, 2014. Premium income of $5,801,000 in 2014 relates to income earned from the sale of SBA loans. As a result of the BDC Conversion, the income related to these sales are recorded as realized gains in 2015. The increase is attributed to the increase in SBA investments sold. The increase was offset by a decrease in average sale premium from 113.19% for the three months ended September 30, 2014 compared to 111.34% three months ended September 30, 2015.

Net Unrealized Appreciation (Depreciation) on Investments
Unrealized appreciation on SBA guaranteed non-affiliate investments for the three months ended September 30, 2015 was $1,486,000. This appreciation relates to guaranteed portions of SBA debt investments made for which the Company sells into a secondary market. Unrealized depreciation of SBA guaranteed investments was $1,534,000 which represents the reversal of the unrealized appreciation of SBA guaranteed non-affiliate investments sold during the quarter. Net unrealized depreciation on SBA unguaranteed non-affiliate investments resulted from fair value adjustments on new investments.

Net unrealized appreciation on controlled investments was $770,000 for the three months ended September 30, 2015. This consisted primarily of $600,000, $215,000 and $200,000 of unrealized appreciation on the Company's investments in UPS, SBL and Newtek Insurance Agency, LLC (“NIA”), respectively. Unrealized appreciation was offset by unrealized depreciation of $50,000 and $208,000 on the Company's investments in NTS and NBC. The primary driver of the increase in UPS and NIA was better than projected financial performance. The primary driver of the increase in SBL was better than projected financial performance and the addition of a new third-party servicing contract which provides a longer-term stable revenue stream. The primary driver of the decrease in NTS and NBC was weaker than projected financial performance.

Net Unrealized Depreciation on Servicing Assets

The unrealized loss on servicing assets was $565,000 for the three months ended September 30, 2015. In 2014, servicing assets were recorded using the amortization method. As a result of the BDC Conversion, servicing assets are recorded at fair value at September 30, 2015. Amortization expense related to servicing assets was $397,000 for the three months ended September 30, 2014 and is included in depreciation and amortization expense in the condensed consolidated statements of operations.
Comparison for the nine months ended September 30, 2015 and 2014
Investment Income
Investment income for the nine months ended September 30, 2015 was $17,394,000 compared with total operating revenues of $112,381,000 for the nine months ended September 30, 2014. As a result of the BDC Conversion, there is no electronic payment processing revenue, web hosting and design revenue, servicing fee income from external portfolios, insurance commission revenue, and other income related to our payroll processing and accounts receivable financing and billing services included in the results for the nine months ended September 30, 2015.

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Interest Income
Substantially all interest income for the nine months ended September 30, 2015 and 2014 was derived from SBA non-affiliate investments/loans. Interest income derived from SBA non-affiliate investments was $6,483,000 and $4,810,000 for the nine months ended September 30, 2015 and 2014, respectively. The increase in interest income is attributable to the average outstanding performing portfolio of SBA non-affiliate investments/loans increasing to $132,758,000 from $100,281,000 for the nine months ended September 30, 2015 and 2014, respectively. The increase in the average outstanding performing portfolio resulted from the origination of new SBA non-affiliate investments period over period.
NSBF Servicing Portfolio and Related Servicing Income
The following table represents NSBF originated servicing portfolio and servicing income earned for the nine months ended September 30, 2015 and 2014:
 
Nine months ended September 30,
 
 
 
 
(In thousands):
2015
 
2014
 
$ Change
 
% Change
Total NSBF originated servicing portfolio (1)
$
723,778

 
$
578,269

 
$
145,509

 
25
%
Total servicing income earned
$
3,373

 
$
2,661

 
$
712

 
27
%
(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $507,746,000 and $407,930,000 for the nine months ended September 30, 2015 and 2014, respectively.
Servicing fee income from the NSBF originated portfolio increased by $712,000 to $3,373,000 for the nine months ended September 30, 2015 compared to 2014. The increase was attributable to the increase in total portfolio investments for which we earn servicing income. The portfolio increased $145,509,000 period over period. The increase was a direct result of increased investments in SBA non-affiliate investments from 2014 to 2015. There was no servicing fee income recognized for loans serviced for third parties for the nine months ended September 30, 2015. This third party servicing revenue, which was previously included in consolidated results, is recognized and earned by one of the Company's controlled portfolio companies, SBL.
Dividend Income
Dividend income was $5,967,000 for the nine months ended September 30, 2015 and represents $3,600,000 received from UPS, $1,080,000 from Exponential Business Development Co., Inc. $600,000 from NTS, $300,000 from Premier and $348,000 from SBL. All dividends were received from controlled portfolio companies.
Other Income
Other income of $1,343,000 for the nine months ended September 30, 2015 relates primarily to legal, packaging, prepayment, and late fees earned from SBA loans. Other income is not comparable period over period as 2014 amounts include revenue from certain controlled portfolio companies which were consolidated subsidiaries at September 30, 2014.
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.
 
Nine months ended September 30, 2015
Net investment loss
$
(6,262
)
Net realized gain on investments
21,659

Adjusted net investment income
$
15,397


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For the nine months ended September 30, 2014, the Company did not operate as a BDC and therefore did not have net investment or adjusted net investment income. 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 investments because they are recurring income related to the sale of SBA guaranteed non-affiliate investments in the secondary market.
Expenses
Total expenses decreased from $101,711,000 to $23,656,000 for the nine months ended September 30, 2014 to 2015 as a result of the conversion to a BDC in November 2014. Electronic payment processing costs, salaries and benefits, depreciation and amortization, and other general and administrative expenses related to certain subsidiaries in 2014 are not included in 2015 results. As previously discussed, certain consolidated subsidiaries in 2014 are now reflected as investments in controlled portfolio companies and their results of operations are not included in 2015.
Interest expense decreased by $1,607,000 for the nine months ended September 30, 2015 compared to 2014. The following table highlights the components of interest expense for each period:
 
Nine months ended
 
 
 
September 30, 2015
 
September 30, 2014
 
Change
Securitization Trust VIE (NSBF)
$
2,804

 
$
2,247

 
$
557

Summit Partners Credit Advisors, L.P. (NBS)
—

 
2,971

 
(2,971
)
Capital One Lines of Credit (NSBF)
970

 
745

 
225

Capital One Term Loan and Line of Credit (NBS)
564

 
181

 
383

Notes due 2022
15

 
—

 
15

Related party note
491

 
—

 
491

Sterling Line of Credit (NBC)
—

 
277

 
(277
)
Capco
63

 
66

 
(3
)
Other
41

 
68

 
(27
)
Total
$
4,948

 
$
6,555

 
$
(1,607
)
Interest expense related to securitizations increased as a result of an additional securitization transaction completed in December 2014. In June 2014,  the Company entered into a four year $20,000,000 credit agreement with Capital One, consisting of a $10,000,000 term loan and a revolving line of credit of up to $10,000,000. The term loan was obtained to pay off the Summit Partners debt which carried a higher interest rate. The net reduction in interest expense was $2,588,000. In June 2015, the Company received $19,119,000 under an unsecured revolving line of credit extended by UPS and NTS and incurred $491,000 in interest expense in 2015. In addition, $15,000 in interest expense was incurred on the Notes Due 2022. For the nine months ended September 30, 2015, the Company did not incur interest expense related to the Sterling line of credit as it relates to Newtek Business Credit, a controlled portfolio company. Prior to the BDC Conversion, Newtek Business Credit was a consolidated subsidiary.
Net Realized Gains and Net Unrealized Appreciation and Depreciation

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 nine months ended September 30, 2015 were approximately $22,287,000 offset by approximately $628,000 of realized losses. 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

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For the nine months ended September 30,
 
2015
 
2014
(In thousands):
# of Debt Investments
 
$ Amount
 
# of Debt Investments
 
$ Amount
SBA non-affiliate investments originated during the period
208

 
$
167,756

 
134

 
$
136,851

SBA guaranteed non-affiliate investments sold during the period
219

 
$
154,687

 
125

 
$
104,845

Realized gains recognized on sale of SBA guaranteed non-affiliate investments
—

 
$
22,287

 
—

 
$
—

Premium income recognized
 
 
$
—

 
 
 
$
15,930

Average sale price as a percent of principal balance (1)
 
 
112.09
%
 
 
 
112.68
%

(1) Realized gains/premiums greater than 110.00% must be split 50/50 with the SBA in accordance with SBA regulations. The realized gains/premium income recognized above reflects amounts net of split with SBA.

Net realized gains for the nine months ended September 30, 2015 was $21,659,000 compared to zero for the nine months ended September 30, 2014. Net realized gains for the nine months ended September 30, 2015 are comparable to premium income for the nine months ended September 30, 2014. Premium income of $15,930,000 in 2014 relates to premium income earned from the sale of SBA loans. As a result of the BDC Conversion, the income related to these sales are recorded as realized gains in 2015. The increase is attributed to the increase in SBA investments sold which was partially offset by a decrease in average sale premium from 112.68% for the nine months ended September 30, 2014 to 112.09% for the nine months ended September 30, 2015.

Net Unrealized Appreciation (Depreciation) on Investments

Unrealized appreciation on SBA guaranteed non-affiliate investments for the nine months ended September 30, 2015 was $5,582,000. This appreciation relates to guaranteed portions of SBA investments made for which the Company sells into a secondary market. Unrealized depreciation of SBA guaranteed investments was $8,792,000 which represents the reversal of the unrealized appreciation of SBA guaranteed non-affiliate investments sold during the quarter. Net unrealized depreciation on SBA unguaranteed non-affiliate investments resulted from fair value adjustments on new investments.

Net unrealized appreciation on controlled investments was $10,289,000 for the nine months ended September 30, 2015. This consisted primarily of $5,339,000 of unrealized appreciation on the Company's investment in UPS and $5,565,000 of unrealized appreciation on the Company's investment in SBL offset by unrealized depreciation of approximately $420,000 on the Company's investment in NTS and $408,000 on NBC. The primary driver for the increase in SBL was the addition of a new third-party servicing contract which provides a longer-term stable revenue stream. The primary driver of the increase in UPS was better than projected financial performance.

Net Unrealized Depreciation on Servicing Assets

The unrealized loss on servicing assets was $1,177,000 for the nine months ended September 30, 2015. In 2014, servicing assets were recorded using the amortization method. As a result of the BDC Conversion, servicing assets are recorded at fair value at September 30, 2015. Amortization expense related to servicing assets was $1,141,000 for the nine months ended September 30, 2014 and is included in depreciation and amortization expense in the condensed consolidated statements of operations.
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.
In September 2015, the Company and U.S. Bank, N.A. (the “Trustee”), entered into the First Supplemental Indenture (the “First Supplemental Indenture”) to the Base Indenture between the Company and the Trustee, dated September 23, 2015, relating to the Company’s issuance, offer and sale of $8,200,000 aggregate principal amount of 7.5% notes due 2022. In

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October 2015, the underwriters issued notification to exercise their over-allotment option for an additional $124,000 in aggregate principal amount of the Notes. The sale of the Notes generated net proceeds of approximately $7,913,000.

The 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. The Notes bear interest at a rate of 7.5% per year payable quarterly on March 31, June 30, September 30, and December 31 of each year, commencing on December 31, 2015, and trade on the NASDAQ Global Market under the trading symbol “NEWTZ.”

The Notes will be the Company’s direct unsecured obligations and will 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 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; (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.

The Base Indenture, as supplemented by the First Supplemental Indenture, contains certain covenants including covenants requiring the Company to comply with (regardless of whether it is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act and to comply with the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act. These covenants are subject to important limitations and exceptions that are described in the Base Indenture, as supplemented by the First Supplemental Indenture. The Base Indenture, as supplemented by the First Supplemental Indenture, also contains certain reporting requirements, including a requirement that the Company provide financial information to the holders of the Notes and the Trustee if the Company should no longer be subject to the reporting requirements under the Securities Exchange Act of 1934. The Base Indenture provides for customary events of default. As of September 30, 2015, the Company was in compliance with the terms of the Base Indenture as supplemented by the First Supplemental Indenture.

