Document



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

(Mark One)    
x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018

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.)
 
 
 
1981 Marcus Avenue, Suite 130, Lake Success, New York
 
11042
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (212) 356-9500

Securities Registered Pursuant to Section 12(b) of the Act:
 
Name of Each Exchange
Title of Each Class
on Which Registered
 
 
Common Stock, par value $0.02 per share
Nasdaq Global Market
7.50% Notes due 2022
Nasdaq Global Market
6.25% Notes due 2023
Nasdaq Global Market
Securities Registered Pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ¨    No  x
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  x
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 every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ¨    No  ¨
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
 
¨
Accelerated filer
 
x
 
 
 
 
 
 
Non-accelerated filer
 
¨
Smaller reporting company
 
¨
 
 
 
 
 
 
 
 
 
Emerging growth company
 
¨
If an emerging growth company indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x
The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant was approximately $349,642,000 as of the last business day of the registrant’s second fiscal quarter of 2018, based on a closing price on that date of $19.91 on the Nasdaq Global Market. For the purposes of calculating this amount only, all directors and executive officers of the Registrant have been treated as affiliates.
As of March 14, 2019, there were 19,058,661 shares issued and outstanding of the registrant’s Common Stock, par value $0.02 per share.

DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s definitive Proxy Statement relating to the registrant’s 2019 Annual Meeting of Shareholders, to be filed with the Securities and Exchange Commission within 120 days following the end of the Company’s fiscal year, are incorporated by reference in Part III of this Annual Report on Form 10-K as indicated herein.





NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
TABLE OF CONTENTS
 
Item
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Defined Terms

We have used “we,” “us,” “our”, “our company”, and “the Company” to refer to Newtek Business Services Corp. and its subsidiaries in this report. We also have used several other terms in this report, which are explained or defined below:

Terms
 
1940 Act
Investment Company Act of 1940, as amended
2016-1 Trust
Newtek Small Business Loan Trust, Series 2016-1
2017-1 Trust
Newtek Small Business Loan Trust, Series 2017-1
2018-1 Trust
Newtek Small Business Loan Trust, Series 2018-1
2021 Notes
7.00% Notes due 2021
2022 Notes
7.50% Notes due 2022
2023 Notes
6.25% Notes due 2023
ASC
Accounting Standards Codification, as issued by the FASB
ASU
Accounting Standards Updates, as issued by the FASB
ATM Equity Distribution Agreement
Second Amended and Restated Equity Distribution Agreement, dated August 31, 2018 by and among the Company and the Placement Agents
BDC
Business Development Company under the 1940 Act
Board
The Company's board of directors
Capital One
Capital One Bank, N.A.
Code
Internal Revenue Code of 1986, as amended
DRIP
The Company's dividend reinvestment plan
EBITDA
Earnings before interest, taxes, depreciation and amortization
Equity Incentive Plan
The Company's 2015 Equity Incentive Plan
Exchange Act
Securities and Exchange Act of 1934, as amended
FASB
Financial Accounting Standards Board
Goldman Facility
Credit and Guaranty Agreement between NMS, NTS, Premier, BSP, SBL and GS Bank as amended on June 21, 2017; further amended on September 7, 2018 to remove NTS, BSP and SBL as borrowers
Goldman Sachs
Goldman Sachs Bank
Webster Facility
Credit and Guaranty Agreement between NMS, Premier and Webster Bank as of November 8, 2018
Webster Bank
Webster Bank N.A.
LIBOR
London Interbank Offered Rate
NAV
Net Asset Value
Related Party RLOC
Unsecured revolving line of credit agreement between NMS, NTS, and Premier, as lenders and Newtek as borrower
PLP
Preferred Lender Program, as authorized by the SBA
Redemption Date
March 23, 2018
RIC
Regulated investment company under the Code
S&P
Standard and Poor's
SBA
United States Small Business Administration
SBLC
Small Business Lending Company
SEC
Securities and Exchange Commission
SMB
Small-and-medium sized businesses
Sterling
Sterling National Bank
Sterling 504 Facility
Loan and Security Agreement between NBC and Sterling, as lender to originate SBA 504 loans




Sterling Receivable and Inventory Facility
Loan and Security Agreement between NBC and Sterling, as lender to fund accounts receivable and inventory financing arrangements
Taxable Subsidiaries
Companies formed by Newtek which are taxed as corporations for income tax purposes
Trustee
U.S. Bank, N.A.
U.S. GAAP or GAAP
Generally accepted accounting principles in the United States
 
 
Portfolio Companies and Subsidiaries
 
NSBF
Newtek Small Business Finance, LLC, a consolidated subsidiary
NBL
Newtek Business Lending, LLC, a wholly-owned controlled portfolio company
Exponential
Exponential Business Development Co., Inc., a Taxable Subsidiary
NMS
 Newtek Merchant Solutions, LLC (formerly Universal Processing Services of Wisconsin LLC), a wholly-owned controlled portfolio company
Premier
Premier Payments LLC, a wholly-owned controlled portfolio company, merged into NMS at December 31, 2018
Mobil Money
Mobil Money, LLC, a wholly-owned controlled portfolio company
NTS
Newtek Technology Solutions, Inc., a wholly-owned controlled portfolio company
IPM
International Professional Marketing, Inc., a wholly-owned controlled portfolio company
SIDCO
SIDCO, LLC dba Cloud Nine Services, a wholly-owned controlled portfolio company
EWS
Excel WebSolutions, LLC, a controlled portfolio company
NBC
CDS Business Services, Inc. dba Newtek Business Credit Solutions, a wholly-owned controlled portfolio company
SBL
Small Business Lending, LLC, a wholly-owned controlled portfolio company
BSP
ADR Partners, LLC dba banc-serv Partners, LLC, a wholly-owned controlled portfolio company
NPS or PMT
PMTWorks Payroll, LLC dba Newtek Payroll and Benefits Solutions, a wholly-owned controlled portfolio company
NIA
Newtek Insurance Agency, LLC, a wholly-owned controlled portfolio company
UCS
United Capital Source, LLC, a wholly-owned controlled portfolio company, 100% membership interest sold on October 26, 2018
TAM
Titanium Asset Management LLC, a wholly-owned controlled portfolio company
EMCAP
EMCAP Loan Holdings, LLC





CAUTIONARY STATEMENT REGARDING 
FORWARD-LOOKING STATEMENTS AND PROJECTIONS

This report contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about the Company, our current and prospective portfolio investments, our industry, our beliefs, and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained in this report involve risks and uncertainties, including statements as to:
our future operating results;
our business prospects and the prospects of our portfolio companies;
the impact of investments that we expect to make;
our contractual arrangements and relationships with third parties;
the dependence of our future success on the general economy and its impact on the industries in which we invest;
the ability of our portfolio companies to achieve their objectives;
our expected financings and investments;
our ability to obtain exemptive relief from the SEC to co-invest and to engage in joint restructuring transactions or joint follow-on investments;
the adequacy of our cash resources and working capital; and
the timing of cash flows, if any, from the operations of our portfolio companies.

These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:

an economic downturn could impair our portfolio companies’ ability to continue to operate or repay their borrowings, which could lead to the loss of some or all of our investments in such portfolio companies;
a contraction of available credit and/or an inability to access the equity markets could impair our lending and investment activities;
interest rate volatility could adversely affect our results, particularly if we use leverage as part of our investment strategy; and
the risks, uncertainties and other factors we identify in “Risk Factors” and elsewhere in this report and in our filings with the SEC.

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. Important assumptions include our ability to originate new loans and investments, certain margins and levels of profitability and the availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include those described or identified in “Risk Factors” and elsewhere in this report. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this report. However, we will update this report to reflect any material changes to the information contained herein. The forward-looking statements in this report are excluded from the safe harbor protection provided by Section 27A of the Securities Act and Section 21E of the Exchange Act.

PART I
ITEM 1. BUSINESS.

We are an internally managed non-diversified closed-end management investment company that has elected to be regulated as a BDC under the 1940 Act. Additionally, we have elected to be treated as a RIC under the Code for U.S. federal income tax purposes, beginning with our 2015 tax year. Our investment activities are managed by our executive officers and supervised by our Board.





As a BDC, our investment objective is to generate both current income and capital appreciation primarily through loans originated by our business finance platform and our equity investments in certain portfolio companies that we control.

Our Business

We are an internally managed BDC that is a leading national non-bank lender that provides, together with our controlled portfolio companies, a wide range of business and financial solutions under the Newtek® brand to the SMB market. Newtek’s products and services include: Business Lending including SBA 7(a) loans, 504 loans and conventional loans, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), Technology Consulting, eCommerce, Accounts Receivable and Inventory Financing, personal and commercial lines Insurance Services, Web Services, Data Backup, Storage and Retrieval, and Payroll and Benefits Solutions to SMB accounts nationwide across all industries. We have an established and reliable platform that is not limited by client size, industry type or location. As a result, we believe we have a strong and diversified client base across every state in the U.S. and across a variety of different industries. In addition, we have developed a financial and technology based business model that enables us and our controlled portfolio companies to acquire and process our SMB clients in a cost effective manner. This capability is supported in large part by NewTracker®, our patented prospect management technology software which is similar to but we believe is better than the system popularized by Salesforce.com. We believe that this technology and low cost business model distinguishes us from our competitors.

We define SMBs as companies having revenues of $1,000,000 to $100,000,000. We focus on serving the SMB market, which we estimate to be over 27 million businesses in the U.S. We believe that these businesses have historically been underserved by traditional financial institutions and typically lack the capital resources to build a competitive business and marketing infrastructure on their own. Further, in today’s economic climate, we believe SMBs have particular difficulty obtaining capital from traditional lending sources. While we do not compete directly with alternative online lenders such as The Lending Club, Prosper.com, OnDeck Capital, Inc. and Kabbage Inc., we do provide financing solutions as an alternative to traditional lending. We believe there is significant demand for such alternative financing among SMBs. Our lending solutions and our controlled portfolio companies’ outsourced business solutions help clients manage and grow their businesses and compete effectively in today’s marketplace. We obtain our customers through referrals from various business partners, such as banks, insurance companies, credit unions and other affinity groups, as well as through our own direct sales force and advertising campaigns. We source, acquire and process SMB customers in a cost-effective manner without reliance on high cost sales staff and time consuming application processes.

In lending, we believe we are a leading capital provider to SMBs based on our loan volume. We originate loans through a variety of sourcing channels and through a disciplined underwriting process, and seek to achieve attractive risk-weighted returns. Our multi-faceted relationships with certain borrowers allow us to closely monitor their credit profile and take an active role in managing our investments. Further, our lending capabilities, coupled with the broad outsourced business solutions of our controlled portfolio companies, create attractive cross-selling opportunities within our client base. We believe our business model creates powerful network effects which will help drive growth and operating leverage in our business. In addition, our SBA 7(a) loans originated by NSBF are structured so that the government guaranteed portion can be rapidly sold, which, based on our historic ability to securitize the unguaranteed portions and assuming the continuation of current market conditions, allows us to quickly recover our principal and earn excess capital on each SBA 7(a) loan we originate, usually in less than a year. We may in the future determine to retain the government guaranteed or unguaranteed portions of SBA 7(a) loans for longer periods pending deployment of excess capital. From 2012 through December 31, 2018, NSBF has consistently been the largest non-bank SBA 7(a) lender and as of December 31, 2018 is the fourth largest SBA 7(a) lender in the U.S. based on dollar lending volume.

Newtek and its controlled portfolio companies use NewTracker®, our patented proprietary technology for receiving, processing and monitoring prospective customers. NewTracker® enables Newtek and its controlled portfolio companies to acquire SMB customers in a cost effective manner as it is all accomplished by skilled staff using state of the art technology without the need for high cost sales staff or applications processors. It also permits our referral partners to have a real time window into the back office processing of the referrals they give. NewTracker® automatically pre-populates any necessary forms or applications so the processing is efficient and also cost effective. Finally, it also identifies opportunities for the cross-sale of other Newtek branded products or services.


6




Business Finance Platform

SBA 7(a) Lending

Our portfolio consists of guaranteed and unguaranteed non-affiliate SBA loan investments that were made through our business finance platform, which includes NSBF, a nationally licensed SBA lender under the federal Section 7(a) loan program. The SBA is an independent government agency that facilitates one of the nation’s largest sources of SMB financing by providing credit guarantees for its loan programs. SBA 7(a) loans are partially guaranteed by the SBA, with SBA guarantees typically ranging between 75% and 90% of the principal and interest due. NSBF has a dedicated Senior Lending Team that originates and services SBA 7(a) loans to qualifying SMBs. NSBF sells the guaranteed portions of its SBA 7(a) loans, typically within two weeks of origination, and retains the unguaranteed portion until accumulating sufficient loans for a securitization. NSBF’s securitization process is as follows. After accumulating sufficient loans, the loans are transferred to a special purpose vehicle (a “Trust”), which in turn issues notes against the Trust’s assets in a private placement. The Trust’s primary source of income for repaying the securitization notes is the cash flows generated from the unguaranteed portion of SBA 7(a) loans owned by the Trust; principal on the securitization notes will be paid by cash flow in excess of that needed to pay various fees related to the operation of the Trust and interest on the debt. Securitization notes have an expected maturity of about five years, and the Trust is dissolved when the securitization notes are paid in full.

We intend to continue to expand our business finance platform primarily by expanding senior secured lending through NSBF. We believe NSBF’s SBA license, combined with NSBF’s PLP designation, provides us with a distinct competitive advantage over other SMB lenders that have not overcome these significant barriers-to-entry in our primary loan market. NSBF originated approximately $469,176,000 of SBA 7(a) loans during 2018 and approximately $385,882,000 of SBA 7(a) loans during 2017. We believe that we will continue to be introduced to a variety of high-quality investment opportunities through our existing loan sourcing channels and our controlled portfolio companies’ relationships with their clients, and our status as a BDC which helps fuel the growth of our loan portfolio by providing us with better access to lower-cost capital.

Under the SBA’s 7(a) lending program, a bank or other lender such as NSBF underwrites a loan between $50,000 and $5,000,000 for a variety of general business purposes based on the SBA’s guidelines and the SBA provides a partial guarantee on the loan. Depending on the loan size, the SBA typically guarantees between 75% and 90% of the principal and interest due. The recoveries and expenses on the unguaranteed portions of these loans are shared pari passu between the SBA and the lender, which substantially reduces the loss severity on the unguaranteed portion of a loan for SBA 7(a) loan investors. SBA 7(a) loans are typically between five and 25 years in maturity, four to five years in duration and bear interest at the prime rate plus a spread from 2.25% to 2.75%. Since the guaranteed portions of SBA 7(a) loans carry the full faith and credit of the U.S. government, lenders may, and frequently do, sell the guaranteed portion of SBA 7(a) loans in the capital markets, hold the unguaranteed portion and retain all loan servicing rights.

NSBF has a dedicated capital markets team that sells the guaranteed portions of its SBA 7(a) loans and sells or securitizes the unguaranteed portions of its SBA 7(a) loans. Historically, NSBF has sold the guaranteed portions of its originated SBA 7(a) loans shortly after origination and retained the unguaranteed portions until accumulating sufficient loans for a securitization. NSBF has typically sold SBA guaranteed portions of SBA 7(a) loans at premiums ranging from 106% to 120% of par value, and any portion of the premium that is above 110% of par value is shared equally between NSBF and the SBA. Since December 2010, NSBF has maintained its securitization program for unguaranteed portions of its SBA 7(a) loans and has successfully completed nine securitization transactions with Standard & Poor’s AA or A ratings and attractive advance rates as high as 83.5% of par value. NSBF’s most recent and largest securitization to date occurred in November 2018, when it sold $108,551,000 of unguaranteed SBA 7(a) loan-backed notes. NSBF intends to complete additional securitizations in the future which may be on comparable although not necessarily identical terms and conditions. We may determine to retain the government guaranteed or unguaranteed portions of loans for longer periods, pending deployment of excess capital.

NSBF’s senior lending team has focused on making smaller loans, approximately $1,000,000 or less, in order to maintain a diversified pool of loans that are dispersed both geographically and among industries, which limits NSBF’s exposure to regional and industry-specific economic downturns. Specifically, as of December 31, 2018, NSBF’s loan portfolio consisted of 1,960 loans originated across 50 states in 77 different industries as defined by the North American Industry Classification System (“NAICS”). The following charts summarize NSBF’s mix of investment concentrations by industry and geography as of December 31, 2018 (in thousands):

Distribution by NAICS Code Description


7




NAICS Code Description
 
Number of Loans
 
Aggregate Balance ($)
 
Average Balance ($)
 
Percentage of Balance
Food Services and Drinking Places
 
239

 
$
33,856

 
$
142

 
9.5
%
Truck Transportation
 
73

 
23,040

 
316

 
6.5
%
Professional, Scientific, and Technical Services
 
145

 
22,196

 
153

 
6.2
%
Amusement, Gambling, and Recreation Industries
 
101

 
20,906

 
207

 
5.9
%
Ambulatory Health Care Services
 
111

 
20,132

 
181

 
5.7
%
Repair and Maintenance
 
108

 
17,424

 
161

 
4.9
%
Specialty Trade Contractors
 
91

 
13,048

 
143

 
3.7
%
Fabricated Metal Product Manufacturing
 
34

 
12,607

 
371

 
3.5
%
Accommodation
 
48

 
11,628

 
242

 
3.3
%
Merchant Wholesalers, Durable Goods
 
39

 
9,002

 
231

 
2.5
%
Other
 
971

 
171,750

 
177

 
48.3
%
Total
 
1,960

 
$
355,589

 
$
181

 
100.0
%

Distribution by State

State
 
Number of Loans
 
Aggregate Balance ($)
 
Average Balance ($)
 
Percentage of Balance
Florida
 
230

 
$
39,501

 
$
172

 
11.1
%
New York
 
202

 
33,728

 
167

 
9.5
%
California
 
137

 
26,672

 
195

 
7.5
%
Texas
 
113

 
22,943

 
203

 
6.5
%
Connecticut
 
117

 
21,279

 
182

 
6.0
%
Pennsylvania
 
83

 
17,444

 
210

 
4.9
%
New Jersey
 
105

 
16,252

 
155

 
4.6
%
Georgia
 
71

 
15,964

 
225

 
4.5
%
Illinois
 
70

 
14,036

 
201

 
3.9
%
Ohio
 
61

 
12,915

 
212

 
3.6
%
Other
 
771

 
134,855

 
175

 
37.9
%
Total
 
1,960

 
$
355,589

 
$
181

 
100.0
%

NSBF evaluates the credit quality of its loan portfolio by employing a risk rating system that is similar to the Uniform Classification System, which is the asset classification system adopted by the Federal Financial Institution Examinations Council. NSBF’s risk rating system is granular with multiple risk ratings in both the Acceptable and Substandard categories. Assignment of the ratings are predicated upon numerous factors, including credit risk scores, collateral type, loan to value ratios, industry, financial health of the business, payment history, other internal metrics/analysis, and qualitative assessments. Risk ratings are refreshed as appropriate based upon considerations such as market conditions, loan characteristics, and portfolio trends. NSBF’s gross SBA loans by credit quality indicator are as follows:

Risk Rating

Portfolio
 
Number of Loans
 
Aggregate Balance ($)
 
Average Balance ($)
 
Percentage of Balance
Risk Rating 1 - 4
 
1,808

 
$
318,140

 
$
176

 
89.5
%
Risk Rating 5
 
4

 
903

 
226

 
0.3
%
Risk Rating 6
 
144

 
35,902

 
249

 
10.1
%
Risk Rating 6/7 and 7
 
4

 
644

 
161

 
0.1
%
Total
 
1,960

 
$
355,589

 
$
181

 
100.0
%


8




The weighted average term to maturity and weighted average interest rate of NSBF’s loan portfolio as of December 31, 2018 was 15.7 years and 7.9%, respectively.

Receivables Financing, Inventory Financing and SBA 504 Lending

The Company’s business finance platform also includes NBC and NBL, both controlled portfolio companies. NBC provides receivables financing, inventory financing and health care receivables financing, and management services to SMBs, which may obtain $10,000 to $2,000,000 per month through the sale of their trade receivables or the financing or their inventories. In addition, NBL funds SBA 504 loans which provide financing of fixed assets such as real estate or equipment.

Third Party Loan Servicing

SBL, a wholly owned, controlled portfolio company, engages in third-party loan servicing for SBA and non-SBA loans. An additional wholly owned portfolio company, BSP, provides lending institutions with outsourced solutions for the entire SBA lending process, including credit analysis, structuring and eligibility, packaging, closing compliance and servicing.

Controlled Portfolio Companies

In addition to our debt investments in portfolio companies, either directly or through our business finance platform, we also hold controlling interests in certain portfolio companies that, as of December 31, 2018, represented approximately 32% of our total investment portfolio. Specifically, we hold controlling interests in NMS, Mobil Money, NTS, SBL, NBC, NBL, BSP, NPS, NIA, IPM, and SIDCO. We refer to these entities (among others), collectively, as our “controlled portfolio companies.” Our controlled portfolio companies provide us with an extensive network of business relationships that supplement our referral sources and that we believe will help us to maintain a robust pipeline of lending opportunities and expand our business finance platform.

The revenues that our controlled portfolio companies generate, after deducting operating expenses, may be distributed to us. As a BDC, our Board will determine quarterly the fair value of our controlled portfolio companies in a similar manner as our other investments. In particular, our investments in our controlled portfolio companies are valued using a valuation methodology that incorporates both the market approach (guideline public company method) and the income approach (discounted cash flow analysis). In following these approaches, factors that we may take into account in determining the fair value of our investments include, as relevant: available current market data, including relevant and applicable market trading comparables, the portfolio company’s earnings and discounted cash flows of forecasted future earnings, comparisons of financial ratios of peer companies that are public, and enterprise values, among other factors. In addition, the Company has engaged third party valuation firms to provide valuation consulting services for the valuation of certain of our controlled portfolio companies.

Newtek Merchant Solutions (NMS)

NMS (a 2001 investment) 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. NMS utilizes a multi-pronged sales approach of both direct and indirect sales. NMS’ primary sales efforts focus on direct sales through our Your Business Solutions Company® brand. Their indirect sales channels consist of alliance partners, principally financial institutions (banks, credit unions, insurance companies and other related businesses), and independent sales agents across the U.S. These referring organizations and associations are typically paid a percentage of the processing revenue derived from the respective merchants that they successfully refer to NMS. In 2018, NMS processed merchant transactions with sales volumes of $6.1 billion.

NMS has a number of competitive advantages which we believe will enable it to exceed industry growth averages. These are:

focus on non-traditional business generation: referral relationships, wholesale solicitations and financial institutions rather than independent sales agents;

seeks to be a market leader in the implementation of technology in the payment processing business;

It maintains its own staff of trained and skilled customer service representatives; and

It markets and sells the latest in point-of-sale technology hardware, implementing of the EMV system (Europay, MasterCard, Visa inter-operative integrated circuit cards) and continuous cyber-security services.


9




NMS maintains its principal customer service and sales support offices in Milwaukee, Wisconsin and Lake Success, New York, with additional specialists located in Phoenix, Arizona. NMS’s personnel assist merchants with initial installation of equipment and on-going service, as well as any other special processing needs that they may have.

NMS’ development and growth are focused on selling their services to internally generated referrals, merchant referrals identified by Newtek alliance partners and by independent sales representatives. We believe NMS is different than most electronic payment processing companies who acquire their clients primarily through independent agents. NMS believes that its business model provides it with a competitive advantage by enabling it to acquire new merchant customers at a lower cost level for third-party commissions than the industry average. NMS’ business model allows it to own the customer as well as the stream of residual payments, as opposed to models which rely more heavily on independent sales agents.

Newtek Technology Solutions (NTS)

NTS offers website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, eCommerce, data storage and backup, and other related services to customers worldwide and manages over 69,000 domain names. While there are many competitors in this space, we believe that NTS is the only technology company with the exclusive focus on the SMB market with products tailored to the specific needs of these business customers.

NTS provides a full suite of outsourced IT infrastructure services, including cloud (virtual) servers, shared server hosting, and dedicated server hosting, under the Newtek® Technology Solutions, Newtek® Web Services and Newtek Web Hosting® brands, for which it receives recurring monthly fees, as well as other fees such as set-up fees, consulting fees, and domain name registration fees, among others.

Due to the continuing decline in Microsoft being utilized in the design of web sites and the market shift to Linux, Nginx and a proliferation of Word Press sites being built on non-Microsoft based platforms, Microsoft’s new web design growth has decreased to 33% of the market. NTS has responded to this decline by launching Linux Apache and Linux Nginx platforms within its environment and created associated control panels, service/support and billing to participate more fully in 100% of the market. All platforms are available within NTS’ cloud and non-cloud environment and are fully managed offerings as compared to NTS’ competitors.

NTS has a complete line of cloud-based business and eCommerce packages and Cloud Spaces to streamline the decision process for business owners and accommodate designers and developers that wish to build sites in both Microsoft and Linux environments. Included with this service offering is full customer service with a real human interface available on a 24/7/365 basis, which we believe further distinguishes NTS from its competitors who usually offer co-location hosting without the support needed for the SMB market customer.

NTS currently operates three data centers in Scottsdale, Arizona, Phoenix, Arizona, and Edison, New Jersey.

The datacenter facilities NTS employs to host its technologies conforms to The Uptime Institute’s 4-Tier Classification System which has become a global standard for third-party validation of data center critical infrastructure. The Tier Classification System defines the requirements and benefits of four distinct Tier classifications for data center infrastructure. Each Tier sets the appropriate criteria for power, cooling, maintenance, and capability to withstand a fault. Tiers are progressive; each Tier incorporates the requirements of all the lower Tiers. NTS operates its critical infrastructure within facilities that have a minimum rating of Tier 3-Certified. NTS datacenters meet and exceed Uptime Institute Tier-3 standards in all categories which allows NTS to pursue and service, compliance-sensitive workloads from the financial services, healthcare, government and military sectors. In addition, NTS includes redundant, carrier-neutral network design for all its communications paths, multiple locations to host services, and a built in DDOS mitigation platform into the design of its datacenter services.

Throughout its affiliation with Newtek, over 70% of new NTS customers have come as a result of internal and external referrals without material expenditures by NTS for marketing or advertising. Many of NTS’ competitors are very price sensitive, offering minimal services at cut-rate pricing. While being cost competitive with most Linux-and Windows-based web hosting services, NTS has emphasized higher quality uptime, service and support as well as multiple control panel environments for the designer and developer community.

NTS has also launched a turnkey hosting service to meet financial institution needs for dedicated servers, hosting and/or data storage, enabling these entities to comply with their strict regulatory requirements that demand very high security protocols and practices be in place.


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In addition, IPM and SIDCO are wholly-owned portfolio companies which consult, strategize, design, and implement technology solutions for enterprise and commercial clients across the U.S., and are expected to complement the offerings of NTS.

In early 2018, NTS became aware that an unauthorized third party misappropriated three domain names, which NTS used to support customer management of hosted websites. NTS notified its shared webhosting customers of the incident, and assisted in re-routing web traffic to minimize any service disruptions to its clients.

NTS’ management launched an investigation into the incident and based on the investigation, NTS’ management concluded that attackers compromised a portion of its shared webhosting system, and may have acquired certain customer information limited to its shared webhosting customers, and/or gained access to certain of its shared webhosting servers. NTS has taken a range of steps designed to secure its system, enhance its security protections, enhance access controls, and prevent future unauthorized activity.

Newtek Insurance Agency (NIA)

NIA is a retail and wholesale brokerage insurance agency licensed in 50 states specializing in the sale of personal, commercial and health/benefits lines insurance products to customers of all of the Newtek portfolio companies as well as Newtek alliance partners. NIA offers insurance products from multiple insurance carriers providing a wide range of choice for its customers. NIA is also implementing programs with alliance partners to market commercial and personal insurance. A major sales channel for NIA is the SMB customer base of our lending platform and the other controlled portfolio companies which allow for many opportunities for cross sales between business lines.

Newtek Payroll and Benefits Solutions (NPS)

NPS offers an array of industry standard and very competitively priced payroll management, benefit, payment and tax reporting services to SMBs. These payroll and benefit solutions are marketed through all of Newtek’s available channels including the alliance partnerships and direct marketing campaigns. NPS also benefits by the access to the SMB customer base of the lending platform and the other controlled portfolio companies.

NPS provides full service payroll and benefit solutions across all industries, processing payroll via software as a service (SaaS) or phone solutions. They have an established and reliable platform that is not limited by client size, industry type or delivery interface. NPS assists clients in managing their payroll processing needs by calculating, collecting and disbursing their payroll funds, remitting payroll taxes and preparing and filing all associated tax returns. In addition, NPS offers clients a range of ancillary service offerings, including workers’ compensation insurance, time and attendance, 401(k) administration, pay cards, employee benefit plans, employee background screening, COBRA services, tax credit recovery, Section 125 and flexible benefits spending plans and expense management services.

Certified Capital Companies (Capcos)

Under state-created Capco programs, states provide a Capco with tax credits generally equal to the amount of funds the Capco raises from insurance company investors. The Capcos then issue the tax credits to its investors — a process which is designed to reduce the Capco’s investors’ state tax liabilities. In exchange for receiving the tax credits, the Capco is obligated to invest the funds raised in certain qualified businesses, which generally are defined by statute to include only businesses that meet certain criteria related to the size, location, number of employees, and other characteristics of the business. If a Capco fails to comply with the performance requirements of each state’s different Capco program, the tax credits are subject to forfeiture.

Under state law, a Capco that has invested in qualified businesses an amount equal to 100% of its initial certified capital is able to decertify (i.e., terminate its status as a Capco) and no longer be subject to any state Capco regulation. Upon voluntary decertification, the programs in about half of the states require that a Capco share any distributions to its equity holders with the state sponsoring the Capco. For those states that require a share of distributions, the sharing percentages vary, but are generally from 10% to 30%, usually on distributions above a specified internal rate of return for the equity owners of the Capco.

Based on the above and that the Capcos were formed to make investments in businesses, the entities were determined to be investment companies and are therefore consolidated subsidiaries of Newtek.

Our Capcos have historically invested in SMBs and, in addition to interest income and investment returns, have generated non-cash income from tax credits and non-cash interest and insurance expenses in addition to cash management fees and expenses. We have de-emphasized our Capco business in favor of growing our controlled portfolio companies and do not anticipate

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creating any new Capcos. While observing all requirements of the Capco programs and, in particular, financing qualified businesses meeting applicable state requirements as to limitations on the proportion of ownership of qualified businesses, we believe the growth of our controlled portfolio companies produces a strategic focus on providing goods and services to SMBs such as those in which our Capcos invest. We continue to invest in and lend to SMBs through our existing Capcos and intend to meet the goals of the Capco programs.

As the Capcos reach 100% investment we will seek to decertify them as Capcos, liquidate their remaining assets and thereby reduce their operational costs, particularly the legal and accounting costs associated with compliance. Eleven of our original sixteen Capcos have reached this stage.

Newtek Branding

We have developed our branded line of products and services to offer a full service suite of business and financial solutions for the U.S. SMB market. Newtek reaches potential customers through its integrated multi-channel approach featuring direct, indirect and direct outbound solicitation efforts. We continue to utilize and grow our primary marketing channel of strategic alliance partners as well as a direct marketing strategy to SMB customers through our “go to market” brand, Your Business Solutions Company®. Through a television advertising campaign built around this brand, and our web presence, www.newtekone.com, we believe we are establishing ourselves as a preferred “go-to” provider for SMB financing and the services offered by our controlled portfolio companies. In addition, we supplement these efforts with extensive efforts to present the Company as the authority on small businesses.

We market services through referrals from our strategic alliance partners such as Amalgamated Bank, Banco Popular, Credit Union National Association, E-Insure, ENT Federal Credit Union, The Hartford, Legacy Bank, Morgan Stanley Smith Barney, Navy Federal Credit Union, New York Community Bank, Raymond James, Randolph Brooks Federal Credit Union, UBS , Meineke Dealers Purchasing Cooperative and True Value Company, among others, (using our patented NewTracker® referral management system) as well as direct referrals from our web presence, www.newtekone.com. Our NewTracker® referral system has a software application patent covering the systems and methods for tracking, reporting and performing processing activities and transactions in association with referral data and related information for a variety of product and service offerings in a business-to-business environment. The NewTracker® system provides for transparency between Newtek and referring parties and has been material in our ability to obtain referrals from a wide variety of sources. This patented system allows us and our alliance partners to review in real time the status of any referral as well as to provide real time compliance oversight by the respective alliance partner, which we believe creates confidence among the referred business client, the referring alliance partner and us. We own the NewTracker® patent, as well as all trademarks and other patented intellectual property used by us and our controlled portfolio companies.

Additional referrals are obtained from individual professionals in geographic markets that have signed up to provide referrals and earn commissions through our BizExec and TechExec Programs. Our BizExecs and TechExecs are traditionally information technology professionals, CPAs, independent insurance agents and sales and/or marketing professionals. In addition, electronic payment processing services are marketed through independent sales agents, and web technology and eCommerce services are marketed through internet-based marketing and third-party resellers. A common thread across all business lines of our controlled portfolio companies relates to acquiring customers at low cost and making strategic alliances primarily where we pay fees only for successful referrals. We seek to bundle our marketing efforts through our brand, our portal, our patented NewTracker® referral system, our web presence as Your Business Solutions Company® and one easy entry point of contact. We expect that this approach will allow us to continue to cross-sell the financing services of our business finance platform to customers of our controlled portfolio companies and build upon our extensive deal sourcing infrastructure. The compensation which we pay for referrals is consistent with industry practices.

Senior Lending Team and Executive Committee

The key members of our Senior Lending Team, most of who have worked together for more than ten years each have over 25 years of experience in finance-related fields. These investment professionals have worked together to screen opportunities, underwrite new investments and manage a portfolio of investments in SMBs through two recessions, a credit crunch, the dot-com boom and bust and a historic, leverage-fueled asset valuation bubble. Each member brings a complementary component to a team well-rounded in finance, accounting, operations, strategy, business law and executive management.

Because we are internally managed by our Executive Committee, which includes Barry Sloane, Peter Downs, Jennifer C. Eddelson and Michael A. Schwartz, under the supervision of our Board, and do not depend on a third-party investment advisor, we do not pay investment advisory fees and all of our income is available to pay our operating costs and to make distributions to our shareholders. While our portfolio companies are independently managed, our Executive Committee also oversees our

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controlled portfolio companies and, to the extent that we may make additional equity investments in the future, the Executive Committee will also have primary responsibility for the identification, screening, review and completion of such investments. We do not expect to focus our resources on investing in additional stand-alone equity investments, but may elect to do so from time to time on an opportunistic basis, if such opportunities arise. Messrs. Sloane and Downs have been involved together in the structuring and management of equity investments for the past sixteen years.

Market Opportunity

We believe that the limited amount of capital and financial products available to SMBs, coupled with the desire of these companies for flexible and partnership-oriented sources of capital and other financial products, creates an attractive investment environment for us to further expand our business finance platform and overall brand. We believe the following factors will continue to provide us with opportunities to grow and deliver attractive returns to shareholders.

The SMB market represents a large, underserved market.  We estimate the SMB market to include over 27 million businesses in the U.S. We believe that SMBs, most of which are privately-held, are relatively underserved by traditional capital providers such as commercial banks, finance companies, hedge funds and collateralized loan obligation funds. Further, we believe that such companies generally possess conservative capital structures with significant enterprise value cushions, as compared to larger companies with more financing options. While the largest originators of SBA 7(a) loans have traditionally been regional and national banks, from 2012 through 2018, NSBF was the largest non-bank originator of SBA 7(a) loans by dollar lending volume and is currently the fourth largest SBA 7(a) lender in the U.S. As a result, we believe we and our controlled portfolio companies are well positioned to provide financing to the types of SMBs that we have historically targeted and we have the technology and infrastructure in place presently to do it cost effectively in all 50 states and across many industries.

Future refinancing activity is expected to create additional investment opportunities.  A high volume of financings completed between 2005 and 2008 will mature in the coming years. We believe this supply of opportunities coupled with limited financing providers focused on SMBs will continue to offer investment opportunities with attractive risk-weighted returns.

The increased capital requirements and other regulations placed on banks may reduce lending by traditional large financial institutions and community banks.  While many SMBs were previously able to raise debt financing through traditional large financial institutions, we believe this approach to financing will continue to be constrained for several years as continued implementation of U.S. and international financial reforms, such as Basel III, phase in and rules and regulations are promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act. We believe that these regulations will increase capital requirements and have the effect of further limiting the capacity of traditional financial institutions to hold non-investment grade loans on their balance sheets. As a result, we believe that many of these financial institutions have de-emphasized their service and product offerings to SMBs, which we believe will make a higher volume of deal flow available to us.

Increased demand for comprehensive, business-critical SMB solutions. Increased competition and rapid technological innovation are creating an increasingly competitive business environment that requires SMBs to fundamentally change the way they manage critical business processes. This environment is characterized by greater focus on increased quality, lower costs, faster turnaround and heightened regulatory scrutiny. To make necessary changes and adequately address these needs, we believe that companies are focusing on their core competencies and utilizing cost-effective outsourced solutions to improve productivity, lower costs and manage operations more efficiently. Our controlled portfolio companies provide critical business solutions such as electronic payment processing, managed IT solutions, personal and commercial insurance services and full-service payroll and benefit solutions, receivables financing and funding of SBA 504 loans which provide financing of fixed assets such as real estate or equipment. We believe that each of these market segments are underserved for SMBs and since we are able to provide comprehensive solutions under one platform, we are well positioned to continue to realize growth from these product offerings.

Competitive Advantages

We believe that we are well positioned to take advantage of investment opportunities in SMBs due to the following competitive advantages:

Internally Managed Structure and Significant Management Resources. We are internally managed by our executive officers under the supervision of our Board and do not depend on an external investment advisor. As a result, we do not pay investment advisory fees and all of our income is available to pay our operating costs, which include employing investment and portfolio management professionals, and to make distributions to our shareholders. We believe that our internally managed structure provides us with a lower cost operating expense structure, when compared to other publicly traded and privately-held

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investment firms which are externally managed, and allows us the opportunity to leverage our non-interest operating expenses as we grow our investment portfolio. Our senior lending team has developed one of the largest independent loan origination and servicing platforms that focuses exclusively on SMBs.

Business Model Enables Attractive Risk-Weighted Return on Investment in SBA 7(a) Lending.  Our SBA 7(a) loans are structured so as to permit rapid sale of the U.S. government guaranteed portions, often within weeks of origination, and the unguaranteed portions have been successfully securitized and sold, usually within a year of origination. The return of principal and premium may result in an advantageous risk-weighted return on our original investment in each loan. We may determine to retain the government guaranteed or unguaranteed portions of loans pending deployment of excess capital.

State of the Art Technology. Our patented NewTracker® software enables us to board a SMB customer, process the application or inquiry, assemble necessary documents, complete the transaction and create a daily reporting system that is sufficiently unique as to receive a U.S. patent. This system enables us to identify a transaction, similar to a merchandise barcode or the customer management system used by SalesForce.com, then process a business transaction and generate internal reports used by management and external reports for strategic referral partners. It allows our referral partners to have digital access into our back office and follow on a real time, 24/7 basis the processing of their referred customers. This technology has been made applicable to all of the service and product offerings we make directly or through our controlled portfolio companies.

Established Direct Origination Platform with Extensive Deal Sourcing Infrastructure. We have established a direct origination pipeline for investment opportunities without the necessity for investment banks or brokers as well as broad marketing channels that allow for highly selective underwriting. The combination of our brand, our portal, our patented NewTracker® technology, and our web presence as Your Business Solutions Company® have created an extensive deal sourcing infrastructure. Although we pay fees for loan originations that are referred to us by our alliance partners, our investment team works directly with the borrower to assemble and underwrite loans. We rarely invest in pre-assembled loans that are sold by investment banks or brokers. As a result, we believe that our unique national origination platform allows us to originate attractive credits at a low cost. During 2018 we funded $469,176,000 of SBA 7(a) loans, based on the large volume of loan referrals we received in 2018. We anticipate that our principal source of investment opportunities will continue to be in the same types of SMBs to which we currently provide financing. Our Executive Committee and Senior Lending Team will also seek to leverage our extensive network of additional referral sources, including law firms, accounting firms, financial, operational and strategic consultants and financial institutions, with whom we have completed investments. We believe our current infrastructure and expansive relationships will continue to enable us to review a significant amount of high quality, direct (or non-brokered) investment opportunities.

Experienced Senior Lending Team with Proven Track Record.  We believe that our Senior Lending Team is one of the leading capital providers to SMBs. Our Senior Lending Team has expertise in managing the SBA process and has managed a diverse portfolio of investments with a broad geographic and industry mix. While the primary focus of NSBF is to expand its debt financing activities in SBA 7(a) loans, our Senior Lending Team is also focused on growing our business finance platform through our controlled portfolio companies NBC, which provides receivables financing, inventory financing and health care receivables financing, and NBL, which funds SBA 504 loans.

Flexible, Customized Financing Solutions for Seasoned, Smaller Businesses. While NSBF’s primary focus is to expand its lending by activities by providing SBA 7(a) loans to SMBs, we also seek to offer SMBs a variety of attractive financing structures, as well as cost effective and efficient business services, to meet their capital needs through our subsidiaries and controlled portfolio companies. In particular, through our controlled portfolio companies, we offer larger loans, between $5,000,000 and $15,000,000, greater than loans available with the SBA guarantee, but with a higher interest rate to compensate for the increased risk. Unlike many of our competitors, we believe we have the platform to provide a complete package of service and financing options for SMBs, which allows for cross-selling opportunities and improved client retention. We expect that a large portion of our capital will be loaned to companies that need growth capital, acquisition financing or funding to recapitalize or refinance existing debt facilities. Our lending will continue to focus on making loans to SMBs that:

have 3 to 10 years of operational history;

significant experience in management;

credit worthy owners who provide a personal guarantee for our investment;

show a strong balance sheet to collateralize our investments; and

show sufficient cash flow to be able to service the payments on our investments comfortably.