The Company intends to use the proceeds primarily to expand its financing activities and increase its activity in SBA 7(a) lending and make direct investments in portfolio companies (including from time to time, acquiring controlling interests in portfolio companies in accordance with its investment objectives and strategies.
Note Payable - Related Parties

On June 23, 2015, 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 , as Administrative Agent, Collateral Agent and Lead Arranger, pursuant to which GS Bank agreed to extend to the Borrowers a term loan facility up to an aggregate principal amount of $38,000,000. On September 18, 2015, the Agreement was amended to add Premier as a Borrower. The Company, Newtek Business Services Holdco 1, Inc., a wholly-owned subsidiary of the Company, 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 September 30, 2015, $22,000,000 was outstanding under this Facility.
SBA Loans
NSBF depends on the availability of licensed SBA lenders to purchase SBA loans held for sale transferred to the secondary markets and the premium earned therein to support its lending operations. At this time the secondary market for the SBA loans held for sale is robust. However, there can be no assurances that the market will continue in this manner.
NSBF has historically financed the operations of its lending business through loans or credit facilities from various lenders and will need to continue to do so in the future, as well as raise capital through the issuance of the Company’s common stock. Such lenders invariably require a security interest in the SBA loans as collateral which, under the applicable law, requires the prior approval of the SBA. If the Company should ever be unable to obtain the approval for its financing arrangements from the SBA, or if it were otherwise unable to raise capital, it would likely be unable to continue to make loans.
Securitizations
As an alternative to holding indefinitely the portions of SBA loans remaining after sale of the guaranteed portions in the SBA supervised secondary market, NSBF has undertaken to securitize these unguaranteed portions. In December 2010, the first such securitization trust established by NSBF issued notes to one investor in the amount of $16,000,000 which received an S&P

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rating of AA. A second securitization, an amendment to the original transaction, was completed in December 2011, and resulted in an additional $14,900,000 of notes issued to the same investor. NSBF used the cash generated from the first transaction to retire its outstanding term loan from Capital One and to fund a $3,000,000 account which during the first quarter of 2011 purchased unguaranteed portions originated subsequent to the securitization transaction. Similarly, the proceeds from the second securitization in 2011 were used to pay down its outstanding term loan with Capital One and to fund a $5,000,000 account used to fund additional originations in the first quarter of 2012. Additional securitizations were completed in March 2013 and December 2013 resulting in the issuance of notes in the amount of $20,909,000 and $24,434,000, respectively. Similarly, the proceeds of both transactions were used to pay down the outstanding term loan with Capital One, and a combined total of $12,945,000 was used to fund an account used to purchase unguaranteed portions of loans throughout 2013, and during the first quarter of 2014. While this securitization process can provide a long-term funding source for the SBA lender, there is no certainty that it can be conducted on an economic basis. In addition, the securitization mechanism itself does not provide liquidity in the short term for funding SBA loans.  In December 2014, NSBF completed an additional securitization 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 Newtek Small Business Loan Trust 2014-1in 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 July 2039. The proceeds of the transaction have been and will be used to repay debt and originate new loans.
On September 25, 2015, the Company completed a securitization of $40,800,000 of Standard and Poor’s (“S&P”) AA-rated Unguaranteed SBA 7(a) Loan-Backed Notes, Series 2010-1 (the “Notes”). This was our largest securitization transaction to date and was accomplished as an amendment and supplement to our 2010-1 securitization. The Notes are collateralized by the right to receive payments and other recoveries attributable to the non-guaranteed portions of SBA 7(a) Loans made by NSBF and overcollateralized by NSBF’s participation interest in the non-guaranteed interests. Sandler O’Neill + Partners L.P. acted as the placement agent for the sale of the Notes and placed this issue with five institutional investors, three of whom were new to our securitization investment program. The Notes were priced and sold to investors at a yield of 2.5%, which represents an approximate 100 basis point improvement in the overall yield since our last securitization transaction priced. S&P rated the Notes as ‘AA’ based on the collateral in the entire, upsized pool.

Capital One Term Loan and Line of Credit (NBS)

In June 2014, the Company entered into a four year $20,000,000 credit agreement with Capital One consisting of a $10,000,000 term loan and a revolving line of credit of up to $10,000,000. Principal and interest on the term loan was payable quarterly in arrears and the interest rate was Prime plus 250 basis points.  The term loan was being amortized over a six year period with a final payment due on the maturity date.  The interest rate on the revolving line of credit is also Prime plus 250 basis points and was payable monthly in arrears with the principal due at maturity. In addition, the revolving line accrued interest of 0.375% on the unused portion of the line which was payable quarterly in arrears. All outstanding principal was repaid and the credit facility was retired in June 2015.

Capital One Line of Credit (NSBF)

In July 2013 the SBA lender, received an extension on the maturity of its warehouse lines of credit, totaling $27,000,000 with Capital One from September 30, 2013 to May 31, 2015, at which time the outstanding balance would be converted into a three-year term loan. The extension also enhanced the terms of the credit facilities by removing the $15,000,000 funding sublimit for the non-guaranteed portions of the SBA 7(a) loans NSBF originates, and increasing the advance rate to 55% from 50% for the non-guaranteed portions of the SBA 7(a) loans.  As of September 30, 2015 and December 31, 2014, NSBF had $21,849,000 and $33,856,000 outstanding under the line of credit. 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 100 basis points, and there is a quarterly facility fee equal to 25 basis points 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 187.5 basis points, and there is a quarterly facility fee equal to 25 basis points on the unused portion of the revolving credit calculated as of the end of each calendar quarter. On October 29, 2014, NSBF, closed an additional $23,000,000 in financing with Capital One which increased the existing revolving credit facility from $27,000,000 to $50,000,000.  The amendment also extended the term of the facility from May 31, 2015 to May 16, 2018. In June 2015, NSBF amended its existing facility to eliminate the fixed charge coverage ratio in exchange for a debt service ratio, new EBITDA minimums, the elimination of restrictions on the Company’s ability to pay dividends to its stockholders, as well as the release of the guarantees of the Company’s 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 September 30, 2015, the Company was in full compliance with all applicable loan covenants.

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The following is a summary of our borrowings as of September 30, 2015 and December 31, 2014 (in thousands):
 
 
September 30, 2015
 
December 31, 2014
Facility
 
Commitments
 
Borrowings Outstanding
 
Weighted Average Interest Rate
 
Commitments
 
Borrowings Outstanding
 
Weighted Average Interest Rate
Capital One Line of Credit - Guaranteed (1)
 
$
50,000

 
$
19,549

 
4.25
%
 
$
50,000

 
$
28,722

 
4.25
%
Capital One Line of Credit - Unguaranteed (1)
 
—

 
2,300

 
5.13
%
 
—

 
5,134

 
5.13
%
Capital One Term Loan
 
—

 
—

 
—
%
 
10,000

 
9,167

 
5.75
%
Notes Due 2022
 
8,200

 
8,200

 
7.50
%
 
—

 
—

 
—
%
Note Payable - Related Parties
 
38,000

 
18,121

 
7.50
%
 
—

 
—

 
—
%
Notes Payable - Securitization Trusts
 
97,930

 
97,930

 
3.28
%
 
79,520

 
79,520

 
3.80
%
Total
 
$
194,130

 
$
146,100

 
4.20
%
 
$
139,520

 
$
122,543

 
4.11
%

(1) Total combined commitments of the Guaranteed and Unguaranteed lines of credit are $50,000,000 at September 30, 2015 and December 31, 2014.
Cash Flows and Liquidity
As of September 30, 2015, the Company’s unused sources of liquidity consisted of $10,104,000 available through the combined Capital One facilities; $11,000,000 available through notes payable with related parties; $3,098,000 in unrestricted cash and $36,000 in money market funds.

Restricted cash of $26,722,000 as of September 30, 2015 is primarily held in NSBF. The majority, or $25,621,000 of restricted cash, is related to NSBF, and includes amounts held in a prefunded account to be used to originate new loans, reserves in the event payments are insufficient to cover interest and/or principal with respect to the securitization, 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.

In summary, the Company generated and used cash as follows:
 
Nine months ended September 30, 2015
 
Nine months ended September 30, 2014
Net cash (used in) provided by operating activities
$
(20,989
)
 
$
16,334

Net cash used in investing activities
(93
)
 
(25,157
)
Net cash provided by financing activities
6,367

 
717

Net decrease in cash and cash equivalents
(14,715
)
 
(8,106
)
Cash and cash equivalents, beginning of period
17,813

 
12,508

Cash and cash equivalents, end of period
$
3,098

 
$
4,402

The summary presented above is not comparable due to cash flow presentation changes required as a result of the conversion to a BDC. The most significant change relates to the presentation of cash flows related to SBA debt investments/loans which are included in investing activities for the nine months ended September 30, 2014 and operating activities for the nine months ended September 30, 2015.
Net cash flows from operating activities decreased $37,323,000 for the nine months ended September 30, 2015. The decrease was primarily attributed to an increase in broker receivables. The Company did not have any broker receivables at December 31, 2014 which caused the decrease in 2015. Broker receivables 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. The decrease was also attributed to investments made in Premier and Titanium Asset Management LLC of $16,230,000 combined. Originations of SBA 7(a) loans (net of repayments) of $154,212,000 were offset by proceeds from the sale of SBA 7(a) guaranteed loans (net of realized gains) of

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$155,333,000. As discussed below, originations and repayments were included in investing activities during the nine months ended September 30, 2014 but are included in operating activities during the nine months ended September 30, 2015.
Net cash used in investing activities primarily includes the originations and repayments of the unguaranteed portions of SBA 7(a) loans for the nine months ended September 30, 2014. As a result of the BDC Conversion, originations and repayments of SBA 7(a) debt investments are included in operating activities for the nine months ended September 30, 2015. Net cash used also includes the purchase of fixed assets. Net cash used in investing activities decreased by $25,064,000 to cash used of $93,000 for the nine months ended September 30, 2015 compared to cash used of $25,157,000 for the nine months ended September 30, 2014. The decrease was due primarily to originations and repayments of SBA 7(a) debt investments being included in operating activities subsequent to the conversion to a BDC. SBA 7(a) debt investments, net of repayments were $24,167,000 for the nine months ended September 30, 2014.
Net cash provided by financing activities increased by $5,650,000 for the nine months ended September 30, 2015. The increase is primarily attributed to net borrowings from a related party note payable of $18,121,000, proceeds from notes issued due in 2022 of $8,200,000, the issuance of senior notes in connection with the upsizing of the 2010 Securitization Trust of $32,029,000. The increase was offset by a $16,036,000 increase in net repayments on bank lines of credit, $8,787,000 of dividends paid in 2015 compared to no dividends paid in 2014, a $10,975,000 decrease in restricted cash related to securitizations, an increase of $5,749,000 in payments related to securitizations, and $2,414,000 distribution to the members of Exponential of New York, LLC. In 2014, the Company had proceeds from a term loan of $10,000,00. There were no proceeds from term loans in 2015.
Contractual Obligations
The following chart represents Newtek’s significant obligations and commitments as of September 30, 2015, (in thousands):
 
Payments due by period
Contractual Obligations
Total
 
Less than 1 year
 
1-3 years
 
3-5 years
 
More than 5 years
Bank notes payable (a)
$
21,849

 
$
19,549

(b) 
$
—

 
$
2,300

(c) 
$
—

Securitization notes payable (d)
97,930

 
—

  
—

  
—

 
97,930

Notes due 2022 (e)
8,200

 
—

 
—

 
—

 
8,200

Note payable - related parties (f)
18,121

 
—

 
—

 
18,121

 
—

Totals
$
146,100

 
$
19,549

  
$
—

  
$
20,421

 
$
106,130

(a)
Payable to Capital One: Interest rates range from 4.25% to 5.75%.
(b)
Includes:
The amount outstanding on the NSBF Capital One guaranteed line. Amount payable upon sale of the guaranteed portions of loans which generally occurs within 0-60 days.
(c)
Includes:
$2,300,000 outstanding on the NSBF Capital One unguaranteed line, which converts to a three year term loan on May 16, 2017 maturing on May 16, 2019.
(d)
Includes:
$97,930,000 net of discount, of securitization notes with legal maturity of 30 years bearing interest at rates between London Interbank Offered Rate (“LIBOR”) plus 3.45% to prime plus 0.75%; actual principal payments 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.
(e)     Notes due 2022 bear interest at 7.5%. Interest is payable quarterly.
(f)     Revolving line of credit which carries interest at 7.5%. Consists $13,591,000 due to UPS and $4,530,000 due to NTS as of September 30, 2015.
Critical Accounting Policies
The preparation of 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, liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and

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expenses during the reporting period. Actual results could differ from those estimates. We have identified the following items as critical accounting policies.

Distributions

Beginning in the first quarter of 2015, and to the extent that we have income available, we have made and intend to continue to make quarterly distributions to our stockholders out of assets legally available for distribution. Our quarterly distributions, if any, will be determined by our board of directors.

Any distribution to our stockholders will be declared out of assets legally available for distribution. Distributions in excess of current and accumulated earnings and profits will be treated as a non-taxable return of capital to the extent of a stockholder’s basis in our stock and, assuming that a stockholder holds our stock as a capital asset, thereafter as a capital gain. Generally, a non-taxable return of capital will reduce a stockholder’s basis in our stock for federal tax purposes, which will result in higher tax liability when the stock is sold.

We intend to elect to be treated, and intend to qualify annually thereafter, as a RIC under the Code, beginning with our first taxable year after the BDC Conversion, or 2015. To obtain and maintain RIC tax treatment, we must distribute at least 90% of our net ordinary income and net short-term capital gains in excess of our net long-term capital losses, if any, to our stockholders. In order to avoid certain excise taxes imposed on RICs, we currently intend to distribute during each calendar year an amount at least equal to the sum of: (a) 98% of our net ordinary income for such calendar year; (b) 98.2% of our capital gain net income for the one-year period ending on October 31 of the calendar year; and (c) any net ordinary income and capital gain net income for preceding years that were not distributed during such years and on which we previously paid no U.S. federal income tax.