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Although we may make investments in start-up businesses, we generally seek to avoid investing in high-risk, early-stage enterprises that are only beginning to develop their market share or build their management and operational infrastructure with limited collateral.

Disciplined Underwriting Policies and Rigorous Portfolio Management.  We pursue rigorous due diligence of all prospective investments originated through our platform. Our senior lending team has developed an extensive underwriting due diligence process, which includes a review of the operational, financial, legal and industry performance and outlook for the prospective investment, including quantitative and qualitative stress tests, review of industry data and consultation with outside experts regarding the creditworthiness of the borrower. These processes continue during the portfolio monitoring process, when we will conduct field examinations, review all compliance certificates and covenants and regularly assess the financial and business conditions and prospects of portfolio companies. In addition, SBL is servicer for commercial, SBA 7(a) and other government guaranteed investments whose exceptional servicing capabilities with compact timelines for loan resolutions and dispositions has attracted various third-party portfolios to these controlled portfolio companies.

Business Development Company Conversion

On October 22, 2014, we effectuated a 1 for 5 reverse stock split to attract institutional investors. On November 12, 2014, in conjunction with the completion of a public offering, we merged with and into Newtek Business Services Corp., a newly-formed Maryland corporation, for the purpose of reincorporating in Maryland and we elected to be regulated as a BDC under the 1940 Act (the “BDC Conversion”). In connection with our election to be regulated as a BDC, we elected to be treated for U.S. federal income tax purposes, beginning with our 2015 tax year, and intend to qualify annually, as a RIC under Subchapter M of the Code. In connection with our election of RIC status, on October 1, 2015 our Board declared a special dividend of $2.69 per share which was paid partially in cash and partially in our common shares on December 31, 2015.

As a BDC, we are required to meet regulatory tests, including the requirement to invest at least 70% of our gross assets in “qualifying assets.” Qualifying assets generally include debt or equity securities of private or thinly traded public U.S. companies and cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. In addition, as a BDC, and pursuant to the approval that we received from our shareholders on July 26, 2018, we are not permitted to incur indebtedness unless immediately after such borrowing we have an asset coverage for total borrowings of at least 150% (i.e., the amount of debt may not exceed 66 2/3% of the value of our total assets). See “Regulation.”

As a RIC, we generally will not have to pay corporate-level federal income taxes on any ordinary income or capital gains that we distribute to our shareholders. To maintain our RIC tax treatment, we must meet specified source-of-income and asset diversification requirements and distribute annually at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any.

Investments

We engage in various investment strategies from time to time in order to achieve our overall investment objectives.

Portfolio Company Characteristics

We have and will continue to target investments in future portfolio companies that generate both current income and capital appreciation. In each case, the following criteria and guidelines are applied to the review of a potential investment however, not all criteria are met in every single investment, nor do we guarantee that all criteria will be met in the investments we will make in the future. We have and will continue to limit our investments to the SMB market.

Experienced Management with Meaningful Investment.  We seek to invest in companies in which senior or key managers have significant company-or industry-level experience and have significant equity ownership. It has been our experience that these experienced managers are more committed to the portfolio company’s success and more likely to manage the company in a manner that protects our debt and equity investments.

Significant Invested Capital.  We believe that the existence of an appropriate amount of equity beneath our debt capital provides valuable support for our investment. In addition, the degree to which the particular investment is a meaningful one for the portfolio company’s owners (and their ability and willingness to invest additional equity capital as and to the extent necessary) are also important considerations.


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Appropriate Capital Structures.  We seek to invest in portfolio companies that are appropriately capitalized. First, we examine the amount of equity that is being invested by the company’s equity owners to determine whether there is a sufficient capital cushion beneath our invested capital. We also analyze the amount of leverage, and the characteristics of senior debt with lien priority over our senior subordinated debt. A key consideration is a strong balance sheet and sufficient free cash flow to service any debt we may invest.

Strong Competitive Position.  We invest in portfolio companies that have developed strong, defensible product or service offerings within their respective market segment(s). These companies should be well positioned to capitalize on organic and strategic growth opportunities, and should compete in industries with strong fundamentals and meaningful barriers to entry. We further analyze prospective portfolio investments in order to identify competitive advantages within their industry, which may result in superior operating margins or industry-leading growth.

Customer and Supplier Diversification.  We expect to invest in portfolio companies with sufficiently diverse customer and supplier bases. We believe these companies will be better able to endure industry consolidation, economic contraction and increased competition than those that are not sufficiently diversified. However, we also recognize that from time to time, an attractive investment opportunity with some concentration among its customer base or supply chain will present itself. We believe that concentration issues can be evaluated and, in some instances (whether due to supplier or customer product or platform diversification, the existence and quality of long-term agreements with such customers or suppliers or other select factors), mitigated, thus presenting a superior risk-weighted pricing scenario.

Investment Objectives

Debt Investments

We target our debt investments, which are principally made through our business finance platform under the SBA 7(a) program, to produce generally, a coupon rate of prime plus 2.75% which enables us to generate rapid sales of loans in the secondary market historically producing gains and 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 7(a) loans are made with personal guarantees from any owner(s) of 20% or more of the portfolio company’s equity. As of December 31, 2018, substantially all of our SBA 7(a) portfolio at fair value consisted of debt investments that were secured by first or second priority liens on the assets of the portfolio company.

First Lien Loans. Our first lien loans generally have terms of one to twenty-five years, provide for a variable interest rate, contain no prepayment penalties (however, the SBA will charge the borrower a prepayment fee if the loan has a maturity of 15 or more years and is prepaid during the first three years) and are secured by a first priority security interest in all existing and future assets of the borrower. Our first lien loans may take many forms, including revolving lines of credit, term loans and acquisition lines of credit.

Second Lien Loans.  Our second lien loans generally have terms of five to twenty-five years, also primarily provide for a variable interest rate, contain no prepayment penalties (however, the SBA will charge the borrower a prepayment fee if the loan has a maturity of 15 or more years and is prepaid during the first three years) and are secured by a second priority security interest in all existing and future assets of the borrower. We typically only take second lien positions on additional collateral where we also have first lien positions on business assets.

Unsecured Loans.  We make few unsecured investments, primarily to our controlled portfolio companies, which because of our equity ownership are deemed to be more secure. Typically, these loans are to meet short-term funding needs.

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, affirmative, negative and financial covenants.

Equity Investments

While the vast majority of our investments have been structured as debt, we have in the past and expect in the future to make selective equity investments primarily as either strategic investments to enhance the integrated operating platform or, to a lesser degree, under the Capco programs. For investments in our controlled portfolio companies, we focus more on tailoring them to

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the long-term growth needs of the companies than to immediate return. Our objective with these companies is to foster the development of the businesses as a part of the integrated operational platform of serving the SMB market, so we may reduce the burden on these companies to enable them to grow faster than they would otherwise as another means of supporting their development and that of the integrated whole.

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.

Investment Process

The members of our Senior Lending Team and our Executive Committee are responsible for all aspects of our investment selection process. The discussion below describes our investment procedures. The stages of our investment selection process are as follows:

Loan and Deal Generation/Origination

We believe that the combination of our brand, our portal, our patented NewTracker® technology, and our web presence as Your Business Solutions Company® have created an extensive loan and deal sourcing infrastructure. This is maximized through long-standing and extensive relationships with industry contacts, brokers, commercial and investment bankers, entrepreneurs, services providers (such as lawyers and accountants), as well as current and former clients, portfolio companies and our extensive network of strategic alliance partners. We supplement our relationships by the selective use of television advertising aimed primarily at lending to the SMB market. We believe we have developed a reputation as a knowledgeable and reliable source of capital, providing value-added advice, prompt processing, and management and operations support to our portfolio companies.

We market our loan and investment products and services, and those of our controlled portfolio companies, through referrals from our alliance partners such as Amalgamated Bank, Banco Popular, Credit Union National Association, E-Insure, ENT Federal Credit Union, The Hartford, Legacy Bank, Morgan Stanley Smith Barney, Navy Federal Credit Union, New York Community Bank, Raymond James, Randolph Brooks Federal Credit Union, UBS, Meineke Dealers Purchasing Cooperative and True Value Company, among others using our patented NewTracker® referral system as well as direct referrals from our web presence, www.newtekone.com. The patent for our NewTracker® referral system is a software application patent covering the systems and methods for tracking, reporting and performing processing activities and transactions in association with referral data and related information for a variety of product and service offerings in a business-to-business environment providing further for security and transparency between referring parties. This system allows us and our alliance partners to review in real time the status of any referral as well as to provide real time compliance oversight by the respective alliance partner, which we believe creates confidence between the referred business client, the referring alliance partner and us.

Additional deal sourcing and referrals are obtained from individual professionals in geographic markets that have signed up to provide referrals and earn commissions through our BizExec and TechExec Programs. The BizExecs and TechExecs are traditionally information technology professionals, CPAs, independent insurance agents and sales and/or marketing professionals. In addition, electronic payment processing services are marketed through independent sales representatives and web technology and eCommerce services are marketed through internet-based marketing and third-party resellers. A common thread across all business lines of our subsidiaries and controlled portfolio companies relates to acquiring customers at low cost. We seek to bundle our marketing efforts through our brand, our portal, NewTracker®, our web presence as Your Business Solutions Company® and one easy entry point of contact. We expect that this approach will allow us to continue to cross-sell the financing services of our business finance platform to our customers and customers of our controlled portfolio companies, and to build upon our extensive deal sourcing infrastructure.

Screening

We screen all potential debt or equity investment proposals that we receive for suitability and consistency with our investment criteria (see “Portfolio Company Characteristics,” above). In screening potential investments, our Senior Lending Team and our Executive Committee utilize a value-oriented investment philosophy and commit resources to managing downside exposure. If a potential investment meets our basic investment criteria, a business service specialist or other member of our team is assigned to perform preliminary due diligence.


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SBA Lending Procedures

We originate loans under the SBA 7(a) Program in accordance with our credit and underwriting policy, which incorporates by reference the SBA Rules and Regulations as they relate to the financing of such loans, including the U.S. Small Business Administration Standard Operating Procedures, Lender and Development Company Loan Program (“SOP 50 10”).

During the initial application process for a loan originated under the SBA 7(a) Program, a business service specialist assists and guides the applicant through the application process, which begins with the submission of an online form. The online loan processing system collects required information and ensures that all necessary forms are provided to the applicant and filled out. The system conducts two early automatic screenings focused primarily on whether (i) the requested loan is for an eligible purpose, (ii) the requested loan is for an eligible amount and (iii) the applicant is an eligible borrower. If the applicant is eligible to fill out the entire application, the online system pre-qualifies the applicant based on preset credit parameters that meet the standards of Newtek and the SBA.

Once the online form and the application materials have been completed, our underwriting department (the “Underwriting Department”) becomes primarily responsible for reviewing and analyzing the application in order to accurately assess the level of risk being undertaken in making a loan. The Underwriting Department is responsible for assuring that all information necessary to prudently analyze the risk associated with a loan application has been obtained and has been analyzed. Credit files are developed and maintained with the documentation received during the application process in such a manner as to facilitate file review during subsequent developments during the life of the loan.

Required Information

For a loan originated under the SBA 7(a) Program, the primary application document is SBA Form 1919 (Borrower Information Form) (“Form 1919”). Among other things, Form 1919 requires identifying information about the applicant, loan request, indebtedness, the principals, current or previous government financing, and certain other disclosures.

In addition to Form 1919, the following additional information is required:

an SBA Form 912 (Statement of Personal History), if question 1, 2, or 3 of Form 1919 is answered affirmatively;

an SBA Form 413 (Personal Financial Statement), for all owners of 20% or more (including the assets of the owner’s spouse and any minor children), and proposed guarantors;

business financial statements dated within 180 days prior to submission to SBA, consisting of (a) year-end balance sheets for the last three years, including detailed debt schedule, (b) year-end profit & loss (P&L) statements for the last three years, (c) reconciliation of net worth, (d) interim balance sheet, and (e) interim P&L statements;

a list of names and addresses of any subsidiaries and affiliates, including concerns in which the applicant holds a controlling interest and other concerns that may be affiliated by stock ownership, franchise, proposed merger or otherwise with the applicant, and business financial statements meeting the same requirements as above of such subsidiaries and affiliates;

the applicant’s original business license or certificate of doing business;

records of any loans the applicant may have applied for in the past;

signed personal and business federal income tax returns of the principals of the applicant’s business for previous three years;

personal résumés for each principal;

a brief history of the business and its challenges, including an explanation of why the SBA loan is needed and how it will help the business;

a copy of the applicant’s business lease, or note from the applicant’s landlord, giving terms of proposed lease; and


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if purchasing an existing business, (a) current balance sheet and P&L statement of business to be purchased, (b) previous two years federal income tax returns of the business, (c) proposed Bill of Sale including Terms of Sale, and (d) asking price with schedule of inventory, machinery and equipment, furniture and fixtures.

We view current financial information as the foundation of sound credit analysis. To that end, we verify all business income tax returns with the Internal Revenue Service and generally request that financial statements be submitted on an annual basis after the loan closes. For business entities or business guarantors, we request federal income tax returns for each fiscal year-end to meet the prior three-year submission requirement. For interim periods, we will accept management-prepared financial statements. The most recent financial information may not be more than 180 days old at the time of the approval of the loan, but we generally request that the most recent financial information not be older than 90 days in order to provide time for underwriting and submission to SBA for guaranty approval. For individuals or personal guarantors, we require a personal financial statement dated within 180 days of the application (sixty days is preferred) and personal income tax returns for the prior three years. In connection with each yearly update of business financial information, the personal financial information of each principal must also be updated. Spouses are required to sign all personal financial statements in order for the Underwriting Department to verify compliance with the SBA’s personal resource test. In addition, the Underwriting Department will ensure that there has been no adverse impact on financial condition of the applicant or its principals since the approval of the loan. If closing does not occur within ninety days of the date on which the loan is approved, updated business and personal financial statements must be obtained and any adverse change must be addressed before the proceeds of the loan may be disbursed. If closing does not occur within six months of the date on which the loan is approved, the applicant is generally required to reapply for the loan.

Stress Test

The standard underwriting process requires a stress test on the applicant’s interest rate to gauge the amount of increase that can be withstood by the applicant’s cash flow and still provide sufficient cash to service debt. The applicant’s cash flow is tested up to a 2% increase in interest rate. If the applicant’s debt service coverage ratio decreases to 1:1 or less than 1:1, the loan may only be made as an exception to our Underwriting Guidelines and would require the approval of our credit committee.

Required Site Visit

No loan will be funded without an authorized representative of Newtek first making a site visit to the business premises. We generally use a contracted vendor to make the required site visit but may from time to time send our own employees to perform this function. Each site visit will generate a narrative of the business property as well as photographs of the business property. Additional site visits will be made when a physical on-site inspection is warranted.

Credit Assessment of Applicant

Loan requests are assessed primarily based upon an analysis of the character, cash flow, capital, liquidity and collateral involved in the transaction.

Character:  We require a personal credit report to be obtained on any principal or guarantor involved in a loan transaction. Emphasis is placed upon the importance of individual credit histories, as this is a primary indicator of an individual’s willingness and ability to repay debt. Any material negative credit information must be explained in writing by the principal, and must be attached to the personal credit report in the credit file. No loan will be made where an individual’s credit history calls into question the repayment ability of the business operation. A loan request from an applicant who has declared bankruptcy within the ten years preceding the loan application will require special consideration. A thorough review of the facts behind the bankruptcy and impact on creditors will be undertaken in determining whether the principal has demonstrated the necessary willingness and ability to repay debts. In addition, we will examine whether the applicant and its principals and guarantors have abided by the laws of their community. Any situation where a serious question concerning a principal’s character exists will be reviewed on a case-by-case basis. Unresolved character issues are grounds for declining a loan request regardless of the applicant’s financial condition or performance.

Cash Flow:  We recognize that cash flow is the primary and desired source of repayment on any loan, and therefore is the primary focus of the credit decision. Any transaction in which the repayment is not reasonably assured through cash flow will be declined, regardless of other possible credit strengths. At a minimum, combined EBITDA will be used to evaluate repayment ability. Other financial analysis techniques will be employed as needed to establish the reasonableness of repayment. Where repayment is based on past experience, the applicant must demonstrate minimum combined cash flow coverage of 1.2 times based upon the most recent fiscal year-end financial statement. A determination of the ability to repay will not be based solely upon interim operating results. Where repayment ability is not evident from historical combined earnings (including new

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businesses and changes of ownership), projections will be analyzed to determine whether repayment ability is reasonably assured. For changes in ownership, monthly cash flow forecasts will be analyzed to determine adequacy to meet all of the borrower’s needs.

For business acquisition applications, the applicant will be required to submit projections and support such projections by detailed assumptions made for all major revenue and expense categories and an explanation of how the projections will be met. Analysis must include comparisons with relevant Risk Management Association (“RMA”) industry averages. EBITDA must be reasonably forecast to exceed debt service requirements by at least 1.2 times, after accounting for the initial phase of operations. For change of ownership applications, projections will also be measured against the actual historical financial results of the seller of the business concern. Projections must demonstrate repayment ability of not less than 1.2 times.

Capital:  Capital is a strong traditional indicator of the financial health of a business. For going concern entities, the pro-forma leverage position, as measured by the debt to tangible net worth ratio, may not exceed the RMA industry median or 4 to 1, whichever is greater. For change of ownership transactions, generally 25% of total project costs should be contributed as equity resulting in debt to tangible net worth ratio of 3 to 1.

For a change of ownership transaction where a substantial portion of intangibles are included within the transaction, adequacy of capital will be determined based upon an evaluation of the business value and level of injection. In determining the legitimacy of the business value, the loan underwriter must utilize two SBA approved valuation methods, as outlined in SBA SOP 50 10. If the business value is found to be acceptable, and the equity injection into the project is within our requirements as outlined herein, then the capital position will be considered satisfactory.

As a general rule, shareholder and affiliate loans may be added back to net worth only if such loans will be subordinated for the life of the SBA loan, with no principal or interest payments to be made. Financing by the seller of the business may also be considered as equity if the loan will be placed on full standby for the life of the SBA loan. Adjustments to net worth to account for the difference between the book value and appraised value of fixed assets may be made only when supported by a current appraisal. Appraisals on a “subject to” basis are not acceptable.

Liquidity:  Liquidity, as measured by the current ratio, must be in line with the RMA industry average. An assessment of the adequacy of working capital is required. An assessment of the liquidity of a business is essential in determining the ability to meet future obligations. Lending to cash businesses such as hotels and restaurants requires less analysis of the liquidity of the business due to the timing of cash receipts. Industries with large receivables, payables, and inventory accounts require thorough review of the cash cycle of the business and evaluation of the applicant’s ability to manage these accounts. The current and quick ratios and turnover of receivables, payables and inventory are measured against the RMA industry median in determining the adequacy of these liquidity measures.

Collateral.  We are required to reasonably secure each loan transaction with all worthwhile and available assets. Pursuant to SBA SOP 50 10, we may not (and will not) decline a loan if the only weakness in the application is the value of collateral in relation to the loan amount, provided that all assets available to the business and its principals have been pledged. As set forth in SBA SOP 50 10, the SBA considers a loan to be fully secured if the lender has taken a security interest in all available fixed assets with a combined “net book value” adjusted up to the loan amounts below. For 7(a) loans, “fixed assets” means real estate, including land and structures and machinery and equipment owned by the business. “Net book value” is defined as an asset’s original price minus depreciation and amortization.

We attempt to secure each loan transaction with as much real estate and liquid asset collateral as necessary; however, all fixed assets must be evaluated. Fixed assets are evaluated on the basis of the net book value to determine the realizable value among collateral types. Valuation factors are applied as follows:

Commercial real estate — 75%

Residential real estate — 85%

Vacant land — 50%

Machinery & Equipment — 50%

Furniture & Fixtures — 10%

Accounts receivable & inventory — 20%

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Leasehold improvements — 5%

Certificate of Deposit — 100%

Regulated Licenses — will vary dependent upon type of license and geographic area. The liquidation rate used must be fully justified.

In addition to an assessment of the criteria specified above, there are certain special industry-specific requirements that will be considered in the loan application decision.

Change of Ownership: The minimum equity injection required in a change of ownership transaction is generally 20% but may be lower for specific industries such as medical and dental practices, gas stations and convenience stores, flag hotels and “strong” non-lodging franchises.

In the event of financing from the seller of the business, the applicant must inject not less than 10% of the project cost; the seller of the business may provide the balance on a complete standby basis for the life of the SBA loan. Exceptions to the equity requirement are reviewed on a case-by-case basis.

For a change of ownership transaction, the application must be accompanied by a business plan including reasonable financial projections. The financial performance of the seller of the business must be evaluated based upon three years of corporate income tax returns and a current interim financial statement. Projections for the applicant must be in line with the historical financial performance at the business location. In cases where financial performance of the seller of the business is poor, a satisfactory explanation must be provided to detail the circumstances of performance. Projections for the applicant must be accompanied by detailed assumptions and be supported by information contained in the business plan.

Management should have related experience in the industry and demonstrate the ability to successfully operate the business. In the absence of satisfactory related experience, an assessment of management’s experience and capabilities, given the complexity and nature of the business, will be made. In the case of a franchise, we will generally take into account the reputation of a franchisor for providing worthwhile management assistance to its franchisees.

We carefully review change of ownership transactions. The loan underwriter will review the contract for sale, which will be included in the credit file. The contract for sale must include a complete breakdown of the purchase price, which must be justified through either a third party appraisal or directly by the loan underwriter through an approved valuation method specified in SBA SOP 50 10. The contract of sale must evidence an arm’s length transaction (but transactions between related parties are permitted so long as they are on an arm’s-length basis) which will preserve the existence of the small business or promote its sound development. In addition, a satisfactory reason for the sale of the business must be provided. The seller of the business must provide the prior three years of business tax returns and a current interim financial statement, as applicable.

Also, in connection with a change of ownership transaction, the Loan Processing area of the Underwriting Department will order Uniform Commercial Code searches on the seller of the existing business. If such a search identifies any adverse information, the Loan Processor will advise the Underwriting Manager or Operations Manager so a prudent decision may be made with respect to the application.

Real Estate Transactions:  Loan proceeds for the acquisition or refinancing of land or an existing building or for renovation or reconstruction of an existing building must meet the following criteria:

the property must be at least 51% owner-occupied pursuant to SBA policies; and

loan proceeds may not be used to remodel or convert any rental space in the property.

Loan proceeds for construction or refinancing of construction of a new building must meet the following criteria:

the property must be at least 60% owner-occupied pursuant to SBA policies; and

if the building is larger than current requirements of the applicant, projections must demonstrate that the applicant will need additional space within three years, and will use all of the additional space within ten years.


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Commercial real estate appraisals are required on all primary collateral prior to the loan closing. In general, appraisals will be required as follows:

for loans up to $100,000 — a formal opinion of value prepared by a real estate professional with knowledge of the local market area;

for loans from $100,000 to $500,000 — a limited summary appraisal completed by a state certified appraiser;

for loans from $500,000 to $1 million — a limited summary appraisal by a Member of the Appraisal Institute (“MAI”) appraiser; and

for loans over $1 million — a complete self-contained appraisal by a MAI appraiser.

Environmental screenings and an environmental questionnaire are required for all commercial real estate taken as collateral.

In general, environmental reports are required as follows:

for real estate valued up to $500,000 — a transaction screen including a records review;

for real estate valued in excess of $500,000 — a Phase I Environmental Report; and

for the following types of property, a Phase I Environmental Report will be required regardless of property value: gasoline service stations, car washes, dry cleaners and any other business known to be in environmentally polluting industries.

In all cases for commercial real estate taken as collateral:

if further testing is recommended, the recommended level of testing will be performed prior to the loan closing; and

if the report indicates remedial action to be taken by the business, such actions must be completed prior to the loan closing and a closure letter must be provided prior to funding.

Medical Professionals:  In connection with a loan application relating to the financing of a medical business, all medical licenses will be verified, with the loss or non-renewal of license constituting grounds for denial of the application. In addition, medical professionals must provide evidence of malpractice liability insurance of at least $2,000,000 or the loan amount, whichever is higher. Malpractice insurance must be maintained for the life of the loan.

Franchise Lending:  All franchise loan applications will be evaluated as to eligibility by accessing SBA’s Franchise Registry. If the franchise is listed in the registry and the current franchise agreement is the same as the agreement listed in the registry, Newtek will not review the franchise agreement. However, the franchise agreement will be reviewed for eligibility by the loan underwriter when either of the following applies: (i) the franchise is not listed on the SBA’s Franchise Registry or (ii) the franchise is on the registry, but the franchisor has not provided a “Certification of No Change on Behalf of a Registered Franchisor” or a “Certification of Changes on Behalf of a Registered Franchisor.”

Credit Package

For each loan application, the loan underwriter will prepare a credit package (the “Credit Package”). All credit and collateral issues are addressed in the Credit Package, including but not limited to, the terms and conditions of the loan request, use of proceeds, collateral adequacy, financial condition of the applicant and business, management strength, repayment ability and conditions precedent. The Underwriting Department will recommend approval, denial or modification of the loan application. The Credit Package is submitted to our credit committee for further review and final decision regarding the loan application.

Other than rejections for ineligibility of the applicant, the type of business or the loan purpose, NSBF may decline a loan application for the following reasons:

after taking into consideration prior liens and considered along with other credit factors, the net value of the collateral offered as security is not sufficient to protect the interest of the U.S. Government;

lack of reasonable assurance of ability to repay loan (and other obligations) from earnings;

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lack of reasonable assurance that the business can be operated at a rate of profit sufficient to repay the loan (and other obligations) from earnings;

disproportion of loan requested and of debts to tangible net worth before and after the loan;

inadequate working capital after the disbursement of the loan;

the result of granting the financial assistance requested would be to replenish funds distributed to the owners, partners, or shareholders;

lack of satisfactory evidence that the funds required are not obtainable without undue hardship through utilization of personal credit or resources of the owner, partners or shareholders;

the major portion of the loan requested would be to refinance existing indebtedness presently financed through normal lending channels;

credit commensurate with applicant’s tangible net worth is already being provided on terms considered reasonable;

gross disproportion between owner’s actual investment and the loan requested;

lack of reasonable assurance that applicant will comply with the terms of the loan agreement;

unsatisfactory experience on an existing loan; or

economic or physical injury not substantiated.

If a loan application is accepted, we will issue a commitment letter to the applicant. After approval, the SBA and NSBF enter into a Loan Authorization Agreement which sets forth the terms and conditions for the SBA’s guaranty on the loan. The closing of a loan is handled by an internal attorney, whose primary responsibility is closing the loan in accordance with the related Loan Authorization in a manner consistent with prudent commercial loan closing procedures, to ensure that the SBA will not repudiate its guaranty due to ineligibility, noncompliance with SBA Rules and Regulations or defective documentation. Before loan proceeds are disbursed, the closing attorney will verify the applicant’s required capital injection, ensure that proceeds are being used for a permitted purpose and ensure that other requirements of the Loan Authorization Agreement (including, but not limited to, required insurance and lien positions and environmental considerations) and SBA Rules and Regulations (including the use of proper SBA forms) have been met.

Maintenance of Credit Files

A credit file is developed on each borrowing account. Credit files, in either hard copy format or electronic copy, are maintained by the Underwriting Department and organized according to a specified format. The file contains all documentation necessary to show: (a) the basis of the loan, (b) purpose, compliance with policy, conditions, rate, terms of repayment, collateral, and (c) the authority for granting the loan. The credit file is subject to review or audit by the SBA at any time. Upon final action being taken on a loan application, information necessary for closing and servicing will be copied and maintained, while information not considered necessary will be transferred to off-site storage. Once a loan has been disbursed in full, credit files containing all documentation will be transferred to the file room or other electronic storage media and maintained under the authority of the administration staff. Any individual needing an existing credit file must obtain it from the administration staff member having responsibility for safeguarding all credit files or access it by a prearranged electronic file process. Removal of any information from the file will compromise the credit file and is prohibited.

Other, Primarily Equity Investments

Due Diligence and Underwriting

In making loans or equity investments other than SBA 7(a) loans or similar conventional loans to SMBs, our Executive Committee will take a direct role in screening potential loans or investments, in supervising the due diligence process, in the preparation of deal documentation and the completion of the transactions. The members of the Executive Committee and/or Senior Lending Team complete due diligence and analyze the relationships among the prospective portfolio company’s

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business plan, operations and expected financial performance. Due diligence may address some or all of the following depending on the size and nature of the proposed investment:

on-site visits with management and relevant key employees;

in-depth review of historical and projected financial statements, including covenant calculation work sheets;

interviews with customers and suppliers;

management background checks;

review reports by third-party accountants, outside counsel and other industry, operational or financial experts; and/or

review material contracts.

During the underwriting process, significant, ongoing attention is devoted to sensitivity analyses regarding whether a company might bear a significant “downside” case and remain profitable and in compliance with assumed financial covenants. These “downside” scenarios typically involve assumptions regarding the loss of key customers and/or suppliers, an economic downturn, adverse regulatory changes and other relevant stressors that we attempt to simulate in our quantitative and qualitative analyses. Further, we continually examine the effect of these scenarios on financial ratios and other metrics.

Approval, Documentation and Closing

Upon the completion of the due diligence process, the Executive Committee will review the results and determine if the transaction should proceed to approval. If approved by our Senior Lending Team and Executive Committee, the underwriting professionals heretofore involved proceed to documentation.

As and to the extent necessary, key documentation challenges are brought before our Senior Lending Team and Executive Committee for prompt discussion and resolution. Upon the completion of satisfactory documentation and the satisfaction of closing conditions, final approval is sought from our Executive Committee before closing and funding.

Ongoing Relationships with Portfolio Companies

Monitoring, Managerial Assistance

We have and will continue to monitor our portfolio companies on an ongoing basis. We monitor the financial trends of each portfolio company to determine if it is meeting its business plan and to assess the appropriate course of action for each company. We generally require our portfolio companies to provide annual audits, quarterly unaudited financial statements with management discussion and analysis and covenant compliance certificates, and monthly unaudited financial statements. Using these monthly financial statements, we calculate and evaluate all financial covenants and additional financial coverage ratios that might not be part of our covenant package in the loan documents. For purposes of analyzing a portfolio company’s financial performance, we sometimes adjust their financial statements to reflect pro-forma results in the event of a recent change of control, sale, acquisition or anticipated cost savings. Additionally, we believe that, through our integrated marketing and sale of each service line of NSBF and our controlled portfolio companies to our controlled portfolio companies (including electronic payment processing services through NMS, technology solutions through NTS, insurance solutions through NIA and payroll and benefits services through NPS) and non-affiliate portfolio companies, we have in place extensive and robust monitoring capabilities.

We have several methods of evaluating and monitoring the performance and fair value of our investments, including the following:

assessment of success in adhering to each portfolio company’s business plan and compliance with covenants;

periodic and regular contact with portfolio company management to discuss financial position, requirements and accomplishments;

comparisons to our other portfolio companies in the industry, if any;

attendance at and participation in board meetings; and/or

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review of monthly and quarterly financial statements and financial projections for portfolio companies.

As part of our valuation procedures, we risk rate all of our investments including loans. In general, our rating system uses a scale of 1 to 8, with 1 being the lowest probability of default and principal loss. Our internal rating is not an exact system, but is used internally to estimate the probability of: (i) default on our debt securities and (ii) loss of our debt or investment principal, in the event of a default. In general, our internal rating system may also assist our valuation team in its determination of the estimated fair value of equity securities or equity-like securities. Our internal risk rating system generally encompasses both qualitative and quantitative aspects of our portfolio companies.

Our internal loan and investment risk rating system incorporates the following eight categories:

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Rating
 
Summary Description
1
 
Acceptable — Highest Quality — Loans or investments that exhibit strong financial condition and repayment capacity supported by adequate financial information. Generally, as loans these credits are well secured by marketable collateral. These credits are current and have not demonstrated a history of late-pay or delinquency. There are no or few credit administration weaknesses. This score represents a combination of a strong acceptable credit and adequate or better credit administration. Newly underwritten loans or investments may be rated in this category if they clearly possess above-average attributes in all of the above areas. In general, as investments these credits are performing within our internal expectations, and potential risks to the applicable investment are considered to be neutral or favorable compared to any potential risks at the time of the original investment.
2
 
Acceptable — Average Quality — These loans or investments are supported by financial condition and repayment strengths that offset marginal weaknesses. Generally, as loans these credits are secured but may be less than fully secured. These loans are current or less than 30 days past due and may or may not have a history of late payments. They may contain non-material credit administration weaknesses or errors in verifying that do not put the guaranty at risk or cause wrong or poor credit decisions to be made. This risk rating should also be used to assign an initial risk rating to loans or investments that are recommended for approval by underwriting. Without a performance history and/or identified credit administration deficiencies, emphasis should be placed on meeting or exceeding underwriting standards collateral protection, industry experience, and guarantor strength. It is expected that most of our underwritten loans will be of this quality.
3
 
Acceptable — Below Average — These loans or investments are the low-end range of acceptable. Loans would be less than fully secured and probably have a history of late pay and/or delinquency, though not severe. They contain one or more credit administration weaknesses that do not put the guaranty at risk or cause wrong or poor credit decisions to be made. This risk rating may also be used to identify new loans or investments that may not meet or exceed all underwriting standards, but are approved because of offsetting strengths in other areas. These credits, while of acceptable quality, typically do not possess the same strengths as those in the 1 or 2 categories. In general, the investment may be performing below internal expectations and quantitative or qualitative risks may have increased materially since the date of the investment.
4
 
Other Assets Especially Mentioned (OAEM or Special Mention) — Strong — These loans or investments are currently protected by sound worth and cash flow or other paying capacity, but exhibit a potentially higher risk situation than acceptable credits. While there is an undue or unwarranted credit risk, it is not yet to the point of justifying a substandard classification. Generally, these loans demonstrate some delinquency history and contain credit administration weaknesses. Performance may show signs of slippage, but can still be corrected. Credit does not require a specific allowance at this point but a risk of loss is present.
5
 
Substandard — Workout — These assets contain well defined weaknesses and are inadequately protected by the current sound worth and paying capacity of the borrower. Generally, loan collateral protects to a significant extent. There is a possibility of loss if the deficiencies are not corrected and secondary sources may have to be used to repay credit. Credit administration can range from very good to adequate indicating one or more oversights, errors, or omissions which are considered significant but not seriously misleading or causing an error in the loan decision. Performance has slipped and there are well-defined weaknesses. A specific allowance is in order or risk of loss is present.
6
 
Substandard — Liquidation — These assets contain well defined weaknesses and are inadequately protected by the current sound worth and paying capacity of the borrower or investee. In addition, the weaknesses are so severe that resurrection of the credit is unlikely. For loans, secondary sources will have to be used for repayment. Credits in this category would be severely stressed, nonperforming, and the business may be non-viable. There could be character and significant credit administration issues as well. A specific allowance should be established or the lack of one clearly justified.
7
 
Doubtful — This classification contains all of the weaknesses inherent in a substandard classification but with the added characteristic that the weaknesses make collection or repayment of principal in full, on the basis of existing facts, conditions and values, highly questionable and improbable. The probability of loss is very high, but the exact amount may not be estimable at the current point in time. Loans in this category are severely stressed, generally non-performing and/or involve a non-viable operation. Collateral may be difficult to value because of limited salability, no ready and available market, or unknown location or condition of the collateral. Credit administration weaknesses can range from few to severe and may jeopardize the credit as well as the guaranty. All such loans or investments should have a specific allowance.
8
 
Loss — Loans or investments classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is no longer warranted. This classification does not mean that the credit has no recovery or salvage value but, rather, it is not practical to defer writing off this asset. It is also possible that the credit decision cannot be supported by the credit administration process. Documents and verification are lacking; analysis is poor or undocumented, there is no assurance that the loan is eligible or that a correct credit decision was made. Loss loans are loans where a loss total can be clearly estimated. Losses should be taken during the period in which they are identified.

We will monitor and, when appropriate, change the investment ratings assigned to each loan or investment in our portfolio. In connection with our valuation process, our management will review these investment ratings on a quarterly basis, and our

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Board will affirm such ratings. The investment rating of a particular investment should not, however, be deemed to be a guarantee of the investment’s future performance.

Historically, we have offered to provide significant operating and managerial assistance to our portfolio companies and have provided significant operating and managerial assistance to our controlled portfolio companies. As a BDC, we will continue to offer, and must provide upon request, managerial assistance to our portfolio companies. This assistance will typically involve, among other things, monitoring the operations and financial performance of our portfolio companies, participating in board and management meetings, consulting with and advising officers of portfolio companies and providing other organizational and financial assistance. We may sometimes receive fees for these services.

Valuation Procedures

We conduct the valuation of our assets, pursuant to which our net asset value shall be determined, at all times consistent with GAAP and the 1940 Act. Our valuation procedures are set forth in more detail below:

Securities for which market quotations are readily available on an exchange shall be valued at such price as of the closing price on the day of valuation. We may also obtain quotes with respect to certain of our investments from pricing services or brokers or dealers in order to value assets. When doing so, we will determine whether the quote obtained is sufficient according to GAAP to determine the fair value of the security. If determined adequate, we will use the quote obtained. We also employ independent third-party valuation firms for certain of our investments for which there is not a readily available market value.

Securities for which reliable market quotations are not readily available or for which the pricing source does not provide a valuation or methodology or provides a valuation or methodology that, in the judgment of our Board, does not represent fair value, which we expect will represent a substantial majority of the investments in our portfolio, shall be valued as follows: (i) each portfolio company or investment is initially valued by the investment professionals responsible for the portfolio investment; (ii) preliminary valuation conclusions are documented and discussed with our Senior Lending Team and Executive Committee; (iii) independent third-party valuation firms engaged by, or on behalf of, the Board will conduct independent appraisals, review management’s preliminary valuations and prepare separate preliminary valuation conclusions on a selected basis; (iv) the Board reviews the preliminary valuations of members of our Senior Lending Team and Executive Committee and/or that of the third-party valuation firm and responds to the valuation recommendation with comments, if any; and (v) the Board will discuss valuations and determine the fair value of each investment in our portfolio in good faith.

Determination of fair value involves subjective judgments and estimates not susceptible to substantiation by auditing procedures. Accordingly, under current auditing standards, the notes to our financial statements will refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our financial statements.

The determination of fair value will generally be based on the following factors, as relevant:

the nature and realizable value of any collateral;

adherence to the portfolio company’s business plan and compliance with covenants;

periodic and regular contact with the portfolio company’s management to discuss financial position, requirements and accomplishments;

comparison to portfolio companies in the same industry, if any;

the portfolio company’s ability to make payments;

the portfolio company’s earnings and discounted cash flow;

the markets in which the portfolio company does business; and

comparisons to publicly traded securities.

Securities for which market quotations are not readily available or for which a pricing source is not sufficient may include, but are not limited to, the following:

private placements and restricted securities that do not have an active trading market;

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securities whose trading has been suspended or for which market quotes are no longer available;

debt securities that have recently gone into default and for which there is no current market;

securities whose prices are stale;

securities affected by significant events; and

securities that our investment professionals believe were priced incorrectly.

Competition

We compete for SBA 7(a) and other SMB loans with other financial institutions and various SMB lenders, as well as other sources of funding. Additionally, competition for investment opportunities has emerged among alternative investment vehicles, such as collateralized loan obligations, some of which are sponsored by other alternative asset investors, as these entities have begun to focus on making investments in SMBs. As a result of these new entrants, competition for our investment opportunities may intensify. Many of these entities have greater financial and managerial resources than we do but we believe that they invariably lack the ability to process loans as quickly as we can and do not have the depth of our customer service capabilities. We believe we will be able to compete with these entities primarily on the basis of our financial technology infrastructure, our experience and reputation, our deep industry knowledge and ability to provide customized business solutions, our willingness to make smaller investments than other specialty finance companies, the breadth of our contacts, our responsive and efficient investment analysis and decision-making processes, and the investment terms we offer.

We and our controlled portfolio companies compete in a large number of markets for the sale of financial and other services to SMBs. Each of our controlled portfolio companies competes not only against suppliers in its particular state or region of the country but also against suppliers operating on a national or even a multi-national scale. None of the markets in which our controlled portfolio companies compete are dominated by a small number of companies that could materially alter the terms of the competition.

Our electronic payment processing portfolio companies compete with entities including Global Payments, First National Bank of Omaha and Paymentech, L.P. Our managed technology solutions portfolio company competes with 1&1, Hosting.com, Discount ASP, Maxum ASP, GoDaddy®, Yahoo!®, BlueHost®, iPowerWeb® and Microsoft among others.

Our business finance platform competes with regional and national banks and non-bank lenders. Intuit® is bundling electronic payment processing, web hosting and payroll services similar to ours in offerings that compete in the same SMB market.

In many cases, we believe that our competitors are not as able as we are to take advantage of changes in business practices due to technological developments and, for those with a larger size, are unable to offer the personalized service that many SMB owners and operators desire.

While we compete with many different providers in our various businesses, we have been unable to identify any direct and comprehensive competitors that deliver the same broad suite of services focused on the needs of the SMB market with the same marketing strategy as we do. We believe that some of the competitive advantages of our platform include:

compatible products such as our e-commerce offerings that we are able to bundle to increase sales, reduce costs and reduce risks for our customers and enable us to sell two, three, or four products at the same time;

the patented NewTracker® referral system, which allows us and our portfolio companies to process new business utilizing a web-based, centralized processing point and provides back end scalability, and allows our alliance partners to offer a centralized access point for their SMB clients as part of their larger strategic approach to marketing, thus demonstrating their focus on providing a suite of services to the SMB market in addition to their core service;

the focus on developing and marketing business solutions and financial products and services aimed at the SMB market;

scalability, which allows us to size our business solutions capabilities very quickly to meet customer and market needs;


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the ability to offer personalized service and competitive rates;

a strategy of multiple channel distribution, which gives us maximum exposure in the marketplace;

high quality customer service 24/7/365 across all business lines, with a focus primarily on absolute customer service and;

a telephonic interview process, as opposed to requiring handwritten or data-typing processes, which allows us to offer high levels of customer service and satisfaction, particularly for SMB owners who do not get this service from our competitors
Revenues by Geographic Area
During the years ended December 31, 2018, 2017 and 2016, all of our revenue was derived from customers in the United States.

Employees

As of December 31, 2018, we had a total of 175 employees.
Available Information
We are subject to the informational requirements of the SEC and in accordance with those requirements file reports, proxy statements and other information with the SEC. The SEC maintains a web site that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address of the SEC’s web site is http://www.sec.gov. Our principal offices are located at 1981 Marcus Avenue, Suite 130, Lake Success, NY 11042 and our telephone number is (212) 356-9500. Our website may be directly accessed at http://www.newtekone.com. We make available through our website, free of charge, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. These documents may be directly accessed at http://investor.newtekbusinessservices.com. Information contained on our website is not a part of this report.

Regulation
 
We have elected to be regulated as a BDC under the 1940 Act. We have also elected to be treated for tax purposes as a RIC under Subchapter M of the Code. The 1940 Act contains prohibitions and restrictions relating to transactions between BDCs and their affiliates (including any investment advisers or sub-advisers), principal underwriters and affiliates of those affiliates or underwriters and requires that a majority of the directors be persons other than “interested persons,” as that term is defined in the 1940 Act.

In addition, the 1940 Act provides that we may not change the nature of our business so as to cease to be, or to withdraw our election as, a BDC unless approved by “a majority of our outstanding voting securities” as defined in the 1940 Act. A majority of the outstanding voting securities of a company is defined under the 1940 Act as the lesser of: (a) 67% or more of such company’s voting securities present at a meeting if more than 50% of the outstanding voting securities of such company are present or represented by proxy, or (b) more than 50% of the outstanding voting securities of such company. We do not anticipate any substantial change in the nature of our business.

We generally are not able to issue and sell our common stock at a price below net asset value per share. We may, however, issue and sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current net asset value of our common stock if (1) our Board determines that such sale is in our best interests and the best interests of our stockholders, and (2) our stockholders have approved our policy and practice of making such sales within the preceding 12 months. In any such case, the price at which our securities are to be issued and sold may not be less than a price which, in the determination of our board of directors, closely approximates the market value of such securities. At our Special Meeting of Stockholders on July 26, 2018, our stockholders approved a proposal authorizing us to sell up to 20% of our outstanding common stock at a price below our then-current net asset value per share, subject to approval by our Board for the offering. The authorization expires on the earlier of July 26, 2019 or the date of our 2019 Annual Meeting of stockholders. During 2018, the Company did not sell any shares of its common stock at a price below then-current net asset value per share.

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As a BDC, and pursuant to the approval that we received from our shareholders on July 26, 2018, we are required to not exceed an asset coverage ratio, reflecting the value of our total assets to our total senior securities, which include all of our borrowings and any preferred stock issued by us, under the 1940 Act. Prior to March 23, 2018, Section 61(a) of the 1940 Act (which incorporates the requirements of Sections 18(a)(1) and 18(a)(2) of the 1940 Act) did not permit a BDC to issue senior securities unless, at the time of issuance, the BDC had an asset coverage ratio of at least 200%, taking into account that issuance of senior securities (the “Asset Coverage Ratio”). However, on March 23, 2018, the President signed the Small Business Credit Availability Act (the “SBCA”) into law. The SBCA, among other things, permits BDCs to be subject to a minimum Asset Coverage Ratio of 150% (the “150% Asset Coverage”), if specific conditions are satisfied, when issuing senior securities. In other words, prior to the enactment of the SBCA, a BDC could borrow $1 for investment purposes for every $1 of investor equity. On April 27, 2018, our Board, including a majority of the non-interested directors who have no financial interest in this proposal, deemed it in the best interests of the Company and its shareholders for the Company to be subject to 150% Asset Coverage. As a result, the Company’s asset coverage requirements for senior securities were to change from 200% to 150%, effective April 27, 2019. However, as a result of the stockholder approval of Proposal 2 at the July 26, 2018 Special Meeting of stockholders, effective July 27, 2018, the asset coverage ratio under the 1940 Act applicable to the Company was decreased from 200% to 150%, permitting the Company to incur additional leverage. Therefore, we are required to meet an Asset Coverage Ratio of the value of total assets to senior securities, which include all of our borrowings and any preferred stock we may issue in the future, of at least 150%. We may also be prohibited under the 1940 Act from knowingly participating in certain transactions with our affiliates without the prior approval of our Board who are not interested persons and, in some cases, prior approval by the SEC. See “Regulation.”

We may invest up to 100% of our assets in securities acquired directly from issuers in privately negotiated transactions. With respect to such securities, we may, for the purpose of public resale, be deemed an “underwriter” as that term is defined in the Securities Act of 1933, or the Securities Act. We do not intend to acquire securities issued by any investment company that exceed the limits imposed by the 1940 Act. Under these limits, except for registered money market funds, we generally cannot acquire more than 3% of the voting stock of any investment company, invest more than 5% of the value of our total assets in the securities of one investment company or invest more than 10% of the value of our total assets in the securities of more than one investment company. With regard to that portion of our portfolio invested in securities issued by investment companies, it should be noted that such investments might indirectly subject our stockholders to additional expenses as they will indirectly be responsible for the costs and expenses of such companies. None of our investment policies are fundamental and any may be changed without stockholder approval.

Exemptive Relief

On May 10, 2016, we received an order from the SEC for exemptive relief that, with the shareholders’ approval we received on July 27, 2016, allows us to take certain actions that would otherwise be prohibited by the 1940 Act, as applicable to BDCs. Specifically, the order permits us to (i) issue restricted stock awards to our officers, employees and employee and non-employee directors, (ii) issue stock options to our employees, (iii) withhold shares of the Company’s common stock to satisfy tax withholding obligations relating to the vesting of restricted stock or the exercise of options that were granted to pursuant to the 2014 Plan or the Amended Stock Plan, and (iv) permit participants to pay the exercise price of Options that were granted to them pursuant to the 2014 Plan or will be granted to them pursuant to Amended Stock Plan with shares of Applicant’s common stock.

Qualifying Assets

Under the 1940 Act, a BDC may not acquire any asset other than assets of the type listed in Section 55(a) of the 1940 Act, which are referred to as qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets. The principal categories of qualifying assets relevant to our proposed business are the following:

(1)
Securities purchased in transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions) is an eligible portfolio company, or from any person who is, or has been during the preceding 13 months, an affiliated person of an eligible portfolio company, or from any other person, subject to such rules as may be prescribed by the SEC. An eligible portfolio company is defined in the 1940 Act as any issuer which:

(a) is organized under the laws of, and has its principal place of business in, the United States;


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(b) is not an investment company (other than a small business investment company wholly owned by the BDC) or a company that would be an investment company but for certain exclusions under the 1940 Act: and

(c) does not have any class of securities listed on a national securities exchange; or if it has securities listed on a national securities exchange such company has market capitalization of less than $250 million; is controlled by the BDC and has an affiliate of a BDC on its board of directors; or meets such other criteria as may be established by the SEC.

(2)
Securities purchased in a private transaction from a U.S. issuer that is not an investment company or from an affiliated person of the issuer, or in transactions incident thereto, if the issuer is in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase of its securities was unable to meet its obligations as they came due without material assistance other than conventional lending or financing arrangements.

(3)
Securities of an eligible portfolio company purchased from any person in a private transaction if there is no ready market for such securities and we already own 60% of the outstanding equity of the eligible portfolio company.

(4)
Securities received in exchange for or distributed on or with respect to securities described in (1) through (3) above, or pursuant to the exercise of warrants or rights relating to such securities.

(5)
Cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment.

Control, as defined by the 1940 Act, is presumed to exist where a BDC beneficially owns more than 25% of the outstanding voting securities of the portfolio company.

We do not intend to acquire securities issued by any investment company that exceed the limits imposed by the 1940 Act. Under these limits, we generally cannot acquire more than 3% of the voting stock of any investment company (as defined in the 1940 Act), invest more than 5% of the value of our total assets in the securities of one such investment company or invest more than 10% of the value of our total assets in the securities of such investment companies in the aggregate. With regard to that portion of our portfolio invested in securities issued by investment companies, it should be noted that such investments might subject our stockholders to additional expenses. None of our investment policies are fundamental and any may be changed without stockholder approval.
Significant Managerial Assistance

A BDC must have been organized and have its principal place of business in the United States and must be operated for the purpose of making investments in the types of securities described in “Qualifying Assets” above. Business development companies generally must offer to make available to the issuer of the securities significant managerial assistance, except in circumstances where either (i) the business development company controls such issuer of securities or (ii) the business development company purchases such securities in conjunction with one or more other persons acting together and one of the other persons in the group makes available such managerial assistance. Making available managerial assistance means, among other things, any arrangement whereby the BDC, through its directors, officers or employees, offers to provide, and, if accepted, does so provide, significant guidance and counsel concerning the management, operations or business objectives and policies of a portfolio company.

Temporary Investments

Pending investment in other types of “qualifying assets,” as described above, our investments may consist of cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment, which we refer to, collectively, as temporary investments, so that 70% of our assets are qualifying assets. Typically, we invest in highly rated commercial paper, U.S. Government agency notes, U.S. Treasury bills or in repurchase agreements relating to such securities that are fully collateralized by cash or securities issued by the U.S. government or its agencies. A repurchase agreement involves the purchase by an investor, such as us, of a specified security and the simultaneous agreement by the seller to repurchase it at an agreed-upon future date and at a price which is greater than the purchase price by an amount that reflects an agreed-upon interest rate. Consequently, repurchase agreements are functionally similar to loans. There is no percentage restriction on the proportion of our assets that may be invested in such repurchase agreements. However, the 1940 Act and certain diversification tests in order to qualify as a RIC for federal income tax purposes typically require us to limit the amount we invest with any one counterparty. Our investment Advisor monitors the creditworthiness of the counterparties with which we enter into repurchase agreement transactions.

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Warrants and Options

Under the 1940 Act, a BDC is subject to restrictions on the amount of warrants, options, restricted stock or rights to purchase shares of capital stock that it may have outstanding at any time. Under the 1940 Act, we may generally only offer warrants provided that (i) the warrants expire by their terms within ten years, (ii) the exercise or conversion price is not less than the current market value at the date of issuance, (iii) our stockholders authorize the proposal to issue such warrants, and our board of directors approves such issuance on the basis that the issuance is in the best interests of the Company and its stockholders and (iv) if the warrants are accompanied by other securities, the warrants are not separately transferable unless no class of such warrants and the securities accompanying them has been publicly distributed. The 1940 Act also provides that the amount of our voting securities that would result from the exercise of all outstanding warrants, as well as options and rights, at the time of issuance may not exceed 25% of our outstanding voting securities. In particular, the amount of capital stock that would result from the conversion or exercise of all outstanding warrants, options or rights to purchase capital stock cannot exceed 25% of the BDC’s total outstanding shares of capital stock.

Senior Securities; Coverage Ratio

We are permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to our common stock if we meet certain asset coverage requirements. On April 27, 2018, we announced that our Board, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act”) of the Board, approved a proposal to reduce our asset coverage requirement as set forth in Section 61(a)(2) of the 1940 Act, from 200% to 150%, pursuant to recent modifications included in the Small Business Credit Availability Act. Such change would have been effective April 27, 2019. However, on July 26, 2018, our stockholders approved a proposal to reduce our asset coverage requirement to 150%, effective July 27, 2018. In addition, we may not be permitted to declare any cash dividend or other distribution on our outstanding common shares, or purchase any such shares, unless, at the time of such declaration or purchase, we have asset coverage of at least 150% after deducting the amount of such dividend, distribution, or purchase price. We may also borrow amounts up to 5% of the value of our total assets for temporary purposes. For a discussion of the risks associated with the resulting leverage, see “Risk Factors -  Risks Related to Our Business And Structure - Because we borrow money, the potential for loss on amounts invested in us is magnified and may increase the risk of investing in us.” For a discussion of the risks associated with the resulting leverage, see “Risk Factors - Risks Related to Our Business Structure - Because we borrow money, the potential for loss on amounts invested in us is magnified and may increase the risk of investing in us.”

As of December 31, 2018, we had an aggregate principal amount of senior securities outstanding of $337,501,000 and our asset coverage ratio was 185%.

Issuance of Shares Below Current Net Asset Value

At a Special Meeting of Stockholders on July 26, 2018, our common stockholders approved a proposal that allows us to issue common stock at a discount from our NAV per share, effective for a period expiring on the earlier of July 26, 2019 or the 2019 annual meeting of our stockholders. We have agreed to limit the number of shares that we issue at a price below NAV pursuant to this authorization so that the aggregate dilutive effect on our then outstanding shares will not exceed 20%. Our Board, subject to its fiduciary duties and regulatory requirements, has the discretion to determine the amount of the discount, and as a result, the discount could be up to 100% of net asset value per share. During the year ended December 31, 2018, the Company did not sell any shares of common stock at a price below NAV per share.
Code of Ethics

We have adopted a code of ethics pursuant to Rule 17j-1 under the 1940 Act that establishes procedures for personal investments and restricts certain transactions by our personnel. Our code of ethics generally does not permit investments by our employees in securities that may be purchased or held by us. The code of ethics is published and available on the Company’s website at http://investor.newtekbusinessservices.com/corporate-governance is attached as an exhibit and is available on the EDGAR Database on the SEC’s Internet site at www.sec.gov. You may also obtain copies of the code of ethics, after paying a duplicating fee, by electronic request at the following email address: publicinfo@sec.gov, or by writing the SEC’s Public Reference Section, 100 F Street, N.E., Washington, D.C. 20549.


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Compliance Policies and Procedures

We have adopted and implemented written policies and procedures reasonably designed to detect and prevent violation of the federal securities laws and are required to review these compliance policies and procedures annually for their adequacy and the effectiveness of their implementation and designate a chief compliance officer to be responsible for administering the policies and procedures. Mr. Michael Schwartz currently serves as our Chief Compliance Officer.

Privacy Principles

We are committed to maintaining the privacy of our shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information we collect, how we protect that information and why, in certain cases, we may share information with select other parties.

Generally, we do not receive any non-public personal information relating to our shareholders, although certain non-public personal information of our shareholders may become available to us. We do not disclose any non-public personal information about our shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer agent).

Sarbanes-Oxley Act of 2002

The Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) imposes a wide variety of regulatory requirements on publicly-held companies and their insiders. Many of these requirements affect us. For example:

pursuant to Rule 13a-14 of the 1934 Act, our Chief Executive Officer and Chief Accounting Officer must certify the accuracy of the consolidated financial statements contained in our periodic reports;

pursuant to Item 307 of Regulation S-K, our periodic reports must disclose our conclusions about the effectiveness of our disclosure controls and procedures;

pursuant to Rule 13a-15 of the 1934 Act, our management must prepare a report regarding its assessment of our internal controls over financial reporting; and

pursuant to Item 308 of Regulation S-K and Rule 13a-15 of the 1934 Act, our periodic reports must disclose whether there were significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

The Sarbanes-Oxley Act requires us to review our current policies and procedures to determine whether we comply with the Sarbanes-Oxley Act and the regulations promulgated thereunder. We will continue to monitor our compliance with all regulations that are adopted under the Sarbanes-Oxley Act and will take actions necessary to ensure that we are in compliance therewith.
Proxy Voting Policies and Procedures

We vote proxies relating to our portfolio securities in a manner in which we believe is in the best interest of our stockholders. We review on a case-by-case basis each proposal submitted to a stockholder vote to determine its impact on the portfolio securities held by us. Although we generally vote against proposals that may have a negative impact on our portfolio securities, we may vote for such a proposal if there exists compelling long-term reasons to do so.

Our proxy voting decisions are made by our Senior Lending Team and our Executive Committee, which are responsible for monitoring each of our investments. To ensure that our vote is not the product of a conflict of interest, we require that: (i) anyone involved in the decision making process disclose to our chief compliance officer any potential conflict that he or she is aware of and any contact that he or she has had with any interested party regarding a proxy vote; and (ii) employees involved in the decision making process or vote administration are prohibited from revealing how we intend to vote on a proposal in order to reduce any attempted influence from interested parties.

Stockholders may obtain information regarding how we voted proxies with respect to our portfolio securities by making a written request for information to: Chief Compliance Officer, 1981 Marcus Avenue, Suite 130, Lake Success, NY 11042.

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Other

We will be periodically examined by the SEC for compliance with the Exchange Act and the 1940 Act.

We are required to provide and maintain a bond issued by a reputable fidelity insurance company to protect us against larceny and embezzlement. Furthermore, as a BDC, we are prohibited from protecting any director or officer against any liability to our stockholders arising from willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person’s office.

We are required to adopt and implement written policies and procedures reasonably designed to prevent violation of the federal securities laws, review these policies and procedures annually for their adequacy and the effectiveness of their implementation. We have designated Michael Schwartz to be our Chief Compliance Officer to be responsible for administering these policies and procedures.
Nasdaq Global Market Requirements

We have adopted certain policies and procedures intended to comply with the Nasdaq Global Market’s corporate governance rules. We will continue to monitor our compliance with all future listing standards that are approved by the SEC and will take actions necessary to ensure that we are in compliance therewith.

Regulation as a Small Business Lending Company

Our wholly owned subsidiary, NSBF, is licensed by the SBA as an SBLC that originates loans through the SBA 7(a) Program. The SBA 7(a) Program is the SBA’s primary loan program. In order to operate as an SBLC, a licensee is required to maintain a minimum regulatory capital (as defined by SBA regulations) of the greater of (1) 10% of its outstanding loans receivable and other investments or (2) $1,000,000. In addition, a SBLC is subject to certain other regulatory restrictions.

The SBA generally reduces risks to lenders by guaranteeing major portions of qualified loans made to small businesses. This enables lenders to provide financing to small businesses when funding may otherwise be unavailable or not available on reasonable terms. Under the SBA 7(a) Program, the SBA typically guarantees 75% of qualified loans over $150,000. The eligibility requirements of the SBA 7(a) Program vary by the industry of the borrower and affiliates and other factors.

The SBA grants PLP status to certain lenders originating SBA 7(a) loans based on achievement of certain standards in lending which are regularly monitored by the SBA. NSBF has been granted national PLP status and originates, sells and services SBA 7(a) loans. As a Preferred Lender, NSBF is authorized to place SBA guarantees on SBA 7(a) loans without seeking prior SBA review and approval. Designated PLP lenders are delegated the authority to process, close, service, and liquidate most SBA guaranteed loans without prior SBA review. PLP lenders are authorized to make SBA guaranteed loans, subject only to a brief eligibility review and assignment of a loan number by SBA. In addition, they are expected to handle servicing and liquidation of all of their SBA loans with limited involvement of SBA.

Among other things, SBLCs are required to: submit to the SBA for review a credit policy that demonstrates the SBLC’s compliance with the applicable regulations and the SBA’s Standard Operating Procedures for origination, servicing and liquidation of 7(a) loans; submit to the SBA for review and approval annual validation, with supporting documentation and methodologies, demonstrating that any scoring model used by the SBLC is predictive of loan performance; obtain SBA approval for loan securitization and borrowings; and adopt and fully implement an internal control policy which provides adequate direction for effective control over and accountability for operations, programs, and resources.

Pursuant to the SBA’s regulations, the SBA is released from liability on its guaranty of a 7(a) loan and may, in its sole discretion, refuse to honor a guaranty purchase request in full or in part, or recover all or part of the funds already paid in connection with a guaranty purchase, if the lender failed to comply materially with a program requirement; failed to make, close, service or liquidate the loan in a prudent manner; placed the SBA at risk through improper action or inaction; failed to disclose a material fact to the SBA in a timely manner; or misrepresented a material fact to the SBA regarding the loan. In certain instances, the SBA may refuse to honor a guaranty purchase request in full (referred to by the SBA as a “denial”) or in part (referred to by the SBA as a “repair”), or recover all or part of the funds already paid in connection with a guaranty purchase. In the event of a repair or denial, liability on the guaranty, in whole or part, would be transferred to NSBF.

The SBA restricts the ability of an SBLC to lend money to any of its officers, directors and employees or to invest in associates thereof. The SBA also prohibits, without prior SBA approval, a “change of control” of an SBLC. A “change of control” is any

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event which would result in the transfer of the power, direct or indirect, to direct the management and policies of a SBLC, whether through ownership, contractual arrangements or otherwise. SBLCs are periodically examined and audited by the SBA to determine compliance with SBA regulations.

Taxation as a Regulated Investment Company
For any taxable year in which we:
qualify as a RIC; and
satisfy the Annual Distribution Requirement,

We generally will not be subject to U.S. federal income tax on the portion of our income we distribute (or are deemed to distribute) to stockholders. We will be subject to U.S. federal income tax at the regular corporate rates on any income or capital gains not distributed (or deemed distributed) to our stockholders.

We will be subject to a 4% nondeductible U.S. federal excise tax on certain undistributed income unless we distribute in a timely manner an amount at least equal to the sum of (1) 98% of our net ordinary income for each calendar year, (2) 98.2% of our capital gain net income for the one-year period ending October 31 in that calendar year and (3) any income recognized, but not distributed, in preceding years and on which we paid no corporate-level income tax (the “Excise Tax Avoidance Requirement”). We generally will endeavor in each taxable year to make sufficient distributions to our stockholders to avoid any U.S. federal excise tax on our earnings.
In order to qualify as a RIC for U.S. federal income tax purposes, we must, among other things:
continue to qualify as a BDC under the 1940 Act at all times during each taxable year;
derive in each taxable year at least 90% of our gross income from dividends, interest, payments with respect to loans of certain securities, gains from the sale of stock or other securities, net income from certain “qualified publicly traded partnerships,” or other income derived with respect to our business of investing in such stock or securities (the “90% Income Test”); and
diversify our holdings so that at the end of each quarter of the taxable year:
at least 50% of the value of our assets consists of cash, cash equivalents, U.S. Government securities, securities of other RICs, and other securities if such other securities of any one issuer do not represent more than 5% of the value of our assets or more than 10% of the outstanding voting securities of the issuer; and
no more than 25% of the value of our assets is invested in the securities, other than U.S. government securities or securities of other RICs, of one issuer, of two or more issuers that are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses or of certain “qualified publicly traded partnerships” (the “Diversification Tests”).
Qualified earnings may exclude such income as management fees received in connection with our subsidiaries or other potential outside managed funds and certain other fees.

We may be required to recognize taxable income in circumstances in which we do not receive cash. For example, if we hold debt obligations that are treated under applicable tax rules as having original issue discount (such as debt instruments with PIK interest or, in certain cases, increasing interest rates or issued with warrants), we must include in income each year a portion of the original issue discount that accrues over the life of the obligation, regardless of whether cash representing such income is received by us in the same taxable year. We may also have to include in income other amounts that we have not yet received in cash, such as PIK interest, deferred loan origination fees that are paid after origination of the loan or are paid in non-cash compensation such as warrants or stock, or certain income with respect to equity investments in foreign corporations. Because any original issue discount or other amounts accrued will be included in our investment company taxable income for the year of accrual, we may be required to make a distribution to our stockholders in order to satisfy the Annual Distribution Requirement, even though we will not have received any corresponding cash amount. The Company does not currently hold investments that have original issue discount.

Gain or loss realized by us from the sale or exchange of warrants acquired by us as well as any loss attributable to the lapse of such warrants generally will be treated as capital gain or loss. Such gain or loss generally will be long-term or short-term, depending on how long we held a particular warrant.


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Although we do not presently expect to do so, we are authorized to borrow funds and to sell assets in order to satisfy the Annual Distribution Requirement and the Excise Tax Avoidance Requirement. However, under the 1940 Act, we are not permitted to make distributions to our stockholders while our debt obligations and other senior securities are outstanding unless certain “asset coverage” tests are met. Moreover, our ability to dispose of assets to meet our distribution requirements may be limited by (1) the illiquid nature of our portfolio and/or (2) other requirements relating to our status as a RIC, including the Diversification Tests. If we dispose of assets in order to meet the Annual Distribution Requirement or the Excise Tax Avoidance Requirement, we may make such dispositions at times that, from an investment standpoint, are not advantageous. If we are prohibited from making distributions or are unable to obtain cash from other sources to make the distributions, we may fail to qualify as a RIC, which would result in us becoming subject to corporate-level federal income tax.

In addition, we will be partially dependent on our subsidiaries for cash distributions to enable us to meet the RIC distribution requirements. Some of our subsidiaries may be limited by the Small Business Investment Act of 1958, and SBA regulations, from making certain distributions to us that may be necessary to maintain our status as a RIC. We may have to request a waiver of the SBA’s restrictions for our subsidiaries to make certain distributions to maintain our RIC status. We cannot assure you that the SBA will grant such waiver. If our subsidiaries are unable to obtain a waiver, compliance with the SBA regulations may cause us to fail to qualify as a RIC, which would result in us becoming subject to corporate-level federal income tax.
The remainder of this discussion assumes that we will qualify as a RIC and will have satisfied the Annual Distribution Requirement for the year ended December 31, 2018.

Any transactions in options, futures contracts, constructive sales, hedging, straddle, conversion or similar transactions, and forward contracts will be subject to special tax rules, the effect of which may be to accelerate income to us, defer losses, cause adjustments to the holding periods of our investments, convert long-term capital gains into short-term capital gains, convert short-term capital losses into long-term capital losses or have other tax consequences. These rules could affect the amount, timing and character of distributions to stockholders. We do not currently intend to engage in these types of transactions.

A RIC is limited in its ability to deduct expenses in excess of its “investment company taxable income” (which is, generally, ordinary income plus net realized short-term capital gains in excess of net realized long-term capital losses). If our expenses in a given year exceed gross taxable income (e.g., as the result of large amounts of equity-based compensation), we would experience a net operating loss for that year. However, a RIC is not permitted to carry forward net operating losses to subsequent years. In addition, expenses can be used only to offset investment company taxable income, not net capital gain. Due to these limits on the deductibility of expenses, we may for tax purposes have aggregate taxable income for several years that we are required to distribute and that is taxable to our stockholders even if such income is greater than the aggregate net income we actually earned during those years. Such required distributions may be made from our cash assets or by liquidation of investments, if necessary. We may realize gains or losses from such liquidations. In the event we realize net capital gains from such transactions, you may receive a larger capital gain distribution than you would have received in the absence of such transactions.

Investment income received from sources within foreign countries, or capital gains earned by investing in securities of foreign issuers, may be subject to foreign income taxes withheld at the source. In this regard, withholding tax rates in countries with which the United States does not have a tax treaty are often as high as 35% or more. The United States has entered into tax treaties with many foreign countries that may entitle us to a reduced rate of tax or exemption from tax on this related income and gains. The effective rate of foreign tax cannot be determined at this time since the amount of our assets to be invested within various countries is not now known. We do not anticipate being eligible for the special election that allows a RIC to treat foreign income taxes paid by such RIC as paid by its stockholders.

If we purchase shares in a “passive foreign investment company,” or PFIC, we may be subject to U.S. federal income tax on a portion of any “excess distribution” or gain from the disposition of such shares even if such income is distributed as a taxable dividend by us to our stockholders. Additional charges in the nature of interest may be imposed on us in respect of deferred taxes arising from such distributions or gains. If we invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the Code, or QEF, in lieu of the foregoing requirements, we will be required to include in income each year a portion of the ordinary earnings and net capital gain of the QEF, even if such income is not distributed to it. Alternatively, we can elect to mark-to-market at the end of each taxable year our shares in a PFIC; in this case, we will recognize as ordinary income any increase in the value of such shares and as ordinary loss any decrease in such value to the extent it does not exceed prior increases included in income. Under either election, we may be required to recognize in a year income in excess of our distributions from PFICs and our proceeds from dispositions of PFIC stock during that year, and such income will nevertheless be subject to the Annual Distribution Requirement and will be taken into account for purposes of the 4% U.S. federal excise tax. In addition, under recently proposed regulations, income required to be included as a result of a QEF election would not be qualifying income for purposes of the 90% Income Test unless we receive a distribution of such income from the PFIC in the

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same taxable year to which the inclusion relates. We intend to limit and/or manage our holdings in PFICs to minimize our liability for any taxes and related interest charges.

Foreign exchange gains and losses realized by us in connection with certain transactions involving non-dollar debt securities, certain foreign currency futures contracts, foreign currency option contracts, foreign currency forward contracts, foreign currencies, or payables or receivables denominated in a foreign currency are subject to Code provisions that generally treat such gains and losses as ordinary income and losses and may affect the amount, timing and character of distributions to our stockholders. Any such transactions that are not directly related to our investment in securities (possibly including speculative currency positions or currency derivatives not used for hedging purposes) could, under future Treasury regulations, produce income not among the types of “qualifying income” from which a RIC must derive at least 90% of its annual gross income.

Failure to Qualify as a RIC
 
If we fail to satisfy the 90% Income Test or the Diversification Tests for any taxable year, we may nevertheless continue to qualify as a RIC for such year if certain relief provisions are applicable (which may, among other things, require us to pay certain corporate-level federal taxes or to dispose of certain assets).
 
If we were unable to qualify for treatment as a RIC and the foregoing relief provisions are not applicable, we would be subject to tax on all of our taxable income at regular corporate rates, regardless of whether we make any distributions to our stockholders. Distributions would not be required, and any distributions would be taxable to our stockholders as ordinary dividend income to the extent of our current and accumulated earnings and profits and, subject to certain limitations, may be eligible for the 20% maximum rate for non-corporate taxpayers provided certain holding period and other requirements were met. Subject to certain limitations under the Code, corporate distributees would be eligible for the dividends-received deduction. Distributions in excess of our current and accumulated earnings and profits would be treated first as a return of capital to the extent of the stockholder’s tax basis, and any remaining distributions would be treated as a capital gain. Generally, a non-taxable return of capital will reduce an investor’s basis in our stock for federal tax purposes, which will result in higher tax liability when the stock is sold. Stockholders should read any written disclosure accompanying a distribution carefully and should not assume that the source of any distribution is our ordinary income or gains. Certain written disclosure will present a calculation of return of capital on a tax accounting basis.

To requalify as a RIC in a subsequent taxable year, we would be required to satisfy the RIC qualification requirements for that year and dispose of any earnings and profits from any year in which we failed to qualify as a RIC. Subject to a limited exception applicable to RICs that qualified as such under Subchapter M of the Code for at least one year prior to disqualification and that requalify as a RIC no later than the second year following the non-qualifying year, we could be subject to tax on any unrealized net built-in gains in the assets held by us during the period in which we failed to qualify as a RIC that are recognized within the subsequent 5 years, unless we made a special election to pay corporate-level tax on such built-in gain at the time of our requalification as a RIC.

ITEM 1A. RISK FACTORS
The following is a summary of the risk factors that we believe are most relevant to our business. These are factors that, individually or in the aggregate, we think could cause our actual results to differ significantly from anticipated or historical results. If any of the following risks occur, our business, financial condition and results of operations could be materially and adversely affected. In that case, the value of our common stock could decline and shareholders may lose all or part of their investment. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider the following to be a complete discussion of all potential risks or uncertainties. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.
RISKS RELATED TO OUR BUSINESS AND STRUCTURE

Our investment portfolio is recorded at fair value, with our Board having final responsibility for overseeing, reviewing and approving, in good faith, its estimate of fair value and, as a result, there is uncertainty as to the value of our portfolio investments.

Under the 1940 Act, we are required to carry our portfolio investments at market value or, if there is no readily available market value, at fair value as determined by us, with our Board having final responsibility for overseeing, reviewing and approving, in good faith, our estimate of fair value. Typically, there is not a public market for the securities of the privately held companies in

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which we invest. As a result, we value these securities annually and quarterly at fair value based on various inputs, including management, third-party valuation firms and our audit committee, and with the oversight, review and approval of our Board.

The determination of fair value and consequently, the amount of unrealized gains and losses in our portfolio, are to a certain degree, subjective and dependent on a valuation process approved by our Board. Certain factors that may be considered in determining the fair value of our investments include external events, such as private mergers, sales and acquisitions involving comparable companies. Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, they may fluctuate over short periods of time and may be based on estimates. Our determinations of fair value may differ materially from the values that would have been used if a ready market for these securities existed. Due to this uncertainty, our fair value determinations may cause our net asset value on a given date to materially understate or overstate the value that we may ultimately realize on one or more of our investments. As a result, investors purchasing our common stock based on an overstated net asset value would pay a higher price than the value of our investments might warrant. Conversely, investors selling stock during a period in which the net asset value understates the value of our investments will receive a lower price for their stock than the value of our investments might warrant.

Any unrealized depreciation we experience in our portfolio may be an indication of a portfolio company’s inability to meet its repayment obligations to us with respect to affected loans or a potential impairment of the value of affected equity investments. This could result in realized losses in the future and ultimately in reductions of our income and gains available for distribution in future periods.
As a BDC, we are required to carry our investments at market value or, if no market value is ascertainable, at the fair value as determined in good faith by our Board. Decreases in the market values or fair values of our investments will be recorded as unrealized depreciation. Any unrealized depreciation in our portfolio could be an indication of a portfolio company's inability to meet its repayment obligations to us with respect to affected loans or a potential impairment of the value of affected equity investments. This could result in realized losses in the future and ultimately in reductions of our income and gains available for distribution in future periods.

Our financial condition and results of operations will depend on our ability to manage and deploy capital effectively.

Our ability to achieve our investment objective will depend on our ability to manage and deploy capital, which will depend, in turn, on our management’s ability to identify, evaluate and monitor, and our ability to finance and invest in, companies that meet our investment criteria.

Accomplishing our investment objective on a cost-effective basis will largely be a function of our management’s handling of the investment process, its ability to provide competent, attentive and efficient services and our access to investments offering acceptable terms. In addition to monitoring the performance of our existing investments, our Senior Lending Team and our Executive Committee is called upon, from time to time, to provide managerial assistance to some of our portfolio companies.

These demands on their time may distract them or slow the rate of investment. Even if we are able to grow and build upon our investment operations, any failure to manage our growth effectively could have a material adverse effect on our business, financial condition, results of operations and prospects. The results of our operations will depend on many factors, including the availability of opportunities for investment, readily accessible short and long-term funding alternatives in the financial markets and economic conditions. Furthermore, if we cannot successfully operate our business or implement our investment policies and strategies as described herein, it could negatively impact our ability to pay dividends.

We are dependent upon our Senior Lending Team and our Executive Committee for our future success, and if we are unable to hire and retain qualified personnel or if we lose any member of our Senior Lending Team or our Executive Committee our ability to achieve our investment objective could be significantly harmed.

We depend on our Senior Lending Team and Executive Committee as well as other key personnel for the identification, final selection, structuring, closing and monitoring of our investments. These executive officers and employees have critical industry experience and relationships that we rely on to implement our business plan. Our future success depends on the continued service of our Senior Lending Team and our Executive Committee and the replacement of any departing individuals with others of comparable skills and experience. The departure of any of the members of our Senior Lending Team, our Executive Committee or a significant number of our senior personnel could have a material adverse effect on our ability to achieve our investment objective. As a result, we may not be able to operate our business as we expect, and our ability to compete could be harmed, which could cause our operating results to suffer.


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We operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses.

We compete for investments with other financial institutions and various SMB lenders, as well as other sources of funding. Additionally, competition for investment opportunities has emerged among alternative investment vehicles, such as CLOs, some of which are sponsored by other alternative asset investors, as these entities have begun to focus on making investments in SMBs. As a result of these new entrants, competition for our investment opportunities may intensify. Many of our competitors will be substantially larger and have considerably greater financial, technical and marketing resources than us. For example, some competitors may have a lower cost of capital and access to funding sources that will not be available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments than we will have. These characteristics could allow our competitors to consider a wider variety of investments, establish more relationships and offer better pricing and more flexible structuring than we will be able to offer. We may lose investment opportunities if we do not match our competitors’ pricing, terms and structure. If we are forced to match our competitors’ pricing, terms and structure, we may not be able to achieve acceptable returns on our investments or may bear substantial risk of capital loss. Furthermore, many of our competitors will have greater experience operating under, or will not be subject to, the regulatory restrictions that the 1940 Act will impose on us as a BDC, or the source-of-income, asset diversification, and distribution requirements we must satisfy to maintain our tax treatment as a RIC.

If we are unable to source investments effectively, we may be unable to achieve our investment objective.

Our ability to achieve our investment objective depends on our Senior Lending Team’s and our Executive Committee’s ability to identify, evaluate and invest in suitable companies that meet our investment criteria. Accomplishing this result on a cost-effective basis is largely a function of our marketing capabilities, our management of the investment process, our ability to provide efficient services and our access to financing sources on acceptable terms. In addition to monitoring the performance of our existing investments, members of our Senior Lending Team, our Executive Committee and our other investment professionals may also be called upon to provide managerial assistance to our portfolio companies. These demands on their time may distract them or slow the rate of investment. To grow, we need to continue to hire, train, supervise and manage new employees and to implement computer and other systems capable of effectively accommodating our growth. However, we cannot provide assurance that any such employees will contribute to the success of our business or that we will implement such systems effectively. Failure to manage our future growth effectively could have a material adverse effect on our business, financial condition and results of operations.

Our business model depends to a significant extent upon strong referral relationships, and our inability to maintain or further develop these relationships, as well as the failure of these relationships to generate investment opportunities, could adversely affect our business.

We expect that members of our Senior Lending Team and our Executive Committee will maintain their relationships with intermediaries, financial institutions, investment bankers, commercial bankers, financial advisors, attorneys, accountants, consultants, alliance partners, and other individuals within their networks, and we will rely, to a significant extent, upon these relationships to provide us with potential investment opportunities. If our Senior Lending Team and our Executive Committee fail to maintain its existing relationships or develop new relationships with sources of investment opportunities, we may not be able to grow our investment portfolio. In addition, individuals with whom members of our Senior Lending Team and our Executive Committee have relationships are not obligated to provide us with investment opportunities, and, therefore, there is no assurance that such relationships will generate investment opportunities for us.

Any failure on our part to maintain our status as a BDC would reduce our operating flexibility.

We have elected to be regulated as a BDC under the 1940 Act. The 1940 Act imposes numerous constraints on the operations of BDCs. For example, BDCs are required to invest at least 70% of their gross assets in specified types of securities, primarily in private companies or thinly-traded U.S. public companies, cash, cash equivalents, U.S. government securities and other high quality debt investments that mature in one year or less. Furthermore, any failure to comply with the requirements imposed on BDCs by the 1940 Act could cause the SEC to bring an enforcement action against us and/or expose us to claims of private litigants. In addition, upon approval of a majority of our shareholders, we may elect to withdraw our status as a BDC. If we decide to withdraw our election, or if we otherwise fail to maintain our qualification, as a BDC, we may be subject to the substantially greater regulation under the 1940 Act as a closed-end investment company. Compliance with such regulations would significantly decrease our operating flexibility, and could significantly increase our costs of doing business.


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Regulations governing our operation as a BDC affect our ability to raise additional capital and the way in which we do so. As a BDC, the necessity of raising additional capital may expose us to risks, including the typical risks associated with leverage.

We may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as “senior securities,” up to the maximum amount permitted by the 1940 Act. Under the provisions of the 1940 Act, and pursuant to the approval that we received from our shareholders on July 26, 2018, we are permitted, as a BDC, to issue senior securities in amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 150% of gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities. See “Regulation.” If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to sell a portion of our investments and, depending on the nature of our leverage, repay a portion of our indebtedness at a time when such sales may be disadvantageous. Also, any amounts that we use to service our indebtedness would not be available for distributions to our common shareholders. Continuing to expand our debt financing activities in SBA 7(a) loans, SBA 504 loans and conventional loans will require us to raise additional capital. The failure to continue to generate such loans on a consistent basis could have a material impact on our results of operations, and accordingly, our ability to make distributions to our shareholders.

We generally may not issue and sell our common stock at a price below net asset value per share. We may, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current net asset value per share of our common stock if our Board determines that such sale is in our best interests and in the best interests of our shareholders, and our shareholders approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our Board, closely approximates the market value of such securities (less any distributing commission or discount). If we raise additional funds by issuing more common stock or senior securities convertible into, or exchangeable for, our common stock, then the percentage ownership of our shareholders at that time will decrease, and you may experience dilution.

Because we intend to distribute substantially all of our income to our shareholders to maintain our tax treatment as a RIC, we will continue to need additional capital to finance our growth, and regulations governing our operation as a BDC will affect our ability to, and the way in which we, raise additional capital and make distributions.