We currently intend 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, we may decide in the future to retain such capital gains for investment and elect to treat such gains as deemed distributions to you. 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 we retain and reinvested the net after tax proceeds in us. 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 we paid on the capital gains deemed distributed to them. We cannot assure stockholders that we will achieve results that will permit us to pay any cash distributions, and if we issue senior securities, we may be prohibited from making distributions if doing so would cause us to fail to maintain the asset coverage ratios stipulated by the 1940 Act or if such distributions are limited by the terms of any of our borrowings.

Unless stockholders elect to receive distributions in cash, we intend to make such distributions in additional shares of our common stock under our dividend reinvestment plan. Although distributions paid in the form of additional shares of our 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.

Refer to Note 15 “Subsequent Events” for discussion of special dividend declared on October 1, 2015.
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 of directors 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.
 
Valuation methods may include comparisons of the 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.

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Our board of directors 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.

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 and its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons to publicly traded securities, and 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 method for determining enterprise value uses 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.


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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.

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 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 into income 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 or return of capital.

Income Taxes
 
We will 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 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

In September 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-16 “Simplifying the Accounting for Measurement-Period Adjustments.” The update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The update requires that the acquirer record in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. This ASU is effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods.The Company does not expect this update to have a material impact on our condensed consolidated financial statements and disclosures.


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In August 2015, the FASB issued ASU 2015-15 “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” The update allows debt issuance costs related to a line-of-credit arrangement to be deferred as an asset and subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. As the Company currently presents such debt issuance costs in accordance with the update, the Company does not expect this update to have a material impact on our condensed consolidated financial statements and disclosures.

In May 2015, the FASB issued ASU 2015-07 “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” The update changes the requirements for the presentation of certain investments using the net asset value, providing a practical expedient to exclude such investments from categorization within the fair value hierarchy and make a separate disclosure. This ASU is effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods. The Company does not expect this guidance to have a material impact on its condensed consolidated financial statements and disclosures.

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. This ASU is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company is evaluating the impact of this update to the consolidated financial statements.

Off Balance Sheet Arrangements
There were no off balance sheet arrangements as of September 30, 2015.
Recent Developments
Quarterly Dividend
On October 1, 2015 the Company declared a quarterly cash dividend of $0.50 per share payable on November 3, 2015 to stockholders of record as of October 22, 2015. The dividend will be paid in cash or shares of the Company's common stock through participation in the Company's dividend reinvestment plan, at the election of stockholders.
Special Dividend/NAV
On October 1, 2015, the Company declared a one-time special dividend of approximately $34,000,000 or $3.29 per share payable on December 31, 2015 to stockholders of record as of November 18, 2015. As a result of the completion of the Company's sale of 2,300,000 common shares on October 15,2015, as discussed below, the special dividend per share has been adjusted to $2.69 per share. This special dividend was declared as a result of the Company’s intention to elect RIC status for tax year 2015, as it must distribute 100% of its accumulated earnings and profits through December 31, 2014 in order to qualify as a RIC.  The special dividend amount of approximately $34,000,000 was computed based on the final earnings and profits analysis completed through December 31, 2014.
The dividend will be paid in cash or shares of the Company's common stock at the election of each stockholder. The total amount of cash to be distributed to all stockholders will be limited to 27% of the total dividend to be paid to stockholders. The remainder of the dividend (approximately 73%) will be paid in the form of shares of the Company's common stock. The exact distribution of cash and stock to any given stockholder will be dependent upon their election as well as elections of other stockholders, subject to the pro-rata limitation described above.
As a result of its declaring the special dividend, and the resulting obligation, as well as the Board’s assessment as to whether any other material change in the Company’s net asset value (“NAV”) has occurred since the Company disclosed NAV in its Form 10-Q for the quarter ended June 30, 2015 with the Securities and Exchange Commission, the Board adjusted the Company’s NAV on the declaration date of the special dividend to reflect the total obligation. As the number of shares of the Company’s common stock to be distributed to shareholders was undeterminable on the date of declaration, the Company recorded the entire amount of the special dividend obligation as a liability on October 1, 2015, with a corresponding reduction in NAV and NAV per share. As a further result, the Board declared an adjusted NAV of $135.6 million and NAV per share of $13.10, based on the Company’s common shares outstanding as of October 1, 2015. Further, when the special dividend is paid, the resulting impact to NAV may be an increase in NAV based on the number of shares of the Company’s common stock issued at the election of shareholders and the market value of the shares upon issuance.

Pursuant to Board determination, the following is the Company's NAV, and NAV per share on September 30, 2015 and the Company's NAV and NAV per share on October 1, 2015 (in thousands, except per share amounts):

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NAV
 
NAV Per Share*
NAV, September 30, 2015
 
$
174,733

 
$
16.88

Declaration of special dividend, October 1, 2015
 
(34,035
)
 
(3.29
)
Declaration of third quarter dividend, October 1, 2015
 
(5,174
)
 
(0.50
)
NAV, October 1, 2015
 
$
135,524

 
$
13.10

* amounts may not foot due to rounding
7.5% Notes Due 2022
On October 15, 2015, in connection with the public offering of the Notes Due 2022, the underwriters exercised their option to purchase $124,000 in aggregate principal amount of notes for an additional $119,660 in net proceeds.
Equity Offering
On October 15, 2015 the Company completed an offering of 2,300,000 shares of common stock at a public offering price of$16.50 per share. Total proceeds received less underwriter discounts, commissions and offering costs was approximately $35,450,000.



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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 term loan and 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 $29,856,000 at September 30, 2015. 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 September 30, 2015, cash deposits in excess of FDIC and SIPC insurance totaled approximately $22,165,000.
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.

In the ordinary course of business, the Company and its wholly owned portfolio companies may from time to time be party to lawsuits and claims. The Company evaluates such matters on a case by case basis and its policy is to contest vigorously any claims it believes are without compelling merit. The Company’s wholly owned portfolio companies are currently involved in various litigation matters. 

On January 21, 2014, NCMIC Finance Corporation (“NCMIC”) filed a complaint against Universal Processing Services of Wisconsin, LLC (“UPS”), the Company’s merchant processing portfolio company, in the United States District Court for the Southern District of Iowa. The complaint asserts claims against UPS for breach of the UPS and NCMIC agreement for the processing of credit card transactions, and seeks monetary relief. The Company believes that the claims asserted in the complaint are wholly without merit and intends to vigorously defend the action. Trial is currently set for December 2015.

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.

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. On November 18, 2014, the Court issued an Order granting the FTC’s motion for summary judgment against UPS on the single count. Subsequently, the FTC filed motions for a permanent injunction and equitable monetary relief against UPS and the other remaining defendants. Prior to the Court hearing on the motions, UPS and the FTC reached a settlement on the FTC’s motion for a permanent injunction. On February 11, 2015, the Court granted the FTC’s motion for equitable relief against UPS and the other remaining defendants, ordering that the remaining defendants pay $1,735,000 in equitable monetary relief. UPS had previously recorded a reserve for the full amount of the potential loss. 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 case is in the discovery phase.  UPS intends to vigorously pursue its claims against the former sales agent and defend the counterclaims asserted.

Management has reviewed all other legal claims against the Company with counsel and has taken into consideration the views of such counsel, as to the outcome of the claims. In management’s opinion, final disposition of all such claims will not have a material adverse effect on the results of operations, cash flows or financial position of the Company.

ITEM 1A. RISK FACTORS.

In addition to risks factors discussed below, 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, 2014, which could materially affect our business, financial condition and/or operating results. The risks described below and in our Annual Report on Form 10-K are not the only risks we face. Additional risks and uncertainties 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.

The 7.5% notes due 2022 (the “Notes”) are unsecured and therefore are effectively subordinated to any secured indebtedness we have outstanding or may incur in the future.

The Notes are not secured by any of our assets or any of the assets of our subsidiaries. As a result, the Notes are effectively subordinated to any secured indebtedness we or our subsidiaries have outstanding or may incur in the future (or any indebtedness that is initially unsecured to which we subsequently grant security). In any liquidation, dissolution, bankruptcy or other similar proceeding, the holders of any of our existing or future secured indebtedness and the existing or future secured indebtedness of our subsidiaries may assert rights against the assets pledged to secure that indebtedness in order to receive full payment of their indebtedness before the assets may be used to pay other creditors, including the holders of the Notes. As of September 30, 2015, we had approximately $146,100,000 of indebtedness outstanding.


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The Notes are structurally subordinated to the indebtedness and other liabilities of our subsidiaries.

The Notes are obligations exclusively of the Company and not of any of our subsidiaries. None of our subsidiaries is a guarantor of the Notes and the Notes are not required to be guaranteed by any subsidiaries we may acquire or create in the future. Any assets of our subsidiaries will not be directly available to satisfy the claims of our creditors, including holders of the Notes.

Except to the extent we are a creditor with recognized claims against our subsidiaries, all claims of creditors (including trade creditors) and holders of preferred stock, if any, of our subsidiaries will have priority over our equity interests in such subsidiaries (and therefore the claims of our creditors, including holders of the Notes) with respect to the assets of such subsidiaries. Even if we are recognized as a creditor of one or more of our subsidiaries, our claims would still be effectively subordinated to any security interests in the assets of any such subsidiary and to any indebtedness or other liabilities of any such subsidiary senior to our claims. Consequently, the Notes are structurally subordinated to all indebtedness and other liabilities (including trade payables) of any of our subsidiaries and any subsidiaries that we may in the future acquire or establish as financing vehicles or otherwise.

The indenture under which the Notes were issued contains limited protection for holders of the Notes.

The indenture under which the Notes were issued offers limited protection to holders of the Notes. The terms of the indenture and the Notes do not restrict our or any of our subsidiaries’ ability to engage in, or otherwise be a party to, a variety of corporate transactions, circumstances or events that could have a material adverse impact on your investment in the Notes. In particular, the terms of the indenture and the Notes do not place any restrictions on our or our subsidiaries’ ability to:

•
issue securities or otherwise incur additional indebtedness or other obligations, including (1) any indebtedness or other obligations that would be equal in right of payment to the Notes, (2) any indebtedness or other obligations that would be secured and therefore rank effectively senior in right of payment to the Notes, (3) indebtedness of ours that is guaranteed by one or more of our subsidiaries and which therefore is structurally senior to the Notes and (4) securities, indebtedness or obligations issued or incurred by our subsidiaries that would be senior to our equity interests in our subsidiaries and therefore rank structurally senior to the Notes with respect to the assets of our subsidiaries, in each case other than an incurrence of indebtedness or other obligation that would cause a violation of Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions, whether or not we continue to be subject to such provisions of the 1940 Act, but giving effect, in either case, to any exemptive relief granted to us by the SEC. Currently, these provisions generally prohibit us from making additional borrowings, including through the issuance of additional debt or the sale of additional debt securities, unless our asset coverage, as defined in the 1940 Act, equals at least 200% after such borrowings;

•
pay dividends on, or purchase or redeem or make any payments in respect of, capital stock or other securities ranking junior in right of payment to the Notes, including subordinated indebtedness, in each case other than dividends, purchases, redemptions or payments that would cause a violation of Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions, giving effect to (i) any exemptive relief granted to us by the SEC and (ii) no-action relief granted by the SEC to another BDC (or to the Company if it determines to seek such similar no-action or other relief) permitting the BDC to declare any cash dividend or distribution notwithstanding the prohibition contained in Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act in order to maintain the BDC’s status as a RIC under Subchapter M of the Code (these provisions generally prohibit us from declaring any cash dividend or distribution upon any class of our capital stock, or purchasing any such capital stock if our asset coverage, as defined in the 1940 Act, is below 200% at the time of the declaration of the dividend or distribution or the purchase and after deducting the amount of such dividend, distribution or purchase);

•
sell assets (other than certain limited restrictions on our ability to consolidate, merge or sell all or substantially all of our assets);

•
enter into transactions with affiliates;

•
create liens (including liens on the shares of our subsidiaries) or enter into sale and leaseback transactions;

•
make investments; or

•
create restrictions on the payment of dividends or other amounts to us from our subsidiaries.


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In addition, the indenture does not require us to offer to purchase the Notes in connection with a change of control, asset sale or any other event.

Furthermore, the terms of the indenture and the Notes do not protect holders of the Notes in the event that we experience changes (including significant adverse changes) in our financial condition, results of operations or credit ratings, as they do not require that we or our subsidiaries adhere to any financial tests or ratios or specified levels of net worth, revenues, income, cash flow or liquidity.

Our ability to recapitalize, incur additional debt and take a number of other actions that are not limited by the terms of the Notes may have important consequences for you as a holder of the Notes, including making it more difficult for us to satisfy our obligations with respect to the Notes or negatively affecting the trading value of the Notes.

Other debt we issue or incur in the future could contain more protections for its holders than the indenture and the Notes, including additional covenants and events of default. The issuance or incurrence of any such debt with incremental protections could affect the market for and trading levels and prices of the Notes.

The trading market or market value of our publicly traded debt securities may fluctuate

The Notes are a new issue of debt securities listed on the NASDAQ Global Market under the symbol “NEWTZ.” Although the Notes are listed on NASDAQ, we cannot assure you that a trading market for our publicly issued debt securities will be maintained. In addition to our creditworthiness, many factors may materially adversely affect the trading market for, and market value of, our publicly issued debt securities. These factors include, but are not limited to, the following:
•
the time remaining to the maturity of these debt instruments;
•
the outstanding principal amount of debt securities with terms identical to these debt securities;
•
the ratings assigned by the national statistical rating agencies;
•
the general economic environment;
•
the supply of debt securities trading in the secondary market, if any;
•
the level, direction and volatility of market interest rates generally; and
•
market rates of interest higher or lower than rates borne by the debt securities.