As a RIC, we generally are required to distribute substantially all of our ordinary income to meet the Annual Distribution Requirement and the Excise Tax Avoidance Requirement (discussed below), which consequently increases the need to raise additional debt and equity capital. Furthermore, as a result of issuing senior securities, we would also be exposed to typical risks associated with leverage, including an increased risk of loss. If we issue preferred stock, the preferred stock would rank “senior” to common stock in our capital structure, preferred shareholders would have separate voting rights on certain matters and might have other rights, preferences, or privileges more favorable than those of our common shareholders, and the issuance of preferred stock could have the effect of delaying, deferring or preventing a transaction or a change of control that might involve a premium price for holders of our common stock or otherwise be in your best interest.

Because we borrow money, the potential for loss on amounts invested in us is magnified and may increase the risk of investing in us.

Borrowings, also known as leverage, magnify the potential for loss on investments in our indebtedness and on invested equity capital. As we use leverage to partially finance our investments, you will experience increased risks of investing in our securities. If the value of our assets increases, then leveraging would cause the net asset value attributable to our common stock to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged our business. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment income to increase more than it would without the leverage, while any decrease in our income would cause net investment income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to pay common stock dividends, scheduled debt payments or other payments related to our securities. Leverage is generally considered a speculative investment technique.

Illustration: The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing in the table below:

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Assumed Return on Our Portfolio (1)
(net of expenses)
 
(10)%
(5)%
0%
5%
10%
Corresponding net return to shareholders (2)
(28.77)%
(17.41)%
(6.04)%
5.32%
16.69%
(1) Assumes $653,341,000 in total assets, $337,501,000 in debt outstanding, $287,445,000 in net assets as of December 31, 2018, and an average cost of funds of 5.15%. Actual interest payments may be different.
(2) In order for us to cover our annual interest payments on indebtedness, we must achieve annual returns on our December 31, 2018 total assets of at least 2.66%.

Our ability to achieve our investment objective may depend in part on our ability to access additional leverage on favorable terms, and there can be no assurance that such additional leverage can in fact be achieved.

To the extent we borrow money to finance our investments, changes in interest rates will affect our cost of capital and net investment income.

To the extent we borrow money to finance investments, our net investment income will depend, in part, upon the difference between the rate at which we borrow funds and the rate at which we invest those funds. As a result, we can offer no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income in the event we borrow money to finance our investments. In periods of rising interest rates, our cost of funds would increase, which could reduce our net investment income. We expect that our long-term fixed-rate investments will be financed primarily with equity and/or long-term debt. We may use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations. Such techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. If we do not implement these techniques properly, we could experience losses on our hedging positions, which could be material. In addition, depending on the frequency and magnitude of rising interest rates, these interest rate increases could negatively impact premiums received on the sale of guaranteed SBA loans, and further, could increase prepayment speeds on outstanding SBA loans, potentially negatively impacting the Company’s financial results.

Because we have received the approval of our shareholders, we are subject to 150% asset coverage beginning after July 26, 2018.

On April 27, 2018, the Company announced that its Board, including a “required majority” (as such term is defined in the 1940 Act) of the Board, approved application to the Company of the asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as modified by the Small Business Credit Availability Act. As a result, the Company’s asset coverage requirements for senior securities were to change from 200% to 150%, effective April 27, 2019. However, at the Company’s special meeting of shareholders, held on July 26, 2018, its shareholders approved, among other things, the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act. As a result, the Company’s asset coverage requirements for senior securities were reduced from 200% to 150%, effective July 27, 2018. As a result, we are able to increase our leverage up to an amount that reduces our asset coverage ratio from 200% to 150% (i.e., the amount of debt may not exceed 66 2/3% of the value of our assets) beginning on July 27, 2018, assuming that additional borrowings are available. As of December 31, 2018, we had aggregate principal amount of senior securities outstanding of $337,501,000, and our asset coverage was 185%.

Prior to shareholder approval at the Special meeting held on July 26, 2018, the 1940 Act generally prohibited us from incurring indebtedness unless immediately after such borrowing we had 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). However, recent legislation modified the 1940 Act by allowing a BDC to increase the maximum amount of leverage it may incur from an asset coverage ratio of 200% to an asset coverage ratio of 150%, if certain requirements are met. Under the legislation, we are allowed to increase our leverage capacity if shareholders representing at least a majority of the votes cast, when quorum is met, approve a proposal to do so.  As a result of the recent stockholder approval, we were allowed to increase our leverage capacity on the first day after such approval, or July 27, 2018. As a result of the approval, we are required to make certain disclosures on our website and in SEC filings regarding, among other things, the receipt of approval to increase our leverage, our leverage capacity and usage, and risks related to leverage.

Leverage magnifies the potential for loss on investments in our indebtedness and on invested equity capital. As we use leverage to partially finance our investments, you will experience increased risks of investing in our securities. If the value of our assets increases, then the additional leverage would cause the net asset value attributable to our common stock to increase more sharply than it would have had we not increased our leverage. Conversely, if the value of our assets decreases, the additional

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leverage would cause net asset value to decline more sharply than it otherwise would have had we not increased our leverage. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment income to increase more than it would without the additional leverage, while any decrease in our income would cause net investment income to decline more sharply than it would have had we not increased our leverage. Such a decline could negatively affect our ability to pay common stock dividends, scheduled debt payments or other payments related to our securities. Leverage is generally considered a speculative investment technique.

In addition, the ability of BDCs to increase their leverage will increase the capital available to BDCs and thus competition for the investments that we seek to make. This may negatively impact pricing on the investments that we do make and adversely affect our net investment income and results of operations.

We may experience fluctuations in our quarterly and annual results.

We may experience fluctuations in our quarterly and annual operating results due to a number of factors, including our ability or inability to make investments in companies that meet our investment criteria, the interest rate payable on the debt securities we acquire, the default rate of such securities, the level of portfolio dividend and fee income, the level of our expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which we encounter competition in our markets and general economic conditions. As a result of these factors, results for any period should not be relied upon as being indicative of performance in future periods.

Regulations governing our operation as a BDC affect our ability to raise additional capital and the way in which we do so. As a BDC, the necessity of raising additional capital may expose us to risks, including the typical risks associated with leverage.

We may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as “senior securities,” up to the maximum amount permitted by the 1940 Act. Under the provisions of the 1940 Act, we are permitted, as a BDC, to issue senior securities in amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 150% of gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to sell a portion of our investments and, depending on the nature of our leverage, repay a portion of our indebtedness at a time when such sales may be disadvantageous. Also, any amounts that we use to service our indebtedness would not be available for distributions to our common shareholders. Continuing to expand our debt financing activities in SBA 7(a) loans will require us to raise additional capital. The failure to continue to generate such loans on a consistent basis could have a material impact on our results of operations, and accordingly, our ability to make distributions to our shareholders.

We generally may not issue and sell our common stock at a price below net asset value per share. However, at a July 26, 2018 Special Meeting of Shareholders, our shareholders authorized us to sell shares of our common stock (during the following 12 months) at a price below its then current net asset value per share subject to certain conditions (including that the cumulative number of shares sold does not exceed 20% of its then outstanding common stock immediately prior to each such sale). We also may sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current net asset value per share of our common stock if our Board determines that such sale is in our best interests and in the best interests of our shareholders, and our shareholders approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our Board, closely approximates the market value of such securities (less any distributing commission or discount). If we raise additional funds by issuing more common stock or senior securities convertible into, or exchangeable for, our common stock, then the percentage ownership of our shareholders at that time will decrease, and you may experience dilution.

Our Board may change our investment objective, operating policies and strategies without prior notice or shareholder approval, the effects of which may be adverse.

Although we must obtain shareholder approval to cease to be, or withdraw our election as, a BDC, our Board has the authority to modify or waive our investment objective, current operating policies, investment criteria and strategies without prior notice and without shareholder approval. We cannot predict the effect any changes to our current operating policies, investment criteria and strategies would have on our business, net asset value, operating results and value of our stock. However, the effects might be adverse, which could negatively impact our ability to make distributions and cause shareholders to lose all or part of their investment.


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We will be subject to corporate-level income tax if we are unable to maintain our treatment as a RIC or are unable to make the distributions required to maintain RIC tax treatment.

Although we have elected to be treated as a RIC commencing with our tax year ending December 31, 2015, no assurance can be given that we will be able to maintain our tax treatment as a RIC in the future. To maintain our tax treatment as a RIC, we must meet certain source-of-income, asset diversification, and distribution requirements.

The income source requirement will be satisfied if we obtain at least 90% of our income for each year from dividends, interest, gains from the sale of stock or securities or similar sources.

The asset diversification requirement will be satisfied if we meet certain asset diversification requirements at the end of each quarter of our taxable year. Failure to meet those requirements may result in our having to dispose of certain investments quickly in order to prevent the loss of our qualification as a RIC. Because most of our investments will be in private companies, and therefore will be relatively illiquid, any such dispositions could be made at disadvantageous prices and could result in substantial losses. The Annual Distribution Requirement for a RIC will be satisfied if we distribute to our shareholders on an annual basis 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. Because we use debt financing, we are subject to certain asset coverage ratio requirements under the 1940 Act and financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to satisfy the distribution requirement. If we are unable to obtain cash from other sources, we could fail to qualify for tax treatment as a RIC.

If we fail to qualify for RIC tax treatment for any reason and remain or become subject to corporate income tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available for distribution and the amount of our distributions. Although we have elected to be treated as a RIC commencing with our tax year ending December 31, 2015, no assurance can be given that we will be able to maintain our tax treatment as a RIC in the future.

We cannot predict how tax reform legislation will affect us, our investments, or our stockholders, and any such legislation could adversely affect our business.

Legislative or other actions relating to taxes could have a negative effect on us. The rules dealing with U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the Internal Revenue Service and the U.S. Treasury Department. In December 2017, the U.S. House of Representatives and U.S. Senate passed tax reform legislation, which the President signed into law. Such legislation has made many changes to the Code, including significant changes to the taxation of business entities, the deductibility of interest expense, and the tax treatment of capital investment. We cannot predict with certainty how any changes in the tax laws might affect us, our stockholders, or our portfolio investments. New legislation and any U.S. Treasury regulations, administrative interpretations or court decisions interpreting such legislation could significantly and negatively affect our ability to qualify for tax treatment as a RIC or the U.S. federal income tax consequences to us and our stockholders of such qualification, or could have other adverse consequences. Stockholders are urged to consult with their tax advisor regarding tax legislative, regulatory, or administrative developments and proposals and their potential effect on an investment in our securities.

We may not be able to pay distributions to our shareholders, our distributions may not grow over time and a portion of our distributions may be a return of capital.

We intend to pay distributions to our shareholders out of assets legally available for distribution. We cannot assure investors that we will achieve investment results that will allow us to make a specified level of cash distributions or year-to-year increases in cash distributions. Our ability to pay distributions might be adversely affected by, among other things, the impact of one or more of the risk factors described in this prospectus. In addition, the inability to satisfy the asset coverage test applicable to us as a BDC can limit our ability to pay distributions. All distributions will be paid at the discretion of our Board and will depend on our earnings, our financial condition, maintenance of our RIC tax treatment, compliance with applicable BDC regulations and such other factors as our Board may deem relevant from time to time. We cannot assure investors that we will pay distributions to our shareholders in the future.

When we make distributions, we will be required to determine the extent to which such distributions are paid out of current or accumulated earnings and profits. Distributions in excess of current and accumulated earnings and profits will be treated as a non-taxable return of capital to the extent of an investor’s basis in our stock and, assuming that an investor holds our stock as a capital asset, thereafter as a capital gain. Generally, a non-taxable return of capital will reduce an investor’s basis in our stock for federal tax purposes, which will result in higher tax liability when the stock is sold. Stockholders should read any written

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disclosure accompanying a distribution carefully and should not assume that the source of any distribution is our ordinary income or gains.

We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income.

For U.S. federal income tax purposes, we are required to include in our taxable income certain amounts that we have not yet received in cash, such as original issue discount, which may arise if we receive warrants in connection with the origination of a loan or possibly in other circumstances, or PIK interest. Such original issue discount or increases in loan balances as a result of contractual PIK arrangements will be included in our taxable income before we receive any corresponding cash payments. We also may be required to include in our taxable income certain other amounts that we will not receive in cash. Since, in certain cases, we may recognize taxable income before or without receiving corresponding cash payments, we may have difficulty meeting the Annual Distribution Requirement necessary to maintain our tax treatment as a RIC. Accordingly, to satisfy our RIC distribution requirements, we may have to sell some of our investments at times and/or at prices we would not consider advantageous, raise additional debt or equity capital or forgo new investment opportunities. If we are not able to obtain cash from other sources, we may fail to qualify for tax treatment as a RIC and thus become subject to corporate-level income tax.

We may in the future choose to pay dividends in our own stock, in which case investors may be required to pay tax in excess of the cash they receive.

We may distribute taxable dividends that are payable in part in our stock. In accordance with certain applicable Treasury regulations and published guidance issued by the Internal Revenue Service, a publicly offered RIC may treat a distribution of its own stock as fulfilling the RIC distribution requirements if each shareholder may elect to receive his or her entire distribution in either cash or stock of the RIC, subject to a limitation that the aggregate amount of cash to be distributed to all shareholders must be at least 20% of the aggregate declared distribution. If too many shareholders elect to receive cash, the cash available for distribution must be allocated among the shareholders electing to receive cash (with the balance of the distribution paid in stock). In no event will any shareholder, electing to receive cash, receive less than the lesser of (a) the portion of the distribution such shareholder has elected to receive in cash or (b) an amount equal to his or her entire distribution times the percentage limitation on cash available for distribution. If these and certain other requirements are met, for U.S. federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock. Taxable shareholders receiving such dividends will be required to include the amount of the dividends as ordinary income (or as long-term capital gain to the extent such distribution is properly reported as a capital gain dividend) to the extent of our current and accumulated earnings and profits for United States federal income tax purposes. As a result, a U.S. shareholder may be required to pay tax with respect to such dividends in excess of any cash received. If a U.S. shareholder sells the stock it receives as a dividend in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our stock at the time of the sale. Furthermore, with respect to non-U.S. shareholders, we may be required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in stock. In addition, if a significant number of our shareholders determine to sell shares of our stock in order to pay taxes owed on dividends, it may put downward pressure on the trading price of our stock.

Internal control deficiencies could impact the accuracy of our financial results or prevent the detection of fraud. As a result, shareholders could lose confidence in our financial and other public reporting, which would harm our business and the trading price of our common stock.

Effective internal controls over financial reporting are necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, are designed to prevent fraud. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. Any failure by us to identify future deficiencies in our internal control over financial reporting in a timely manner or remediate any such deficiencies, could prevent us from accurately and timely reporting our financial results. Inferior internal controls could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price of our common stock.

We are required to disclose changes made in our internal control and procedures on a quarterly basis and our management is required to assess the effectiveness of these controls annually. An independent assessment of the effectiveness of our internal controls could detect problems that our management’s assessment might not. Undetected material weaknesses in our internal controls could lead to financial statement restatements and require us to incur the expense of remediation. In the event that we

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are unable to maintain or achieve compliance with Section 404 of the Sarbanes-Oxley Act and related rules, the market price of our common stock may be adversely affected.

Changes in laws or regulations governing our operations may adversely affect our business or cause us to alter our business strategy.

We and our portfolio companies will be subject to applicable local, state and federal laws and regulations, including, without limitation, federal immigration laws and regulations. New legislation may be enacted or new interpretations, rulings or regulations could be adopted, including those governing the types of investments we are permitted to make, any of which could harm us and our shareholders, potentially with retroactive effect. Additionally, any changes to the laws and regulations governing our operations relating to permitted investments may cause us to alter our investment strategy in order to avail ourselves of new or different opportunities. Such changes could result in material differences to the strategies and plans set forth herein and may result in our investment focus shifting from the areas of expertise of our Senior Lending Team and our Executive Committee to other types of investments in which our Senior Lending Team and our Executive Committee may have less expertise or little or no experience. Thus, any such changes, if they occur, could have a material adverse effect on our results of operations and the value of your investment.

NSBF, our wholly-owned subsidiary, is subject to regulation by the SBA.

Our wholly-owned subsidiary, NSBF, is licensed by the SBA as an SBLC. In order to operate as an SBLC, a licensee is required to maintain a minimum regulatory capital (as defined by SBA regulations) of the greater of (1) 10% of its outstanding loans receivable and other investments or (2) $1,000,000. Moreover, before consenting to a securitization, NSBF and other securitizers must be considered well capitalized by the SBA. For NSBF and other SBLC securitizers, the SBA will consider it well capitalized if it maintains a minimum unencumbered paid in capital and paid in surplus equal to at least 10% of its assets, excluding the guaranteed portion of 7(a) loans. In addition, an SBLC is subject to certain other regulatory restrictions. Among other things, SBLCs are required to: establish, adopt, and maintain a formal written capital plan; submit to the SBA for review a credit policy that demonstrates the SBLC’s compliance with the applicable regulations and the SBA’s Standard Operating Procedures for origination, servicing and liquidation of 7(a) loans; submit to the SBA for review and approval annual validation, with supporting documentation and methodologies, demonstrating that any scoring model used by the SBLC is predictive of loan performance; obtain SBA approval for loan securitization and borrowings; and adopt and fully implement an internal control policy which provides adequate direction for effective control over and accountability for operations, programs, and resources.
We have specific risks associated with SBA loans.

We have generally sold the guaranteed portion of SBA loans in the secondary market. Such sales have resulted in our earning premiums and creating a stream of servicing income. During the third quarter of 2018, sale prices for guaranteed portions of SBA 7(a) loans was negatively impacted by market conditions, in particular a higher interest rate environment, which led to higher prepayments during the period, resulting in lower sale prices in the secondary market. A continuation or further reduction in the price of guaranteed SBA 7(a) loans could negatively impact our business. There can be no assurance that we will be able to continue originating these loans, or that a secondary market will exist for, or that we will continue to realize premiums upon the sale of the guaranteed portions of the SBA 7(a) loans.

If NSBF fails to comply with SBA regulations in connection with the origination, servicing, or liquidation of an SBA 7(a) loan, liability on the SBA guaranty, in whole or part, could be transferred to NSBF.

Since we sell the guaranteed portion of substantially all of our SBA 7(a) loan portfolio, we retain credit risk on the non-guaranteed portion of the SBA loans. We share pro rata with the SBA in any recoveries. In the event of default on an SBA loan, our pursuit of remedies against a borrower is subject to SBA approval.

If we fail to comply with certain of the SBA’s regulations in connection with the origination, servicing, or liquidation of an SBA 7(a) loan, the SBA may be released from liability on its guaranty of a 7(a) loan, and may refuse to honor a guaranty purchase request in full (referred to by SBA as a “denial”) or in part (referred to by SBA as a “repair”), or recover all or part of the funds already paid in connection with a guaranty purchase. In the event of a repair or denial, liability on the guaranty, in whole or part, would be transferred to NSBF. In addition, the growth in the number of loans made by NSBF, changes in SBA regulations and economic factors may adversely impact our current repair and denial rate.


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Curtailment of the government-guaranteed loan programs could adversely affect our results of operations.

Although the program has been in existence since 1953, there can be no assurance that the federal government will maintain the SBA 7(a) loan program, or that it will continue to guarantee loans at current levels. If we cannot continue originating and selling government-guaranteed loans, we will generate fewer origination fees and our ability to generate gains on the sale of loans will decrease. From time-to-time, the government agencies that guarantee these loans reach their internal budgeted limits and cease to guarantee loans for a stated time period or shut down. In addition, these agencies may change their rules for extending loans. Also, Congress may adopt legislation that would have the effect of discontinuing or changing the SBA’s programs. Non-governmental programs could replace government programs for some borrowers, but the terms might not be equally acceptable. If these changes occur, the volume of loans to SMBs and industrial borrowers of the types that now qualify for government-guaranteed loans could decline, as could the profitability of these loans.

Curtailment of our ability to utilize the SBA 7(a) Loan Program by the Federal government could adversely affect our results of operations.

We are dependent upon the federal government to maintain the SBA 7(a) Program. There can be no assurance that the program will be maintained or that loans will continue to be guaranteed at current levels. From time-to-time the SBA has reached its internal budgeted limits and ceased to guarantee loans for a stated period of time. In addition, the SBA may change its rules regarding loans or Congress may adopt legislation or fail to approve a budget that would have the effect of discontinuing, reducing availability of funds for, or changing loan programs. Non-governmental programs could replace government programs for some borrowers, but the terms might not be equally acceptable. If these changes occur, the volume of loans to small businesses that now qualify for government guaranteed loans could decline, as could the profitability of these loans.

NSBF’s failure to maintain PLP status or maintain its SBA 7(a) license could adversely affect our results of operations.

NSBF has been granted PLP status and originates, sells and services small business loans and is authorized to place SBA guarantees on loans without seeking prior SBA review and approval. Being a national lender, PLP status allows NSBF to expedite loans since NSBF is not required to present applications to the SBA for concurrent review and approval. The loss of PLP status could adversely impact our marketing efforts and ultimately loan origination volume which could negatively impact our results of operations.

There can be no assurance that NSBF will be able to maintain its status as a PLP or that NSBF can maintain its SBA 7(a) license. If NSBF cannot continue originating and selling government guaranteed loans at current levels, we could experience a decrease in future servicing spreads and earned premiums and negatively impact our results of operations.

Our loans under the Section 7(a) Loan Program involve a high risk of default and such default could adversely impact our results of operations.

Loans to small businesses involve a high risk of default. Such loans are generally not rated by any statistical rating organization. Small businesses usually have smaller product lines and market shares than larger companies and therefore may be more vulnerable to competition and general economic conditions. These businesses’ success typically depends on their management talents and efforts of one person or a small group of persons whose death, disability or resignation would adversely affect the business. Because these businesses frequently have highly leveraged capital structures, reduced cash flow resulting from economic downturns can severely impact the businesses’ ability to meet their obligations, which could impact our results of operations. The portions of Section 7(a) loans to be retained by us do not benefit directly from any SBA guarantees; in an event of default, however, we and the SBA typically cooperate in collateral foreclosure or other work-out efforts and share in any resulting collections.

The loans we make under the Section 7(a) Loan Program face competition.

There are several other non-bank lenders as well as a large number of banks that participate in the SBA Section 7(a) Loan Program. All of these participants compete for the business of eligible borrowers. In addition, pursuant to the 1940 Act, the Company is limited as to the amount of indebtedness it may have. Accordingly, we may be at a competitive disadvantage with regard to other lenders or financial institutions that may be able to achieve greater leverage at a lower cost and are not subject to SBA regulations.


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Our business is subject to increasingly complex corporate governance, public disclosure and accounting requirements that are costly and could adversely affect our business and financial results.

We are subject to changing rules and regulations of federal and state government as well as the stock exchange on which our common stock is listed. These entities, including the Public Company Accounting Oversight Board, the SEC and the Nasdaq Global Market, have issued a significant number of new and increasingly complex requirements and regulations over the course of the last several years and continue to develop additional regulations and requirements in response to laws enacted by Congress. Our efforts to comply with existing requirements, or any revised or amended requirements, have resulted in, and may continue to result in, an increase in expenses and a diversion of management’s time from other business activities.

In addition, our failure to keep pace with any such rules, or for our management to appropriately address compliance with such rules fully and in a timely manner, exposes us to an increasing risk of inadvertent non-compliance. While our management team takes reasonable efforts to ensure that we are in full compliance with all laws applicable to its operations, the increasing rate and extent of regulatory change increases the risk of a failure to comply, which may result in our ability to operate our business in the ordinary course or may subject us to potential fines, regulatory findings or other matters that may materially impact our business.

If we cannot obtain additional capital because of either regulatory or market price constraints, we could be forced to curtail or cease our new lending and investment activities, our net asset value could decrease and our level of distributions and liquidity could be affected adversely.

Our ability to secure additional financing and satisfy our financial obligations under indebtedness outstanding from time to time will depend upon our future operating performance, which is subject to the prevailing general economic and credit market conditions, including interest rate levels and the availability of credit generally, and financial, business and other factors, many of which are beyond our control. The prolonged continuation or worsening of current economic and capital market conditions could have a material adverse effect on our ability to secure financing on favorable terms, if at all.

If we are unable to obtain additional debt capital, then our equity investors will not benefit from the potential for increased returns on equity resulting from leverage to the extent that our investment strategy is successful and we may be limited in our ability to make new commitments or fundings to our portfolio companies.

Capital markets may experience periods of disruption and instability and we cannot predict when these conditions will occur. Such market conditions could materially and adversely affect debt and equity capital markets in the United States and abroad, which could have a negative impact on our business, financial condition and results of operations.

As a BDC, we must maintain our ability to raise additional capital for investment purposes. Without sufficient access to the capital markets or credit markets, we may be forced to curtail our business operations or we may not be able to pursue new business opportunities. The U.S. and global capital markets experienced extreme volatility and disruption during the economic downturn that began in mid-2007, and the U.S. economy was in a recession for several consecutive calendar quarters during the same period. In 2010, a financial crisis emerged in Europe, triggered by high budget deficits and rising direct and contingent sovereign debt, which created concerns about the ability of certain nations to continue to service their sovereign debt obligations. Risks resulting from such debt crisis, including any austerity measures taken in exchange for the bail out of certain nations, and any future debt crisis in Europe or any similar crisis elsewhere could have a detrimental impact on the global economic recovery, sovereign and non-sovereign debt in certain countries and the financial condition of financial institutions generally. In June 2016, the United Kingdom held a referendum in which voters approved an exit from the European Union (“Brexit”), and, accordingly, on February 1, 2017, the U.K. Parliament voted in favor of allowing the U.K. government to begin the formal process of Brexit. Brexit created political and economic uncertainty and instability in the global markets (including currency and credit markets), and especially in the United Kingdom and the European Union, and this uncertainty and instability may last indefinitely. There is continued concern about national-level support for the Euro and the accompanying coordination of fiscal and wage policy among European Economic and Monetary Union member countries. In addition, the fiscal and monetary policies of foreign nations, such as Russia and China, may have a severe impact on the worldwide and U.S. financial markets.

A failure or the perceived risk of a failure to raise the statutory debt limit of the U.S. could have a material adverse effect on our business, financial condition and results of operations.

Recent U.S. debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns, or a recession in the U.S. In the future, the U.S. government may not be able to meet its debt payments unless the federal debt ceiling is raised. If legislation increasing the debt ceiling is not enacted, as needed, and the debt ceiling

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is reached, the U.S. federal government may stop or delay making payments on its obligations, which could negatively impact the U.S. economy and our portfolio companies. In addition, disagreement over the federal budget has caused the U.S. federal government to shut down for periods of time, most recently, in December 2018 to January 2019. Continued adverse political and economic conditions could have a material adverse effect on our business, financial condition and results of operations.

A government shutdown could adversely affect NSBF’s SBA 7(a) loan originations and our results of operations.

We are dependent upon the Federal government to maintain the SBA 7(a) Program. NSBF’s lending business could be materially and adversely affected by circumstances or events limiting the availability of funds for this program. In October 2013, Congress failed to approve a budget, which, in turn, eliminated availability of funds for the SBA 7(a) program. At the time, the government shutdown affected SBA 7(a) lenders’ ability to originate SBA 7(a) loans. More recently, the partial government shut down in December 2018 until January 2019, the longest standing partial shutdown in history, resulted in a halt to the SBA 7(a) program. The government could again experience a government shutdown which would affect NSBF’s ability to originate government guaranteed loans and to sell the government guaranteed portions of those loans in the secondary market. Any government shutdown could adversely affect NSBF’s SBA 7(a) loan originations and our results of operations.

We are highly dependent on information systems and systems failures could significantly disrupt our business, which may, in turn, negatively affect the market price of our securities and our ability to make distributions to our shareholders.

Our business is highly dependent on our communications and information systems. Certain of these systems are provided to us by third-party service providers. Any failure or interruption of such systems, including as a result of the termination of an agreement with any such third party service provider, could cause delays or other problems in our activities. This, in turn, could have a material adverse effect on our operating results and negatively affect the market price of our securities and our ability to make distributions to our shareholders.

Terrorist attacks, acts of war or natural disasters may affect any market for our securities, impact the businesses in which we invest and harm our business, operating results and financial condition.

Terrorist acts, acts of war or natural disasters may disrupt our operations, as well as the operations of the businesses in which we invest. Such acts have created, and continue to create, economic and political uncertainties and have contributed to global economic instability. Future terrorist activities, military or security operations, or natural disasters could further weaken the domestic/global economies and create additional uncertainties, which may negatively impact the businesses in which we invest directly or indirectly and, in turn, could have a material adverse impact on our business, operating results and financial condition. Losses from terrorist attacks and natural disasters are generally uninsurable.

We could be adversely affected by information security breaches or cyber security attacks.

Our business operations and our portfolio companies’ business operations rely upon secure information technology systems for data processing, storage and reporting. Despite security and controls design, implementation and updating, such information technology systems could become subject to cyber-attacks. Network, system, application and data breaches could result in operational disruptions or information misappropriation, which could have a material adverse effect on our business, results of operations and financial condition.

In addition, our business operations and our portfolio companies’ business operations involve the storage and transmission of Newtek, portfolio company, customer and employee proprietary information. Our businesses rely on our digital technologies, computer and email systems, software, and networks to conduct operations. Our technologies, systems and networks may become the target of criminal cyber-attacks or information security breaches that could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of confidential, proprietary and other information of us, our portfolio companies, or third parties with whom we and our portfolio companies deal, or otherwise disrupt our or our customers’ or other third parties’ business operations. It is critical to our business strategy that our facilities and infrastructure remain secure and are perceived by the marketplace to be secure. Although we believe we and our IT providers employ appropriate security technologies (including data encryption processes, intrusion detection systems), and conduct comprehensive risk assessments and other internal control procedures to assure the security of our and our customers’ data, we cannot guarantee that these measures will be sufficient for this purpose. If our and our IT provider’s security measures are breached as a result of third-party action, employee error or otherwise, and as a result our or our customers’ data becomes available to unauthorized parties, we could incur liability and our reputation would be damaged, which could lead to the loss of current and potential customers. If we experience any breaches of our network security or sabotage, we might be required to expend significant capital and other resources to detect, remedy, protect against or alleviate these and related problems, and we may not be able to remedy these problems in a timely manner, or at all. Because techniques used by outsiders to obtain unauthorized network access or to

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sabotage systems change frequently and generally are not recognized until launched against a target, we may be unable to anticipate these techniques or implement adequate preventative measures. For example, in early 2018, an unauthorized third-party recently misappropriated three of NTS’ domain names. NTS’ management and forensic investigators determined that attackers compromised a portion of NTS’ shared webhosting system, and may have acquired certain customer information limited to its shared webhosting customers, and/or gained access to certain of its shared webhosting servers. In response, NTS has taken a range of steps designed to further secure its systems, enhance its security protections, enhance access controls, and prevent future unauthorized activity.

As cyber threats continue to evolve, we and our portfolio companies may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate any information security vulnerabilities. Although we have insurance in place that covers such incidents, the cost of a breach or cyber-attack could well exceed any such insurance coverage.

The failure in cyber-security systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning could impair our ability to conduct business effectively.

The occurrence of a disaster such as a cyber-attack, a natural catastrophe, an industrial accident, a terrorist attack or war, events unanticipated in our disaster recovery systems, or a support failure from external providers, could have an adverse effect on our ability to conduct business and on our results of operations and financial condition, particularly if those events affect our computer-based data processing, transmission, storage, and retrieval systems or destroy data. If a significant number of our managers were unavailable in the event of a disaster, our ability to effectively conduct our business could be severely compromised.

We and our portfolio companies depend heavily upon computer systems to perform necessary business functions. Despite our portfolio companies implementation of a variety of security measures, our computer systems could be subject to cyber-attacks and unauthorized access, such as physical and electronic break-ins or unauthorized tampering. Like other companies, we and our portfolio companies may experience threats to our data and systems, including malware and computer virus attacks, unauthorized access, system failures and disruptions. If one or more of these events occurs, it could potentially jeopardize the confidential, proprietary and other information processed and stored in, and transmitted through, our and our portfolio company computer systems and networks, or otherwise cause interruptions or malfunctions in our operations, which could result in damage to our and our portfolio companies’ reputation, financial losses, litigation, increased costs, regulatory penalties and/or customer dissatisfaction or loss.
RISKS RELATED TO OUR INVESTMENTS GENERALLY

Our investments are very risky and highly speculative.

We invest primarily in senior secured term loans and select equity investments issued by companies, some of which are highly leveraged. The majority of senior secured loans are SBA 7(a) loans and the majority of equity investments are comprised of controlled affiliate equity investments.

Senior Secured Loans. There is a risk that the collateral securing our loans, in most cases real estate, may decrease in value over time, may be difficult to sell in a timely manner, may be difficult to appraise and may fluctuate in value based upon the success of the business and market conditions, including as a result of the inability of the portfolio company to raise additional capital, and, in some circumstances, our lien could be subordinated to claims of other creditors. In addition, deterioration in a portfolio company’s financial condition and prospects, including its inability to raise additional capital, may be accompanied by deterioration in the value of the collateral for the loan. Consequently, the fact that a loan is secured does not guarantee that we will receive principal and interest payments according to the loan’s terms, or at all, or that we will be able to collect on the loan should we be forced to enforce our remedies. In some cases we may take second lien position on additional business or personal assets to secure further our first lien positions.

Equity Investments. We occasionally invest directly in the equity securities of portfolio companies. The equity interests we receive may not appreciate in value and, in fact, may decline in value. Accordingly, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience.

In addition, investing in SMBs involves a number of significant risks, including:


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these companies may have limited financial resources and may be unable to meet their obligations under their debt securities that we hold, which may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of us realizing any guarantees we may have obtained in connection with our investment;

they typically have shorter operating histories, narrower product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions and market conditions, as well as general economic downturns;

they are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on our portfolio company and, in turn, on us;

they generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position;

they may have difficulty accessing the capital markets to meet future capital needs, which may limit their ability to grow or to repay their outstanding indebtedness upon maturity; and

our executive officers and directors may, in the ordinary course of business, be named as defendants in litigation arising from our investments in the portfolio companies.

An investment strategy focused primarily on smaller privately held companies involves a high degree of risk and presents certain challenges, including the lack of available information about these companies, a dependence on the talents and efforts of only a few key portfolio company personnel and a greater vulnerability to economic downturns.

Our portfolio consists primarily of debt and equity investments in smaller privately-owned companies. Investing in these types of companies involves a number of significant risks. Typically, the debt in which we invest is not initially rated by any rating agency; however, we believe that if such investments were rated, they would be below investment grade. Below investment grade securities, which are often referred to as “high yield” or “junk,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. Compared to larger publicly-owned companies, these small companies may be in a weaker financial position and experience wider variations in their operating results, which may make them more vulnerable to economic downturns. Typically, these companies need more capital to compete; however, their access to capital is limited and their cost of capital is often higher than that of their competitors. Our portfolio companies often face intense competition from larger companies with greater financial, technical and marketing resources and their success typically depends on the managerial talents and efforts of an individual or a small group of persons. Therefore, any loss of its key employees could affect a portfolio company’s ability to compete effectively and harm its financial condition. Further, some of these companies conduct business in regulated industries that are susceptible to regulatory changes. These factors could impair the cash flow of our portfolio companies and result in other events, such as bankruptcy. These events could limit a portfolio company’s ability to repay its obligations to us, which may have an adverse effect on the return on, or the recovery of, our investment in these businesses. Deterioration in a borrower’s financial condition and prospects may be accompanied by deterioration in the value of the loan’s collateral.

Generally, little public information exists about these companies, and we are required to rely on the ability of our Senior Lending Team and our Executive Committee to obtain adequate information to evaluate the potential returns from investing in these companies. If we are unable to uncover all material information about these companies, we may not make a fully informed investment decision, and we may lose money on our investments. Also, privately held companies frequently have less diverse product lines and smaller market presence than larger competitors. These factors could adversely affect our investment returns as compared to companies investing primarily in the securities of public companies.

Our investments in leveraged portfolio companies may be risky, and you could lose all or part of your investment.

Investment in leveraged companies involves a number of significant risks. Leveraged companies in which we invest may have limited financial resources and may be unable to meet their obligations under their loans and debt securities that we hold. Such developments may be accompanied by deterioration in the value of any collateral and a reduction in the likelihood of our realizing any guarantees that we may have obtained in connection with our investment. Smaller leveraged companies also may have less predictable operating results and may require substantial additional capital to support their operations, finance their expansion or maintain their competitive position.


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Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies.

Our portfolio companies may have, or may be permitted to incur, other debt that ranks equally with, or in some cases senior to, the debt in which we invest. By their terms, such debt instruments may entitle the holders to receive payment of interest or principal on or before the dates on which we are entitled to receive payments with respect to the debt instruments in which we invest. Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before we receive any distribution. After repaying such senior creditors, such portfolio company may not have sufficient remaining assets to repay its obligation to us. In the case of debt ranking equally with debt instruments in which we invest, we would have to share on an equal basis any distributions with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company.

Second priority liens on collateral securing loans that we make to our portfolio companies may be subject to control by senior creditors with first priority liens. If there is a default, the value of the collateral may not be sufficient to repay in full both the first priority creditors and us.

Certain loans that we make are secured by a second priority security interest in the same collateral pledged by a portfolio company to secure senior first lien debt owed by the portfolio company to commercial banks or other traditional lenders. Often the senior lender has procured covenants from the portfolio company prohibiting the incurrence of additional secured debt without the senior lender’s consent. Prior to and as a condition of permitting the portfolio company to borrow money from us secured by the same collateral pledged to the senior lender, the senior lender will require assurances that it will control the disposition of any collateral in the event of bankruptcy or other default. In many such cases, the senior lender will require us to enter into an “intercreditor agreement” prior to permitting the portfolio company to borrow from us. Typically the intercreditor agreements we will be requested to expressly subordinate our debt instruments to those held by the senior lender and further provide that the senior lender shall control: (1) the commencement of foreclosure or other proceedings to liquidate and collect on the collateral; (2) the nature, timing and conduct of foreclosure or other collection proceedings; (3) the amendment of any collateral document; (4) the release of the security interests in respect of any collateral; and (5) the waiver of defaults under any security agreement. Because of the control we may cede to senior lenders under intercreditor agreements we may enter, we may be unable to realize the proceeds of any collateral securing some of our loans.

If we make subordinated investments, the obligors or the portfolio companies may not generate sufficient cash flow to service their debt obligations to us.

We may make subordinated investments that rank below other obligations of the obligor in right of payment. Subordinated investments are subject to greater risk of default than senior obligations as a result of adverse changes in the financial condition of the obligor or economic conditions in general. If we make a subordinated investment in a portfolio company, the portfolio company may be highly leveraged, and its relatively high debt-to-equity ratio may create increased risks that its operations might not generate sufficient cash flow to service all of its debt obligations.

The disposition of our investments may result in contingent liabilities.

We currently expect that substantially all of our investments will involve loans and private securities. In connection with the disposition of an investment in loans and private securities, we may be required to make representations about the business and financial affairs of the portfolio company typical of those made in connection with the sale of a business. We may also be required to indemnify the purchasers of such investment to the extent that any such representations turn out to be inaccurate or with respect to potential liabilities. These arrangements may result in contingent liabilities that ultimately result in funding obligations that we must satisfy through our return of distributions previously made to us.

There may be circumstances where our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.

Even though we may have structured certain of our investments as secured loans, if one of our portfolio companies were to go bankrupt, depending on the facts and circumstances, and based upon principles of equitable subordination as defined by existing case law, a bankruptcy court could subordinate all or a portion of our claim to that of other creditors and transfer any lien securing such subordinated claim to the bankruptcy estate. The principles of equitable subordination defined by case law have generally indicated that a claim may be subordinated only if its holder is guilty of misconduct or where the senior loan is re-characterized as an equity investment and the senior lender has actually provided significant managerial assistance to the bankrupt debtor. We may also be subject to lender liability claims for actions taken by us with respect to a borrower’s business or instances where we exercise control over the borrower. It is possible that we could become subject to a lender’s liability

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claim, including as a result of actions taken in rendering significant managerial assistance or actions to compel and collect payments from the borrower outside the ordinary course of business.

Economic recessions could impair our portfolio companies and harm our operating results.

Certain of our portfolio companies may be susceptible to an economic downturn and may be unable to repay our loans during this period. Therefore, assets may become non-performing and the value of our portfolio may decrease during this period. The adverse economic conditions also may decrease the value of collateral securing some of our loans and the value of our equity investments. A recession could lead to financial losses in our portfolio and a decrease in revenues, net income and the value of our assets.

The lack of liquidity in our investments may adversely affect our business.

We generally invest in companies whose securities are not publicly traded, and whose securities will be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly traded securities. There is no established trading market for the securities in which we invest. The illiquidity of these investments may make it difficult for us to sell these investments when desired. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we had previously recorded these investments. As a result, we do not expect to achieve liquidity in our investments in the near-term. Further, we may face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we have material non-public information regarding such portfolio company.

Our failure to make follow-on investments in our portfolio companies could impair the value of our portfolio.

Following an initial investment in a portfolio company, we may make additional investments in that portfolio company as “follow-on” investments, in order to: (1) increase or maintain in whole or in part our equity ownership percentage; (2) exercise warrants, options or convertible securities that were acquired in the original or a subsequent financing; or (3) attempt to preserve or enhance the value of our investment. We may elect not to make follow-on investments or otherwise lack sufficient funds to make those investments. We will have the discretion to make any follow-on investments, subject to the availability of capital resources. The failure to make follow-on investments may, in some circumstances, jeopardize the continued viability of a portfolio company and our initial investment, or may result in a missed opportunity for us to increase our participation in a successful operation. Even if we have sufficient capital to make a desired follow-on investment, we may elect not to make a follow-on investment because we do not want to increase our concentration of risk, we prefer other opportunities, we are subject to BDC requirements that would prevent such follow-on investments, or the follow-on investment would affect our qualification as a RIC.

Our portfolio may lack diversification among portfolio companies which may subject us to a risk of significant loss if one or more of these companies default on its obligations under any of its debt instruments.

Our portfolio holds a limited number of controlled affiliate portfolio companies. Beyond the asset diversification requirements associated with our qualification as a RIC under the Code, we do not have fixed guidelines for diversification, and our investments may be concentrated in relatively few companies. As our portfolio is less diversified than the portfolios of some larger funds, we are more susceptible to failure if a single loan fails. Similarly, the aggregate returns we realize may be significantly adversely affected if a small number of investments perform poorly or if we need to write down the value of any one investment.

We are a non-diversified investment company within the meaning of the 1940 Act, and therefore we may invest a significant portion of our assets in a relatively small number of issuers, which subjects us to a risk of significant loss if any of these
issuers defaults on its obligations under any of its debt instruments or as a result of a downturn in the particular industry.

We are classified as a non-diversified investment company within the meaning of the 1940 Act, and therefore we may invest a significant portion of our assets in a relatively small number of issuers in a limited number of industries. As of December 31, 2018, our three largest investments, NMS, NTS and NBC equaled approximately 18%, 2% and 2%, respectively, of the fair value of our total assets. Beyond the asset diversification requirements associated with our qualification as a RIC, we do not have fixed guidelines for diversification, and while we are not targeting any specific industries, relatively few industries may become significantly represented among our investments. To the extent that we assume large positions in the securities of a small number of issuers, our net asset value may fluctuate to a greater extent than that of a diversified investment company as a result of changes in the financial condition or the market’s assessment of the issuer, changes in fair value over time or a downturn in any particular industry. We may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company.

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Our portfolio may be concentrated in a limited number of industries, which may subject us to a risk of significant loss if there is a downturn in a particular industry in which a number of our investments are concentrated.

Our portfolio may be concentrated in a limited number of industries. A downturn in any particular industry in which we are invested could significantly impact the aggregate returns we realize. If an industry in which we have significant investments suffers from adverse business or economic conditions, as these industries have to varying degrees, a material portion of our investment portfolio could be affected adversely, which, in turn, could adversely affect our financial position and results of operations.

Because we may not hold controlling equity interests in certain of our portfolio companies, we may not be in a position to exercise control over our portfolio companies or to prevent decisions by management of our portfolio companies that could decrease the value of our investments.

We do not currently hold controlling equity positions in the majority of our portfolio companies where our investments are in the form of debt, particularly SBA loans. As a result, we are subject to the risk that a portfolio company may make business decisions with which we disagree, and that the management and/or shareholders of a portfolio company may take risks or otherwise act in ways that are adverse to our interests. Due to the lack of liquidity of the debt and equity investments that we typically hold in our portfolio companies, we may not be able to dispose of our investments in the event we disagree with the actions of a portfolio company and may therefore suffer a decrease in the value of our investments.

Defaults by our portfolio companies will harm our operating results.

A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of its loans and foreclosure on its secured assets, which could trigger cross-defaults under other agreements and jeopardize our portfolio company’s ability to meet its obligations under the debt securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company. Any extension or restructuring of our loans could adversely affect our cash flows. In addition, if one of our portfolio companies were to go bankrupt, even though we may have structured our interest as senior debt, depending on the facts and circumstances, including the extent to which we actually provided managerial assistance to that portfolio company, a bankruptcy court might recharacterize our debt holding and subordinate all or a portion of our claim to that of other creditors. If any of these occur, it could materially and adversely affect our operating results and cash flows.

If we and our portfolio companies are unable to protect our intellectual property rights, our business and prospects could be harmed, and if we and our portfolio companies are required to devote significant resources to protecting their intellectual property rights, the value of our investment could be reduced.

The proprietary software essential to our business and that of our controlled portfolio companies is owned by us and made available to them for their use. Our future success and competitive position will depend in part upon our ability to maintain and protect proprietary technology used in our products and services. We will rely, in part, on patent, trade secret and trademark law to protect that technology, but competitors may misappropriate our intellectual property, and disputes as to ownership of intellectual property may arise. We may, from time to time, be required to institute litigation to enforce the patents, copyrights or other intellectual property rights, protect trade secrets, determine the validity and scope of the proprietary rights of others or defend against claims of infringement. Such litigation could result in substantial costs and diversion of resources.

Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity.

We will be subject to the risk that the investments we make in our portfolio companies may be repaid prior to maturity; most of our SBA loans do not carry prepayment penalties. When this occurs, we will generally reinvest these proceeds in temporary investments or repay outstanding debt, depending on future investment in new portfolio companies. Temporary investments will typically have substantially lower yields than the debt being prepaid and we could experience significant delays in reinvesting these amounts. Any future investment in a new portfolio company may also be at lower yields than the debt that was repaid. As a result, our results of operations could be materially adversely affected if one or more of our portfolio companies elect to prepay amounts owed to us. Additionally, prepayments could negatively impact our return on equity, which could result in a decline in the market price of our securities.


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We may not realize gains from our equity investments.

Certain investments that we may make in the future include warrants or other equity securities. Investments in equity securities involve a number of significant risks, including the risk of further dilution as a result of additional issuances, inability to access additional capital and failure to pay current distributions. Investments in preferred securities involve special risks, such as the risk of deferred distributions, credit risk, illiquidity and limited voting rights. In addition, we may from time to time make non-control, equity investments in portfolio companies. Our goal is ultimately to realize gains upon our disposition of such equity interests. However, the equity interests we receive may not appreciate in value and, in fact, may decline in value. Accordingly, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience.

We also may be unable to realize any value if a portfolio company does not have a liquidity event, such as a sale of the business, recapitalization or public offering, which would allow us to sell the underlying equity interests. We will often seek puts or similar rights to give us the right to sell our equity securities back to the portfolio company issuer. We may be unable to exercise these puts rights for the consideration provided in our investment documents if the issuer is in financial distress.

We may expose ourselves to risks if we engage in hedging transactions.

If we engage in hedging transactions, we may expose ourselves to certain risks associated with such transactions. We may utilize instruments such as forward contracts, currency options and interest rate swaps, caps, collars and floors to seek to hedge against fluctuations in the relative values of our portfolio positions from changes in currency exchange rates and market interest rates. Hedging against a decline in the values of our portfolio positions does not eliminate the possibility of fluctuations in the values of such positions or prevent losses if the values of such positions decline. However, such hedging can establish other positions designed to gain from those same developments, thereby offsetting the decline in the value of such portfolio positions. Such hedging transactions may also limit the opportunity for gain if the values of the underlying portfolio positions increase. It may not be possible to hedge against an exchange rate or interest rate fluctuation that is so generally anticipated that we are not able to enter into a hedging transaction at an acceptable price. Moreover, for a variety of reasons, we may not seek to establish a perfect correlation between such hedging instruments and the portfolio holdings being hedged. Any such imperfect correlation may prevent us from achieving the intended hedge and expose us to risk of loss. In addition, it may not be possible to hedge fully or perfectly against currency fluctuations affecting the value of securities denominated in non-U.S. currencies because the value of those securities is likely to fluctuate as a result of factors not related to currency fluctuations.

An increase in non-performing assets would reduce our income and increase our expenses.

If our level of non-performing assets in our SBA lending business rises in the future, it could adversely affect our investment income and earnings. Non-performing assets are primarily loans on which borrowers are not making their required payments. Non-performing assets also include loans that have been restructured to permit the borrower to have smaller payments and real estate that has been acquired through foreclosure of unpaid loans. To the extent that our financial assets are non-performing, we will have less cash available for lending and other activities.

If the assets securing the loans that we make decrease in value, then we may lack sufficient collateral to cover losses.

To attempt to mitigate credit risks, we will typically take a security interest in the available assets of our portfolio companies. There is no assurance that we will obtain or properly perfect our liens. There is a risk that the collateral securing our loans may decrease in value over time, may be difficult to sell in a timely manner, may be difficult to appraise and may fluctuate in value based upon the success of the business and market conditions, including as a result of the inability of a portfolio company to raise additional capital. In some circumstances, our lien could be subordinated to claims of other creditors. Consequently, the fact that a loan is secured does not guarantee that we will receive principal and interest payments according to the loan’s terms, or that we will be able to collect on the loan should we be forced to enforce our remedies.

In addition, because we may invest in technology-related companies, a substantial portion of the assets securing our investment may be in the form of intellectual property, if any, inventory and equipment and, to a lesser extent, cash and accounts receivable. Intellectual property, if any, that is securing our loan could lose value if, among other things, the company’s rights to the intellectual property are challenged or if the company’s license to the intellectual property is revoked or expires, the technology fails to achieve its intended results or a new technology makes the intellectual property functionally obsolete. Inventory may not be adequate to secure our loan if our valuation of the inventory at the time that we made the loan was not accurate or if there is a reduction in the demand for the inventory.


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Similarly, any equipment securing our loan may not provide us with the anticipated security if there are changes in technology or advances in new equipment that render the particular equipment obsolete or of limited value, or if the company fails to adequately maintain or repair the equipment. Any one or more of the preceding factors could materially impair our ability to recover principal in a foreclosure.
We could be adversely affected by weakness in the residential housing and commercial real estate markets.
Continued weakness in residential home and commercial real estate values could impair our ability to collect on defaulted SBA loans as real estate is pledged in many of our SBA loans as part of the collateral package.
Changes to United States tariff and import/export regulations may have a negative effect on our portfolio companies and, in turn, harm us.
There has been on-going discussion and commentary regarding potential significant changes to United States trade policies, treaties and tariffs. The current administration, along with Congress, has created significant uncertainty about the future relationship between the United States and other countries with respect to the trade policies, treaties and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the United States. Any of these factors could depress economic activity and restrict our portfolio companies’ access to suppliers or customers and have a material adverse effect on their business, financial condition and results of operations, which in turn would negatively impact us.

The Company is a Guarantor on a number of credit facilities entered into by certain of its subsidiaries and controlled portfolio companies

As discussed further herein, the Company is a guarantor on credit facilities entered into by NSBF, NBL, NMS and NBC with various lenders. If any of these borrowers default on these lines of credit, we would be required to make payments under the guarantees, which could have a material adverse effect on our financial condition and results of operations.
RISKS RELATED TO OUR CONTROLLED PORTFOLIO COMPANIES - NEWTEK MERCHANT SOLUTIONS (NMS)

We could be adversely affected if either of NMS’ two bank sponsors is terminated.

Because NMS is not a bank, it is unable to belong to and directly access the Visa® and MasterCard® bankcard associations. The Visa® and MasterCard® operating regulations require NMS to be sponsored by a bank in order to process bankcard transactions. A bank sponsorship is an agreement under which a financial institution that has a membership with MasterCard®, Visa® or American Express sponsors an independent sales organization, like NMS, that markets credit card processing services to merchants who accept credit cards as a form of payment, gains access to the Visa®, MasterCard®, and American Express networks. NMS is currently sponsored by two banks. If either of the sponsorships is terminated, and NMS is not able to secure or transfer the respective merchant portfolio to a new bank sponsor or sponsors, the business, financial condition, results of operations and cash flows of the electronic payment processing business could be materially adversely affected. If both the sponsorships are terminated and NMS is unable to secure a bank sponsor for the merchant portfolios, it will not be able to process bankcard transactions for the affected portfolios. Consequently, the loss of both of NMS’ sponsorships would have a material adverse effect on our business. Furthermore, NMS’ agreements with sponsoring banks gives the sponsoring banks substantial discretion in approving certain elements of its business practices, including its solicitation, application and qualification procedures for merchants, the terms of their agreements with merchants, the processing fees that they charge, their customer service levels and its use of independent sales organizations and independent sales agents. We cannot guarantee that NMS’ sponsoring banks’ actions under these agreements would not be detrimental to us.

Other service providers, some of whom are NMS’ competitors, are necessary for the conduct of NMS’ business. The termination by service providers of these arrangements with NMS or their failure to perform these services efficiently and effectively may adversely affect NMS’ relationships with the merchants whose accounts it serves and may cause those merchants to terminate their processing agreements with NMS.


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If NMS or its processors or bank sponsors fail to adhere to the standards of the Visa® and MasterCard® bankcard associations, its registrations with these associations could be terminated and it could be required to stop providing payment processing services for Visa® and MasterCard®.

Substantially all of the transactions NMS processes involve Visa® or MasterCard®. If NMS, its bank sponsors or its processors fail to comply with the applicable requirements of the Visa® and MasterCard® bankcard associations, Visa® or MasterCard® could suspend or terminate its registration. The termination of NMS’ registration or any changes in the Visa® or MasterCard® rules that would impair its registration could require it to stop providing payment processing services, which would have a material adverse effect on its business and could be detrimental to us.

On occasion, NMS experiences increases in interchange and sponsorship fees. If it cannot pass along these increases to its merchants, its profit margins will be reduced.

NMS pays interchange fees or assessments to bankcard associations for each transaction it processes using their credit, debit and gift cards. From time to time, the bankcard associations increase the interchange fees that they charge processors and the sponsoring banks, which generally pass on such increases to NMS. From time to time, the sponsoring banks increase their fees as well. If NMS is not able to pass these fee increases along to merchants through corresponding increases in its processing fees, its profit margins in this line of business will be reduced.

Unauthorized disclosure of merchant or cardholder data, whether through breach of our computer systems or otherwise, could expose us to liability and business losses.

Through NMS, we collect and store sensitive data about merchants and cardholders, and we maintain a database of cardholder data relating to specific transactions, including payment, card numbers and cardholder addresses, in order to process the transactions and for fraud prevention and other internal processes. If anyone penetrates our network security or otherwise misappropriates sensitive merchant or cardholder data, we could be subject to liability or business interruption. While we subject these systems to periodic independent testing and review, we cannot guarantee that our systems will not be penetrated in the future. If a breach of our system occurs, we may be subject to liability, including claims for unauthorized purchases with misappropriated card information, impersonation or other similar fraud claims. Similar risks exist with regard to the storage and transmission of such data by our processors. In the event of any such a breach, we may also be subject to a class action lawsuit. SMBs are less prepared for the complexities of safeguarding cardholder data than their larger counterparts. In the event of noncompliance by a customer of card industry rules, we could face fines from payment card networks. There can be no assurance that we would be able to recover any such fines from such customer.

NMS is liable if its processing merchants refuse or cannot reimburse charge-backs resolved in favor of their customers.

If a billing dispute between a merchant and a cardholder is not ultimately resolved in favor of the merchant, the disputed transaction is “charged back” to the merchant’s bank and credited to the account of the cardholder. If NMS or its processing banks are unable to collect the charge-back from the merchant’s account, or if the merchant refuses or is financially unable due to bankruptcy or other reasons to reimburse the merchant’s bank for the charge-back, NMS must bear the loss for the amount of the refund paid to the cardholder’s bank. Most of NMS’ merchants deliver products or services when purchased, so a contingent liability for charge-backs is unlikely to arise, and credits are issued on returned items. However, some of its merchants do not provide services until sometime after a purchase, which increases the potential for contingent liability and future charge-backs. NMS and the sponsoring bank can require that merchants maintain cash reserves under its control to cover charge-back liabilities but such reserves may not be sufficient to cover the liability or may not even be available to them in the event of a bankruptcy or other legal action.

NMS has potential liability for customer or merchant fraud.

Credit card fraud occurs when a merchant’s customer uses a stolen card (or a stolen card number in a card-not-present transaction) to purchase merchandise or services. In a traditional card-present transaction, if the merchant swipes the card, receives authorization for the transaction from the card issuing bank and verifies the signature on the back of the card against the paper receipt signed by the customer, the card issuing bank remains liable for any loss. In a fraudulent card-not-present transaction, even if the merchant receives authorization for the transaction, the merchant is liable for any loss arising from the transaction. Many NMS customers are small and transact a substantial percentage of their sales over the Internet or by telephone or mail orders. Because their sales are card-not-present transactions, these merchants are more vulnerable to customer fraud than larger merchants, and NMS could experience charge-backs arising from cardholder fraud more frequently with these merchants.


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Merchant fraud occurs when a merchant, rather than a customer, knowingly uses a stolen or counterfeit card or card number to record a false sales transaction or intentionally fails to deliver the merchandise or services sold in an otherwise valid transaction. Anytime a merchant is unable to satisfy a charge-back, NMS is ultimately responsible for that charge-back unless it has required that a cash reserve be established. We cannot assure that the systems and procedures NMS has established to detect and reduce the impact of merchant fraud are or will be effective. Failure to effectively manage risk and prevent fraud could increase NMS charge-back liability and adversely affect its results of operations.

NMS payment processing systems may fail due to factors beyond its control, which could interrupt its business or cause it to lose business and likely increase costs.

NMS depends on the uninterrupted operations of our computer network systems, software and our processors’ data centers. Defects in these systems or damage to them due to factors beyond its control could cause severe disruption to NMS’ business and other material adverse effects on its payment processing businesses.

The electronic payment processing business is undergoing very rapid technological changes which may make it difficult or impossible for NMS to compete effectively.

The introduction of new technologies, primarily mobile payment capabilities, and the entry into the payment processing market of new competitors, Apple, Inc., for example, could dramatically change the competitive environment and require significant changes and costs for NMS to remain competitive. There is no assurance that NMS will have the capability to stay competitive with such changes.

NMS and others in the payment processing industry have come under increasing pressures from various regulatory agencies seeking to use the leverage of the payment processing business to limit or modify the practices of merchants which could lead to increased costs.

Various agencies, particularly the Federal Trade Commission (“FTC”), have within the past few years attempted to pressure merchants to discontinue or modify various sales or other practices. As a part of the payment processing industry, processors such as NMS could experience pressure and/or litigation aimed at restricting access to credit card sales by such merchants. These efforts could cause an increase in the cost to NMS of doing business or otherwise make its business less profitable and may subject NMS to assess penalties for not taking actions deemed sufficiently aggressive to limit such practices. As a result of a prior litigation with the FTC, NMS voluntarily entered into, and is presently operating under, a Permanent Injunction with respect to certain of its business practices.

Increased regulatory focus on the payments industry may result in costly new compliance burdens on NMS’ clients and on NMS itself, leading to increased costs and decreased payments volume and revenues.

Regulation of the payments industry has increased significantly in recent years. Complying with these and other regulations increases costs and can reduce revenue opportunities. Similarly, the impact of such regulations on clients may reduce the volume of payments processed. Moreover, such regulations can limit the types of products and services that are offered. Any of these occurrences can materially and adversely affect NMS’ business, prospects for future growth, financial condition and results of operations.

Examples include:

Data Protection and Information Security. Aspects of NMS’ operations and business are subject to privacy and data protection regulation. NMS’ financial institution clients are subject to similar requirements under the guidelines issued by the federal banking agencies. In addition, many individual states have enacted legislation requiring consumer notification in the event of a security breach.

Anti-Money Laundering and Anti-Terrorism Financing. The U.S.A. PATRIOT Act requires NMS to maintain an anti-money laundering program. Sanctions imposed by the U.S. Treasury Office of Foreign Assets Control, or OFAC, restrict NMS from dealing with certain parties considered to be connected with money laundering, terrorism or narcotics. NMS has controls in place designed to ensure OFAC compliance, but if those controls should fail, it could be subject to penalties, reputational damage and loss of business.

Money Transfer Regulations. As NMS expands its product offerings, it may become subject to money transfer regulations, increasing regulatory oversight and costs of compliance.


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Formal Investigation. If NMS is suspected of violating government statutes, such as the Federal Trade Commission Act or the Telemarketing and Consumer Fraud and Abuse Prevention Act, governmental agencies may formally investigate NMS. As a result of such a formal investigation, criminal or civil charges could be filed against NMS and it could be required to pay significant fines or penalties in connection with such investigation or other governmental investigations. Any criminal or civil charges by a governmental agency, including any fines or penalties, could materially harm NMS’ business, results of operations, financial position and cash flows. Currently, NMS is operating under an order for injunctive relief it voluntarily entered into with the Federal Trade Commission.
RISKS RELATED TO OUR CONTROLLED PORTFOLIO COMPANIES - NEWTEK TECHNOLOGY SOLUTIONS (NTS)

NTS operates in a highly competitive industry in which technological change can be rapid.

The information technology business and its related technology involve a broad range of rapidly changing technologies. NTS equipment and the technologies on which it is based may not remain competitive over time, and others may develop superior technologies that render its products non-competitive, without significant additional capital expenditures. Some of NTS’ competitors are significantly larger and have substantially greater market presence as well as greater financial, technical, operational, marketing and other resources and experience than NTS. In the event that such a competitor expends significant sales and marketing resources in one or several markets, NTS may not be able to compete successfully in such markets. We believe that competition will continue to increase, placing downward pressure on prices. Such pressure could adversely affect NTS gross margins if it is not able to reduce its costs commensurate with such price reductions. There can be no assurances that NTS will remain competitive.

NTS’ technology solutions business depends on the efficient and uninterrupted operation of its computer and communications hardware systems and infrastructure.

Despite precautions taken by NTS against possible failure of its systems, interruptions could result from natural disasters, power loss, the inability to acquire fuel for its backup generators, telecommunications failure, terrorist attacks and similar events. NTS also leases telecommunications lines from local, regional and national carriers whose service may be interrupted. NTS’ business, financial condition and results of operations could be harmed by any damage or failure that interrupts or delays its operations. There can be no assurance that NTS’ insurance will cover all of the losses or compensate NTS for the possible loss of clients occurring during any period that NTS is unable to provide service.

NTS’ inability to maintain the integrity of its infrastructure and the privacy of confidential information would materially affect its business.

The NTS infrastructure is potentially vulnerable to physical or electronic break-ins, viruses or similar problems. If its security measures are circumvented, it could jeopardize the security of confidential information stored on NTS’ systems, misappropriate proprietary information or cause interruptions in NTS’ operations. We may be required to make significant additional investments and efforts to protect against or remedy security breaches. Security breaches that result in access to confidential information could damage our reputation and expose us to a risk of loss or liability. The security services that NTS offers in connection with customers’ networks cannot assure complete protection from computer viruses, break-ins and other disruptive problems. The occurrence of these problems may result in claims against NTS or us or liability on our part. These claims, regardless of their ultimate outcome, could result in costly litigation and could harm our business and reputation and impair NTS’ ability to attract and retain customers.


NTS could be adversely affected by information security breaches or cyber security attacks.

NTS’ web and cloud services involve the storage and transmission of our customers’, employees’, and portfolio companies’ proprietary information. NTS’ business relies on its digital technologies, computer and email systems, software, and networks to conduct its operations. NTS’ technologies, systems and networks may become the target of criminal cyber-attacks or information security breaches that could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of confidential, proprietary and other information of NTS or third parties with whom NTS deals, or otherwise disrupt our or our customers’ or other third parties’ business operations. It is critical to NTS’ business strategy that its facilities and infrastructure remain secure and are perceived by the marketplace to be secure. Although NTS believes it employs appropriate security technologies, NTS cannot guarantee that the security technologies (including data encryption processes, intrusion detection systems) it employs or, the comprehensive risk assessments it conducts, or its other internal control procedures will assure the

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security of its customers’ data. If NTS’ security measures are breached as a result of third-party action, employee error or otherwise, and as a result, its customers’ data becomes available to unauthorized parties, NTS and our other portfolio companies could incur liability and its reputation would be damaged, which could lead to the loss of current and potential customers. In addition, NTS will be required to expend significant capital and other resources to detect, remedy, protect against or alleviate breaches of its network and security, and it may not be able to remedy these problems in a timely manner, or at all. Because techniques used by outsiders to obtain unauthorized network access or to sabotage systems change frequently and generally are not recognized until launched against a target, NTS may be unable to anticipate these techniques or implement adequate preventative measures. For example, in early 2018 an unauthorized third party misappropriated three of NTS’ domain names. NTS’ management and forensic investigators determined that attackers compromised a portion of its shared webhosting system, and may have acquired certain customer information limited to its shared webhosting customers, and/or gained access to certain of its shared webhosting servers. In response, NTS has taken a range of steps designed to further secure its systems, enhance its security protections, enhance access controls, and prevent future unauthorized activity.

NTS’ business depends on Microsoft Corporation and others for the licenses to use software as well as other intellectual property in the managed technology solutions business.

NTS’ managed technology business is built on technological platforms relying on the Microsoft Windows® products and other intellectual property that NTS currently licenses. As a result, if NTS is unable to continue to have the benefit of those licensing arrangements or if the products upon which its platform is built become obsolete, its business could be materially and adversely affected.
RISKS RELATED TO OUR CONTROLLED PORTFOLIO COMPANIES - NEWTEK INSURANCE AGENCY (NIA)

NIA depends on third parties, particularly property and casualty insurance companies, to supply the products marketed by its agents.

NIA contracts with property and casualty insurance companies typically provide that the contracts can be terminated by the supplier without cause. NIA’s inability to enter into satisfactory arrangements with these suppliers or the loss of these relationships for any reason would adversely affect the results of its insurance business. Also, NIA’s inability to obtain these products at competitive prices could make it difficult for it to compete with larger and better capitalized providers of such insurance services.

If NIA fails to comply with government regulations, its insurance agency business would be adversely affected.

NIA insurance agency business is subject to comprehensive regulation in the various states in which it conducts business. NIA’s success will depend in part upon its ability to satisfy these regulations and to obtain and maintain all required licenses and permits. NIA’s failure to comply with any statutes and regulations could have a material adverse effect on it. Furthermore, the adoption of additional statutes and regulations, changes in the interpretation and enforcement of current statutes and regulations could have a material adverse effect on it.

NIA does not have any control over the commissions it earns on the sale of insurance products which are based on premiums and commission rates set by insurers and the conditions prevalent in the insurance market.

NIA earns commissions on the sale of insurance products. Commission rates and premiums can change based on the prevailing economic and competitive factors that affect insurance underwriters. In addition, the insurance industry has been characterized by periods of intense price competition due to excessive underwriting capacity and periods of favorable premium levels due to shortages of capacity. We cannot predict the timing or extent of future changes in commission rates or premiums or the effect any of these changes will have on the operations of NIA.
RISKS RELATED TO OUR CONTROLLED PORTFOLIO COMPANIES - NEWTEK PAYROLL AND BENEFIT SOLUTIONS (NPS)

Unauthorized disclosure of employee data, whether through a cyber-security breach of our computer systems or otherwise, could expose NPS to liability and business losses.

NPS collects and stores sensitive data about individuals in order to process the transactions and for other internal processes. If anyone penetrates its network security or otherwise misappropriates sensitive individual data, NPS could be subject to liability or business interruption. NPS is subject to laws and rules issued by different agencies concerning safeguarding and maintaining

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the confidentiality of this information. Its activities have been, and will continue to be, subject to an increasing risk of cyber-attacks, the nature of which is continually evolving. Cyber-security risks include unauthorized access to privileged and sensitive customer information, including passwords and account information of NPS’ customers. While it subjects its data systems to periodic independent testing and review, NPS cannot guarantee that its systems will not be penetrated in the future. Experienced computer programmers and hackers may be able to penetrate NPS’ network security, and misappropriate or compromise our confidential information, create system disruptions, or cause shutdowns. As a result, NPS’ customers’ information may be lost, disclosed, accessed or taken without its customers’ consent. If a breach of NPS’ system occurs, it may be subject to liability, including claims for impersonation or other similar fraud claims. In the event of any such breach, NPS may also be subject to a class action lawsuit. Any significant violations of data privacy could result in the loss of business, litigation and regulatory investigations and penalties that could damage NPS’ reputation, and the growth of its business could be adversely affected.

NPS is subject to risks surrounding Automated Clearing House (“ACH”) payments.

Credit risk in ACH payments arises when a party to a contract fails to deposit funds required to settle the contract. This can occur if a client of NPS suffers losses, enters into bankruptcy or defrauds NPS. In such an event, NPS could bear the financial burden of settling the customer’s contract.

NPS’ systems may be subject to disruptions that could adversely affect its business and reputation.

NPS’ payroll business relies heavily on its payroll, financial, accounting and other data processing systems. If any of these systems or any of the vendors which supply them fails to operate properly or becomes disabled even for a brief period of time, NPS could suffer financial loss, a disruption of its business, liability to clients, regulatory intervention or damage to its reputation. NPS has disaster recovery plans in place to protect its businesses against natural disasters, security breaches, military or terrorist actions, power or communication failures or similar events. Despite NPS’ preparations, its disaster recovery plans may not be successful in preventing the loss of client data, service interruptions, and disruptions to its operations or damage to its important facilities.

If NPS fails to adapt its technology to meet client needs and preferences, the demand for its services may diminish.

NPS operates in industries that are subject to rapid technological advances and changing client needs and preferences. In order to remain competitive and responsive to client demands, NPS continually upgrades, enhances and expands its existing solutions and services. If NPS fails to respond successfully to technological challenges, the demand for its services may diminish.

NPS could incur unreimbursed costs or damages due to delays in processing inherent in the banking system.

NPS generally determines the availability of customer (employer) funds prior to making payments to employees or taxing authorities, and such employer funds are generally transferred in to its accounts prior to making payments out. Due to the structure of the banking system however, there are times when NPS may make payroll or tax payments and not immediately receive the funds to do so from the employer. There can be no assurance that the procedures NPS has in place to prevent these occurrences or mitigate the damages will be sufficient to prevent loss to its business. In addition, NPS could incur unreimbursed costs or damages due to delays in processing customer payrolls or payroll taxes in a timely manner.
RISKS RELATED TO OUR CONTROLLED PORTFOLIO COMPANIES - NEWTEK BUSINESS CREDIT SOLUTIONS (NBC)

An unexpected level of defaults in NBC’s accounts receivables, inventory or SBA 504 loan portfolios would reduce its income and increase its expenses.

If NBC’s level of non-performing assets in its receivable financing, inventory financing or SBA 504 lending business rises in the future, it could adversely affect its revenue, earnings and cash flow. Non-performing assets primarily consist of receivables for which the customer has not made timely payment. In certain situations, NBC may restructure the receivable to permit such a customer to have smaller payments over a longer period of time. Such a restructuring or non-payment by a receivables or inventory customer will result in lower revenue and less cash available for NBC’ operational activities.

NBC’s reserve for credit losses may not be sufficient to cover unexpected losses.


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NBC’s business depends on the behavior of its customers. In addition to its credit practices and procedures, NBC maintains a reserve for credit losses on its accounts receivable and inventory portfolios, which it has judged to be adequate given the receivables it purchases. NBC periodically reviews its reserve for adequacy considering current economic conditions and trends, charge-off experience and levels of non-performing assets, and adjusts its reserve accordingly. However, because of recent unstable economic conditions, its reserves may prove inadequate, which could have a material adverse effect on its financial condition and results of operations.

NBC depends on outside financing to support its receivables financing and inventory financing business.

NBC’s receivables and inventory financing business depends on outside financing to support its acquisition of receivables. Termination of the credit lines for any reason would have a material adverse effect on its business, including but not limited to, the liquidation of its receivables portfolios to pay down the lines. If funds from such sale were insufficient to completely pay down the line of credit, NBC’s would be responsible for any short fall. We are a guarantor on the Sterling Receivable and Inventory Facility at NBC. Maximum borrowings under the Sterling Receivable and Inventory Facility are $22,500,000. The Sterling Receivable and Inventory Facility matures in February 2020 and automatically renews annually. At December 31, 2018, total principal owed by NBC was $16,477,000. NBC also entered into the Sterling 504 Facility. We are also a guarantor on the Sterling 504 Facility. Maximum borrowings under the Sterling 504 Facility are $35,000,000, depending on syndication. The Sterling 504 Facility matures in March 2019. At December 31, 2018, total principal owed by NBC was $7,283,000. The Sterling 504 Facility specifies certain events of default, pursuant to which all outstanding amounts under the Sterling 504 Facility could become immediately due and payable.

We have guaranteed NBC’s obligations under both facilities. If NBC defaults on these lines of credit, we would be required to make payments under the guarantees, which could have a material adverse effect on our financial condition and results of operations.

In addition, if NBC loses either of these lines of credit and NBC is unable to renew or replace these lines of credit, it would materially impact the business of NBC and have a material adverse effect on its financial condition and results of operations.

LEGAL PROCEEDINGS - PORTFOLIO COMPANIES

Our portfolio companies may, from time to time, be involved in various legal matters, which may have an adverse effect on their operations and/or financial condition.

From time to time, we may be subject to legal actions as well as various regulatory, governmental and law enforcement inquiries, investigations and subpoenas. In any such claims or actions, demands for substantial monetary damages may be asserted against our portfolio companies and may result in financial liability for us or an adverse effect on our reputation among investors. We may be unable to accurately estimate our portfolio companies’ exposure to litigation risk. In regulatory enforcement matters, claims for disgorgement, the imposition of penalties, and the imposition of other remedial sanctions against our portfolio companies are possible, and may have a material adverse effect on our results of operations.

As a result of a prior litigation with the FTC, NMS voluntarily entered into, and is presently operating under, a Permanent Injunction with respect to certain of its business practices.

On October 13, 2017, the Company announced that its portfolio company, BSP, was served with a search warrant by the Federal Bureau of Investigation (“FBI”) on October 12, 2017 at BSP offices in Westfield, Indiana. The Company closed on its $5,400,000 investment in BSP in June 2016. The Company is monitoring the situation and is cooperating fully with the authorities.
RISKS RELATED TO OUR CAPCO BUSINESS

The Capco programs and the tax credits they provide are created by state legislation and implemented through regulation, and such laws and rules are subject to possible action to repeal or retroactively revise the programs for political, economic or other reasons. Such an attempted repeal or revision would create substantial difficulty for the Capco programs and could, if ultimately successful, cause us material financial harm.

The tax credits associated with the Capco programs and provided to our Capcos’ investors are to be utilized by the investors over a period of time, which is typically ten years. Much can change during such a period and it is possible that one or more states may revise or eliminate the tax credits. Any such revision or repeal could have a material adverse economic impact on

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our Capcos, either directly or as a result of the Capco’s insurer’s actions. Any such final state action that jeopardizes the tax credits could result in the provider of our Capco insurance assuming partial or full control of the particular Capco in order to minimize its liability under the Capco insurance policies issued to our investors.

Because our Capcos are subject to requirements under state law, a failure of any of them to meet these requirements could subject the Capco and our shareholders to the loss of one or more Capcos.

Despite the fact that we have met all applicable minimum requirements of the Capco programs in which we still participate, each Capco remains subject to state regulation until it has invested 100% of its funds and otherwise remains in full legal compliance. There can be no assurance that we will continue to be able to do so. A major regulatory violation, while not fatal to our Capco business, would materially increase the cost of operating the Capcos.
We know of no other publicly-held company that sponsors and operates Capcos as a part of its business. As such, there are, to our knowledge, no other companies against which investors may compare our Capco business and its operations, results of operations and financial and accounting structures.

In the absence of any meaningful peer group comparisons for our Capco business, investors may have a difficult time understanding and judging the strength of our business. This, in turn, may have a depressing effect on the value of our stock.
RISKS RELATED TO OUR SECURITIES

As of December 31, 2018, our CEO beneficially owns and has shared voting power over approximately 5.9% of our common stock, and may be able to exercise significant influence over the outcome of most shareholder actions.

Because of his ownership of and shared voting power over our stock, Barry Sloane, our Chairman, Chief Executive Officer and President, may be able to exercise significant influence over actions requiring shareholder approval, including the election of directors, the adoption of amendments to the certificate of incorporation, approval of stock incentive plans and approval of major transactions such as a merger or sale of assets. This could delay or prevent a change in control of the Company, deprive our shareholders of an opportunity to receive a premium for their common stock as part of a change in control and have a negative effect on the market price of our common stock.
Our common stock price may be volatile and may decrease substantially.
The trading price of our common stock may fluctuate substantially. The price of our common stock may be higher or lower depending on many factors, some of which are beyond our control and may not be directly related to our operating performance. These factors include, but are not limited to, the following:
price and volume fluctuations in the overall stock market from time to time;
investor demand for our stock;
significant volatility in the market price and trading volume of securities of BDCs or other companies in our sector, which are not necessarily related to the operating performance of these companies;
changes in regulatory policies or tax guidelines with respect to RICs, BDCs, or SBLCs;
failure to qualify as a RIC, or the loss of RIC status;
any shortfall in revenue or net income or any increase in losses from levels expected by investors or securities analysts;
changes, or perceived changes, in the value of our portfolio investments;
departures of key Company personnel;
operating performance of companies comparable to us; or
general economic conditions and trends and other external factors.

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In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been brought against that company. Due to the potential volatility of our stock price once a market for our stock is established, we may become the target of securities litigation in the future. Securities litigation could result in substantial costs and divert management’s attention and resources from our business.
Future issuances of our common stock or other securities, including preferred shares, may dilute the per share book value of our common stock or have other adverse consequences to our common shareholders.

Our Board has the authority, without the action or vote of our shareholders, to issue all or part of the approximately 181,081,274 authorized but unissued shares of our common stock. Our business strategy relies upon investments in and acquisitions of businesses using the resources available to us, including our common stock. Additionally, we anticipate granting additional options or restricted stock awards to our employees and directors in the future. Absent exemptive relief, a BDC generally may not issue restricted stock to its directors, officers and employees. In May 2016, the SEC issued an order granting the Company’s request for exemptive relief to allow us to amend our equity compensation plan and make such grants and awards, subject to shareholder approval. We may also issue additional securities, through public or private offerings, in order to raise capital. Future issuances of our common stock will dilute the percentage of ownership interest of current shareholders and could decrease the per share book value of our common stock. In addition, option holders may exercise their options at a time when we would otherwise be able to obtain additional equity capital on more favorable terms. In July 2016, our shareholders approved the amendments to our equity compensation plan, and certain restricted stock awards granted thereunder.

We may also issue additional securities, through public or private offerings, in order to raise capital. Future issuances of our common stock will dilute the percentage of ownership interest of current shareholders and could decrease the per share book value of our common stock. In addition, option holders may exercise their options at a time when we would otherwise be able to obtain additional equity capital on more favorable terms.

Pursuant to our amended and restated charter, our Board is authorized to classify any unissued shares of stock and reclassify any previously classified but unissued shares of stock of any class or series from time to time, into one or more classes or series of stock, including preferred stock. If we issue preferred stock, the preferred stock would rank “senior” to common stock in our capital structure, preferred shareholders would have separate voting rights on certain matters and might have other rights, preferences, or privileges more favorable than those of our common shareholders, and the issuance of preferred stock could have the effect of delaying, deferring or preventing a transaction or a change of control that might involve a premium price for holders of our common stock or otherwise be in your best interest. We will not generally be able to issue and sell our common stock at a price below net asset value per share. We may, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then current net asset value per share of our common stock if our Board determines that such sale is in our best interests and in the best interests of our shareholders, and our shareholders approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our Board, closely approximates the market value of such securities (less any distributing commission or discount). If we raise additional funds by issuing more common stock or senior securities convertible into, or exchangeable for, our common stock, then the percentage ownership of our shareholders at that time will decrease, and you may experience dilution.

Our shareholders may experience dilution upon the repurchase of common shares.

The Company has instituted programs which allow the Company to repurchase the Company’s outstanding common shares on the open market. Under the programs, purchases may be made at management’s discretion from time to time in open-market transactions, in accordance with all applicable securities laws and regulations. On May 11, 2016, the Company announced that its Board approved a new share repurchase program under which the Company was able to repurchase up to 150,000 of the Company’s outstanding common shares on the open market. This program terminated on November 11, 2016. On November 21, 2016 the Company announced that its Board approved a new share repurchase program under which the Company may repurchase up to 200,000 of the Company’s outstanding common shares on the open market. The program terminated on May 21, 2017. On December 17, 2018, the Company announced that its Board approved a new share repurchase program under which the Company was able to repurchase up to 300,000 of the Company’s outstanding common shares on the open market.
The authorization and issuance of “blank check” preferred shares could have an anti-takeover effect detrimental to the interests of our shareholders.

Our certificate of incorporation allows our Board to issue preferred shares with rights and preferences set by the Board without further shareholder approval. The issuance of these “blank check” preferred shares could have an anti-takeover effect

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detrimental to the interests of our shareholders. For example, in the event of a hostile takeover attempt, it may be possible for management and the Board to impede the attempt by issuing the preferred shares, thereby diluting or impairing the voting power of the other outstanding common shares and increasing the potential costs to acquire control of us. Our Board has the right to issue any new shares, including preferred shares, without first offering them to the holders of common shares, as they have no preemptive rights. The Company does not currently intend to issue preferred shares.
Our business and operation could be negatively affected if we become subject to any securities litigation or shareholder activism, which could cause us to incur significant expense, hinder execution of investment strategy and impact our stock price. 

In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been brought against that company. Stockholder activism, which could take many forms or arise in a variety of situations, has been increasing in the BDC space recently. While we are currently not subject to any securities litigation or shareholder activism, due to the potential volatility of our stock price and for a variety of other reasons, we may in the future become the target of securities litigation or shareholder activism. Securities litigation and shareholder activism, including potential proxy contests, could result in substantial costs and divert management’s and our board of directors’ attention and resources from our business. Additionally, such securities litigation and shareholder activism could give rise to perceived uncertainties as to our future, adversely affect our relationships with service providers and make it more difficult to attract and retain qualified personnel. Also, we may be required to incur significant legal fees and other expenses related to any securities litigation and activist shareholder matters. Further, our stock price could be subject to significant fluctuation or otherwise be adversely affected by the events, risks and uncertainties of any securities litigation and shareholder activism.

Provisions of the Maryland General Corporation Law and of our charter and bylaws could deter takeover attempts and have an adverse impact on the price of our common stock.