You should be aware that there may be a limited number of buyers when you decide to sell your securities. This too may materially adversely affect the market value of the debt securities of the trading market for the debt securities.

If we default on our obligations to pay other indebtedness that we may incur in the future, we may not be able to make payments on the Notes.

In the future, we may enter into agreements to incur additional indebtedness, including a secured credit facility. A default under such agreements to which we may be a party that is not waived by the required lenders or holders, and the remedies sought by the holders of such indebtedness could make us unable to pay principal, premium, if any, and interest on the Notes and substantially decrease the market value of the Notes. If we are unable to generate sufficient cash flow and are otherwise unable to obtain funds necessary to meet required payments of principal, premium, if any, and interest on such future additional indebtedness, or if we otherwise fail to comply with the various covenants, including financial and operating covenants, in the instruments governing such future additional indebtedness, we could be in default under the terms of the agreements governing such indebtedness. In the event of such default, the holders of such indebtedness could elect to declare all the funds borrowed thereunder to be due and payable, together with accrued and unpaid interest, the lenders of other debt we may incur in the future could elect to terminate their commitments, cease making further loans and institute foreclosure proceedings against our assets, and we could be forced into bankruptcy or liquidation. If we are unable to repay debt, lenders having secured obligations could proceed against the collateral securing the debt. Because any future credit facilities likely will have customary cross-default provisions, if the indebtedness under any future credit facility is accelerated, we may be unable to repay or finance the amounts due.

We may choose to redeem the Notes when prevailing interest rates are relatively low.

On or after September 23, 2018, we may choose to redeem the Notes from time to time, especially when prevailing interest rates are lower than the interest rate on the Notes. If prevailing rates are lower at the time of redemption, you may not be able to reinvest the redemption proceeds in a comparable security at an effective interest rate as high as the interest rate on the Notes

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being redeemed. Our redemption right also may adversely impact your ability to sell the Notes as the optional redemption date or period approaches.

Pending legislation may allow us to incur additional leverage.

As a BDC, under the 1940 Act we generally are not permitted to incur indebtedness unless immediately after such borrowing we have an asset coverage for total borrowings of at least 200% (i.e., the amount of debt may not exceed 50% of the value of our assets). If legislation previously introduced in the U.S. House of Representatives is passed, or similar legislation is introduced, it would modify this section of the 1940 Act and increase the amount of debt that BDCs may incur by modifying the asset coverage percentage from 200% to 150%. As a result, we may be able to incur additional indebtedness in the future and therefore your risk of an investment in us may increase.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

In connection with the acquisition of Premier Payments LLC, the Company issued 130,959 restricted common shares to Jeffrey Rubin, a related party, in a private transaction as a portion of the consideration, as discussed herein.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

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None.

ITEM 4. MINE SAFETY DISCLOSURES.

None.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.

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Number
 
Description
11
 
Computation of Per Share Earnings (included in the notes to the condensed consolidated financial statements in this report).
 
 
 
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.
 
 
 
99.1
 
Amended and Restated Form of Custody Agreement dated as of October 30, 2015 by and between Newtek Business Services Corp. and U.S. Bank National Association, filed herewith.

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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: November 5, 2015
By:
/S/    BARRY SLOANE        
 
 
Barry Sloane
 
 
Chairman and Chief Executive Officer
(Principal Executive Officer)
 
 
 
Date: November 5, 2015
By:
/S/    JENNIFER EDDELSON        
 
 
Jennifer Eddelson
 
 
Chief Accounting Officer
(Principal Financial Officer and Principal Accounting Officer)



155
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: November 5, 2015


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: November 5, 2015



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 September 30, 2015 (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
November 5, 2015


Exhibit


_____________________
AMENDED AND RESTATED
FORM OF CUSTODY AGREEMENT
_____________________
dated as of October 30, 2015
by and between
NEWTEK BUSINESS SERVICES CORP.
(“Company”)

and
U.S. BANK NATIONAL ASSOCIATION
(“Custodian”)

1.    DEFINITIONS    2
2.    APPOINTMENT OF CUSTODIAN    7
3.    DUTIES OF CUSTODIAN    8
4.    REPORTING    16
5.    DEPOSIT IN U.S. SECURITIES SYSTEMS    17
6.    CERTAIN GENERAL TERMS    18
7.    COMPENSATION OF CUSTODIAN    19
8.    RESPONSIBILITY OF CUSTODIAN    20
9.    SECURITY CODES    23
10.    TAX LAW    23
11.    EFFECTIVE PERIOD, TERMINATION    24
12.    REPRESENTATIONS AND WARRANTIES    25
13.    PARTIES IN INTEREST; NO THIRD PARTY BENEFIT    25
14.    NOTICES    26
15.    CHOICE OF LAW AND JURISDICTION    26
16.    ENTIRE AGREEMENT; COUNTERPARTS    27
17.    AMENDMENT; WAIVER    27
18.    SUCCESSOR AND ASSIGNS    27
19.    SEVERABILITY    28
20.    REQUEST FOR INSTRUCTIONS    28
21.    OTHER BUSINESS    28
22.    REPRODUCTION OF DOCUMENTS    28
23.    MISCELLANEOUS    28

SCHEDULES
SCHEDULE A – Trade Confirmation

SCHEDULE B – Initial Authorized Persons

SCHEDULE C – Persons Authorized to Confirm Instructions by call-back




By this AMENDED AND RESTATED CUSTODY AGREEMENT (this “Agreement”) dated as of October 30, 2015, by and between Newtek Business Services Corp. (and any successor or permitted assign, the “Company”), a corporation organized under the laws of the State of Maryland, having its principal place of business at 212 West 35th Street, 2nd Floor, New York, NY 10001, and U.S. BANK NATIONAL ASSOCIATION (and any successor or permitted assign acting as custodian hereunder, the “Custodian”), a national banking association having a place of business at 60 Livingston Avenue, St. Paul, MN 55107, the Company and the Custodian hereby amend and restate the Custody Agreement dated November 14, 2014 entered into by and between the Company and the Custodian.
RECITALS
WHEREAS, the Company is a closed-end management investment company, which has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended (the “1940 Act”);
WHEREAS, the Company desires to retain U.S. Bank National Association to act as custodian for the Company and each Subsidiary hereafter identified to the Custodian;
WHEREAS, the Company desires that certain of the Company’s Securities (as defined below) and cash be held and administered by the Custodian pursuant to this Agreement in compliance with Section 17(f) of the 1940 Act; and
NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows:
1.
DEFINITIONS
1.1
Defined Terms. In addition to terms expressly defined elsewhere herein, the following words shall have the following meanings as used in this Agreement:
“Account” means the Cash Accounts, the Securities Account, any Subsidiary Cash Account and any Subsidiary Securities Account, collectively.
“Agreement” means this Custody Agreement (as the same may be amended from time to time in accordance with the terms hereof).
“Authorized Person” has the meaning set forth in Section 7.4.
“Business Day” means a day on which the Custodian or the relevant sub-custodian,, is open for business in the market or country in which a transaction is to take place.
“Cash Account” means any or all of the segregated trust accounts to be established at the Custodian to which the Custodian shall deposit or credit and hold any cash or Proceeds received by it from time to time from or with respect to the Securities or the sale of the Securities of the Company, as applicable, which trust accounts shall be designated the “Cash Account.”

2


“Company” has the meaning set forth in the first paragraph of this Agreement.
“Confidential Information” means any databases, computer programs, screen formats, screen designs, report formats, interactive design techniques, and other similar or related information that may be furnished to the Company by the Custodian from time to time pursuant to this Agreement.
“Custodian” has the meaning set forth in the first paragraph of this Agreement.
“Document Custodian” means the Custodian when acting in the role of a document custodian hereunder.
“Eligible Investment” means any investment that at the time of its acquisition is one or more of the following:
(a)United States government and agency obligations;
(b)commercial paper having a rating assigned to such commercial paper by Standard & Poor’s Rating Services or Moody’s Investor Service, Inc. (or, if neither such organization shall rate such commercial paper at such time, by any nationally recognized rating organization in the United States of America) equal to one of the two highest ratings assigned by such organization, it being understood that as of the date hereof such ratings by Standard & Poor’s Rating Services are “A1+” and “A1” and such ratings by Moody’s Investor Service, Inc. are “P1” and “P2”;
(c)interest bearing deposits in United States dollars in United States or Canadian banks with an unrestricted surplus of at least U.S. $250,000,000, maturing within one year; and
(d)money market funds (including funds of the bank serving as Custodian or its affiliates) or United States government securities funds designed to maintain a fixed share price and high liquidity.
“Eligible Securities Depository” has the meaning set forth in Section (b)(1) of Rule 17f-7 under the 1940 Act.
“Federal Reserve Bank Book-Entry System” means a depository and securities transfer system operated by the Federal Reserve Bank of the United States on which are eligible to be held all United States Government direct obligation bills, notes and bonds.
“Financing Documents” has the meaning set forth in Section 3.3(b)(ii).
“Loan” means any U.S. dollar denominated commercial loan, or Participation therein, made by a bank or other financial institution that by its terms provides for payments of principal and/or interest, including discount obligations and payment- in-kind obligations, acquired by the Company from time to time.

3


“Loan Checklist” means a list delivered to the Document Custodian in connection with delivery of each Loan to the Custodian by the Company that identifies the items contained in the related Loan File.
“Loan File” means, with respect to each Loan delivered to the Document Custodian, each of the Required Loan Documents identified on the related Loan Checklist.
“Noteless Loan” means a Loan with respect to which (i) the related loan agreement does not require the obligor to execute and deliver an Underlying Note to evidence the indebtedness created under such Loan and (ii) no Underlying Notes are outstanding with respect to the portion of the Loan transferred by the issuer or the prior holder of record.
“Participation” means an interest in a Loan that is acquired indirectly by way of a participation from a selling institution.
“Person” means any individual, corporation, partnership, limited liability company, joint venture, association, joint stock company, trust (including any beneficiary thereof), unincorporated organization, or any government or agency or political subdivision thereof.
“Proceeds” means, collectively, (i) the net cash proceeds to the Company of the initial public offering by the Company and any subsequent offering by the Company of any class of securities issued by the Company, (ii) cash distributions, earnings, dividends, fees and other cash payments paid on the Securities (or, as applicable, Subsidiary Securities) by or on behalf of the issuer or obligor thereof, or applicable paying agent, (iii) the net cash proceeds of the sale or other disposition of the Securities (or, as applicable, Subsidiary Securities) pursuant to the terms of this Agreement and (iv) the net cash proceeds to the Company of any borrowing or other financing by the Company (and any Reinvestment Earnings from investment of any of the foregoing), as delivered to the Custodian from time to time.
“Proper Instructions” means:
(i) instructions received by the Custodian in form acceptable to it, from the Company, or any Person duly authorized by the Company, by any of the following means:
(a)in writing signed by an Authorized Person (and delivered by hand, by mail, by overnight courier or by PDF);
(b)by electronic mail sent from an Authorized Person;
(c)such other means as may be agreed upon from time to time by the Custodian and the party giving such instructions, including oral instructions;
provided that, for any transaction involving cash (e.g., withdrawals, transfers and

4


disbursements) or assets, the Custodian shall confirm that the instruction is authorized by an Authorized Person by telephone call-back at the telephone number designated in Schedule C. The Authorized Person confirming the instruction shall be a person other than the Authorized Person from whom the Instruction was received; and

(ii) Trade Confirmations.

“Reinvestment Earnings” has the meaning set forth in Section 3.6(b).
“Required Loan Documents” means, for each Loan:
(a)other than in the case of a Participation, an executed copy of the Assignment for such Loan, as identified on the Loan Checklist;
(b)with the exception of Noteless Loans and Participations, the original executed Underlying Note endorsed by the issuer or the prior holder of record in blank or to the Company, as identified on the Loan Checklist;
(c)(i) if the Company is the sole lender or if the Company or an affiliate of the Company acts as agent for the lenders, (A) an executed copy of the Underlying Loan Agreement (which may be included in the Underlying Note if so indicated in the Loan Checklist), together with a copy of all amendments and modifications thereto, as identified on the Loan Checklist, (B) a copy of each related security agreement (if any) signed by the applicable obligor(s), as identified on the Loan Checklist, and (C) a copy of each related guarantee (if any) then executed in connection with such Loan, as identified on the Loan Checklist, and (ii) in all other cases, such copies of the documents described in clauses (A), (B) and (C), which may not be executed copies, as are reasonably available to the Company, as identified on the Loan Checklist; and
(d)a copy of the Loan Checklist.
“Securities” means, collectively, (i) the investments, including Loans, acquired by the Company and delivered to the Custodian by the Company from time to time during the term of, and pursuant to the terms of, this Agreement and (ii) all dividends in kind (e.g., non-cash dividends) from the investments described in clause (i). For avoidance of doubt, the term “securities” includes stocks, shares, bonds, debentures, notes, mortgages or other obligations and any certificates, receipts, warrants or other instruments representing rights to receive, purchase, or subscribe for the same, or evidencing or representing any other rights or interests therein, or in any property or assets.
“Securities Account” means the segregated trust account to be established at the Custodian to which the Custodian shall deposit or credit and hold the Securities (other than Loans) received by it pursuant to this Agreement, which account shall be designated the “Newtek Securities Custody Account”.