The Maryland General Corporation Law and our charter and bylaws contain provisions that may discourage, delay or make more difficult a change in control of Newtek or the removal of our directors. We are subject to the Maryland Business Combination Act, subject to any applicable requirements of the 1940 Act. Our Board has adopted a resolution exempting from the Business Combination Act any business combination between us and any other person, subject to prior approval of such business combination by our Board, including approval by a majority of our independent directors. If the resolution exempting business combinations is repealed or our Board does not approve a business combination, the Business Combination Act may discourage third parties from trying to acquire control of us and increase the difficulty of consummating such an offer. Our bylaws exempt from the Maryland Control Share Acquisition Act acquisitions of our stock by any person.

The SEC staff has taken the position that, under the 1940 Act, an investment company may not avail itself of the Control Share Act. As a result, we will amend our bylaws to be subject to the Control Share Act only if the Board determines that it would be in our best interests and, after notification, the SEC staff does not object to our determination that our being subject to the Control Share Act does not conflict with the 1940 Act. If such conditions are met, and we amend our bylaws to repeal the exemption from the Control Share Acquisition Act, the Control Share Acquisition Act also may make it more difficult for a third party to obtain control of us and increase the difficulty of consummating such a transaction.

We have also adopted measures that may make it difficult for a third party to obtain control of us, including provisions of our charter classifying our Board in three classes serving staggered three-year terms and authorizing our Board to classify or reclassify shares of our stock in one or more classes or series, to cause the issuance of additional shares of our stock, to amend our charter without shareholder approval and to increase or decrease the number of shares of stock that we have authority to issue. These provisions, as well as other provisions of our charter and bylaws, may delay, defer or prevent a transaction or a change in control that might otherwise be in the best interests of our shareholders.

Sales of substantial amounts of our common stock in the public market may have an adverse effect on the market price of our common stock.

All of the common stock held by our executive officers and directors, represents approximately 1,294,000 shares, or approximately 7% of our total outstanding shares as of December 31, 2018. Such shares are generally freely tradable in the public market. Sales of substantial amounts of our common stock, or the availability of such common stock for sale, could adversely affect the prevailing market prices for our common stock. If this occurs and continues, it could impair our ability to raise additional capital through the sale of securities should we desire to do so.

If we issue preferred stock, the net asset value and market value of our common stock will likely become more volatile.


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We cannot assure you that the issuance of preferred stock would result in a higher yield or return to the holders of our common stock. The issuance of preferred stock would likely cause the net asset value and market value of the common stock to become more volatile. If the dividend rate on the preferred stock were to approach the net rate of return on our investment portfolio, the benefit of leverage to the holders of the common stock would be reduced. If the dividend rate on the preferred stock were to exceed the net rate of return on our portfolio, the leverage would result in a lower rate of return to the holders of common stock than if we had not issued preferred stock. Any decline in the net asset value of our investments would be borne entirely by the holders of common stock. Therefore, if the market value of our portfolio were to decline, the leverage would result in a greater decrease in net asset value to the holders of common stock than if we were not leveraged through the issuance of preferred stock. This greater net asset value decrease would also tend to cause a greater decline in the market price for the common stock. We might be in danger of failing to maintain the required asset coverage of the preferred stock or of losing our ratings, if any, on the preferred stock or, in an extreme case, our current investment income might not be sufficient to meet the dividend requirements on the preferred stock. To counteract such an event, we might need to liquidate investments to fund a redemption of some or all of the preferred stock. In addition, we would pay (and the holders of common stock would bear) all costs and expenses relating to the issuance and ongoing maintenance of the preferred stock, including higher advisory fees if our total return exceeds the dividend rate on the preferred stock. Holders of preferred stock may have different interests than holders of common stock and may at times have disproportionate influence over our affairs.

Stockholders may incur dilution if we sell shares of our common stock in one or more offerings at prices below the then current net asset value per share of our common stock or issue securities to subscribe to, convert to or purchase shares of our common stock.

The 1940 Act prohibits us from selling shares of our common stock at a price below the current net asset value per share of such stock, with certain exceptions. One such exception is prior shareholder approval of issuances below net asset value provided that our Board makes certain determinations. On July 26, 2018, at our Special Meeting of Shareholders, our shareholders approved a proposal that authorizes us to sell up to 20% of our common stock at a price below the Company’s then-current net asset value per share, subject to certain conditions. Any decision to sell shares of our common stock below the then current net asset value per share of our common stock or securities to subscribe to, convert to, or purchase shares of our common stock would be subject to the determination by our Board that such issuance is in our and our shareholders’ best interests.
If we were to sell shares of our common stock below net asset value per share, such sales would result in an immediate dilution to the net asset value per share. This dilution would occur as a result of the sale of shares at a price below the then current net asset value per share of our common stock and a proportionately greater decrease in a shareholder’s interest in our earnings and assets and voting interest in us than the increase in our assets resulting from such issuance. In addition, if we issue securities to subscribe to, convert to or purchase shares of common stock, the exercise or conversion of such securities would increase the number of outstanding shares of our common stock. Any such exercise would be dilutive on the voting power of existing shareholders, and could be dilutive with regard to dividends and our net asset value, and other economic aspects of the common stock. Because the number of shares of common stock that could be so issued and the timing of any issuance is not currently known, the actual dilutive effect cannot be predicted; however, the example below illustrates the effect of dilution to existing shareholders resulting from the sale of common stock at prices below the net asset value of such shares.

RISKS RELATED TO OUR PUBLICLY-TRADED DEBT

The 2022 Notes and the 2023 Notes, together, the “Notes” are unsecured and therefore are effectively subordinated to any secured indebtedness we have outstanding or may incur in the future.

In September 2015 and February 2018, we issued $8,324,000 and $57,500,000 in aggregate principal amount of the 2022 Notes and 2023 Notes, respectively. 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 to receive full payment of their indebtedness before the assets may be used to pay other creditors, including the holders of the Notes.

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

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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 indentures under which the Notes were issued offers limited protection to holders of the Notes. The terms of the indentures 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 indentures 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, but giving effect 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 150% 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 150% 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.

In addition, the indentures do 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 indentures 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

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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 indentures 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.

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 and March 1, 2020, we may choose to redeem the 2022 Notes and the 2023 Notes, respectively, from time to time, especially when prevailing interest rates are lower than the interest rate on the 2022 Notes or 2023 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 being redeemed. Our redemption right also may adversely impact your ability to sell the Notes as the optional redemption date or period approaches.

On November 21, 2016, the Company announced that its Board approved a repurchase program under which the Company may repurchase up to 10%, or $832,400 in aggregate principal amount, of its 2022 Notes and up to 10%, or $4,025,000 in aggregate principal amount, of its 2021 Notes through open market purchases, including block purchases, in such manner as will comply with the provisions of the 1940 Act and the Exchange Act. The repurchase plan expired on May 21, 2017, however, the Company may institute a new repurchase plan in the future.

On February 21, 2018, the Company issued redemption notices to the holders of the 2021 Notes. The Company redeemed all $40,250,000 in aggregate principal amount of the 2021 Notes on the Redemption Date at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon from December 31, 2017, through, but excluding, the Redemption Date.

The trading market or market value of our publicly traded debt securities may fluctuate

The 2022 Notes and the 2023 Notes are new issues of debt securities listed on the Nasdaq Global Market under the symbols “NEWTZ” and “NEWTI,” respectively. 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

67




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.

ITEM 1B. UNRESOLVED STAFF COMMENTS.
None.
ITEM 2. PROPERTIES.
We conduct our principal business activities in facilities leased from unrelated parties at market rates. Our headquarters are located in Lake Success, New York. Our operating subsidiaries have properties which are material to the conduct of their business as noted below. In addition, our Capcos maintain offices in each of the states in which they operate.
Below is a list of our leased offices and space as of December 31, 2018 which are material to the conduct of our business:
Location
 
Lease expiration
 
Purpose
 
Approximate square feet
 
 
 
 
 
 
 
1981 Marcus Avenue
Lake Success, NY 11042
 
April 2027
 
Corporate headquarters and lending operations, NY Capco offices and certain controlled portfolio companies’ offices
 
36,000

1985 Marcus Avenue
Lake Success, NY 11042
 
April 2027
 
Lending operations and certain controlled portfolio companies’ offices
 
7,300

4 Park Plaza
Irvine, CA 92614
 
February 2021
 
NSBF lending operations
 
3,300

4800 T Rex Avenue
Boca Raton, FL 33431
 
April 2026
 
NSBF lending operations
 
7,800

14 East Washington Street
Orlando, FL 32801
 
September 2019
 
NSBF lending operations and certain controlled portfolio companies’ offices
 
1,700

We believe that our leased facilities are adequate to meet our current needs and that additional facilities are available to meet our development and expansion needs in existing and projected target markets.
ITEM 3. 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 is not currently involved in any litigation matters that are expected to have a material impact on the Company’s financial condition. For legal proceedings involving controlled portfolio companies, refer to “Risk Factors - Legal Proceedings - Portfolio Companies.”

ITEM 4. MINE SAFETY DISCLOSURES.
Not applicable.

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PART II
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY AND RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
Common Stock
Our common stock is traded on the Nasdaq Global Market under the symbol “NEWT.”
The last reported price for our common stock on March 15, 2019 was $20.28 per share. As of March 15, 2019, there were approximately 97 shareholders of record.
Shares of BDCs may trade at a market price that is less than the value of the net assets attributable to those shares. The possibility that our shares of common stock will trade at a discount from net asset value or at premiums that are unsustainable over the long term are separate and distinct from the risk that our net asset value will decrease. It is not possible to predict whether our shares will trade at, above, or below net asset value. Since our conversion to a BDC, our shares of common stock have traded at prices both less than and exceeding our NAV per share.

Sales of Unregistered Securities

During the year ended December 31, 2018, in connection with our investment in Mobil Money, we issued 10,966 shares of restricted common stock.
 
During the year ended December 31, 2017, in connection with our investment in IPM, we issued 60,490 shares of restricted common stock.

During the year ended December 31, 2017, in connection with our investment in UCS, we issued 28,741 shares of restricted common stock.

We did not engage in any sales of unregistered securities during the year ended December 31, 2016.

Distributions

In order to be subject to tax as a RIC, we must distribute to our shareholders, in respect of each taxable year, dividends for U.S. federal income tax purposes of an amount generally at least equal to the Annual Distribution Requirement. Upon satisfying this requirement in respect of a taxable year, we generally will not be subject to corporate taxes on any income we distribute to our shareholders as dividends for U.S. federal income tax purposes.

However, as a RIC we will be subject to a 4% nondeductible U.S. federal excise tax on certain undistributed income and gains unless we make distributions treated as dividends for U.S. federal income tax purposes in a timely manner to our shareholders in respect of each calendar year of an amount at least equal to the Excise Tax Avoidance Requirement. We will not be subject to this excise tax on any amount on which we incurred U.S. federal corporate income tax (such as the tax imposed on a RIC’s retained net capital gains).

Depending on the level of taxable income earned in a taxable year, we may choose to carry over taxable income in excess of current taxable year distributions treated as dividends for U.S. federal income tax purposes from such taxable income into the next taxable year and incur a 4% excise tax on such taxable income, as required. The maximum amount of excess taxable income that may be carried over for distribution in the next taxable year under the Code is the total amount of distributions treated as dividends for U.S. federal income tax purposes paid in the following taxable year, subject to certain declaration and payment guidelines. To the extent we choose to carry over taxable income into the next taxable year, distributions declared and paid by us in a taxable year may differ from our taxable income for that taxable year as such distributions may include the distribution of current taxable year taxable income, the distribution of prior taxable year taxable income carried over into and distributed in the current taxable year, or returns of capital.

We can offer no assurance that we will achieve results that will permit the payment of any cash distributions and, if we issue senior securities, we will be prohibited from making distributions if doing so causes us to fail to maintain the asset coverage ratios stipulated by the 1940 Act or if distributions are limited by the terms of any of our borrowings. Our ability to make distributions will be limited by the asset coverage requirements under the 1940 Act.  See “Item 1. Business— Regulation.”

69





The following table summarizes our dividend declarations and distributions through December 31, 2018:
Record Date
 
Payment Date
 
Distribution Declared
March 30, 2015
 
April 13, 2015
 
$
0.39

June 29, 2015
 
July 15, 2015
 
$
0.47

October 22, 2015
 
November 3, 2015
 
$
0.50

November 18, 2015(1)
 
December 31, 2015
 
$
2.69

January 7, 2016
 
January 19, 2016
 
$
0.40

March 22, 2016
 
March 31, 2016
 
$
0.35

June 20, 2016
 
June 30, 2016
 
$
0.35

September 20, 2016
 
September 30, 2016
 
$
0.43

December 15, 2016
 
December 30, 2016
 
$
0.40

March 20, 2017
 
March 31, 2017
 
$
0.36

May 31, 2017
 
June 30, 2017
 
$
0.40

September 22, 2017
 
September 29, 2017
 
$
0.44

December 18, 2017
 
December 28, 2017
 
$
0.44

March 20, 2018
 
March 30, 2018
 
$
0.40

June 15, 2018
 
June 29, 2018
 
$
0.42

September 17, 2018
 
September 28, 2018
 
$
0.48

December 18, 2018
 
December 28, 2018
 
$
0.50

 
 
 
 
$
9.42

(1) The Special dividend was declared as a result of the Company’s RIC election for tax year 2015 and represents the distribution of 100% of the Company’s accumulated earnings and profits through December 31, 2014. Pursuant to applicable Treasury Regulation and IRS guidance, 27% of the dividend was paid in cash and 73% was paid in newly issued shares of our common stock.

Our Board maintains a variable distribution policy with the objective of distributing four quarterly distributions in an amount that approximates 90 - 100% of our estimated annual taxable income for a particular taxable year. In addition, at the end of our taxable year, our Board may choose to pay an additional special distribution, or fifth distribution, so that we may distribute approximately all of our annual taxable income in the taxable year in which it was earned, or may elect to maintain the option to spill over our excess taxable income into the following taxable year as part of any future distribution payments.

Distributions in excess of our current and accumulated earnings and profits would generally be treated first as a return of capital to the extent of a shareholder’s tax basis in our shares, and any distributions paid in excess of a shareholder’s tax basis in our shares would generally be treated as a capital gain. The determination of the tax attributes of our distributions is made annually as of the end of our taxable year and is generally based upon our taxable income for the full taxable year and distributions paid for the full taxable year. Of the distributions declared during the years ended December 31, 2018 and 2017, 100% were distributions derived from our current and accumulated earnings and profits and capital gains, see Note 14. There can be no certainty to shareholders that this determination is representative of the tax attributes of the 2019 distributions that we anticipate would be made to shareholders.

We maintain an “opt-out” dividend reinvestment plan for our common shareholders. As a result, if we declare a distribution, cash distributions will be automatically reinvested in additional shares of our common stock unless the shareholder specifically “opts out” of the dividend reinvestment plan and chooses to receive cash distributions.  During the years ended December 31, 2018 and 2017, we issued 61,000 and 44,000 shares, respectively, of common stock to shareholders in connection with the dividend reinvestment plan.
Securities authorized for issuance under equity compensation plans as of December 31, 2018:

70




Plan Category
 
(a)
Number of securities to be issued upon exercise of outstanding options, warrants and rights
 
(b)
Weighted-average exercise price of outstanding options, warrants and rights
 
(c)
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
 
 
 
 
 
 
 
Equity compensation plans approved by security holders
 
None
 
None
 
2,780,492 shares
 
 
 
 
 
 
 
Equity compensation plans not approved by security holders
 
None
 
None
 
None

Stock Performance Graph 

The following graph compares the return on our common stock with that of the Standard & Poor’s 500 Stock Index, the NASDAQ Composite Index, the Russell 2000, and S&P Small Cap 600 for the period from December 31, 2013 through December 31, 2018. The graph assumes that, on January 1, 2014, a person invested $100 in each of our common stock, the Nasdaq Composite, S&P 500 Index, Russell 2000 and S&P Small Cap 600. The graph measures total shareholder return, which takes into account both changes in stock price and dividends. It assumes that dividends paid are invested in like securities.

https://cdn.kscope.io/7698f92bb1d2d64ba76f5838710f02f1-a2018stockperformacecharta01.jpg

ITEM 6. SELECTED FINANCIAL DATA.
The following selected statements of operations and balance sheet data have been derived from the audited financial statements for each of the five years ended December 31, 2018. The Consolidated Financial Statements for each of the five years ended December 31, 2018 have been audited by RSM US LLP. The selected financial data set forth below should be read in conjunction with, and is qualified by reference to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our Consolidated Financial Statements, including the Notes thereto, available at www.sec.gov.

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As a Business Development Company
 
Prior to becoming a Business Development Company
 
 
2018
 
2017
 
2016
 
2015
 
November 12, 2014 to December 31, 2014
 
January 1, 2014 to November 11, 2014
Statement of Operations Data:
 
 
 
 
 
 
 
 
 
 
 
 
Investment income
 
$
49,515

 
$
38,914

 
$
30,965

 
$
26,070

 
$
1,976

 
$

Operating revenues
 
$

 
$

 
$

 
$

 
$

 
$
131,847

Expenses
 
$
57,003

 
$
46,795

 
$
40,225

 
$
32,255

 
$
4,305

 
$
121,036

Net investment loss
 
$
(7,488
)
 
$
(7,881
)
 
$
(9,260
)
 
$
(6,185
)
 
$
(2,523
)
 
$

Net increase in net assets resulting from operations
 
$
35,678

 
$
38,976

 
$
27,305

 
$
35,736

 
$
681

 
$

Net income
 
$

 
$

 
$

 
$

 
$

 
$
3,208

Net realized and unrealized gains (losses)
 
$
43,166

 
$
46,857

 
$
36,565

 
$
41,921

 
$
3,204

 
$
(3,668
)
Per Share Data:
 
 
 
 
 
 
 
 
 
 
 
 
Net investment loss
 
$
(0.40
)
 
$
(0.45
)
 
$
(0.64
)
 
$
(0.57
)
 
$
(0.33
)
 
$

Net increase in net assets resulting from operations
 
$
1.91

 
$
2.25

 
$
1.88

 
$
3.32

 
$
0.09

 
$

Basic earnings per share
 
$

 
$

 
$

 
$

 
$

 
$
0.45

Diluted earnings per share
 
$

 
$

 
$

 
$

 
$

 
$
0.45

Dividends declared
 
$
1.80

 
$
1.64

 
$
1.53

 
$
4.45

 
$

 
$

Balance Sheet Data (at end of period):
 
 
 
 
 
 
 
 
 
 
 
 
Investments, at fair value
 
$
541,096

 
$
456,689

 
$
345,224

 
$
266,874

 
$233,462
 
N/A
Total assets
 
$
653,341

 
$
519,611

 
$
401,450

 
$
352,430

 
$301,832
 
N/A
Total debt
 
$
331,630

 
$
216,252

 
$
171,242

 
$
131,761

 
$122,543
 
N/A
Total liabilities
 
$
365,896

 
$
241,282

 
$
192,356

 
$
148,481

 
$135,414
 
N/A
Total net assets
 
$
287,445

 
$
278,329

 
$
209,094

 
$
203,949

 
$166,418
 
N/A
Common shares outstanding at end of period
 
18,919

 
18,457

 
14,624

 
14,509

 
10,206
 
N/A
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Introduction and Certain Cautionary Statements
The following discussion and analysis of our financial condition and results of operations is intended to assist in the understanding and assessment of significant changes and trends related to the results of operations and financial position of the Company together with its subsidiaries. This discussion and analysis should be read in conjunction with the consolidated financial statements and the accompanying notes.
The statements in this Annual Report may contain forward-looking statements relating to such matters as anticipated future financial performance, business prospects, legislative developments and similar matters. We note that a variety of factors could cause our actual results to differ materially from the anticipated results expressed in the forward looking statements such as intensified competition and/or operating problems in our operating business projects and their impact on revenues and profit margins or additional factors as described under “Risk Factors” above.

We are an internally managed BDC that is a leading national non-bank lender that provides, together with our controlled portfolio companies, a wide range of business and financial solutions under the Newtek® brand to the SMB market. Newtek’s products and services include: Business Lending including SBA 7(a) loans, 504 loans and conventional loans, Electronic

72




Payment Processing, Managed Technology Solutions (Cloud Computing), Technology Consulting, eCommerce, Accounts Receivable and Inventory Financing, personal and commercial lines Insurance Services, Web Services, Data Backup, Storage and Retrieval, and Payroll and Benefits Solutions to SMB accounts nationwide across all industries. We have an established and reliable platform that is not limited by client size, industry type or location. As a result, we believe we have a strong and diversified client base across every state in the U.S. and across a variety of different industries. In addition, we have developed a financial and technology based business model that enables us and our controlled portfolio companies to acquire and process our SMB clients in a cost effective manner. This capability is supported in large part by NewTracker®, our patented prospect management technology software which is similar to but we believe is better than the system popularized by Salesforce.com. We believe that this technology and low cost business model distinguishes us from our competitors.

We consolidate the following wholly-owned subsidiaries:
Newtek Small Business Finance, LLC
Newtek Asset Backed Securities, LLC
CCC Real Estate Holdings, LLC
The Whitestone Group, LLC
Wilshire Colorado Partners, LLC (1)
Wilshire DC Partners, LLC
Wilshire Holdings I, Inc.
Wilshire Louisiana BIDCO, LLC
Wilshire Louisiana Partners II, LLC
Wilshire Louisiana Partners III, LLC
Wilshire Louisiana Partners IV, LLC
Wilshire New York Advisers II, LLC
Wilshire New York Partners III, LLC
Wilshire New York Partners IV, LLC (2)
Wilshire New York Partners V, LLC (2)
Wilshire Partners, LLC
Exponential Business Development Co., Inc.
Newtek Commercial Lending, Inc.
Newtek LSP Holdco, LLC
NBSH Holdings, LLC
Newtek Business Services Holdco 1, Inc.
Newtek Business Services Holdco 2, Inc.
Newtek Business Services Holdco 3, Inc.
Newtek Business Services Holdco 4, Inc.
Newtek Business Services Holdco 5, Inc. (formerly Banc-Serv Acquisition, Inc.)
Newtek Business Services Holdco 6, Inc.
(1) Entity was merged into The Whitestone Group, LLC in December 2018.
(2) Entity was merged into The Whitestone Group, LLC in December 2017.


We are an internally-managed, closed-end, non-diversified 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 have elected to be treated as a RIC under the Code beginning with our 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. As a result, previously consolidated subsidiaries are now recorded as investments in controlled portfolio companies, at fair value. NSBF is a consolidated subsidiary and originates loans under the SBA's 7(a) loan program. 

Our common shares are currently listed on the Nasdaq Global Market under the symbol “NEWT”.


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NSBF has been granted PLP status and originates, sells and services SBA 7(a) loans and is authorized to place SBA guarantees on loans without seeking prior SBA review and approval. Being a national lender, PLP status allows NSBF to expedite the origination of loans since NSBF is not required to present applications to the SBA for concurrent review and approval. The loss of PLP status could adversely impact our marketing efforts and ultimately our loan origination volume which could negatively impact our results of operations.

As a BDC, our investment objective is to generate both current income and capital appreciation primarily through loans originated by our business finance platform and our equity investments in certain portfolio companies that we control.


We target our debt investments, which are principally made through our 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 guaranteed portions of SBA 7(a) loans in the secondary market. We typically structure our debt investments with the maximum seniority and collateral along with personal guarantees from portfolio company owners, in many cases collateralized by other assets including real estate. In most cases, our debt investment will be collateralized by a first lien on the assets of the portfolio company and a first or second lien on assets of guarantors, in both cases primarily real estate. All SBA loans are made with personal guarantees from any owner(s) of 20% or more of the portfolio company’s equity. The amount of new debt investments, particularly SBA 7(a) loans that we originate, will directly impact future investment income. In addition, future amounts of unrealized appreciation or depreciation on our investments, as well as the amount of realized gains or losses, will also fluctuate depending upon economic conditions and the performance of our investment portfolio. The changes in realized gains and losses and unrealized appreciation or depreciation could have a material impact on our operating results. During 2018, sale prices for guaranteed portions of SBA 7(a) loans were negatively impacted by market conditions, in particular a higher interest rate environment, which led to higher prepayments during the period, resulting in lower sale prices in the secondary market.  A continuation or further reduction in the price of guaranteed SBA 7(a) loans could negatively impact our business.

We typically structure our debt investments to include non-financial covenants that seek to minimize our risk of capital loss such as lien protection and prohibitions against change of control. Our debt investments have strong protections, including default penalties, information rights and, in some cases, board observation rights and affirmative, negative and financial covenants. Debt investments in portfolio companies, including the controlled portfolio companies, have historically and are expected to continue to comprise the majority of our overall investments in number and dollar volume.

While the vast majority of our investments have been structured as debt, we have in the past and expect in the future to make selective equity investments primarily as either strategic investments to enhance the integrated operating platform or, to a lesser degree, under the Capco programs. For investments in our controlled portfolio companies, we focus more on tailoring them to the long term growth needs of the companies than to return. Our objectives with these companies is to foster the development of the businesses as a part of the integrated operational platform of serving the SMB market, so we may reduce the burden on these companies to enable them to grow faster than they would otherwise and as another means of supporting their development.

We regularly engage in discussions with third parties with respect to various potential transactions. We may acquire an investment or a portfolio of investments or an entire company or sell a portion of our portfolio on an opportunistic basis. We, our subsidiaries, or our affiliates may also agree to manage certain other funds that invest in debt, equity or provide other financing or services to companies in a variety of industries for which we may earn management or other fees for our services. We may also invest in the equity of these funds, along with other third parties, from which we would seek to earn a return and/or future incentive allocations. Some of these transactions could be material to our business. Consummation of any such transaction will be subject to completion of due diligence, finalization of key business and financial terms (including price) and negotiation of final definitive documentation as well as a number of other factors and conditions including, without limitation, the approval of our board of directors and required regulatory or third-party consents and, in certain cases, the approval of our shareholders. Accordingly, there can be no assurance that any such transaction would be consummated. Any of these transactions or funds may require significant management resources either during the transaction phase or on an ongoing basis depending on the terms of the transaction.

Revenues

We generate revenue in the form of interest, dividend, servicing and other fee income on debt and equity investments. Our debt investments typically have terms 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 originate and sell into the

74




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. Dividend income is recorded at the time dividends are declared. Distributions of earnings from portfolio companies are evaluated to determine if the distribution is income, return of capital or capital gains.

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 consolidated statements of operations.

Expenses

Our primary operating expenses are salaries and benefits, interest expense and other general and administrative costs, such as professional fees, marketing, referral fees, servicing 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.

Guarantees
The Company is a guarantor on the Sterling Receivable and Inventory Facility at NBC. Maximum borrowings under the Sterling Receivable and Inventory Facility are $22,500,000. The Sterling Receivable and Inventory Facility matures in February 2020 and automatically renews annually. At December 31, 2018, total principal owed by NBC was $16,477,000. In addition, the Company deposited $750,000 to collateralize the guarantee. At December 31, 2018, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is also a guarantor on the Sterling 504 Facility at NBC. Maximum borrowings under the 504 Facility are $35,000,000, depending upon syndication. The Sterling 504 Facility matures in March 2019. At December 31, 2018, total principal owed by NBC was $7,283,000. At December 31, 2018, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is a guarantor on the NBL Facility. Maximum borrowings under the NBL Facility are $75,000,000 with an accordion feature to increase maximum borrowings to $150,000,000. The NBL Facility matures in July 2021. At December 31, 2018, total principal owed by NBL was $13,855,000. At December 31, 2018, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is a guarantor on the Webster Facility, a term loan facility between NMS and Webster Bank with an aggregate principal amount up to $50,000,000. The Webster Facility matures in November 2023. At December 31, 2018, total principal outstanding was $35,000,000. At December 31, 2018, the Company determined that it is not probable that payments would be required to be made under the guarantee.

No amounts related to the guarantees discussed above are included in the calculation of our asset coverage ratio at December 31, 2018.

Unfunded Commitments

At December 31, 2018, the Company had $8,234,000 of unfunded commitments in connection with its SBA 7(a) non-affiliate investments related to portions of loans originated which are partially funded. The Company will fund these commitments from the same sources it uses to fund its other investment commitments.

Loan Portfolio Asset Quality and Composition

The following table sets forth distribution by business type of the Company’s SBA 7(a) unguaranteed loan portfolio at December 31, 2018 on a cost basis (in thousands):


75




Distribution by Business Type
 
 
 
 
 
 
 
 
Business Type
 
# of Loans
 
Balance
 
Average Balance
 
% of Balance
Existing Business
 
1,556

 
$
292,200

 
$
188

 
82.2
%
Business Acquisition
 
233

 
47,333

 
203

 
13.3
%
Start-Up Business
 
171

 
16,056

 
94

 
4.5
%
Total
 
1,960

 
$
355,589

 
$
181

 
100.0
%

The following table sets forth distribution by business type of the Company’s SBA 7(a) unguaranteed loan portfolio at December 31, 2017 on a cost basis (in thousands):

Distribution by Business Type
 
 
 
 
 
 
 
 
Business Type
 
# of Loans
 
Balance
 
Average Balance
 
% of Balance
Existing Business
 
1,240

 
$
235,416

 
$
190

 
81.8
%
Business Acquisition
 
188

 
37,935

 
202

 
13.2
%
Start-Up Business
 
144

 
14,339

 
100

 
5.0
%
Total
 
1,572

 
$
287,690

 
$
183

 
100.0
%
 
The following table sets forth distribution by borrower’s credit score of the Company’s SBA 7(a) unguaranteed loan portfolio at December 31, 2018 on a cost basis (in thousands):
Distribution by Borrower Credit Score
 
 
 
 
 
 
 
 
Credit Score
 
# of Loans
 
Aggregate Balance
 
Average Balance
 
% of Balance
500 to 550
 
22

 
$
4,332

 
$
197

 
1.2
%
551 to 600
 
65

 
16,739

 
258

 
4.7
%
601 to 650
 
285

 
58,269

 
204

 
16.4
%
651 to 700
 
592

 
107,359

 
181

 
30.2
%
701 to 750
 
569

 
97,117

 
171

 
27.3
%
751 to 800
 
367

 
65,324

 
178

 
18.4
%
801 to 850
 
53

 
5,634

 
106

 
1.6
%
Not available
 
7

 
815

 
116

 
0.2
%
Total
 
1,960

 
$
355,589

 
$
181

 
100.0
%
The following table sets forth distribution by borrower’s credit score of the Company’s SBA 7(a) unguaranteed loan portfolio at December 31, 2017 on a cost basis (in thousands):

76




Distribution by Borrower Credit Score
 
 
 
 
 
 
 
 
Credit Score
 
# of Loans
 
Aggregate Balance
 
Average Balance
 
% of Balance
500 to 550
 
20

 
$
3,261

 
$
163

 
1.1
%
551 to 600
 
50

 
12,614

 
252

 
4.4
%
601 to 650
 
225

 
45,608

 
203

 
15.8
%
651 to 700
 
464

 
89,345

 
193

 
31.0
%
701 to 750
 
472

 
84,783

 
180

 
29.5
%
751 to 800
 
291

 
46,567

 
160

 
16.2
%
801 to 850
 
41

 
3,633

 
89

 
1.3
%
Not available
 
9

 
1,879

 
209

 
0.7
%
Total
 
1,572

 
$
287,690

 
$
183

 
100.0
%
The following table sets forth distribution by primary collateral type of the Company’s SBA 7(a) unguaranteed loan portfolio at December 31, 2018 on a cost basis (in thousands):
Distribution by Primary Collateral Type
 
 
 
 
 
 
 
 
Collateral Type
 
# of Loans
 
Aggregate Balance
 
Average Balance
 
% of Balance
Commercial Real Estate
 
867

 
$
195,908

 
$
226

 
55.1
%
Machinery and Equipment
 
343

 
66,099

 
193

 
18.6
%
Residential Real Estate
 
401

 
32,285

 
81

 
9.1
%
Other
 
93

 
30,703

 
330

 
8.6
%
Accounts Receivable and Inventory
 
182

 
26,456

 
145

 
7.4
%
Liquid Assets
 
11

 
511

 
46

 
0.1
%
Unsecured
 
40

 
1,070

 
27

 
0.3
%
Furniture and Fixtures
 
23

 
2,557

 
111

 
0.8
%
Total
 
1,960

 
$
355,589

 
$
181

 
100.0
%

The following table sets forth distribution by primary collateral type of the Company’s SBA 7(a) unguaranteed loan portfolio at December 31, 2017 on a cost basis (in thousands):
Distribution by Primary Collateral Type
 
 
 
 
 
 
 
 
Collateral Type
 
# of Loans
 
Aggregate Balance
 
Average Balance
 
% of Balance
Commercial Real Estate
 
747

 
$
168,063

 
$
225

 
58.4
%
Machinery and Equipment
 
253

 
46,366

 
183

 
16.1
%
Residential Real Estate
 
317

 
25,789

 
81

 
9.0
%
Other
 
75

 
28,398

 
379

 
9.9
%
Accounts Receivable and Inventory
 
121

 
15,499

 
128

 
5.4
%
Liquid Assets
 
12

 
625

 
52

 
0.2
%
Unsecured
 
34

 
1,080

 
32

 
0.4
%
Furniture and Fixtures
 
13

 
1,870

 
144

 
0.6
%
Total
 
1,572

 
$
287,690

 
$
183

 
100.0
%
The following table sets forth distribution by days delinquent of the Company’s SBA 7(a) unguaranteed loan portfolio at December 31, 2018 on a cost basis (in thousands):

77




Distribution by Days Delinquent
 
 
 
 
 
 
 
 
Delinquency Status
 
# of Loans
 
Aggregate Balance
 
Average Balance
 
% of Balance
Current
 
1,711

 
$
290,053

 
$
170

 
81.6
%
1 to 30 days
 
60

 
15,139

 
252

 
4.3
%
31 to 60 days
 
38

 
8,044

 
212

 
2.3
%
61 to 90 days
 

 

 

 
%
91 days or greater
 
151

 
42,353

 
280

 
11.8
%
Total
 
1,960

 
$
355,589

 
$
181

 
100.0
%
The following table sets forth distribution by days delinquent of the Company’s SBA 7(a) unguaranteed loan portfolio at December 31, 2017 on a cost basis (in thousands):
Distribution by Days Delinquent
 
 
 
 
 
 
 
 
Delinquency Status
 
# of Loans
 
Aggregate Balance
 
Average Balance
 
% of Balance
Current
 
1,419

 
$
249,960

 
$
176

 
86.9
%
1 to 30 days
 
43

 
12,009

 
279

 
4.2
%
31 to 60 days
 
11

 
2,049

 
186

 
0.7
%
61 to 90 days
 
1

 
475

 
475

 
0.2
%
91 days or greater
 
98

 
23,197

 
237

 
8.0
%
Total
 
1,572

 
$
287,690

 
$
183

 
100.0
%
Comparison of the year ended December 31, 2018 and 2017
Investment Income
(in thousands)
December 31, 2018
 
December 31, 2017
 
Change
Investment income:
 
 
 
 
 
Interest income
$
23,807

 
$
18,671

 
$
5,136

Dividend income
12,630

 
9,747

 
2,883

Servicing income
8,552

 
7,206

 
1,346

Other income
4,526

 
3,290

 
1,236

Total investment income
$
49,515

 
$
38,914

 
$
10,601

Interest Income
The increase in interest income was attributable to the average outstanding performing portfolio of SBA non-affiliate investments increasing to $282,378,000 from $227,761,000 for the years ended December 31, 2018 and 2017, respectively, combined with an increase in the Prime Rate. During the year ended December 31, 2017, the Prime Rate was increased three times, to 3.75%, effective January 2017, to 4.00%, effective April 2017 and to 4.25%, effective July 2017. During the year ended December 31, 2018 the Prime Rate was increased three times, from 4.50% in January 2018 to 4.75%, effective April 2018, to 5.00% effective July 2018, and to 5.25% effective October 2018. The increase in the average outstanding performing portfolio resulted from the origination of new SBA non-affiliate investments during the year. We also recognized an additional $1,309,000 of interest income year over year from holding SBA guaranteed loans. Offsetting these increases was $1,493,000 of interest income related to accrued non-performing interest owed by two borrowers who paid their accrued interest balance in full in 2017.

78




Dividend Income
(in thousands)
December 31, 2018
 
December 31, 2017
 
Change
Newtek Merchant Solutions, LLC
$
7,800

 
$
7,100

 
$
700

Premier Payments LLC
2,950

 
1,575

 
1,375

International Professional Marketing, Inc.
125

 
550

 
(425
)
SIDCO, LLC
1,250

 
225

 
1,025

Mobil Money, LLC
165

 

 
165

CDS Business Services, Inc.

 
200

 
(200
)
The Secure CyberGateway, LLC

 
47

 
(47
)
United Capital Source, LLC
275

 
50

 
225

EMCAP Loan Holdings, LLC
65

 

 
65

Total dividend income
$
12,630

 
$
9,747

 
$
2,883


Dividend income increased $2,883,000 year over year based on each portfolio company’s financial results. During the year ended December 31, 2018, we earned $275,000 of dividend income from UCS, a wholly-owned controlled portfolio company that we invested in October 2017. See Note 3 for the discussion on the subsequent sale of UCS. During the year ended December 31, 2018, we earned an additional $600,000 of dividend income from IPM and SIDCO (combined as SIDCO was spun-off as a separate entity from IPM in July 2017), as a result of ownership for the full year. The increase in dividend income from NMS and Premier was a result increased profitability year over year, as well as an additional dividend paid by Premier in the fourth quarter of 2018 resulting from a portion of the gain recognized from the sale of one of its merchant portfolios. Dividend income is dependent on portfolio company earnings. Current period dividend income may not be indicative of future period dividend income.
NSBF Servicing Portfolio and Related Servicing Income
The following table represents NSBF originated servicing portfolio and servicing income earned for the years ended December 31, 2018 and 2017:
(in thousands):
December 31, 2018
 
December 31, 2017
 
 Change
Total NSBF originated servicing portfolio (1)
$
1,498,907

 
$
1,221,624

 
$
277,283

Total servicing income earned
$
8,552

 
$
7,206

 
$
1,346

(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $975,852,000 and $783,578,000 for the years ended December 31, 2018 and 2017, respectively.
The increase in servicing income was attributable to the increase in total portfolio investments for which we earn servicing income. The portfolio earning servicing income increased $192,274,000 year over year. The increase was attributable to an increase in SBA 7(a) non-affiliate investments from 2017 to 2018.
Other Income

Other income relates primarily to legal, packaging, prepayment, and late fees earned from SBA 7(a) loans. The increase was related to an increase in legal and packaging fees earned as a result of the larger dollar volume of loans originated.

79




Expenses:
(in thousands)
December 31, 2018
 
December 31, 2017
 
Change
Salaries and benefits
$
21,082

 
$
19,292

 
$
1,790

Interest
16,066

 
11,397

 
4,669

Depreciation and amortization
484

 
402

 
82

Professional fees
3,094

 
3,009

 
85

Origination and servicing
8,362

 
5,871

 
2,491

Change in fair value of contingent consideration liabilities
(51
)
 
(455
)
 
404

Loss on extinguishment of debt
1,059

 

 
1,059

Other general and administrative costs
6,907

 
7,279

 
(372
)
Total expenses
$
57,003

 
$
46,795

 
$
10,208

Salaries and Benefits

Salaries and benefits increased $1,790,000 primarily due to an increase in headcount at NSBF. The additional headcount relates primarily to employees performing loan processing, loan closing or loan servicing functions as a result of the increase in loan originations.
Interest Expense
The following is a summary of interest expense by facility for the years ended December 31, 2018 and 2017:
(in thousands)
December 31, 2018
 
December 31, 2017
 
Change
Notes payable - Securitization Trusts
$
8,748

 
$
5,537

 
$
3,211

Bank notes payable
1,473

 
1,188

 
285

Notes due 2022
707

 
707

 

Notes due 2021
718

 
3,164

 
(2,446
)
Notes due 2023
3,483

 

 
3,483

Notes payable - related parties
916

 
780

 
136

Other
21

 
21

 

Total interest expense
$
16,066

 
$
11,397

 
$
4,669


The increase in interest expense year over year is primarily related to interest from the Notes payable - Securitization trusts and 2023 Notes. The increase from Notes payable - Securitization trusts was the result of an additional securitization transaction completed in December 2017. We recognized $3,483,000 of interest expense attributable to the 2023 Notes, offset by the decrease in interest expense related the 2021 Notes of $2,446,000 as a result of our redemption of $40,250,000 of the 2021 Notes in March 2018 and issuance of $57,500,000 of 2023 Notes.

During the year ended December 31, 2018, we redeemed all $40,250,000 in aggregate principal amount of the 2021 Notes at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon from December 31, 2017, through, but excluding, the Redemption Date. As a result, we recorded loss on extinguishment of debt of $1,059,000 during the year ended December 31, 2018.

Origination and Servicing

The increase in origination and servicing expenses was attributed to an increase in referral fees of $998,000 resulting from increased SBA 7(a) loan originations year over year, as well as a $1,493,000 increase in loan processing, liquidation and loan recovery expenses, all of which resulted from an increase in the outstanding loan portfolio period over period.


80




Change in Fair Value of Contingent Consideration

A portion of our investments in IPM and Mobil Money consisted of contingent consideration based on both entities attaining specific income levels for 2018 and 2017 with respect to our investment in IPM and 2018 and 2019 with respect to our investment in Mobil Money. As a result, we decreased the contingent consideration liability by $51,000 and $455,000 for the years ended December 31, 2018 and 2017.
Net Realized Gains and Net Unrealized Appreciation and Depreciation

Net realized gains from SBA non-affiliate investments for the years ended December 31, 2018 and 2017 were $42,845,000 and $39,617,000, respectively, which includes realized losses on SBA non-affiliate investments of $2,738,000 and $894,000 during the years ended December 31, 2018 and 2017, respectively. During the second half of 2018, sale prices for guaranteed portions of SBA 7(a) loans were negatively impacted by market conditions, in particular a higher interest rate environment, which led to higher prepayments during the period resulting in lower sale prices in the secondary market. A continuation or further reduction in the price of guaranteed SBA 7(a) loans could negatively impact our business.

During the year ended December 31, 2018, the Company originated a non-SBA, conventional loan for $5,700,000 which was sold for $5,978,000 resulting in a realized gain of $278,000.

Net Realized Gains on SBA Non-Affiliate Investments

 
December 31, 2018
 
December 31, 2017
(in thousands)
# of Debt Investments
 
$ Amount
 
# of Debt Investments
 
$ Amount
SBA non-affiliate investments originated
569

 
$
469,176

 
480

 
$
385,882

SBA guaranteed non-affiliate investments sold
563

 
$
360,483

 
458

 
$
283,630

Realized gains recognized on sale of SBA guaranteed non-affiliate investments

 
$
45,583

 

 
$
40,511

Average sale price as a percent of principal balance (1)
 
 
110.52
%
 
 
 
111.99
%

(1) Realized gains greater than 110.00% must be split 50/50 with the SBA in accordance with SBA regulations. The realized gains recognized above reflects amounts net of split with the SBA.

Net Unrealized Appreciation (Depreciation) on Investments

(in thousands)
December 31, 2018
 
December 31, 2017
 
Change
Net unrealized (depreciation) appreciation on SBA guaranteed non-affiliate investments
$
(766
)
 
$
1,398

 
$
(2,164
)
Net unrealized appreciation (depreciation) on SBA unguaranteed non-affiliate investments
3,471

 
(1,342
)
 
4,813

Net unrealized appreciation on controlled investments
4,048

 
12,957

 
(8,909
)
Change in deferred taxes
(1,077
)
 
(2,179
)
 
1,102

Total net unrealized appreciation on investments
$
5,676

 
$
10,834

 
$
(5,158
)

Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments relates to the guaranteed portions of SBA debt investments originated which the Company sells into a secondary market. Unrealized appreciation of SBA guaranteed non-affiliate investments represents the fair value adjustment of guaranteed portions of loans which have not yet been sold. Unrealized depreciation represents the reversal of unrealized appreciation when the SBA 7(a) loans are sold. Valuation of SBA guaranteed non-affiliate investments were negatively impacted in 2018 due to market conditions and a higher interest rate environment which resulted in increased prepayment speeds.


81




Net Unrealized Appreciation (Depreciation) on Controlled Investments

(in thousands)
December 31, 2018
 
December 31, 2017
 
Change
Newtek Merchant Solutions, LLC (1)
$
13,250

 
$
17,000

 
$
(3,750
)
Newtek Technology Solutions, Inc.
(3,900
)
 
(7,659
)
 
3,759

Premier Payments LLC (1)

 
2,000

 
(2,000
)
CDS Business Services, Inc.
(3,000
)
 
7,250

 
(10,250
)
PMTWorks Payroll, LLC
(381
)
 
(3,045
)
 
2,664

banc-serv Partners, LLC
(4,939
)
 
(2,000
)
 
(2,939
)
Small Business Lending, LLC
550

 
(800
)
 
1,350

The Secure CyberGateway, LLC

 
300

 
(300
)
Newtek Insurance Agency, LLC
(420
)
 

 
(420
)
International Professional Marketing, Inc
(700
)
 

 
(700
)
SIDCO, LLC
700

 

 
700

Newtek Business Lending, LLC
3,000

 

 
3,000

Titanium Asset Management LLC

 
(42
)
 
42

Excel WebSolutions, LLC
(112
)
 
(47
)
 
(65
)
Total net unrealized appreciation on controlled investments
$
4,048

 
$
12,957

 
$
(8,909
)

(1)At December 31, 2018, Premier merged into NMS and as a result the valuation of NMS and related unrealized appreciation represents that of the combined entity.

Unrealized appreciation related to our investment in NMS was related to an increase in revenue and EBITDA projections combined with a decrease in the corporate income tax rate as recently enacted by Congress.

Unrealized depreciation related to our investment in NTS was primarily due to the cybersecurity event at NTS in early 2018, as well as NTS’ inability to add sufficient new business and resulting decline in revenue. NTS expects to incur additional costs associated with the continued cyber security remediation.

The increase of $3,000,000 at NBL and corresponding decrease of $3,000,000 at NBC during the year ended December 31, 2018 was a result of NBC’s SBA 504 lending program being conducted by NBL. NBL’s business will focus on SBA 504 and construction lending, while NBC focuses on accounts receivable and inventory financing.

During the year ended December 31, 2018, we contributed $381,000 and $135,000 to PMT and NIA, respectively, for working capital needs. Based on PMT’s and NIA’s inability to generate sufficient cash flows and their continued losses, we recognized unrealized depreciation of $381,000 and $420,000 for the year.

We recognized $4,939,000 in unrealized depreciation on our investment in BSP during the year ended December 31, 2018, which includes $1,509,000 in capital contributions which increased the cost basis of our investment in BSP. The valuation change for the year ended December 31, 2018, was the result of several quantitative and qualitative factors. On a quantitative basis, BSP’s financial performance has declined since we made our initial investment in BSP in 2016, and BSP has since lost customers, materially impacting its business. Second, as previously disclosed, on October 12, 2017, the FBI executed a search warrant at BSP’s office in Westfield, Indiana. In addition, Kerri Agee, the former owner and President of BSP, was terminated in April 2018. As a result of the foregoing factors which have impacted BSP’s ability to retain customers, BSP has assigned a significant number of its customer servicing agreements to SBL, as well as transferred remaining employees of BSP to SBL to continue to service those customers.  As such, BSP was determined to have a fair value of zero as of December 31, 2018 and SBL’s value increased due to the additional cash flows from the assigned third-party servicing accounts.  

Provision for Deferred Taxes on Net Unrealized Appreciation of Investments

Certain consolidated subsidiaries of ours are subject to U.S. federal and state income taxes. These taxable subsidiaries are not consolidated with the Company for income tax purposes, but are consolidated for GAAP purposes, and may generate income tax liabilities or assets from temporary differences in the recognition of items for financial reporting and income tax purposes at the subsidiaries. During the years ended December 31, 2018 and 2017, we recognized a provision for deferred taxes of

82




$1,077,000 and $2,179,000, respectively, related to the net unrealized appreciation of controlled portfolio company investments.

Net Unrealized Depreciation on Servicing Assets
(in thousands)
December 31, 2018
 
December 31, 2017
 
Change
Net unrealized depreciation on servicing assets
$
(5,685
)
 
$
(3,394
)
 
$
(2,291
)

The increase in unrealized depreciation on servicing assets is primarily related to the increase in the discount rate from 12.20% to 14.24%, coupled with an increase in the cumulative prepayment rate from 18.50% to 26.00%.
Comparison of the year ended December 31, 2017 and 2016
Investment Income
(in thousands)
December 31, 2017
 
December 31, 2016
 
Change
Investment income:
 
 
 
 
 
Interest income
$
18,671

 
$
11,518

 
$
7,153

Dividend income
9,747

 
10,573

 
(826
)
Servicing income
7,206

 
6,160

 
1,046

Other income
3,290

 
2,714

 
576

Total investment income
$
38,914

 
$
30,965

 
$
7,949

Interest Income
The increase in interest income was attributable to the average outstanding performing portfolio of SBA non-affiliate investments increasing to $227,761,000 from $176,210,000 for the years ended December 31, 2017 and 2016, respectively, combined with an increase in the Prime Rate. During the year ended December 31, 2016 the Prime Rate was 3.50%. During the year ended December 31, 2017 the Prime Rate was increased three times to 3.75%, effective January 2017, to 4.00%, effective April 2017 and to 4.25%, effective July 2017. The increase in the average outstanding performing portfolio resulted from the origination of new SBA non-affiliate investments during the year. In addition, during the year ended December 31, 2017, we recognized $1,493,000 of interest income related to accrued non-performing interest owed by two borrowers who paid their accrued interest balance in full.
Dividend Income
(in thousands)
December 31, 2017
 
December 31, 2016
 
Change
Universal Processing Services of Wisconsin, LLC
$
7,100

 
$
6,800

 
$
300

Premier Payments LLC
1,575

 
1,735

 
(160
)
Newtek Technology Solutions, Inc.

 
990

 
(990
)
International Professional Marketing, Inc.
550

 

 
550

SIDCO, LLC
225

 

 
225

Small Business Lending, LLC

 
696

 
(696
)
banc-serv Partners, LLC

 
300

 
(300
)
CDS Business Services, Inc.
200

 

 
200

The Secure CyberGateway, LLC
47

 
52

 
(5
)
United Capital Source, LLC
50

 

 
50

Total dividend income
$
9,747

 
$
10,573

 
$
(826
)

Dividend income decreased $826,000 year over year. During the year ended December 31, 2017, we earned $200,000 of dividend income from NBC, $550,000 and $225,000 of dividend income from IPM and SIDCO, respectively, both new wholly-

83




owned controlled portfolio companies that we invested in on April 6, 2017. Dividend income earned from NMS increased $300,000 year over year. These increases were offset by decreases in dividend income earned from NTS, SBL and BSP. Dividend income is dependent on portfolio company earnings. Current period dividend income may not be indicative of future period dividend income.
NSBF Servicing Portfolio and Related Servicing Income
The following table represents NSBF originated servicing portfolio and servicing income earned for the years ended December 31, 2017 and 2016:
(in thousands):
December 31, 2017
 
December 31, 2016
 
 Change
Total NSBF originated servicing portfolio (1)
$
1,221,624

 
$
960,517

 
$
261,107

Total servicing income earned
$
7,206

 
$
6,160

 
$
1,046

(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $783,578,000 and $633,126,000 for the years ended December 31, 2017 and 2016, respectively.
The increase in servicing income was attributable to the increase in total portfolio investments for which we earn servicing income. The portfolio earning servicing income increased $150,452,000 year over year. The increase was attributable to an increase in SBA 7(a) non-affiliate investments from 2016 to 2017.
Other Income

Other income relates primarily to legal, packaging, prepayment, and late fees earned from SBA 7(a) loans. The increase was related to an increase in legal and packaging fees earned as a result of the larger dollar volume of loans originated.
Expenses:
(in thousands)
December 31, 2017
 
December 31, 2016
 
Change
Salaries and benefits
$
19,292

 
$
15,234

 
$
4,058

Interest
11,397

 
8,440

 
2,957

Depreciation and amortization
402

 
296

 
106

Professional fees
3,009

 
3,274

 
(265
)
Origination and servicing
5,871

 
6,046

 
(175
)
Change in fair value of contingent consideration liabilities
(455
)
 

 
(455
)
Other general and administrative costs
7,279

 
6,935

 
344

Total expenses
$
46,795

 
$
40,225

 
$
6,570

Salaries and Benefits

Salaries and benefits increased $4,058,000 primarily due to an increase in headcount at NSBF. The additional headcount relates primarily to employees performing loan processing, loan closing or loan servicing functions as a result of the increase in loan originations. The increase in salaries and benefits was also related to a $386,000 increase in stock-based compensation expense year over year.
Interest Expense
The following is a summary of interest expense by facility for the years ended December 31, 2017 and 2016:

84




(in thousands)
December 31, 2017
 
December 31, 2016
 
Change
Notes payable - Securitization Trusts
$
5,537

 
$
3,976

 
$
1,561

Bank notes payable
1,188

 
1,260

 
(72
)
Notes due 2022
707

 
708

 
(1
)
Notes due 2021
3,164

 
2,181

 
983

Notes payable - related parties
780

 
260

 
520

Other
21

 
55

 
(34
)
Total interest expense
$
11,397

 
$
8,440

 
$
2,957


The increase in interest expense year over year is primarily related to interest from the Notes payable - Securitization trusts, 2021 Notes and Notes payable - related parties. The increase from Notes payable - Securitization trusts was the result of an additional securitization transaction completed in November 2016 and December 2017. In April 2016, we issued $40,250,000 of 2021 Notes bearing interest at 7.00%. During the year ended December 31, 2017, we incurred a full year of interest expense as compared to a partial year of interest expense in 2016. The increase from Notes payable - related parties was related to the increase in the average outstanding balance year over year.

Change in Fair Value of Contingent Consideration

A portion of our investment in IPM consisted of contingent consideration based on IPM attaining specific EBITDA levels for 2017 and 2018. During the year ended December 31, 2017, we reduced the contingent consideration liability by $455,000 based on the probability of IPM attaining specific EBITDA levels for 2017 and 2018.
Other General and Administrative Costs

Other general and administrative costs include managed IT services, marketing, rent and other costs. In April 2016, the Company moved its headquarters to Lake Success, New York. As a result, the Company vacated its spaces in West Hempstead, New York and New York, New York. The Company recorded a loss of $604,000 related to the remaining liabilities under the West Hempstead lease, offset by future rental income, during the year ended December 31, 2016. No such expense was incurred during the year ended December 31, 2017. The Company has sublet both spaces. This decrease was offset by $1,397,000 of bad debt expense related to amounts owed from related parties, primarily PMT and BSP, which we determined to be uncollectible and an increase in referral fees of $485,000 related to the increase in loan originations year over year.
Net Realized Gains and Net Unrealized Appreciation and Depreciation

Net realized gains or losses on investments are measured by the difference between the net proceeds from the repayment or sale and the cost basis of our investments without regard to unrealized appreciation or depreciation previously recognized and includes investments charged off during the period, net of recoveries. The net change in unrealized appreciation or depreciation on investments 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

Net realized gains from SBA non-affiliate investments for the years ended December 31, 2017 and 2016 were $39,617,000 and $31,512,000, respectively, which includes realized losses of $894,000 and $925,000 during the years ended December 31, 2017 and 2016, respectively.

 
December 31, 2017
 
December 31, 2016
(in thousands)
# of Debt Investments
 
$ Amount
 
# of Debt Investments
 
$ Amount
SBA non-affiliate investments originated
480

 
$
385,882

 
402

 
$
309,147

SBA guaranteed non-affiliate investments sold
458

 
$
283,630

 
379

 
$
226,435

Realized gains recognized on sale of SBA guaranteed non-affiliate investments

 
$
40,511

 

 
$
32,437

Average sale price as a percent of principal balance (1)
 
 
111.99
%
 
 
 
111.91
%

85





(1) Realized gains greater than 110.00% must be split 50/50 with the SBA in accordance with SBA regulations. The realized gains recognized above reflects amounts net of split with the SBA.

Net Realized Gains (Losses) on Controlled Investments

During the year ended December 31, 2017 we recorded $200,000 in net realized losses from controlled portfolio companies which consisted of a $100,000 realized gain from a distribution in excess of cost basis from SBL and a $300,000 realized loss related to the reversal of unrealized depreciation on a debt investment in The Secure CyberGateway, LLC. For the year ended December 31, 2016, realized gains on controlled investments were $108,000 and represented distributions from SBL in excess of cost basis.
 
Net Unrealized Appreciation (Depreciation) on Investments

(in thousands)
December 31, 2017
 
December 31, 2016
 
Change
Net unrealized appreciation on SBA guaranteed non-affiliate investments
$
1,398

 
$
1,035

 
$
363

Net unrealized (depreciation) appreciation on SBA unguaranteed non-affiliate investments
(1,342
)
 
18

 
(1,360
)
Net unrealized appreciation on controlled investments
12,957

 
11,337

 
1,620

Change in deferred taxes
(2,179
)
 
(5,128
)
 
2,949

Net unrealized depreciation on non-control/non-affiliate investments

 
(43
)
 
43

Net unrealized loss in credits in lieu of cash and notes payable in credits in lieu of cash

 
(5
)
 
5

Total net unrealized appreciation on investments
$
10,834

 
$
7,214

 
$
3,620


Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments relates to guaranteed portions of SBA debt investments made which the Company sells into a secondary market. Unrealized appreciation of SBA guaranteed investments represents the fair value adjustment of guaranteed portions of loans which have not yet been sold. Unrealized depreciation represents the reversal of unrealized appreciation when the SBA 7(a) loans are sold.

Net Unrealized Appreciation (Depreciation) on Controlled Investments

(in thousands)
December 31, 2017
 
December 31, 2016
 
Change
Universal Processing Services of Wisconsin, LLC
$
17,000

 
$
10,552

 
$
6,448

Newtek Technology Solutions, Inc.
(7,659
)
 
(975
)
 
(6,684
)
Premier Payments LLC
2,000

 
4,562

 
(2,562
)
CDS Business Services, Inc.
7,250

 
(175
)
 
7,425

PMTWorks Payroll, LLC
(3,045
)
 
(185
)
 
(2,860
)
banc-serv Partners, LLC
(2,000
)
 
140

 
(2,140
)
Small Business Lending, LLC
(800
)
 
(2,200
)
 
1,400

The Secure CyberGateway, LLC
300

 
(296
)
 
596

Titanium Asset Management LLC
(42
)
 
(86
)
 
44

Excel WebSolutions, LLC
(47
)
 

 
(47
)
Total net unrealized appreciation on controlled investments
$
12,957

 
$
11,337

 
$
1,620


Unrealized appreciation related to our investment in NMS and Premier was related to an increase in revenue and EBITDA projections combined with a decrease in the corporate income tax rate as recently enacted by Congress. Unrealized appreciation related to our investment in NBC was related to growth in its SBA 504 lending program and growth in its accounts receivable and inventory financing programs.


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Unrealized depreciation related to our investment in NTS was related to weak financial performance. During the year ended December 31, 2017, we made an additional $1,000,000 debt investment in NPS. Due to NPS’ continued negative cash flows, we recorded an unrealized loss of $3,045,000 on our total investment in NPS, which consisted of an $860,000 equity investment and $2,185,000 of debt investments, including a $1,000,000 investment made in NPS in 2017. During the year ended December 31, 2017, the Company recorded a $2,000,000 unrealized loss on its investment in BSP to reflect the potential impact to the business and tradename as a result of the FBI investigation discussed in Note 9.

Provision for Deferred Taxes on Net Unrealized Appreciation of Investments

Certain consolidated subsidiaries of ours are subject to U.S. federal and state income taxes. These taxable subsidiaries are not consolidated with the Company for income tax purposes, but are consolidated for GAAP purposes, and may generate income tax liabilities or assets from temporary differences in the recognition of items for financial reporting and income tax purposes at the subsidiaries. During the years ended December 31, 2017 and 2016, we recognized a provision for deferred taxes of $2,179,000 and $5,128,000, respectively, related to the net unrealized appreciation of controlled portfolio company investments.

Net Unrealized Depreciation on Servicing Assets
(in thousands)
December 31, 2017
 
December 31, 2016
 
Change
Net unrealized depreciation on servicing assets
$
(3,394
)
 
$
(2,269
)
 
$
(1,125
)

The increase in unrealized depreciation on servicing assets is primarily related to the increase in the discount rate from 12.20% to 13.06% and an increase in the cumulative prepayment rate from 18.50% to 20.00%.


Liquidity and Capital Resources

Overview

Our liquidity and capital resources are derived from our Capital One Facility, Notes payable - related parties, 2022 Notes, 2023 Notes, securitization transactions and cash flows from operations, including investment sales and repayments, and income earned. Our primary use of funds from operations includes investments in portfolio companies and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our borrowings and the proceeds from the turnover of our portfolio and from public and private offerings of securities to finance our investment objectives. We may raise additional equity or debt capital through both registered offerings off a shelf registration, including “At-The-Market”, or ATM, and private offerings of securities. As of December 31, 2018, our asset coverage was 185%. See “Regulation.”

Public Offerings

ATM Program

The ATM Equity Distribution Agreement provides that we may offer and sell up to 4,400,000 shares of common stock from time to time through the Placement Agents. During the year ended December 31, 2018, we sold 291,232 shares of our common stock at a weighted average price of $19.14 per share. Proceeds, net of offering costs and expenses were $5,196,000. The Company may offer up to an additional 2,969,587 shares of common stock under the ATM Equity Distribution Agreement as of December 31, 2018.

We used the net proceeds for funding investments in debt and equity securities in accordance with our investment objective and strategies and for general corporate purposes including funding investments, repaying outstanding indebtedness and other general corporate purposes.

Equity Offerings

In January 2017 we completed a public offering of 2,250,000 shares of our common stock at a public offering price of $15.25 per share and an additional 337,500 shares of common stock at a public offering price of $15.25 per share pursuant to the underwriter's full exercise of the over-allotment option. Proceeds, net of offering costs and expenses were $37,042,000. There were no equity offerings during 2018.

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Debt Offerings

In February 2018, the Company and the Trustee entered into the Third Supplemental Indenture to the Base Indenture between the Company and the Trustee, relating to the Company’s issuance, offer and sale of $50,000,000 aggregate principal amount of 6.25% Notes due 2023. The Company granted an overallotment option of up to $7,500,000 in aggregate principal amount of the 2023 Notes. The sale of the Notes generated proceeds of approximately $47,901,000, net of underwriter's fees and expenses. In February 2018, the underwriters exercised their option to purchase $7,500,000 in aggregate principal amount of notes for an additional $7,275,000 in net proceeds. The 2023 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2023 Notes; (iii) effectively subordinated to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.

The 2023 Notes will mature on March 1, 2023 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 March 1, 2020, 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 2023 Notes bear interest at a rate of 6.25% per year payable quarterly on March 1, June 1, September 1, and December 1 of each year, commencing on June 1, 2018, and trade on the Nasdaq Global Market under the trading symbol “NEWTI.”

The Base Indenture, as supplemented by the Third 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) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act, to comply with (regardless of whether it is subject to) the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act and to provide financial information to the holders of the 2023 Notes and the Trustee if the Company should no longer be subject to the reporting requirements under the Exchange 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 provides for customary events of default and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding 2023 Notes may declare such 2023 Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period. At December 31, 2018, the Company was in compliance with all covenants related to the 2023 Notes.

In April 2016, the Company and the Trustee, entered into the Second Supplemental Indenture to the Base Indenture between the Company and the Trustee, relating to the Company’s issuance, offer and sale of $35,000,000 aggregate principal amount of 7.0% Notes due 2021. The Company granted an overallotment option of up to $5,250,000 in aggregate principal amount of the 2021 Notes. The sale of the Notes generated proceeds of approximately $33,750,000, net of underwriter's fees and expenses. In May 2016, the underwriters exercised their option to purchase $5,250,000 in aggregate principal amount of notes for an additional $5,066,000 in net proceeds. The 2021 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2021 Notes; (iii) effectively subordinated to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.

On March 22, 2018, the Company redeemed all $40,250,000 in aggregate principal amount of the 2021 Notes at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon from December 31, 2017, through, but excluding, the Redemption Date.

In September 2015, the Company and the Trustee entered into the Base Indenture and the First Supplemental Indenture relating to the Company's issuance, offer, and sale of $8,324,000, including the underwriter's partial exercise of their over-allotment option, in aggregate principal amount of the 7.5% Notes due 2022. The 2022 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2022 Notes; (iii) effectively subordinated to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries. The 2022 Notes will mature on September 30, 2022 and may be redeemed in whole or in part at the Company’s option at any time or

88




from time to time on or after September 23, 2018, at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption. Proceeds net of offering costs and expenses were $7,747,000.

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) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act, to comply with the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act, and to provide financial information to the holders of the 2022 Notes and the Trustee if the Company should no longer be subject to the reporting requirements under the Exchange Act. These covenants are subject to important limitations and exceptions that are described in the Base Indenture, as supplemented by the Second Supplemental Indenture. The Base Indenture provides for customary events of default and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding 2022 Notes may declare such 2022 Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period. At December 31, 2018, the Company is in compliance with all covenants related to the 2022 Notes.

Capital One Facilities

In May 2017, NSBF amended its Capital One facility to increase the facility from $50,000,000 to $100,000,000 and reduce the interest rate. The facility was amended again in June 2018 and the portion of the facility collateralized by the government guaranteed portion of SBA 7(a) loans, was reduced to Prime minus 0.75% (previously Prime minus 0.25%). The interest rate on the portion of the facility, collateralized by the non-guaranteed portion of SBA 7(a) loans, was reduced to Prime plus 0.25% (previously Prime plus 0.75%). The facility provides for a 55% advance rate on the non-guaranteed portions of the SBA 7(a) loans NSBF originates, and a 90% advance rate on the guaranteed portions of SBA 7(a) loans NSBF originates. In addition, the amendment extended the date on which the facility will convert to a term loan from May 16, 2017 to May 11, 2020 and extended the maturity date of the facility to May 11, 2022. 

At December 31, 2018, there was $34,700,000 outstanding under the guaranteed line of credit. No amounts were outstanding under the unguaranteed line of credit. At December 31, 2018 NSBF was in full compliance with all applicable loan covenants.

Notes Payable - Related Parties

In June 2015, the Company entered into a Related Party RLOC with certain controlled portfolio companies. Maximum borrowings under the Related Party RLOC were $38,000,000.

In June 2017, the Related Party RLOC was amended to increase maximum borrowings to $50,000,000. The outstanding balance had an interest rate equal to LIBOR (with a floor of 0.50%) plus 6% or at a rate equal to the greater of the Prime Rate or 3.5% plus 5.0%. In November 2018, the Related Party RLOC was amended to reduce the interest rate to the lesser LIBOR plus 2.5% or the Prime Rate plus 1.5%.

At December 31, 2018, the Related Party RLOC interest rate was 4.84%. The Related Party RLOC has a maturity date of November 8, 2023. Outstanding borrowings at December 31, 2018 were $16,840,000.

Securitization Transactions

Since 2010, NSBF has engaged in securitizations of the unguaranteed portions of its SBA 7(a) loans. In the securitization, it uses a special purpose entity (the “Trust”) which is considered a variable interest entity. Applying the consolidation requirements for VIEs under the accounting rules in ASC Topic 860, Transfers and Servicing, and ASC Topic 810, Consolidation, which became effective January 1, 2010, the Company determined that as the primary beneficiary of the securitization vehicle, based on its power to direct activities through its role as servicer for the Trust and its obligation to absorb losses and right to receive benefits, it needed to consolidate the Trusts. NSBF therefore consolidated the entity using the carrying amounts of the Trust’s assets and liabilities. NSBF reflects the assets in SBA Unguaranteed Non-Affiliate Investments and reflects the associated financing in Notes Payable - Securitization Trusts.

In November 2016, NSBF completed its seventh securitization which resulted in the transfer of $56,073,000 of unguaranteed portions of SBA loans to the 2016-1 Trust.  The 2016-1 Trust in turn issued securitization notes for the par amount of $53,444,000, consisting of $43,632,000 Class A notes and $9,812,000 of Class B notes, against the assets in a private placement. The Class A and Class B notes received an “A” and “BBB+” rating by S&P, respectively, and the final maturity date of the notes is February 2042.

89




In December 2017, NSBF completed its eighth securitization which resulted in the transfer of $76,188,000 of unguaranteed portions of SBA loans to the 2017-1 Trust.  The 2017-1 Trust in turn issued securitization notes for the par amount of $75,426,000, consisting of $58,111,000 Class A notes and $17,315,000 of Class B notes, against the assets in a private placement. The Class A and Class B notes received an “A” and “BBB-” rating by S&P, respectively, and the final maturity date of the notes is February 2043.

In October 2018, the 2013-1 Trust was terminated as a result of NSBF purchasing the 2013-1 Trust assets, with the 2013-1 Trust’s noteholders receiving the redemption price.  Certain of the 2013-1 Trust’s assets were subsequently transferred to the 2018-1 Trust.

In November 2018, NSBF completed its ninth securitization which resulted in the transfer of $108,551,000 of unguaranteed portions of SBA loans to the 2018-1 Trust.  The 2018-1 Trust in turn issued securitization notes for the par amount of $108,551,000, consisting of $82,876,000 Class A notes and $25,675,000 of Class B notes, against the assets in a private placement. The Class A and Class B notes received an “A” and “BBB-” rating by S&P, respectively, and the final maturity date of the notes is February 2044.

Share Repurchase Plan

On December 17, 2018, the Company announced that its Board approved a new share repurchase program under which the Company may repurchase up to 300,000 of the Company’s outstanding common shares on the open market.

On May 11, 2016, the Company announced that its Board approved a share repurchase program under which the Company could repurchase up to 150,000 of the Company’s outstanding common shares on the open market. This program terminated on November 11, 2016.

On November 21, 2016 the Company announced that its Board approved a new share repurchase program under which the Company may repurchase up to 200,000 of the Company’s outstanding common shares on the open market. This program terminated on May 21, 2017.

During the year ended December 31, 2016, the Company repurchased and retired 70,000 common shares in open market transactions for $866,000 as detailed in the table below. There were no share repurchases in 2017 or 2018.

Purchase date
 
Number of Shares Purchased
 
Price per Share
 
Total
March 10, 2016
 
10,000

 
$
12.34

 
$
123

March 18, 2016
 
20,000

 
$
12.45

 
249

March 18, 2016
 
30,000

 
$
12.48

 
375

March 23, 2016
 
10,000

 
$
11.88

 
119

Total
 
70,000

 
 
 
$
866



Cash Flows and Liquidity

As of December 31, 2018, the Company’s unused sources of liquidity consisted of $25,454,000 available through the Capital One facility; $22,927,000 available through notes payable with related parties; $2,316,000 in unrestricted cash and $9,000 in money market funds.

Restricted cash of $29,034,000 as of December 31, 2018 is primarily held by NSBF. The majority, or $28,282,000 of restricted cash includes reserves in the event payments are insufficient to cover interest and/or principal with respect to securitizations and loan principal and interest collected which are due to loan participants.

The Company generated and used cash as follows:

90




 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Net cash used in operating activities
$
(73,666
)
 
$
(72,936
)
 
$
(14,099
)
Net cash used in investing activities
(627
)
 
(446
)
 
(375
)
Net cash provided by financing activities
85,105

 
71,024

 
10,193

Net increase (decrease) in cash and restricted cash
10,812

 
(2,358
)
 
(4,281
)
Cash and restricted cash, beginning of year
20,538

 
22,896

 
27,177

Cash and restricted cash, end of year
$
31,350

 
$
20,538

 
$
22,896

For the year ended December 31, 2018:

During the year ended December 31, 2018, operating activities used cash of $73,666,000, consisting primarily of (i) an increase in broker receivables which arise from the guaranteed portions of SBA 7(a) loans that were traded but had not settled before period end and represent the amount of cash due from the purchasing broker; the amount varies depending on loan origination volume and timing of sales at period end, (ii) $469,176,000 of SBA 7(a) loan investments funded (iii) $12,318,000 of advances to NBC under a revolving line of credit (iv) $13,909,000 investments in NBL (v) a $5,700,000 non-control/non-affiliate investment and (vi) a $1,750,000 investment in Mobil Money.

These decreases were offset by (i) $406,066,000 of proceeds from the sale of SBA 7(a) guaranteed investments, (ii) $56,517,000 of principal payments received consisting of $42,505,000 from SBA non-affiliate investments, $14,011,000 from controlled investments, including $12,714,000 from NBC (iii) $5,978,000 of proceeds from the sale of a non-control/non-affiliate investment and (iv) $8,785,000 return of investment consisting of $8,464,000 from NBL and $321,000 from Mobil Money.

Net cash provided by financing activities was $85,105,000 consisting primarily of (i) net proceeds $37,042,000 from the sale of 2,857,500 shares of common stock, (ii) net proceeds of $19,620,000 from the sale of 291,232 shares of common stock under the ATM Equity Distribution Agreement, (iii) $5,601,000 of net borrowings under the related party revolving line of credit and (iv) the issuance of additional securitization notes payable of $75,426,000. These increases were offset by (i) $28,934,000 of dividend payments, (ii) $31,036,000 of principal payments on securitization notes payable and (iii) net repayments of $5,100,000 on bank notes payable.
For the year ended December 31, 2017:

During the year ended December 31, 2017, operating activities used cash of $68,486,000, consisting primarily of (i) an increase in broker receivables which arise from the guaranteed portions of SBA 7(a) loans that were traded but had not settled before period end and represent the amount of cash due from the purchasing broker; the amount varies depending on loan origination volume and timing of sales at period end, (ii) $385,882,000 of SBA 7(a) loan investments funded (iii) $18,343,000 of advances to NBC under a revolving line of credit (iv) $10,997,000 of cash paid in connection with our investments in IPM and SIDCO, (v) $1,950,000 of cash paid in connection with our investment in UCS (vi) $6,469,000 purchase of SBA 7(a) loans from the SBA and (vii) a $3,255,000 non-control/non-affiliate investment.

These decreases to operating cash were offset by (i) $324,141,000 of proceeds from the sale of SBA 7(a) investments, (ii) $47,136,000 of principal payments received consisting of $27,035,000 from SBA non-affiliate investments, $3,255,000 from non-control/non-affiliate investments and $16,846,000 from controlled investments, including $14,637,000 from NBC and (iii) a decrease in restricted cash of $4,450,000.

Net cash provided by financing activities was $69,345,000 consisting primarily of (i) net proceeds $37,042,000 from the sale of 2,857,500 shares of common stock, (ii) net proceeds of $19,620,000 from the sale of 1,139,000 shares of common stock under the ATM Equity Distribution Agreement, (iii) $5,601,000 of net borrowings under the related party revolving line of credit and (iv) the issuance of additional securitization notes payable of $75,426,000. These increases were offset by (i) $28,934,000 of
dividend payments, (ii) $31,036,000 of principal payments on securitization notes payable and (iii) net repayments of $5,100,000 on bank notes payable.
Contractual Obligations
The following table represents our obligations and commitments as of December 31, 2018 for future cash payments under debt, lease and employment agreements:

91




 
Payments due by period
Contractual Obligations
Total
 
Less than 1 year
 
1-3 years
 
3-5 years
 
More than 5 years
Bank notes payable
$
34,700

 
$
34,700

 
$

 
$

 
$

Securitization notes payable (1)
220,137

 

  

  

 
220,137

Notes due 2022 (1)
8,324

 

 

 
8,324

 

Notes due 2023 (1)
57,500

 

 

 
57,500

 

Note payable - related party
16,840

 

 

 
16,840

 

Operating leases (2)
13,311

 
1,826

  
3,087

  
3,055

 
5,343
Employment agreements
343

 

  
343

  

 

Total contractual obligations
$
351,155

 
$
36,526

  
$
3,430

  
$
85,719

 
$
225,480

(1) Amounts represent principal only and are not shown net of unamortized debt issuance costs. See Note 8.
(2) Minimum payments have not been reduced by minimum sublease rentals of $115,000 due in the future under non-cancellable subleases.

Guarantees
The Company is a guarantor on the Sterling Receivable and Inventory Facility at NBC. Maximum borrowings under the Sterling Receivable and Inventory Facility are $22,500,000. The Sterling Receivable and Inventory Facility matures in February 2020 and automatically renews annually. At December 31, 2018, total principal owed by NBC was $16,477,000. In addition, the Company deposited $750,000 to collateralize the guarantee. At December 31, 2018, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is also a guarantor on the Sterling 504 Facility at NBC. Maximum borrowings under the 504 Facility are $35,000,000, depending upon syndication. The Sterling 504 Facility matures in March 2019. At December 31, 2018, total principal owed by NBC was $7,283,000. At December 31, 2018, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is a guarantor on the NBL Facility. Maximum borrowings under the NBL Facility are $75,000,000 with an accordion feature to increase maximum borrowings to $150,000,000. The NBL Facility matures in July 2021. At December 31, 2018, total principal owed by NBL was $13,855,000. At December 31, 2018, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is a guarantor on the Webster Facility, a term loan facility between NMS and Webster Bank with an aggregate principal amount up to $50,000,000. The Webster Facility matures in November 2023. At December 31, 2018, total principal outstanding was $35,000,000. At December 31, 2018, the Company determined that it is not probable that payments would be required to be made under the guarantee.

No amounts related to the guarantees discussed above are included in the calculation of our asset coverage ratio at December 31, 2018.

Critical Accounting Policies and Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies.

Fair Value Measurements

We value investments for which market quotations are readily available at their market quotations. However, a readily available market value is not expected to exist for many of the investments in our portfolio, and we value these portfolio investments at fair value as determined in good faith by our Board under our valuation policy and process. We may seek pricing information with respect to certain of our investments from pricing services or brokers or dealers in order to value such investments. We

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also employ independent third-party valuation firms for certain of our investments for which there is not a readily available market value. 

The application of our 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.

Our Board is ultimately and solely responsible for determining, in good faith, the fair value of investments that are not publicly traded, whose market prices are not readily available on a quarterly basis or any other situation where portfolio investments require a fair value determination.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels for disclosure purposes. The Company carries all investments at fair value. Additionally, the Company carries its credits in lieu of cash, notes payable in credits in lieu of cash, and servicing assets at fair value. The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and gives the lowest priority to unobservable inputs (Level 3). An asset or liability’s classification within the fair value hierarchy is based on the lowest level of the significant input to its valuation. The levels of the fair value hierarchy are as follows:

 
 
 
Level 1
  
Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets.
 
 
Level 2
  
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities, corporate debt securities, derivative contracts and residential mortgage loans held-for-sale.
 
 
Level 3
  
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly structured or long-term derivative contracts.

Valuation of Investments

Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. Level 3 investments are valued at fair value as determined in good faith by the Board, based on input of management, the audit committee and independent valuation firms that have been engaged at the direction of the Board to assist in the valuation of certain portfolio investments without a readily available market quotation at least once during a trailing twelve-month period under a valuation policy and a consistently applied valuation process.

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

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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 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.

Changes in the market environment, portfolio company performance and other events that may occur over the lives of the investments may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned. We determine the fair value of each individual investment and record changes in fair value as unrealized appreciation or depreciation. Our investment portfolio is carried on the consolidated statements of assets and liabilities at fair value with any adjustments to fair value recognized as "Net unrealized appreciation (depreciation)" on the consolidated statements of operations until the investment is realized, usually upon exit, resulting in any gain or loss being recognized as a "Net realized gains (losses)."
Our Board has the final responsibility for overseeing, reviewing and approving, in good faith, our determination of the fair value for our investment portfolio and our valuation procedures, consistent with 1940 Act requirements. We believe our investment portfolio as of December 31, 2018 and 2017 approximates fair value as of those dates based on the markets in which we operate and other conditions in existence on those reporting dates.

Income Recognition

Interest on loan investments is accrued and included in income based on contractual rates applied to principal amounts outstanding. Interest income is determined using a method that results in a level rate of return on principal amounts outstanding. When a loan becomes 90 days or more past due, or if we otherwise do not expect to receive interest and principal repayments, the loan is placed on non-accrual status and the recognition of interest income is discontinued. Interest payments received on loans that are on non-accrual status are treated as reductions of principal until the principal is repaid.

We receive servicing income related to the guaranteed portions of SBA loan investments which we sell into the secondary market. These recurring fees are earned daily and recorded when earned. Servicing income is earned for the full term of the loan or until the loan is repaid.

We receive a variety of fees from borrowers in the ordinary course of conducting our business, including packaging fees, legal fees, late fees and prepayment fees. All other income is recorded when earned.

Dividend income is recorded at the time dividends are declared. Distributions of earnings from portfolio companies are evaluated to determine if the distribution is income, return of capital or realized gain.

Income Taxes 

Deferred tax assets and liabilities are computed based upon the differences between the financial statement and income tax basis of assets and liabilities using the enacted tax rates in effect for the year in which those temporary differences are expected to be realized or settled. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax

94




assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized.

The Company’s U.S. federal and state income tax returns prior to fiscal year 2014 are generally closed, and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings.

The Company has elected to be treated as a RIC under the Code beginning with the 2015 tax year and operates in a manner so as to continue to qualify for the tax treatment applicable to RICs. The RIC tax return includes Newtek Business Services Corp. and NSBF, a single member LLC disregarded for tax purposes. None of the Company’s other subsidiaries are included in the RIC tax return. The Company will evaluate and record any deferred tax assets and liabilities of the subsidiaries that are not included in the RIC tax return. In order to maintain its RIC tax treatment, among other things, the Company is 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 any income that is distributed to its stockholders as dividends.

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 years ended December 31, 2018, 2017 and 2016, no U.S. federal excise taxes were due.

The Company’s Taxable Subsidiaries accrue income taxes payable based on the applicable corporate rates on the net unrealized appreciation generated by the controlled investments held by the Taxable Subsidiaries. Such deferred tax liabilities amounted to $9,241,000 and $8,164,000 at December 31, 2018 and 2017, respectively, and are recorded as a deferred tax liabilities on the consolidated statements of assets and liabilities. The change in deferred tax liabilities is included as a component of net unrealized appreciation (depreciation) on investments in the consolidated statements of operations.

Recently Adopted Accounting Standards

In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force),” which requires that the statement of cash flow explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted this standard with respect to its statement of cash flows.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. ASU 2014-09 supersedes the revenue recognition requirements under ASC 605, “Revenue Recognition”, and most industry-specific guidance
throughout the Industry Topics of the ASC. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Under the new guidance, an entity is required to perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new guidance will significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. Additionally, the guidance requires improved disclosures as to the nature, amount, timing and uncertainty of revenue that is recognized. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”, which clarified the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”, which clarified the implementation guidance regarding performance obligations and licensing arrangements. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606)—Narrow-Scope Improvements and Practical Expedients”, which clarified guidance on assessing collectability, presenting sales tax, measuring noncash consideration, and certain transition matters. In December 2016, the FASB issued ASU No. 2016-20, “Revenue from Contracts with Customers (Topic 606)—Technical Corrections and Improvements”, which provided disclosure relief, and clarified the scope and application of the new revenue standard and related cost guidance. The ASU is effective for annual reporting periods beginning after December 15, 2017, and interim

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periods within that reporting period. The Company has evaluated the guidance under Topic 606 and has identified similar performance obligations under ASC 606 as compared with deliverables and separate units of account previously identified. The Company adopted this standard with respect to its revenue recognition. The Company evaluated each revenue stream and concluded that all were covered by the scope exceptions as detailed in Topic 606. As a result, the Company determined that the timing of its revenue recognition will remain the same.