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“Securities Custodian” means the Custodian when acting in the role of a securities custodian hereunder.
“Securities Depository” means The Depository Trust Company and any other clearing agency registered with the Securities and Exchange Commission under Section 17A of the Securities Exchange Act of 1934, as amended (the “1934 Act”), which acts as a system for the central handling of securities where all securities of any particular class or series of an issuer deposited within the system are treated as fungible and may be transferred or pledged by bookkeeping entry without physical delivery of the securities.
“Securities System” means the Federal Reserve Book-Entry System, a clearing agency which acts as a Securities Depository, or another book entry system for the central handling of securities (including an Eligible Securities Depository).
“Street Delivery Custom” means a custom of the United States securities market to deliver securities which are being sold to the buying broker for examination to determine that the securities are in proper form.
“Street Name” means the form of registration in which the securities are held by a broker who is delivering the securities to another broker for the purposes of sale, it being an accepted custom in the United States securities industry that a security in Street Name is in proper form for delivery to a buyer and that a security may be re-registered by a buyer in the ordinary course.
“Subsidiary Cash Account” shall have the meaning set forth in Section 3.13(b).
“Subsidiary Securities” collectively, (i) the investments, including Loans, acquired by a Subsidiary and delivered to the Custodian from time to time during the term of, and pursuant to the terms of, this Agreement and (ii) all dividends in kind (e.g., non-cash dividends) from the investments described in clause (i).
“Subsidiary Securities Account” shall have the meaning set forth in Section 3.13(a).
“Subsidiary” means any wholly owned subsidiary of the Company identified to the Custodian by the Company.
“Trade Confirmation” means a confirmation to the Custodian from the Company of the Company’s acquisition of a Loan, and setting forth applicable information with respect to such Loan, which confirmation may be in the form of Schedule A attached hereto and made a part hereof, subject to such changes or additions as may be agreed to by, or in such other form as may be agreed to by, the Custodian and the Company from time to time.
“UCC” shall have the meaning set forth in Section 3.3(a).

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“Underlying Loan Agreement” means, with respect to any Loan, the document or documents evidencing the commercial loan agreement or facility pursuant to which such Loan is made.
“Underlying Loan Documents” means, with respect to any Loan, the related Underlying Loan Agreement together with any agreements and instruments (including any Underlying Note) executed or delivered in connection therewith.
“Underlying Note” means the one or more promissory notes executed by an obligor to evidence a Loan.
1.2
Construction. In this Agreement unless the contrary intention appears:
(a)
any reference to this Agreement or another agreement or instrument refers to such agreement or instrument as the same may be amended, modified or otherwise rewritten from time to time;
(b)
a reference to a statute, ordinance, code or other law includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements of any of them;
(c)
any term defined in the singular form may be used in, and shall include, the plural with the same meaning, and vice versa;
(d)
a reference to a Person includes a reference to the Person’s executors, successors and permitted assigns;
(e)
an agreement, representation or warranty in favor of two or more Persons is for the benefit of them jointly and severally;
(f)
an agreement, representation or warranty on the part of two or more Persons binds them jointly and severally;
(g)
a reference to the term “including” means “including, without limitation,” and
(h)
a reference to any accounting term is to be interpreted in accordance with generally accepted principles and practices in the United States, consistently applied, unless otherwise instructed by the Company.
1.3
Headings. Headings are inserted for convenience and do not affect the interpretation of this Agreement.
2.
APPOINTMENT OF CUSTODIAN
2.1
Appointment and Acceptance. The Company hereby appoints the Custodian as custodian of certain Securities and cash owned by the Company and the Subsidiaries (as applicable) and delivered to the Custodian by the Company from

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time to time during the period of this Agreement, on the terms and conditions set forth in this Agreement (which shall include any addendum hereto which is hereby incorporated herein and made a part of this Agreement), and the Custodian hereby accepts such appointment and agrees to perform the services and duties set forth in this Agreement with respect to it, subject to and in accordance with the provisions hereof. All Required Loan Documents and Securities in certificated form shall be maintained and held on behalf of the Company by the Custodian in its vaults or the vaults of a sub-custodian.
2.2
Instructions. The Company agrees that it shall from time to time provide, or cause to be provided, to the Custodian all necessary instructions and information, and shall respond promptly to all inquiries and requests of the Custodian, as may reasonably be necessary to enable the Custodian to perform its duties hereunder.
2.3
Company Responsible For Directions. The Company is solely responsible for directing the Custodian with respect to deposits to, withdrawals from and transfers to or from the Account. Without limiting the generality of the foregoing, the Custodian has no responsibility for the Company’s compliance with the 1940 Act, any restrictions, covenants, limitations or obligations to which the Company may be subject or for which it may have obligations to third-parties in respect of the Account, and the Custodian shall have no liability for the application of any funds made at the direction of the Company. The Company shall be solely responsible for properly instructing all applicable payors to make all appropriate payments to the Custodian for deposit to the Account, and for properly instructing the Custodian with respect to the allocation or application of all such deposits.
3.
DUTIES OF CUSTODIAN
3.1
Segregation. All Securities and non-cash property held by the Custodian, as applicable, for the account of the Company (other than Securities maintained in a Securities Depository or Securities System) shall be physically segregated from other Securities and non-cash property in the possession of the Custodian and shall be identified as subject to this Agreement.
3.2
Securities Custody Account. The Securities Custodian shall open and maintain in its trust department a segregated trust account in the name of the Company, subject only to order of the Securities Custodian, in which the Securities Custodian shall enter and carry, subject to Section 3.3(b), all Securities (other than Loans) and other investment assets of the Company which are delivered to it in accordance with this Agreement. For avoidance of doubt, the Securities Custodian shall not be required to credit or deposit Loans in the Securities Account but the Document Custodian shall instead maintain a register (in book-entry form or in such other form as it shall deem necessary or desirable) of such Loans, containing such information as the Company and the Custodian may reasonably agree; provided that, with respect to such Loans, all Required Loan Documents shall be held in safekeeping by the Document Custodian, individually

8


segregated from the securities and investments of any other Person and marked so as to clearly identify them as the property of the Company in a manner consistent with Rule 17f-1 under the 1940 Act and as set forth in this Agreement.
The Custodian shall have no power or authority to assign, hypothecate, pledge or otherwise dispose of any such Securities and investments except pursuant to Proper Instructions from the Company under the terms of this Agreement.
3.3
Delivery of Cash and Securities to Custodian.
(a)
The Company shall deliver, or cause to be delivered, to the Custodian certain of the Company’s Securities, cash and other investment assets, including (a) payments of income, payments of principal and capital distributions received by the Company with respect to such Securities, cash or other assets owned by the Company at any time during the period of this Agreement, and (b) cash received by the Company for the issuance, at any time during such period, of securities or in connection with a borrowing by the Company, except as otherwise permitted by the 1940 Act. With respect to Loans, Required Loan Documents and other Underlying Loan Documents shall be delivered to the Custodian in its role as, and at the address identified for, the Document Custodian. With respect to assets other than Loans, such assets shall be delivered to the Custodian in its role as, and (where relevant) at the address identified for, the Securities Custodian.  Except to the extent otherwise expressly provided herein, delivery of Securities to the Securities Custodian shall be in Street Name or other good delivery form. The Securities Custodian shall not be responsible for such Securities, cash or other assets until actually delivered to, and received by it. With respect to Securities (other than Loan Assets and assets in the nature of “general intangibles” (as hereinafter defined)) held by the Securities Custodian in its capacity as a “securities intermediary” (as defined in Section 8-102 of the Uniform Commercial Code as in effect in the State of New York (the “UCC”)), the Securities Custodian shall be obligated to exercise due care in accordance with reasonable commercial standards in discharging its duties as a securities intermediary to obtain and maintain such Securities.
(b)
(i)    In connection with its acquisition of a Loan or other delivery of a Security constituting a Loan, the Company shall deliver or cause to be delivered to the Custodian (in its roles as, and at the address identified for, the Custodian and Document Custodian) a properly completed Trade Confirmation containing such information in respect of such Loan as the Document Custodian may reasonably require in order to enable the Document Custodian to perform its duties hereunder in respect of such Loan on which the Document Custodian may conclusively rely without further inquiry or investigation, in such form and format as the Document Custodian reasonably may require, and shall deliver to the Document Custodian (in its role as, and at the address identified for, the Document Custodian) the Required Loan Documents, including the Loan Checklist.

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(i)    Notwithstanding anything herein to the contrary, delivery of Securities acquired by the Company (or, if applicable, a Subsidiary thereof) which constitute Noteless Loans or Participations or which are otherwise not evidenced by a “security” or “instrument” as defined in Section 8-102 and Section 9-102(a)(47) of the UCC), respectively, shall be made by delivery to the Document Custodian of (i) in the case of a Noteless Loan, a copy of the loan register with respect to such Noteless Loan evidencing registration of such Loan on the books and records of the applicable obligor or bank agent to the name of the Company or, if applicable, a Subsidiary thereof (or, in either case, its nominee) or a copy (which may be a facsimile copy) of an assignment agreement in favor of the Company (or, if applicable, a Subsidiary thereof) as assignee, and (ii) in the case of a Participation, a copy of the related participation agreement. Any duty on the part of the Custodian with respect to the custody of such Loans shall be limited to the exercise of reasonable care by the Custodian in the physical custody of any such documents delivered to it, and any related instrument, security, credit agreement, assignment agreement and/or other agreements or documents, if any (collectively, “Financing Documents”), that may be delivered to it. Nothing herein shall require the Custodian to credit to the Securities Account or to treat as a financial asset (within the meaning of Section 8-102(a)(9) of the UCC) any such Loan or other asset in the nature of a general intangible (as defined in Section 9-102(a)(42) of the UCC) or to “maintain” a sufficient quantity thereof.
(ii)    The Custodian may assume the genuineness of any such Financing Document it may receive and the genuineness and due authority of any signatures appearing thereon, and shall be entitled to assume that each such Financing Document it may receive is what it purports to be. If an original “security” or “instrument” as defined in Section 8-102 and Section 9-102(a)(47) of the UCC, respectively, is or shall be or become available with respect to any Loan to be held by the Custodian under this Agreement, it shall be the sole responsibility of the Company to make or cause delivery thereof to the Document Custodian, and the Custodian shall not be under any obligation at any time to determine whether any such original security or instrument has been or is required to be issued or made available in respect of any Loan or to compel or cause delivery thereof to the Custodian.
(iii)    Contemporaneously with the acquisition of any Loan, the Company shall (A) if requested by the Custodian, provide to the Custodian an amortization schedule of principal payments and a schedule of the interest payable date(s) identifying the amount and due dates of all scheduled principal and interest payments for such Loan; (B) take all actions necessary for the Company to acquire good title to such Loan; and (C) take all actions as may be necessary (including appropriate payment notices and instructions to bank agents or other applicable paying agents) to cause (x) all payments in respect of the Loan to be made to the Custodian and (y) all notices, solicitations and other communications in respect of such Loan to be directed to the Company. The Custodian shall have

10


no liability for any delay or failure on the part of the Company to provide necessary information to the Custodian, or for any inaccuracy therein or incompleteness thereof, or for any delay or failure on the part of the Company to give such effective payment instruction to bank agents and other paying agents, in respect of the Loans. With respect to each such Loan, the Custodian shall be entitled to rely on any information and notices it may receive from time to time from the related bank agent, obligor or similar party with respect to the related Loan Asset, or from the Company, and shall be entitled to update its records (as it may deem necessary or appropriate) on the basis of such information or notices received, without any obligation on its part independently to verify, investigate or recalculate such information.
3.4
Release of Securities.
(a)
The Custodian shall release and ship for delivery, or direct its agents or sub-custodian to release and ship for delivery, as the case may be, Securities or Required Loan Documents (or other Underlying Loan Documents) of the Company held by the Custodian, its agents or its sub-custodian from time to time upon receipt of Proper Instructions (which shall, among other things, specify the Securities or Required Loan Documents (or other Underlying Loan Documents) to be released, with such delivery and other information as may be necessary to enable the Custodian to perform (including the delivery method)), which may be standing instructions (in form acceptable to the Custodian), in the following cases:
(iv)    upon sale of such Securities by or on behalf of the Company, and such sale may, unless and except to the extent otherwise directed by Proper Instructions, be carried out by the Custodian:
(A)
in accordance with the customary or established practices and procedures in the jurisdiction or market where the transactions occur, including delivery to the purchaser thereof or to a dealer therefor (or an agent of such purchaser or dealer) against expectation of receiving later payment; or
(B)
in the case of a sale effected through a Securities System, in accordance with the rules governing the operations of the Securities System;
(v)    upon the receipt of payment in connection with any repurchase agreement related to such Securities;
(vi)    to a depositary agent in connection with tender or other similar offers for such Securities;
(vii)    to the issuer thereof, or its agent, when such Securities are called, redeemed, retired or otherwise become payable (unless otherwise directed by

11


Proper Instructions, the cash or other consideration is to be delivered to the Custodian, its agents or its sub-custodian);
(viii)    to an issuer thereof, or its agent, for transfer into the name of the Custodian or of any nominee of the Custodian or into the name of any of its agents or sub-custodian or their nominees, or for exchange for a different number of bonds, certificates or other evidence representing the same aggregate face amount or number of units;
(ix)    to brokers, clearing banks or other clearing agents for examination in accordance with the Street Delivery Custom;
(x)    for exchange or conversion pursuant to any plan of merger, consolidation, recapitalization, reorganization or readjustment of the securities of the issuer of such Securities, or pursuant to any deposit agreement (unless otherwise directed by Proper Instructions, the new securities and cash, if any, are to be delivered to the Custodian, its agents or its sub-custodian);
(xi)    in the case of warrants, rights or similar securities, the surrender thereof in the exercise of such warrants, rights or similar securities or the surrender of interim receipts or temporary securities for definitive securities (unless otherwise directed by Proper Instructions, the new securities and cash, if any, are to be delivered to the Custodian, its agents or its sub-custodian); and/or
(xii)    for any other purpose, but only upon receipt of Proper Instructions and an officer’s certificate signed by an officer of the Company (which officer shall not have been the Authorized Person providing the Proper Instructions) stating (i) the specified securities to be delivered, (ii) the purpose for such delivery, (iii) that such purpose is a proper corporate purpose and (iv) naming the person or persons to whom delivery of such Securities shall be made, and attaching a certified copy of a resolution of the board of directors of the Company or an authorized committee thereof approving the delivery of such Proper Instructions.
3.5
Registration of Securities. Securities held by the Custodian, its agents or its sub-custodian (other than bearer securities, securities held in a Securities System or Securities that are Noteless Loans or Participations) shall be registered in the name of the Company or its nominee; or, at the option of the Custodian (if the Custodian determines it cannot hold such security in the name of the Company), in the name of the Custodian or in the name of any nominee of the Custodian, or in the name of its agents or its sub-custodian or their nominees; or, if directed by the Company by Proper Instruction, may be maintained in Street Name. To the extent the Securities are held in a Securities System, the Custodian, its agents and its sub-custodian shall not be obligated to accept Securities on behalf of the Company under the terms of this Agreement unless such Securities are in Street Name or other good deliverable form.

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3.6
Bank Accounts, and Management of Cash
(a)
Proceeds and other cash received by the Custodian from time to time shall be deposited or credited to the respective Cash Account as designated by the Company. All amounts deposited or credited to the designated Cash Account shall be subject to clearance and receipt of final payment by the Custodian.
(b)
Amounts held in the respective Cash Account from time to time may be invested in Eligible Investments pursuant to specific written Proper Instructions (which may be standing instructions) received by the Custodian from two Authorized Persons acting on behalf of the Company. Such investments shall be subject to availability and the Custodian’s then applicable transaction charges (which shall be at the Company’s expense). The Custodian shall have no liability for any loss incurred on any such investment. Absent receipt of such written instruction from the Company, the Custodian shall have no obligation to invest (or otherwise pay interest on) amounts on deposit in the respective Cash Accounts. In no instance will the Custodian have any obligation to provide investment advice to the Company. Any earnings from such investment of amounts held in the Cash Accounts from time to time (collectively, “Reinvestment Earnings”) shall be redeposited in the respective Cash Accounts (and may be reinvested at the written direction of the Company).
(c)
In the event that the Company shall at any time request a withdrawal of amounts from any of the Cash Accounts, the Custodian shall be entitled to liquidate, and shall have no liability for any loss incurred as a result of the liquidation of, any investment of the funds credited to such Cash Account as needed to provide necessary liquidity, unless such losses are a result of any act or omission on the part of the Custodian, agent or sub-custodian due to its gross negligence, bad faith, misfeasance, misconduct or material breach of this Agreement. Investment instructions may be in the form of standing instructions (in the form of Proper Instructions acceptable to Custodian).
(d)
The Company acknowledges that cash deposited or invested with any bank (including the bank acting as Custodian) may make a margin or generate banking income for which such bank shall not be required to account to the Company.
(e)
The Custodian shall be authorized to open such additional accounts as may be necessary or convenient for administration of its duties hereunder.
3.7
Collection of Income. The Custodian, its agents or its sub-custodian shall use reasonable efforts to collect on a timely basis all income and other payments with respect to the Securities held hereunder to which the Company shall be entitled, to the extent consistent with usual custom in the securities custodian business in the United States. Such efforts shall include collection of interest income, dividends and other payments with respect to registered domestic securities if on the record date with respect to the date of payment by the issuer the Security is registered in

13


the name of the Custodian or its nominee (or in the name of its agent or sub-custodian, or their nominee); and interest income, dividends and other payments with respect to bearer domestic securities if, on the date of payment by the issuer such securities are held by the Custodian or its sub-custodian or agent; provided, however, that in the case of Securities held in Street Name, the Custodian shall use commercially reasonable efforts only to timely collect income. In no event shall the Custodian’s agreement herein to collect income be construed to obligate the Custodian to commence, undertake or prosecute any legal proceedings.
3.8
Payment of Moneys.
(a)
Upon receipt of Proper Instructions, which may be standing instructions, the Custodian shall pay out from the respective Cash Account designated by the Company (or remit to its agents or its sub-custodian, and direct them to pay out) moneys of the Company on deposit therein in the following cases:
(i)    upon the purchase of Securities for the Company pursuant to such Proper Instruction; and such purchase may, unless and except to the extent otherwise directed by Proper Instructions, be carried out by the Custodian.:
(ii)    for any other purpose directed by the Company, but only upon receipt of Proper Instructions specifying the amount of such payment, and naming the Person or Persons to whom such payment is to be made.
(b)
At any time or times, the Custodian shall be entitled to pay (i) itself from any of the Cash Accounts, whether or not in receipt of express direction or instruction from the Company, any amounts due and payable to it pursuant to Section 8 hereof, and (ii) as otherwise permitted by Section 7.5, 9.4 or Section 12.5 below; provided, however, that in each case (a) the Custodian shall have first invoiced or billed the Company for such amounts, (b) Custodian will have written proof of delivery of such invoice or bill, (c) the Company shall have failed to pay such amounts within ninety (90) days after the date of such invoice or bill, (d) none of the amounts invoiced shall be disputed in writing and in good faith by the Company at the time Custodian pays itself from any of the Cash Accounts, (e) Custodian shall have notified the Company in writing of its intention to pay itself from any Cash Accounts no less than seven days prior to such payment and (f) all such payments shall be regularly accounted for to the Company.
3.9
Proxies. The Custodian will, with respect to the Securities held hereunder, use reasonable efforts to cause to be promptly executed by the registered holder of such Securities proxies, proxy soliciting materials and notices received by the Custodian from its agents or its sub-custodian or from issuers of the Securities being held for the Company, without indication of the manner in which such proxies are to be voted, and upon receipt of Proper Instructions shall promptly deliver to the applicable issuer such proxies relating to such Securities. In the absence of such Proper Instructions, or in the event that such Proper Instructions

14


are not received in a timely fashion, except to the extent otherwise expressly provided herein, the Custodian shall be under no duty to act with regard to such proxies. Notwithstanding the above, neither Custodian nor any nominee of Custodian shall vote any of the Securities held hereunder by or for the account of the Company, except in accordance with Proper Instructions.
3.10
Communications Relating to Securities. The Custodian shall transmit promptly to the Company all written information (including proxies, proxy soliciting materials, notices, pendency of calls and maturities of Securities and expirations of rights in connection therewith) received by the Custodian, from its agents or its sub-custodian or from issuers of the Securities being held for the Company. The Custodian shall have no obligation or duty to exercise any right or power, or otherwise to preserve rights, in or under any Securities unless and except to the extent it has received timely Proper Instruction from the Company in accordance with the next sentence. The Custodian will not be liable for any untimely exercise of any right or power in connection with Securities at any time held by the Custodian, its agents or sub-custodian unless:
(i)    the Custodian has received Proper Instructions with regard to the exercise of any such right or power; and
(ii)    the Custodian, or its agents or sub-custodian are in actual possession of such Securities,
in each case, at least three (3) Business Days prior to the date on which such right or power is to be exercised. It will be the responsibility of the Company to notify the Custodian of the Person to whom such communications must be forwarded under this Section.
3.11
Records. The Custodian shall create and maintain complete and accurate records relating to its activities under this Agreement with respect to the Securities, cash or other property held for the Company under this Agreement, as required by Section 31 of the 1940 Act, and Rules 31a-1 and 32a-2 thereunder. To the extent that the Custodian, in its sole opinion, is able to do so, the Custodian shall provide assistance to the Company (at the Company’s reasonable request made from time to time) by providing sub-certifications regarding certain of its services performed hereunder to the Company in connection with the Company’s certification requirements pursuant to the Sarbanes-Oxley Act of 2002, as amended. All such records shall be the property of the Company and shall at all times during the regular business hours of the Custodian be open for inspection by duly authorized officers, employees or agents of the Company (including its independent public accountants) and employees and agents of the Securities and Exchange Commission, upon reasonable request and prior notice and at the Company’s expense. The Custodian shall, at the Company’s request, supply the Company with a tabulation of Securities owned by the Company and held by the Custodian and shall, when requested to do so by the Company and for such compensation as

15


shall be agreed upon between the Company and the Custodian, include, to the extent applicable, the certificate numbers in such tabulations, to the extent such information is available to the Custodian.
3.12
Custody of Subsidiary Securities.
(a)
At the request of the Company, with respect to each Subsidiary identified to the Custodian by the Company, there shall be established at the Custodian a segregated trust account to which the Custodian shall deposit and hold any Subsidiary Securities (other than Loans) received by it pursuant to this Agreement, which account shall be designated the “[INSERT NAME OF SUBSIDIARY] Securities Account” (the “Subsidiary Securities Account”).
(b)
At the request of the Company, with respect to each Subsidiary identified to the Custodian by the Company, there shall be established at the Custodian a segregated trust account to which the Custodian shall deposit and hold any Proceeds received by it from time to time from or with respect to Subsidiary Securities or other Proceeds, which account shall be designated the “[INSERT NAME OF SUBSIDIARY] Cash Proceeds Account” (the “Subsidiary Cash Account”).
(c)
To the maximum extent possible, the provisions of this Agreement regarding Securities of the Company, the Securities Account and the Cash Accounts shall be applicable to any Subsidiary Securities, cash and other investment assets, Subsidiary Securities Account and Subsidiary Cash Account, respectively. The parties hereto agree that the Company shall notify the Custodian in writing as to the establishment of any Subsidiary as to which the Custodian is to serve as custodian pursuant to the terms of this Agreement; and identify in writing any accounts the Custodian shall be required to establish for such Subsidiary as herein provided.
3.13
Responsibility for Property Held by Sub-custodians. The Custodian’s responsibility with respect to the selection or appointment of a sub-custodian shall be limited to a duty to exercise reasonable care in the selection or retention of such sub-custodian in light of prevailing settlement and securities handling practices, procedures and controls in the relevant market. With respect to any costs, expenses, damages, liabilities, or claims (including attorneys’ and accountants’ fees) incurred as a result of the acts or the failure to act by any sub-custodian, the Custodian shall take reasonable action to recover such costs, expenses, damages, liabilities, or claims from such sub-custodian; provided that the Custodian’s sole liability in that regard shall be limited to amounts actually received by it from such sub-custodian (less any related costs and expenses incurred by the Custodian).
4.
REPORTING

16


(a)
The Custodian shall make available to the Company via its internet website initially located at www.usbank.com/abs, a monthly report of (i) all deposits to and withdrawals from the Cash Accounts during the month, and the outstanding balance (as of the last day of the preceding monthly report and as of the last day of the subject month), (ii) an itemized statement of the Securities held pursuant to this Agreement as of the end of each month, all transactions in the Securities during the month, as well as a list of all Securities transactions that remain unsettled at that time, and (iii) such other matters as the parties may agree from time to time. The Custodian shall provide such information by electronic mail to the Company if it is unable to access the website.
(b)
For each Business Day, the Custodian shall make available to the Company via its internet website initially located at www.usbank.com/abs,a daily report of (i) all deposits to and withdrawals from the Cash Accounts for such Business Day and the outstanding balance as of the end of such Business Day, and (ii) a report of settled trades of Securities for such Business Day. The Custodian shall provide such information by electronic mail to the Company if it is unable to access the website.
(c)
The Custodian shall have no duty or obligation to undertake any market valuation of the Securities under any circumstance.
(d)
The Custodian shall provide the Company, promptly upon request, with such reports as are reasonably available to it and as the Company may reasonably request from time to time, concerning (i) the internal accounting controls, including procedures for safeguarding securities, which are employed by the Custodian and (ii) the financial strength of the Custodian.
5.
DEPOSIT IN U.S. SECURITIES SYSTEMS
The Custodian may deposit and/or maintain Securities in a Securities System within the United States in accordance with applicable Federal Reserve Board and Securities and Exchange Commission rules and regulations, including Rule 17f-4 under the 1940 Act, and subject to the following provisions:
(c)
The Custodian may keep domestic Securities in a U.S. Securities System; provided that such Securities are represented in an account of the Custodian in the U.S. Securities System which shall not include any assets of the Custodian other than assets held by it as a fiduciary, custodian or otherwise for customers;
(d)
The records of the Custodian with respect to Securities which are maintained in a U.S. Securities System shall identify by book-entry those Securities belonging to the Company;

17


(e)
The Custodian shall provide to the Company copies of all notices received from the U.S. Securities System of transfers of Securities for the account of the Company; and
(f)
Anything to the contrary in this Agreement notwithstanding, the Custodian shall not be liable to the Company for any direct loss, damage, cost, expense, liability or claim to the Company resulting from use of any U.S. Securities System (other than to the extent resulting from the gross negligence, misfeasance or misconduct of the Custodian itself, or from failure of the Custodian to enforce effectively such rights as it may have against the U.S. Securities System) provided however that to the extent it places and maintains financial assets, corresponding to the Company’s security entitlements, with a Securities Depository, nothing in this paragraph (d) shall relieve the Custodian from its obligation to exercise due care in accordance with reasonable commercial standards in discharging its duty as a securities intermediary to obtain and thereafter maintain such financial assets.
6.
CERTAIN GENERAL TERMS
6.1
No Duty to Examine Underlying Instruments. Nothing herein shall obligate the Custodian to review or examine the terms of any underlying instrument, certificate, credit agreement, indenture, loan agreement, promissory note, or other financing document evidencing or governing any Security to determine the validity, sufficiency, marketability or enforceability of any Security (and shall have no responsibility for the genuineness or completeness thereof), or otherwise.
6.2
Resolution of Discrepancies. In the event of any discrepancy between the information set forth in any report provided by the Custodian to the Company and any information contained in the books or records of the Company, the Company shall promptly notify the Custodian thereof and the parties shall cooperate to diligently resolve the discrepancy.
6.3
Improper Instructions. Notwithstanding anything herein to the contrary, the Custodian shall not be obligated to take any action (or forebear from taking any action), which it reasonably determines to be contrary to the terms of this Agreement or applicable law. In no instance shall the Custodian be obligated to provide services on any day that is not a Business Day.
6.4
Proper Instructions
(a)
The Company will give a notice to the Custodian, in form acceptable to the Custodian, specifying the names and specimen signatures of persons authorized to give Proper Instructions (collectively, “Authorized Persons” and each is an “Authorized Person”), which notice shall be in the form of Proper Instructions. The Custodian shall be entitled to rely upon the identity and authority of such person until it receives written notice from an Authorized Person of the Company to the contrary. The initial Authorized Persons are set forth on Schedule B

18


attached hereto and made a part hereof (as such Schedule B may be modified from time to time by written notice from the Company to the Custodian); and the Company hereby represents and warrants that the true and accurate specimen signatures of such initial Authorized Persons are set forth on Schedule B.
(b)
The Custodian shall have no responsibility or liability to the Company (or any other person or entity), and shall be indemnified and held harmless by the Company, in the event that a subsequent written confirmation of an oral instruction fails to conform to the oral instructions received by the Custodian. The Custodian shall not have an obligation to act in accordance with purported instructions to the extent that they conflict with applicable law or regulations, local market practice or the Custodian’s operating policies and practices. The Custodian shall not be liable for any loss resulting from a delay while it obtains clarification of any Proper Instructions.
6.5
Actions Permitted Without Express Authority. The Custodian may, at its discretion, without express authority from the Company:
(c)
make payments to itself as described in or pursuant to Section 3.9(b), or to make payments to itself or others for minor expenses of handling securities or other similar items relating to its duties under this Agreement; provided that (i) the Custodian shall have first invoiced or billed the Company for such amounts, (ii) Custodian will have written proof of delivery of such invoice or bill, (iii) the Company shall have failed to pay such amounts within ninety (90) days after the date of such invoice or bill, (iv) none of the amounts invoiced shall be disputed in writing and in good faith by the Company at the time Custodian pays itself from any of the Cash Accounts, (v) Custodian shall have notified the Company in writing of its intention to pay itself from any Cash Accounts no less than seven days prior to such payment and (vi) all such payments shall be regularly accounted for to the Company;
(d)
surrender Securities in temporary form for Securities in definitive form;
(e)
endorse for collection cheques, drafts and other negotiable instruments; and
(f)
in general attend to all nondiscretionary details in connection with the sale, exchange, substitution, purchase, transfer and other dealings with the securities and property of the Company.
6.6
Evidence of Authority. The Custodian shall be protected in acting upon any instructions, notice, request, consent, certificate, instrument or paper reasonably believed by it to be genuine and to have been properly executed or otherwise given by or on behalf of the Company by an Authorized Person. The Custodian may receive and accept a certificate signed by an Authorized Person as conclusive evidence of:
(a)
the authority of any person to act in accordance with such certificate; or

19


(b)
any determination or action by the Company as described in such certificate,
and such certificate may be considered as in full force and effect until receipt by the Custodian of written notice to the contrary from an Authorized Person of the Company.
6.7
Receipt of Communications. Any communication received by the Custodian on a day which is not a Business Day or after 4:30 p.m., Eastern time (or such other time as is agreed by the Company and the Custodian from time to time), on a Business Day will be deemed to have been received on the next Business Day (but in the case of communications so received after 4:30 p.m., Eastern time, on a Business Day the Custodian will use its best efforts to process such communications as soon as possible after receipt).
7.
COMPENSATION OF CUSTODIAN
7.1
Fees. The Custodian shall be entitled to compensation for its services in accordance with the terms of that certain amended fee letter dated on or about October 29, 2015.
7.2
Expenses. The Company agrees to pay or reimburse to the Custodian upon its request from time to time all costs, disbursements, advances, and expenses (including reasonable fees and expenses of legal counsel) incurred, and any disbursements and advances made (including any Account overdraft resulting from any settlement or assumed settlement, provisional credit, chargeback, returned deposit item, reclaimed payment or claw-back, or the like), in connection with the preparation or execution of this Agreement or in connection with the transactions contemplated hereby or the administration of this Agreement or performance by the Custodian of its duties and services under this Agreement, from time to time (including costs and expenses of any action deemed necessary by the Custodian to collect any amounts owing to it under this Agreement).
8.
RESPONSIBILITY OF CUSTODIAN
8.1
General Duties. The Custodian shall have no duties, obligations or responsibilities under this Agreement or with respect to the Securities or Proceeds except for such duties as are expressly and specifically set forth in this Agreement, and the duties and obligations of the Custodian shall be determined solely by the express provisions of this Agreement. No implied duties, obligations or responsibilities shall be read into this Agreement against, or on the part of, the Custodian.
8.2
Instructions
(c)
The Custodian shall be entitled to refrain from taking any action unless it has such instruction (in the form of Proper Instructions) from the Company as it reasonably deems necessary, and shall be entitled to require, upon notice to the Company,

20


that Proper Instructions to it be in writing. The Custodian shall have no liability for any action (or forbearance from action) taken pursuant to the Proper Instruction of the Company.
(d)
Whenever the Custodian is entitled or required to receive or obtain any communications or information pursuant to or as contemplated by this Agreement, it shall be entitled to receive the same in writing, in form, content and medium reasonably acceptable to it and otherwise in accordance with any applicable terms of this Agreement; and whenever any report or other information is required to be produced or distributed by the Custodian it shall be in form, content and medium reasonably acceptable to it and the Company and otherwise in accordance with any applicable terms of this Agreement.
8.3
General Standards of Care. Notwithstanding any terms herein contained to the contrary, the acceptance by the Custodian of its appointment hereunder is expressly subject to the following terms, which shall govern and apply to each of the terms and provisions of this Agreement (whether or not so stated therein):
(g)
The Custodian may rely on (and shall be protected in acting or refraining from acting in reliance upon) any written notice, instruction, statement, certificate, request, waiver, consent, opinion, report, receipt or other paper or document furnished to it (including any of the foregoing provided to it by telecopier or electronic means), not only as to its due execution and validity, but also as to the truth and accuracy of any information therein contained, which it in good faith believes to be genuine and signed or presented by the proper person (which in the case of any instruction from or on behalf of the Company shall be an Authorized Person); and the Custodian shall be entitled to presume the genuineness and due authority of any signature appearing thereon. The Custodian shall not be bound to make any independent investigation into the facts or matters stated in any such notice, instruction, statement, certificate, request, waiver, consent, opinion, report, receipt or other paper or document; provided, however, that, if the form thereof is specifically prescribed by the terms of this Agreement, the Custodian shall examine the same to determine whether it substantially conforms on its face to such requirements hereof.
(h)
Neither the Custodian nor any of its directors, officers or employees shall be liable to anyone for any error of judgment, or for any act done or step taken or omitted to be taken by it (or any of its directors, officers of employees), or for any mistake of fact or law, or for anything which it may do or refrain from doing in connection herewith, unless such action or inaction constitutes gross negligence, willful misconduct or bad faith on its part and in breach of the terms of this Agreement. The Custodian shall not be liable for any action taken by it in good faith and reasonably believed by it to be within powers conferred upon it, or taken by it pursuant to any direction or instruction by which it is governed hereunder, or omitted to be taken by it by reason of the lack of direction or instruction required

21


hereby for such action. Except as otherwise expressly provided herein, the Custodian shall not be under any obligation at any time to ascertain whether the Company is in compliance with the 1940 Act, the regulations thereunder, or the Company’s investment objectives and policies then in effect.
(i)
In no event shall the Custodian be liable for any indirect, special, punitive or consequential damages (including lost profits) whether or not it has been advised of the likelihood of such damages.
(j)
Upon written notice to the Company, the Custodian may consult with, and obtain advice from, legal counsel selected in good faith with respect to any question as to any of the provisions hereof or its duties hereunder, or any matter relating hereto, and the written opinion or advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by the Custodian in good faith in accordance with the opinion and directions of such counsel; the reasonable cost of such services shall be reimbursed pursuant to Section 8.2 above.
(k)
The Custodian shall not be deemed to have notice of any fact, claim or demand with respect hereto unless actually known by an officer working in its Corporate Trust Services group and charged with responsibility for administering this Agreement or unless (and then only to the extent received) in writing by the Custodian at the applicable address(es) as set forth in Section 15 and specifically referencing this Agreement.
(l)
No provision of this Agreement shall require the Custodian to expend or risk its own funds, or to take any action (or forbear from action) hereunder which might in its judgment involve any expense or any financial or other liability unless it shall be furnished with acceptable indemnification. Nothing herein shall obligate the Custodian to commence, prosecute or defend legal proceedings in any instance, whether on behalf of the Company or on its own behalf or otherwise, with respect to any matter arising hereunder, or relating to this Agreement or the services contemplated hereby.
(m)
The permissive right of the Custodian to take any action hereunder shall not be construed as duty.
(n)
The Custodian may act or exercise its duties or powers hereunder through agents (including for the avoidance of doubt, sub-custodians) or attorneys, and the Custodian shall not be liable or responsible for the actions or omissions of any such agent or attorney (i) appointed with the Company’s prior written consent specifically acknowledging such limitation of liability and (ii) maintained with reasonable due care.

22


(o)
All indemnifications contained in this Agreement in favor of the Custodian shall survive the termination of this Agreement or earlier resignation or removal of the Custodian.
8.4
Indemnification; Custodian’s Lien.
(c)
The Company shall and does hereby indemnify and hold harmless the Custodian, for and from any and all costs and expenses (including reasonable attorney’s fees and expenses), and any and all losses, damages, claims and liabilities, that may arise, be brought against or incurred by the Custodian, and any advances or disbursements made by the Custodian (including in respect of any Account overdraft, returned deposit item, chargeback, provisional credit, settlement or assumed settlement, reclaimed payment, claw-back or the like), as a result of, relating to, or arising out of this Agreement, or the administration or performance of the Custodian’s duties hereunder, or the relationship between the Company (including, for the avoidance of doubt, any Subsidiary) and the Custodian created hereby, other than such liabilities, losses, damages, claims, costs and expenses as are directly caused by the Custodian’s action or inaction constituting gross negligence or willful misconduct.
(d)
If the Company requires the Custodian, its affiliates, subsidiaries or agents, to advance cash or securities for any purpose (including but not limited to securities settlements and assumed settlement) or in the event that the Custodian or its nominee shall incur or be assessed any taxes, charges, expenses, assessments, claims or liabilities in connection with the performance of this Agreement, except such as may arise from its or its nominee’s own gross negligent action, grossly negligent failure to act or willful misconduct, or if the Company fails to compensate or pay the Custodian pursuant to Section 8.1 or Section 9.4 hereof, any cash at any time held for the account of the Company shall be security therefor and should the Company fail to repay the Custodian promptly (or, if specified, within the time frame provided herein), the Custodian shall be entitled to utilize available cash to the extent necessary to obtain reimbursement
8.5
Force Majeure. Without prejudice to the generality of the foregoing, the Custodian shall be without liability to the Company for any damage or loss resulting from or caused by events or circumstances beyond the Custodian’s reasonable control, including nationalization, expropriation, currency restrictions, the interruption, disruption or suspension of the normal procedures and practices of any securities market, power, mechanical, communications or other technological failures or interruptions, computer viruses or the like, fires, floods, earthquakes or other natural disasters, civil and military disturbance, acts of war or terrorism, riots, revolution, acts of God, work stoppages, strikes, national disasters of any kind, or other similar events or acts; errors by the Company (including any Authorized Person) in its instructions to the Custodian; or changes in applicable law, regulation or orders.

23


9.
SECURITY CODES
If the Custodian issues to the Company security codes, passwords or test keys in order that it may verify that certain transmissions of information, including Proper Instructions, have been originated by the Company, the Company shall take commercially reasonable steps to safeguard any security codes, passwords, test keys or other security devices that the Custodian shall make available.
10.
TAX LAW
10.1
Domestic Tax Law. The Custodian shall have no responsibility or liability for any obligations now or hereafter imposed on the Company, or the Custodian as custodian of the Securities or the Proceeds, by the tax law of the United States or any state or political subdivision thereof. The Custodian shall be kept indemnified by and be without liability to the Company for such obligations including taxes (but excluding any income taxes assessable in respect of compensation paid to the Custodian pursuant to this Agreement), withholding, certification and reporting requirements, claims for exemption or refund, additions for late payment interest, penalties and other expenses (including legal expenses) that may be assessed against the Company, or the Custodian as custodian of the Securities or Proceeds.
10.2
Foreign Tax Law. It shall be the responsibility of the Company to notify the Custodian of the obligations imposed on the Company, or the Custodian as custodian of any Foreign Securities or related Proceeds, by the tax law of foreign (i.e., non-U.S.) jurisdictions, including responsibility for withholding and other taxes, assessments or other government charges, certifications and government reporting. The sole responsibility of the Custodian with regard to such tax law shall be to use reasonable efforts to cooperate with the Company with respect to any claims for exemption or refund under the tax law of the jurisdictions for which the Company has provided such information.
11.
EFFECTIVE PERIOD, TERMINATION
11.1
Effective Date. This Agreement shall become effective as of its due execution and delivery by each of the parties. This Agreement shall continue in full force and effect until terminated as hereinafter provided. This Agreement may be terminated by the Custodian or the Company pursuant to Section 12.2.
11.2
Termination. This Agreement shall terminate upon the earliest of (a) occurrence of the effective date of termination specified in any written notice of termination given by either party to the other not later than sixty (60) days prior to the effective date of termination specified therein, (b) such other date of termination as may be mutually agreed upon by the parties in writing.

24


11.3
Resignation. The Custodian may at any time resign under this Agreement by giving not less than sixty (60) days advance written notice thereof to the Company. The Company may at any time remove the Custodian under this Agreement by giving not less than sixty (60) days advance written notice thereof to the Custodian.
11.4
Successor. Prior to the effective date of termination of this Agreement, or the effective date of the resignation or removal of the Custodian, as the case may be, the Company shall give Proper Instruction to the Custodian designating a successor Custodian, if applicable. The Custodian shall, upon receipt of Proper Instruction from the Company (i) deliver directly to the successor Custodian all Securities (other than Securities held in a Book-Entry System or Securities Depository) and cash then owned by the Company and held by the Custodian as custodian, and (ii) transfer any Securities held in a Book-Entry System or Securities Depository to an account of or for the benefit of the Company at the successor Custodian, provided that the Company shall have paid to the Custodian all fees, expenses and other amounts to the payment or reimbursement of which it shall then be entitled. In addition, the Custodian shall, at the expense of the Company, transfer to such successor all relevant books, records, correspondence, and other data established or maintained by the Custodian under this Agreement (if such form differs from the form in which the Custodian has maintained the same, the Company shall pay any expenses associated with transferring the data to such form), and will cooperate in the transfer of such duties and responsibilities. Upon such delivery and transfer, the Custodian shall be relieved of all obligations under this Agreement.
11.5
Payment of Fees, etc. Upon termination of this Agreement or resignation or removal of the Custodian, the Company shall pay to the Custodian such compensation, and shall likewise reimburse the Custodian for its costs, expenses and disbursements, as may be due as of the date of such termination or resignation (or removal, as the case may be). All indemnifications in favor of the Custodian under this Agreement shall survive the termination of this Agreement, or any resignation or removal of the Custodian.
11.6
Final Report. In the event of any resignation or removal of the Custodian, the Custodian shall provide to the Company a complete final report or data file transfer of any Confidential Information as of the date of such resignation or removal.
12.
REPRESENTATIONS AND WARRANTIES
12.1
Representations of the Company. The Company represents and warrants to the Custodian that:

25


(b)
it has the power and authority to enter into and perform its obligations under this Agreement, and it has duly authorized, executed and delivered this Agreement so as to constitute its valid and binding obligation; and
(c)
in giving any instructions which purport to be “Proper Instructions” under this Agreement, the Company will act in accordance with the provisions of its certificate of incorporation and bylaws and any applicable laws and regulations.
12.2
Representations of the Custodian. The Custodian hereby represents and warrants to the Company that:
(a)
it is qualified to act as a custodian pursuant to Sections 17(f) and 26(a)(1) of the 1940 Act;
(b)
it has the power and authority to enter into and perform its obligations under this Agreement;
(c)
it has duly authorized, executed and delivered this Agreement so as to constitute its valid and binding obligations; and
(d)
it maintains business continuity policies and standards that include data file backup and recovery procedures that comply with all applicable regulatory requirements.
13.
PARTIES IN INTEREST; NO THIRD PARTY BENEFIT
This Agreement is not intended for, and shall not be construed to be intended for, the benefit of any third parties and may not be relied upon or enforced by any third parties (other than successors and permitted assigns pursuant to Section 19).
14.
NOTICES
Any Proper Instructions (to the extent given by hand, mail, courier, electronic mail or telecopier) shall be given to the following address (or such other address as either party may designate by written notice to the other party), and otherwise any notices, approvals and other communications hereunder shall be sufficient if made in writing and given to the parties at the following address (or such other address as either of them may subsequently designate by notice to the other), given by (i) hand, (ii) certified or registered mail, postage prepaid, (iii) recognized courier or delivery service, or (iv) confirmed telecopier or telex, or by electronic mail:
(c)
if to the Company or any Subsidiary, to
Newtek Business Services Corp.
212 W. 35th Street, 2nd floor
New York, NY 10001
Attention: Jennifer C. Eddelson, Chief Accounting Officer
Email: Jeddelson@thesba.com

26



(d)
if to the Securities Custodian and Cash Custodian, to
U.S. Bank Global Corporate Trust Services
60 Livingston Avenue
St. Paul, MN 55107
Ref: GSF – Newtek Securities Custody Agreement
Email: nicholas.sandell@usbank.com
erin.folsom@usbank.com

(e)
if to the Document Custodian, to
U.S. Bank National Association
1133 Rankin Building
Ste 100
St. Paul, MN 55116
Ref: Newtek Custody Agreement
Email: saah.kemayah@usbank.com


15.
CHOICE OF LAW AND JURISDICTION
This Agreement shall be construed, and the provisions thereof interpreted under and in accordance with and governed by the laws of the State of New York for all purposes (without regard to its choice of law provisions); except to the extent such laws are inconsistent with federal securities laws, including the 1940 Act, in which case such federal securities laws shall govern.
16.
ENTIRE AGREEMENT; COUNTERPARTS
16.1
Complete Agreement. This Agreement constitutes the complete and exclusive agreement of the parties with regard to the matters addressed herein and supersedes and terminates, as of the date hereof, all prior agreements or understandings, oral or written, between the parties to this Agreement relating to such matters.
16.2
Counterparts. This Agreement may be executed in any number of counterparts and all counterparts taken together shall constitute one and the same instrument.
16.3
Facsimile Signatures. The exchange of copies of this Agreement and of signature pages by facsimile transmission or pdf shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile or pdf shall be deemed to be their original signatures for all purposes.

27


17.
AMENDMENT; WAIVER
17.1
Amendment. This Agreement may not be amended except by an express written instrument duly executed by each of the Company and the Custodian.
17.2
Waiver. In no instance shall any delay or failure to act be deemed to be or effective as a waiver of any right, power or term hereunder, unless and except to the extent such waiver is set forth in an express written instrument signed by the party against whom it is to be charged.
18.
SUCCESSOR AND ASSIGNS
18.1
Successors Bound. The covenants and agreements set forth herein shall be binding upon and inure to the benefit of each of the parties and their respective successors and permitted assigns. Neither party shall be permitted to assign their rights under this Agreement without the written consent of the other party; provided, however, that the foregoing shall not limit the ability of the Custodian to delegate certain duties or services to or perform them through agents or attorneys appointed with due care as expressly provided in this Agreement.
18.2
Merger and Consolidation. Any corporation or association into which the Custodian may be merged or converted or with which it may be consolidated, or any corporation or association resulting from any merger, conversion or consolidation to which the Custodian shall be a party, or any corporation or association to which the Custodian transfers all or substantially all of its corporate trust business, shall be the successor of the Custodian hereunder, and shall succeed to all of the rights, powers and duties of the Custodian hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto.
19.
SEVERABILITY
The terms of this Agreement are hereby declared to be severable, such that if any term hereof is determined to be invalid or unenforceable, such determination shall not affect the remaining terms.
20.
REQUEST FOR INSTRUCTIONS
If, in performing its duties under this Agreement, the Custodian is required to decide between alternative courses of action, the Custodian may (but shall not be obliged to) request written instructions from the Company as to the course of action desired by it. If the Custodian does not receive such instructions within two (2) Business Days after it has requested them, the Custodian may, but shall be under no duty to, take or refrain from taking any such courses of action. The Custodian shall act in accordance with instructions received from the Company in response to such request after such two-Business Day period except to the extent it has already taken, or committed itself to take, action inconsistent with such instructions.

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21.
OTHER BUSINESS
Nothing herein shall prevent the Custodian or any of its affiliates from engaging in other business, or from entering into any other transaction or financial or other relationship with, or receiving fees from or from rendering services of any kind to the Company or any other Person. Nothing contained in this Agreement shall constitute the Company and/or the Custodian (and/or any other Person) as members of any partnership, joint venture, association, syndicate, unincorporated business or similar assignment as a result of or by virtue of the engagement or relationship established by this Agreement.
22.
REPRODUCTION OF DOCUMENTS
This Agreement and all schedules, exhibits, attachments and amendment hereto may be reproduced by any photographic, photostatic, microfilm, micro-card, miniature photographic or other similar process. The parties hereto each agree that any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding, whether or not the original is in existence and whether or not such reproduction was made by a party in the regular course of business, and that any enlargement, facsimile or further production shall likewise be admissible in evidence.
23.
MISCELLANEOUS
The Company acknowledges receipt of the following notice:
“ IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT.
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. For a non-individual person such as a business entity, a charity, a trust or other legal entity the Custodian will ask for documentation to verify its formation and existence as a legal entity. The Custodian may also ask to see financial statements, licenses, identification and authorization documents from individuals claiming authority to represent the entity or other relevant documentation.”

1.[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed and delivered by a duly authorized officer, intending the same to take effect as of the date first written above.
Witness:
NEWTEK BUSINESS SERVICES CORP.
_______________________________    By:                        
Name:     Name: Barry Sloane
Title:      Title: Chief Executive Officer

Witness:    U.S. BANK NATIONAL    ASSOCIATION, as Custodian

_______________________________        By:    
Name:    Name:
Title:    Title:

SCHEDULE A
(Trade Confirmation)
[See Attached.]


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SCHEDULE B
CERTIFICATE OF AUTHORIZED PERSONS

Each of the undersigned hereby certifies that he/she is the duly elected and acting Chief Executive Officer and Secretary respectively, of Newtek Business Services Corp. (the “Client”), and further certifies that the following officers or employees of the Client have been duly authorized to deliver Proper Instructions to the Custodian pursuant to the Agreement between the Client and Custodian dated October 30, 2015, and that the signatures appearing opposite their names are true and correct:
Jennifer C. Eddelson    
Name


EVP and CAO    
Title
    
Signature
Dean Choksi    
Name

Treasurer    
Title
    
Signature
    
Name

    
Title
    
Signature
    
Name

    
Title
    
Signature
    
Name

    
Title
    
Signature
    
Name

    
Title
    
Signature
 
 
 
This certificate supersedes any certificate of Authorized Persons you may currently have on file.
By:    
Title: Chief Executive Officer
Date: October 30, 2015


By:    




Title: Secretary
Date: October 30, 2015
SCHEDULE C

Persons Authorized to Confirm Instructions by call-back

The following persons are authorized by the Company to confirm instructions to the Custodian:

Name
Telephone Number
Email
Jennifer C. Eddelson
(212)-273-7743
jeddelson@thesba.com
Dean Choksi
(212)-273-8130
dchoksi@thesba.com