New Accounting Standards

 In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820)”, which is intended to improve fair value and defined benefit disclosure requirements by removing disclosures that are not cost-beneficial, clarifying disclosures' specific requirements, and adding relevant disclosure requirements. The ASU is effective for annual reporting periods beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration of greater than one year. The ASU is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those periods. Early adoption is permitted. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements”, which now allows entities the option of recognizing the cumulative effect of applying the new standard as an adjustment to the opening balance of retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. The Company has completed its review of the new guidance and estimates that approximately $8,900,000 and $10,900,000 would be recognized as total right-of-use assets and total lease liabilities, respectively. After the reversal of previously recorded deferred rent and lease incentive liabilities, the Company estimates the net impact to the Company’s net assets to be an increase of approximately $119,000.
Subsequent Events

Dividend Declaration

On February 15, 2019, the Company declared a quarterly cash dividend of $0.40 per share payable on March 29, 2019 to shareholders of record as of March 15, 2019. The dividend will be paid in cash or shares of the Company's common stock through participation in the Company's DRIP, at the election of shareholders.

Securitization Activity

On February 25, 2019, the 2010-1 Trust was terminated as a result of NSBF purchasing the 2010-1 Trust assets, with the 2010-1 Trust’s noteholders receiving the redemption price. 

Common Stock

From January 1, 2019 through March 15, 2019 the Company sold 134,658 shares of its common stock at a weighted average price of $18.89 per share under the ATM Equity Distribution Agreement. Proceeds, net of offering costs and expenses were $2,544,000. As of March 15, 2019, there were 2,834,929 shares of common stock available for sale under the ATM Equity Distribution Agreement.
Off Balance Sheet Arrangements
None.
Impact of Inflation
The impact of inflation and changing prices on our results of operations is not material.
ITEM 7A. 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 held for sale. Risk management systems and procedures are

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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 warehouse lines, securitization notes and related party debt 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 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. During the third quarter of 2018, sale prices for guaranteed portions of SBA 7(a) loans was negatively impacted by market conditions, in particular a higher interest rate environment, which led to higher prepayments during the period, resulting in lower sale prices in the secondary market. A continuation or further reduction in the price of guaranteed SBA 7(a) loans could negatively impact our business.
We do not have significant exposure to changing interest rates on invested cash which was approximately $31,359,000 at December 31, 2018. 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. 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 December 31, 2018, cash deposits in excess of insured limits totaled approximately $19,162,000.
ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
Our consolidated financial statements and related notes begin on Page F-1, which are included in this Annual Report on Form 10-K.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
None.
ITEM 9A. CONTROLS AND PROCEDURES.

(a)  Evaluation of Disclosure Controls and Procedures

As of December 31, 2018 (the end 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) of the 1934 Act). Based on that evaluation, our management, including our Chief Executive Officer and Chief Accounting Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Accounting Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated 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.

(b)  Management’s Report on Internal Control over Financial Reporting


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Management is responsible for establishing and maintaining adequate internal control over financial reporting, and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, 2018. Internal control over financial reporting is a process designed 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. The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Management performed an assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018 based upon criteria in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on our assessment, management determined that the Company’s internal control over financial reporting was effective as of December 31, 2018 based on the criteria in Internal Control — Integrated Framework (2013) issued by COSO.

(c)  Attestation Report of the Registered Public Accounting Firm.

RSM US LLP, our independent registered public accounting firm, has issued an attestation report on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018, as stated in its report, which is included under “Item 8. Consolidated Financial Statements and Supplementary Data” of this annual report on Form 10-K.

(d)  Changes in Internal Control over Financial Reporting.

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934) that occurred during our most recently completed fiscal quarter, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
ITEM 9B. OTHER INFORMATION.
None.
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
The information required by Item 10 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2019 Annual Meeting of Shareholders, to be filed with the Securities and Exchange Commission not later than 120 days following the end of our fiscal year.
ITEM 11. EXECUTIVE COMPENSATION
The information required by Item 11 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2019 Annual Meeting of Shareholders, to be filed with the Securities and Exchange Commission not later than 120 days following the end of our fiscal year.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The information required by Item 12 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2019 Annual Meeting of Shareholders, to be filed with the Securities and Exchange Commission not later than 120 days following the end of our fiscal year.


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ITEM 13. CERTAIN RELATIONSHIPS, RELATED PARTY TRANSACTIONS AND DIRECTOR INDEPENDENCE
The information required by Item 13 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2019 Annual Meeting of Shareholders, to be filed with the Securities and Exchange Commission not later than 120 days following the end of our fiscal year.
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
The information required by Item 14 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2019 Annual Meeting of Shareholders, to be filed with the Securities and Exchange Commission not later than 120 days following the end of our fiscal year.


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PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.
(a)(1)    Financial Statements.
(a)(2)    Exhibits.
The following exhibits are filed herewith or are incorporated by reference to exhibits previously filed with the Securities and Exchange Commission.
Number
 
Description
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

100




 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Amended and Restated Credit and Guaranty Agreement, dated June 21, 2017, by and among Universal Processing Services of Wisconsin LLC, CrystalTech Web Hosting, Inc., Small Business Lending, LLC, ADR Partners, LLC, Premier Payments LLC, Newtek Business Services Corp., Wilshire Holdings I, Inc., The Whitestone Group, LLC, Newtek Business Services Holdco 1, Inc., Banc-Serv Acquisition, Inc., certain subsidiaries of Newtek Business Services Holdco 1, Inc. and Banc-Serv Acquisition, Inc., including Newtek LSP Holdco, LLC, CRY Sales, LLC and UPSWI Sales, LLC, the Lenders party thereto from time to time, Goldman Sachs Bank USA, as Administrative Agent and Collateral Agent, and Goldman Sachs Specialty Lending Group, L.P., as Lead Arranger (incorporated by reference to Exhibit 10.1 to Newtek’s Current Report on Form 8-K, filed June 23, 2017).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

101




 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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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: March 18, 2019
By:
/S/    BARRY SLOANE        
 
 
Barry Sloane
 
 
Chairman and Chief Executive Officer
(Principal Executive Officer)
 
 
 
Date: March 18, 2019
By:
/S/    JENNIFER EDDELSON        
 
 
Jennifer Eddelson
 
 
Chief Accounting Officer
(Principal Financial Officer and Principal Accounting Officer)
In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
Signature
Title
Date
 
 
 
/S/    BARRY SLOANE
Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer)
March 18, 2019
Barry Sloane
 
 
 
/S/    JENNIFER EDDELSON
Chief Accounting Officer (Principal Financial Officer and Principal Accounting Officer)
March 18, 2019
Jennifer Eddelson
 
 
 
/S/    RICHARD SALUTE
Director
March 18, 2019
Richard Salute
 
 
 
/S/    SALVATORE MULIA        
Director
March 18, 2019
Salvatore Mulia
 
 
 
/S/    GREGORY ZINK
Director
March 18, 2019
Gregory Zink
 
 
 
/S/    PETER DOWNS
Director
March 18, 2019
Peter Downs

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NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Table of Contents
 
PAGE NO.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


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Report of Independent Registered Public Accounting Firm
 
 
To the Board of Directors and Stockholders
Newtek Business Services Corp. and Subsidiaries
 
Opinion on the Financial Statements
We have audited the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, of Newtek Business Services Corp. and Subsidiaries (the Company) as of December 31, 2018 and 2017, and the related consolidated statements of operations, changes in net assets and cash flows for each of the three years in the period ended December 31, 2018, and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated March 18, 2019, expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
 
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
 
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of investments owned as of December 31, 2018 and 2017, by correspondence with the borrowers or by other appropriate auditing procedures where replies from the borrowers were not received and with respect to controlled investments. We believe that our audits provide a reasonable basis for our opinion.
 
/s/ RSM US LLP
 
We have served as the Company's auditor since 2013.
 
New York, New York
March 18, 2019







F-1





Report of Independent Registered Public Accounting Firm


To the Board of Directors and Stockholders
Newtek Business Services Corp. and Subsidiaries

Opinion on the Internal Control Over Financial Reporting
We have audited Newtek Business Services Corp. and Subsidiaries’ (the Company) internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of assets and liabilities of the Company, including the consolidated schedules of investments, as of December 31, 2018 and 2017, and the related consolidated statements of operations, changes in net assets, and cash flows for each of the three years in the period ended December 31, 2018, and our report dated March 18, 2019 expressed an unqualified opinion.

Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting
A company's internal control over financial reporting is a process designed 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. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ RSM US LLP

New York, New York
March 18, 2019




F-2




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)
 
December 31,
 
2018
 
2017
ASSETS
 
 
 
Investments, at fair value
 
 
 
SBA unguaranteed non-affiliate investments (cost of $355,589 and $287,690, respectively; includes $323,388 and $265,174, respectively, related to securitization trusts)
$
349,402

 
$
278,034

SBA guaranteed non-affiliate investments (cost of $17,217 and $22,841, respectively)
19,100

 
25,490

Controlled investments (cost of $74,279 and $57,085, respectively)
171,585

 
153,156

Non-control/affiliate investments (cost of $1,000 and $0, respectively)
1,000

 

Investments in money market funds (cost of $9 and $9, respectively)
9

 
9

Total investments at fair value
541,096

 
456,689

Cash
2,316

 
2,464

Restricted cash
29,034

 
18,074

Broker receivable
42,617

 
8,539

Due from related parties
3,232

 
2,255

Servicing assets, at fair value
21,360

 
19,359

Other assets
13,686

 
12,231

Total assets
$
653,341

 
$
519,611

LIABILITIES AND NET ASSETS
 
 
 
 Liabilities:
 
 
 
Bank notes payable
$
34,700

 
$

Notes due 2022 (par: $8,324 as of December 31, 2018 and 2017, see Note 8)
8,019

 
7,936

Notes due 2021 (par: $40,250 as of December 31, 2017, see Note 8)

 
39,114

Notes due 2023 (par: $57,500 as of December 31, 2018, see Note 8)
55,564

 

Notes payable - Securitization trusts (par: $220,137 and $165,432 as of December 31, 2018 and December 31, 2017, see Note 8)
216,507

 
162,201

Notes payable - related parties
16,840

 
7,001

Due to related parties
4

 

Deferred tax liabilities
9,241

 
8,164

Accounts payable, accrued expenses and other liabilities
25,021

 
16,866

Total liabilities
365,896

 
241,282

Commitments and contingencies (Note 9)
 
 
 
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, 18,919 and 18,457 issued and outstanding, respectively)
379

 
369

Additional paid-in capital
254,498

 
247,363

Accumulated undistributed earnings
32,568

 
30,597

Total net assets
287,445

 
278,329

Total liabilities and net assets
$
653,341

 
$
519,611

Net asset value per common share
$
15.19

 
$
15.08


            

F-3
See accompanying notes to these consolidated financial statements




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except for Per Share Data)
 
Year ended December 31, 2018
 
Year ended December 31, 2017
 
Year ended December 31, 2016
Investment income
 
 
 
 
 
From non-affiliate investments:
 
 
 
 
 
Interest income
$
23,067

 
$
18,018

 
$
11,158

Servicing income
8,552

 
7,206

 
6,160

Other income
4,526

 
3,236

 
2,714

Total investment income from non-affiliate investments
36,145

 
28,460

 
20,032

From Non-control/affiliate investments:
 
 
 
 
 
Dividend income
65

 

 

From controlled investments:
 
 
 
 
 
Interest income
740

 
653

 
360

Dividend income
12,565

 
9,747

 
10,573

Other income

 
54

 

Total investment income from controlled investments
13,305

 
10,454

 
10,933

Total investment income
49,515

 
38,914

 
30,965

Expenses:
 
 
 
 
 
Salaries and benefits
21,082

 
19,292

 
15,234

Interest
16,066

 
11,397

 
8,440

Depreciation and amortization
484

 
402

 
296

Professional fees
3,094

 
3,009

 
3,274

Origination and servicing
8,362

 
5,871

 
6,046

Change in fair value of contingent consideration liabilities
(51
)
 
(455
)
 

Loss on extinguishment of debt
1,059

 

 

Other general and administrative costs
6,907

 
7,279

 
6,935

Total expenses
57,003

 
46,795

 
40,225

Net investment loss
(7,488
)
 
(7,881
)
 
(9,260
)
Net realized and unrealized gains (losses):
 
 
 
 
 
Net realized gain on non-affiliate investments
42,845

 
39,617

 
31,512

Net realized gain on non-affiliate investments - conventional loan
278

 

 

Net realized gain (loss) on controlled investments
52

 
(200
)
 
108

Net unrealized (depreciation) appreciation on SBA guaranteed non-affiliate investments
(766
)
 
1,398

 
1,035

Net unrealized appreciation (depreciation) on SBA unguaranteed non-affiliate investments
3,471

 
(1,342
)
 
18

Net unrealized appreciation on controlled investments
4,048

 
12,957

 
11,337

Change in deferred taxes
(1,077
)
 
(2,179
)
 
(5,128
)
Net unrealized depreciation on non-control/non-affiliate investments

 

 
(43
)
Net unrealized depreciation on servicing assets
(5,685
)
 
(3,394
)
 
(2,269
)
Net unrealized depreciation on credits in lieu of cash and notes payable in credits in lieu of cash

 

 
(5
)
Net realized and unrealized gains
43,166

 
46,857

 
36,565

Net increase in net assets resulting from operations
$
35,678

 
$
38,976

 
$
27,305

Net increase in net assets resulting from operations per share
$
1.91

 
$
2.25

 
$
1.88


F-4
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except for Per Share Data)
 
Year ended December 31, 2018
 
Year ended December 31, 2017
 
Year ended December 31, 2016
Net investment loss per share
$
(0.40
)
 
$
(0.45
)
 
$
(0.64
)
Dividends and distributions declared per common share
$
1.80

 
$
1.64

 
$
1.53

Weighted average number of shares outstanding
18,714

 
17,327

 
14,541


F-5
See accompanying notes to these consolidated financial statements




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(In Thousands)
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Increase in net assets:
 
 
 
 
 
Net investment loss
$
(7,488
)
 
$
(7,881
)
 
$
(9,260
)
Net realized gains on investments
43,175

 
39,417

 
31,620

Net change in unrealized (depreciation) appreciation
(9
)
 
7,440

 
4,945

Net increase in net assets resulting from operations
35,678

 
38,976

 
27,305

Distributions to common stockholders
(33,533
)
 
(28,934
)
 
(22,163
)
Capital share transactions:
 
 
 
 
 
Issuance of common stock under dividend reinvestment plan
1,099

 
735

 
665

Stock-based compensation expense
585

 
963

 
578

Repurchase of common stock under share repurchase plan

 

 
(866
)
Issuance of common stock in connection with investment in Mobil Money, LLC
200

 

 

Issuance of common stock in connection with investment in International Professional Marketing, Inc.

 
1,000

 
 
Issuance of common stock in connection with investment in United Capital Source, LLC

 
500

 

Purchase of vested stock for employee payroll tax withholding
(109
)
 
(667
)
 

Issuance of common stock, net of offering costs
5,196

 
56,662

 

Net increase in net assets from capital share transactions
6,971

 
59,193

 
377

Other transactions:
 
 
 
 
 
Consolidation of Exponential Business Development Co., Inc. (Note 2)

 

 
(376
)
Return of dividends related to common stock issued in connection with litigation settlement

 

 
2

Net decrease in net assets from other transactions

 

 
(374
)
Total increase in net assets
9,116

 
69,235

 
5,145

Net assets at beginning of period
278,329

 
209,094

 
203,949

Net assets at end of period
$
287,445

 
$
278,329

 
$
209,094

Common shares outstanding at end of period
18,919

 
18,457

 
14,624

Capital share activity:
 
 
 
 
 
Shares issued under dividend reinvestment plan
61

 
44

 
58

Shares issued in connection with public offerings
291

 
3,727

 

Shares issued in connection with investment in International Professional Marketing, Inc.
11

 
60

 


F-6
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(In Thousands)
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Shares issued in connection with investment in United Capital Source, LLC

 
29

 

Shares repurchased under share repurchase plan

 

 
(70
)
Purchase of vested stock for employee payroll tax withholding
(6
)
 
(39
)
 

Restricted shares issued under Equity Incentive Plan, net of forfeitures
105

 
12

 
127

Net increase in common shares from capital share activity
462

 
3,833

 
115


F-7
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Cash flows from operating activities:
 
 
 
 
 
Net increase in net assets resulting from operations
$
35,678

 
$
38,976

 
$
27,305

Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
 
 
 
 
 
Net unrealized appreciation on controlled investments
(4,048
)
 
(12,957
)
 
(11,337
)
Net unrealized appreciation on non-affiliate investments
(2,706
)
 
(56
)
 
(1,010
)
Net unrealized depreciation on servicing assets
5,685

 
3,394

 
2,269

Realized (gains) losses on controlled investments
(52
)
 
200

 
(108
)
Realized gains on non-affiliate investments
(45,860
)
 
(40,511
)
 
(32,437
)
Realized losses on non-affiliate investments
2,738

 
894

 
925

Allowance for doubtful accounts
537

 
1,397

 

Change in fair value of contingent consideration liabilities
(51
)
 
(455
)
 

Loss on extinguishment of debt
1,059

 

 

Amortization of deferred financing costs
1,871

 
1,392

 
1,327

Deferred income taxes
1,077

 
2,179

 
5,128

Depreciation and amortization
484

 
402

 
296

Purchase of loans from SBA
(1,206
)
 
(6,469
)
 
(2,057
)
Purchase of SBA 7(a) loan portfolio

 
(175
)
 

Funding of guaranteed non-affiliate SBA loans
(356,075
)
 
(296,120
)
 
(234,908
)
Funding of unguaranteed non-affiliate SBA loans
(113,101
)
 
(89,762
)
 
(74,239
)
Funding of controlled investments
(38,077
)
 
(32,320
)
 
(8,595
)
Funding of non-control/non-affiliate investment
(5,700
)
 
(3,255
)
 
(1,020
)
Funding of non-control/affiliate investment
(1,000
)
 

 

Proceeds from sale of non-affiliate SBA loans
406,066

 
324,141

 
258,873

Proceeds from sale of controlled investment
2,502

 

 

Proceeds from sale of non-control/non-affiliate investment
5,978

 

 

Principal received on SBA non-affiliate investments
42,505

 
27,035

 
22,106

Principal received from controlled investments
14,011

 
16,846

 
4,052

Principal received from non-control/non-affiliate investment

 
3,255

 
751

Return of investment from controlled investments
8,785

 
50

 
535

Distributions received from investments in excess of basis

 
100

 
108

Other, net
995

 
908

 
1,385

Changes in operating assets and liabilities:
 
 
 
 
 
Investment in money market funds

 
26

 

Broker receivable
(34,078
)
 
(6,137
)
 
29,681

Due to/from related parties
(1,511
)
 
(1,131
)
 
(158
)
Other assets
410

 
(632
)
 
(191
)
Accounts payable, accrued expenses and other liabilities
7,162

 
2,374

 
2,708

Capitalized servicing asset
(7,686
)
 
(6,506
)
 
(5,474
)
Other, net
(58
)
 
(19
)
 
(14
)
Net cash used in operating activities
(73,666
)
 
(72,936
)
 
(14,099
)

F-8
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Cash flows from investing activities:
 
 
 
 
 
Purchase of fixed assets
(627
)
 
(446
)
 
(375
)
Cash flows from financing activities:
 
 
 
 
 
Net borrowings (repayments) on bank lines of credit
34,700

 
(5,100
)
 
(24,000
)
Proceeds from common shares sold, net of offering costs
5,196

 
56,662

 

Net borrowings (repayments) on related party line of credit
9,839

 
5,601

 
(4,247
)
Repurchase of common stock under share repurchase plan

 

 
(866
)
Proceeds from issuance of Notes due 2021

 

 
40,250

Proceeds from issuance of Notes due 2023
57,500

 

 

Redemption of Notes due 2021
(40,250
)
 

 

Payments on Notes Payable - Securitization Trusts
(53,938
)
 
(31,036
)
 
(24,379
)
Issuance of Notes Payable - Securitization Trusts
108,551

 
75,426

 
53,444

Dividends paid
(32,433
)
 
(28,198
)
 
(27,300
)
Additions to deferred financing costs
(3,951
)
 
(1,664
)
 
(2,695
)
Purchase of vested stock for employee payroll tax withholding
(109
)
 
(667
)
 

Other, net

 

 
(14
)
Net cash provided by financing activities
85,105

 
71,024

 
10,193

Net increase (decrease) in cash and restricted cash
10,812

 
(2,358
)
 
(4,281
)
Cash and restricted cash—beginning of year
20,538

 
22,896

 
27,177

Cash and restricted cash —end of year
$
31,350

 
$
20,538

 
$
22,896

Supplemental disclosure of cash flow activities:
 
 
 
 
 
Cash paid for interest
$
13,939

 
$
9,996

 
$
6,687

Non-cash 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
$

 
$

 
$
869

Fixed assets acquired from tenant improvement allowance
$

 
$

 
$
1,288

Foreclosed real estate acquired
$
2,367

 
$
503

 
$
447

Issuance of common shares in connection with investment in Mobil Money LLC
$
200

 
$

 
$

Issuance of common shares in connection with investment in International Professional Marketing, Inc.
$

 
$
1,000

 
$

Issuance of common shares in connection with investment in United Capital Source, LLC
$

 
$
500

 
$

Issuance of common shares under dividend reinvestment plan
$
1,099

 
$
735

 
$
665


F-9
See accompanying notes to these consolidated financial statements




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Performing SBA Unguaranteed Investments (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HDD Solutions, LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028

 
$
553.8

 
$
553.8

 
$
527.5

 
0.18
%
Romain Tower Inc. David Romaine, Sugar Land Crane and Rigging, LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028

 
237.5

 
237.5

 
213.1

 
0.07
%
The Chop House Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/31/2043

 
557.8

 
557.8

 
575.3

 
0.20
%
Galt Insurance Group of Bonita Springs, LLC & Bonita Safety Institute
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043

 
18.8

 
18.8

 
20.6

 
0.01
%
Superior Concepts Acquisition Corp
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2028

 
119.8

 
119.8

 
111.4

 
0.04
%
Nix and Nix Funeral Home North Inc,
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043

 
569.5

 
569.5

 
610.9

 
0.21
%
Capitol Fitness Shelby Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/28/2028

 
18.2

 
18.2

 
16.8

 
0.01
%
American Rewinding of NC Inc dba MTS
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/28/2028

 
425.0

 
425.0

 
396.2

 
0.14
%
Omega Funeral and Cremation Services, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043

 
342.9

 
342.9

 
355.1

 
0.12
%
Superior Concepts Acquisition Corp
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043

 
509.6

 
509.6

 
514.0

 
0.18
%
Insight Vision Care, PC, CRMOD Lubbock, P.C.,Vielm Vision Eyecare Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2043

 
1,137.8

 
1137.8

 
1,170.1

 
0.41
%
East Breeze LLC dba Historic Springdale Pub and Eatery
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/27/2043

 
128.3

 
128.3

 
136.0

 
0.05
%
Children First Home Health Care Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2028

 
300.0

 
300.0

 
286.9

 
0.10
%
Medworxs Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2028

 
10.5

 
10.5

 
9.4

 
%
Green Valley Landscape Management Inc. dba Apopka Mower and Equipment
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2043

 
463.5

 
463.5

 
475.5

 
0.17
%
Fave Realty Inc.
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
12/27/2043

 
123.5

 
123.5

 
135.6

 
0.05
%
Simkar LLC, Neo Lights Holding Inc, Kalco Lighting, LLC
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/26/2043

 
500.0

 
500.0

 
549.1

 
0.19
%

F-10
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Reservations Unlimited LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
12/26/2043

 
142.3

 
142.3

 
151.1

 
0.05
%
BD Branson Victorian LLC dba Branson Victorian Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/24/2043

 
497.0

 
497.0

 
533.9

 
0.19
%
Timios Enterprises Corp dba Palm Court
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/24/2043

 
707.6

 
707.6

 
741.7

 
0.26
%
RM Hawkins LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/24/2028

 
300.0

 
300.0

 
281.8

 
0.10
%
LP Industries, Inc and Playground Packages, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
93.8

 
93.8

 
84.0

 
0.03
%
Tri-State Financial Group Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
37.8

 
37.8

 
33.8

 
0.01
%
Royalty Freight Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
97.5

 
97.5

 
87.1

 
0.03
%
Fifth Wheel Truck Stop 001, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
105.0

 
105.0

 
93.8

 
0.03
%
Siman Trio Trading
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
150.0

 
150.0

 
134.8

 
0.05
%
The Law Office of Jared E. Shapiro, P.A.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
11.3

 
11.3

 
10.0

 
%
Kyle M Walker DDS, PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
112.5

 
112.5

 
101.5

 
0.04
%
Diamond Estates LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
75.0

 
75.0

 
67.0

 
0.02
%
Burgess and Dudley, Incorporated
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
237.5

 
237.5

 
220.1

 
0.08
%
D.A.F.S Transport, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
660.0

 
660.0

 
653.7

 
0.23
%
Precision Bytes LLC dba Tower Connect
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
129.8

 
129.8

 
116.6

 
0.04
%
Accel Compression Inc., Accel Workover Services Inc
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/21/2044

 
44.5

 
44.5

 
48.9

 
0.02
%
Cammarata Associates LLC
 
Credit Intermediation and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
75.0

 
75.0

 
67.0

 
0.02
%
C&D Trucking & Equipment Service, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
117.5

 
117.5

 
122.2

 
0.04
%
Baseline Health, LLC & Baseline Health Management, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
118.8

 
118.8

 
107.9

 
0.04
%

F-11
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Sesolinc GRP, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
375.0

 
375.0

 
355.5

 
0.12
%
ETS Tree Service Inc and Eastern Tree Service, Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
230.0

 
230.0

 
216.6

 
0.08
%
Local Liberty Inc dba The Wardsboro Country Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/20/2043

 
155.3

 
155.3

 
164.9

 
0.06
%
Yellow Fin Marine Services LLC, K Marine XI, LLC K Marine VIII, LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028

 
662.5

 
662.5

 
648.5

 
0.23
%
Graff Excavating, Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028

 
195.5

 
195.5

 
176.9

 
0.06
%
Flashii App, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028

 
62.5

 
62.5

 
63.8

 
0.02
%
Alaska Motor Home Inc
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028

 
300.0

 
300.0

 
284.8

 
0.10
%
Hotel Compete, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028

 
62.5

 
62.5

 
55.8

 
0.02
%
Healthy and Fresco LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/20/2029

 
25.0

 
25.0

 
23.5

 
0.01
%
CK Green Parners, LLC dba Reis and Irvy's Columbus
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/20/2029

 
187.5

 
187.5

 
179.3

 
0.06
%
Darian L Hampton DDS PA and Darian L. Hampton
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028

 
300.0

 
300.0

 
269.8

 
0.09
%
Roots N Shoots, LLC & Yardplus LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028

 
68.0

 
68.0

 
61.7

 
0.02
%
Cedric Construction Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028

 
100.0

 
100.0

 
104.0

 
0.04
%
Accent Comfort Services, Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/19/2028

 
68.8

 
68.8

 
61.8

 
0.02
%
Marlin Lighting LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/19/2028

 
101.8

 
101.8

 
90.9

 
0.03
%
Sheldon T Banks and Sheldon T Banks LLC dba Serenity Funeral Chapel ll
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/19/2044

 
28.9

 
28.9

 
31.7

 
0.01
%
Always Goldie's Florist
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/19/2028

 
11.7

 
11.7

 
10.6

 
%
The Cromer Company
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/19/2028

 
500.0

 
500.0

 
448.0

 
0.16
%
JejoJesi Corp dba Dukunoo Jamaican Kitchen, Dunkunoo
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/19/2029

 
42.1

 
42.1

 
41.4

 
0.01
%
^Mediterranean Tastes Inc dba Mediterranean Tastes Since 1974
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028

 
15.8

 
15.8

 
14.1

 
%

F-12
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Peanut Butter & Co., Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028

 
250.0

 
250.0

 
223.3

 
0.08
%
^Alpha Landscape Contractors, Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/14/2029

 
334.0

 
334.0

 
311.6

 
0.11
%
^YBL Restaurant Group LLC dba Tropisueno
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/14/2029

 
377.0

 
377.0

 
339.6

 
0.12
%
^Cordoba Foods LLC, Multi Logistics Network Inc, Karina Mena
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028

 
317.5

 
317.5

 
294.8

 
0.10
%
^Alpha Omega Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028

 
70.0

 
70.0

 
72.8

 
0.03
%
^Healthy Human, LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028

 
125.0

 
125.0

 
111.7

 
0.04
%
^Aero Consulting and Engineering Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028

 
15.0

 
15.0

 
13.4

 
%
^L&M Services, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2043

 
200.0

 
200.0

 
209.2

 
0.07
%
^Redskin Cafe Inc. dba Goodfellas Wine & Spirits, Redskin Cafe Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/14/2043

 
245.8

 
245.8

 
266.9

 
0.09
%
^Ventures TBD LLC dba The Bottle Tree
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/14/2043

 
98.8

 
98.8

 
101.6

 
0.04
%
^Fitness Orlando LLC & Fitness Orlando Oviedo, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028

 
275.0

 
275.0

 
254.6

 
0.09
%
^Stony Creek Wellness Group, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/14/2043

 
98.8

 
98.8

 
105.0

 
0.04
%
Sound Contracting LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2043

 
197.0

 
197.0

 
200.3

 
0.07
%
Sound Contracting LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028

 
41.8

 
41.8

 
39.4

 
0.01
%
^OC Helicopters LLC
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/13/2028

 
25.0

 
25.0

 
26.0

 
0.01
%
^The Miller Center for Esthetic Excellence
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2043

 
387.5

 
387.5

 
383.0

 
0.13
%
^Plan B Burger LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/13/2029

 
1,050.0

 
1,050.0

 
976.2

 
0.34
%
^Burton Realty Co., Inc dba Anchor Realty, Northeast
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
12/13/2028

 
303.0

 
303.0

 
270.7

 
0.09
%
^Tapia Auto Care, LLC dba Shoreline Quick LUbe and Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/13/2043

 
977.5

 
977.5

 
1,000.2

 
0.35
%

F-13
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
D for Dream LLC dba Blow Dry Bar Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/13/2029

 
24.4

 
24.4

 
21.9

 
0.01
%
^All About Kids and Families Mediical Center, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/13/2029

 
368.8

 
368.8

 
363.2

 
0.13
%
^United States Plastic Equipment LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/13/2028

 
142.5

 
142.5

 
127.3

 
0.04
%
Anglin Cultured Stone Products LLC dba Anglin Construction
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
1/12/2029

 
62.5

 
62.5

 
63.6

 
0.02
%
^Tier1 Solutions LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/12/2029

 
10.2

 
10.2

 
9.1

 
%
^Mateo Enterprise Inc dba El Milagro Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/12/2043

 
120.0

 
120.0

 
123.5

 
0.04
%
^Behind The Scenes Chicago, LLC dba Paramount Events
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/12/2029

 
256.3

 
256.3

 
251.3

 
0.09
%
^Ashwood Food Services Inc. dba Jake Rooney's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/12/2043

 
215.0

 
215.0

 
230.7

 
0.08
%
Airstrike Firefighters LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
12/12/2028

 
1,250.0

 
1,250.0

 
1,196.7

 
0.42
%
^Mateo Enterprise Inc dba El Milagro Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
1/12/2029

 
60.0

 
60.0

 
53.7

 
0.02
%
^Ashwood Food Services, Incorporated dba Jake Rooney's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/12/2029

 
67.5

 
67.5

 
62.9

 
0.02
%
^Oregon Medical Training Private Career School Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
1/11/2029

 
40.0

 
40.0

 
35.8

 
0.01
%
^TFE Resources ,LTD
 
Utilities
 
Term Loan
 
Prime plus 2.75%
 
1/11/2029

 
597.5

 
597.5

 
548.6

 
0.19
%
^B&B Bodega of Delray LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
1/11/2029

 
19.5

 
19.5

 
17.5

 
0.01
%
White Wilson & Associates LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2043

 
42.5

 
42.5

 
43.7

 
0.02
%
^EMES Supply, LLC
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
1/11/2029

 
125.0

 
125.0

 
114.0

 
0.04
%
^Googlyoogly, LLC dba Bi-Rite Supermarket
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/11/2043

 
203.0

 
203.0

 
209.0

 
0.07
%
^Hilltop Wine Shop, Inc dba Graceland Party
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/11/2043

 
128.0

 
128.0

 
133.7

 
0.05
%
^The Duck's Nuts Inc dba Pet Place Market
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
1/11/2029

 
43.3

 
43.3

 
40.9

 
0.01
%
^Team Henry, LLC dba Kelly Automotive of Deltona
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/10/2043

 
391.3

 
391.3

 
401.5

 
0.14
%

F-14
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^ZLM Services LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/10/2029

 
40.0

 
40.0

 
35.8

 
0.01
%
^Shining Star Kids, Inc. dba Brain Balance
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
1/7/2029

 
87.5

 
87.5

 
78.7

 
0.03
%
^Food Service Industry Consultants Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/7/2029

 
71.5

 
71.5

 
64.2

 
0.02
%
^Metro R Services Inc. and Metal & Roof Supplies Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
1/6/2029

 
207.5

 
207.5

 
216.0

 
0.08
%
^CET Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/6/2029

 
1,250.0

 
1,250.0

 
1,154.7

 
0.40
%
^3SIXO Motorsports LLC dba 3SIXO Motorsports Shop
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
1/6/2029

 
98.3

 
98.3

 
88.2

 
0.03
%
^Consulting Solutions, Inc and Mark Luciani
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/5/2029

 
57.5

 
57.5

 
51.4

 
0.02
%
^Little West LLC, 340 Group LLC, Retail West LLc, Andrew W Walker
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/5/2029

 
87.5

 
87.5

 
79.0

 
0.03
%
^Unique Home Solutions Inc. and Unique Home Solutions of Ohio
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
1/5/2029

 
250.0

 
250.0

 
260.3

 
0.09
%
^Levine Daycare Inc dba Kids R Kids
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/5/2029

 
270.0

 
270.0

 
252.9

 
0.09
%
^Jay Carlton's, LLC dba Jay Birds Rotisserie & Grill
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/4/2029

 
39.0

 
39.0

 
37.0

 
0.01
%
^Access Staffing, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/4/2029

 
194.3

 
194.3

 
173.7

 
0.06
%
^The Altitude Group LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
1/4/2029

 
150.0

 
150.0

 
134.7

 
0.05
%
^York Concrete Corp
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/3/2043

 
200.0

 
200.0

 
217.1

 
0.08
%
^Swantown Inn and Spa, LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
1/3/2029

 
13.5

 
13.5

 
14.1

 
%
^Tammy's Place LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2044

 
436.8

 
436.8

 
476.1

 
0.17
%
^Microplex Co, Third Market LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/30/2028

 
165.0

 
165.0

 
147.4

 
0.05
%
^Hernando Beach Motel LLC,The Purple Cow House o APancake A Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/30/2043

 
225.0

 
225.0

 
247.1

 
0.09
%
^Cabrera's Auto Services LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/30/2043

 
81.0

 
81.0

 
85.5

 
0.03
%
^Water Station Holdings LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/30/2028

 
693.3

 
693.3

 
662.9

 
0.23
%

F-15
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Luxury Furniture, Inc.dba Venicasa & Luxe Home Interiors
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/30/2028

 
125.0

 
125.0

 
123.5

 
0.04
%
^Albert M Quashie, DDS, PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/29/2028

 
87.5

 
87.5

 
83.8

 
0.03
%
^JJB Production LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/29/2028

 
7.4

 
7.4

 
6.6

 
%
^Albert M. Quashie, DDS, PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/29/2043

 
65.0

 
65.0

 
67.4

 
0.02
%
^Bike Slug Holdings Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/28/2028

 
9.0

 
9.0

 
8.0

 
%
^Extreme Granite Corp
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043

 
187.5

 
187.5

 
202.2

 
0.07
%
^True Love Christian Academy LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043

 
42.0

 
42.0

 
45.4

 
0.02
%
^Recovery Boot Camp, LLC, Rule 62, Inc. and Healing Properties, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2028

 
123.8

 
123.8

 
111.1

 
0.04
%
^Level Up Gaming, Inc
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
11/28/2043

 
90.0

 
90.0

 
91.4

 
0.03
%
^Sky Wonder Pyrotechnics, LLC dba Sky Wonder Fire and Safety Gear Up
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/28/2043

 
431.3

 
431.3

 
473.6

 
0.16
%
^BEK Holdings LLC, Veseli Fine Art Galleries, LLC, Trusted.com LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
1,250.0

 
1,250.0

 
1,278.9

 
0.44
%
Thames Aquatic Club, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
7/21/2029

 
18.5

 
18.5

 
19.3

 
0.01
%
^Best Global Alternative North, LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
87.5

 
87.5

 
78.2

 
0.03
%
^M.A.W. Enterprises LLC dbaY-Not Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
22.5

 
22.5

 
21.1

 
0.01
%
^Commonwealth Warehouse Inc
 
Warehousing and Storage
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028

 
450.0

 
450.0

 
426.0

 
0.15
%
^On Call Electrical of Georgia LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/20/2043

 
666.9

 
666.9

 
689.5

 
0.24
%
^K & A Automotive Inc
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/19/2043

 
122.0

 
122.0

 
131.0

 
0.05
%
^High Desert Transport, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/19/2028

 
76.0

 
76.0

 
70.0

 
0.02
%
^Cali Fit Meals
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2028

 
62.5

 
62.5

 
56.0

 
0.02
%

F-16
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Cocomo Joe's LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2028

 
1.7

 
1.7

 
1.6

 
%
^Saunders Management LLC dba Northern Light Espresso Bar and Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/16/2028

 
40.5

 
40.5

 
42.1

 
0.01
%
Beau & HB Inc dba Beau's Billiard, Bowling & Arcade
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/16/2029

 
6.9

 
6.9

 
7.2

 
%
^Sektor Salutions Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/16/2028

 
158.0

 
158.0

 
141.2

 
0.05
%
^Beau & HB Inc dba Beau's Billard, Bowling & Arcade
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/16/2043

 
70.0

 
70.0

 
73.1

 
0.03
%
^Allegro Assisted Living Services of Texas LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
11/15/2043

 
95.0

 
95.0

 
104.3

 
0.04
%
^GEM2K, LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2043

 
381.3

 
381.3

 
398.3

 
0.14
%
^Schafer Fisheries Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/14/2028

 
50.0

 
50.0

 
52.0

 
0.02
%
^US Dedicated LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/9/2028

 
420.0

 
420.0

 
381.1

 
0.13
%
^Jinwoo Sushi Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/9/2028

 
22.3

 
22.3

 
23.1

 
0.01
%
^Salon Femi LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/9/2028

 
7.5

 
7.5

 
7.2

 
%
^McNeill Stokes
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2028

 
6.8

 
6.8

 
6.0

 
%
Vancole Investments, Inc. dba Smoothie King #913
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/7/2044

 
229.3

 
229.3

 
249.3

 
0.09
%
^JN Thompson Ent, Inc.
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/7/2028

 
394.5

 
394.5

 
363.4

 
0.13
%
JP Dhillon's Foods LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/1/2029

 
25.8

 
25.8

 
24.6

 
0.01
%
^Peter Thomas Roth Labs LLC and June Jacobs Labs, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/1/2028

 
325.0

 
325.0

 
290.3

 
0.10
%
^Modutech Marine Inc
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/1/2028

 
375.0

 
375.0

 
390.0

 
0.14
%
^Steele Security, LLC dba Signal 88 Security of San Antonio
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2028

 
110.6

 
110.6

 
99.9

 
0.03
%
^Abington Caregivers, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/30/2043

 
124.9

 
124.9

 
132.0

 
0.05
%

F-17
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Organic Juice Bar Wexford LLC dba The OJB "The Organic Juice Bar"
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2029

 
81.3

 
81.3

 
73.9

 
0.03
%
^C.A.T.I. Armor, LLC
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/30/2043

 
210.0

 
210.0

 
217.8

 
0.08
%
UK, LLC dba Pita Pit
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2029

 
32.4

 
32.4

 
30.3

 
0.01
%
^JAL Group, Inc. dba Brainy Boulevard Daycare
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/29/2028

 
56.8

 
56.8

 
51.4

 
0.02
%
^Ohio Gold & Pawn LLC, Our New Building LLC and Corey Fischer
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
10/26/2028

 
146.0

 
146.0

 
151.8

 
0.05
%
^The Face Place, LLC dba Classic Aesthetics
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/25/2028

 
10.0

 
10.0

 
9.0

 
%
^Reliant Trucking Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/25/2028

 
132.3

 
132.3

 
124.1

 
0.04
%
^Bellas Sports Pub, Inc dba Brewmasters Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/24/2043

 
69.7

 
69.7

 
75.8

 
0.03
%
^Shovels and Whiskey LLC
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
10/16/2043

 
76.4

 
76.4

 
81.9

 
0.03
%
Hackstaff Restaurants LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/15/2029

 
57.5

 
57.5

 
53.6

 
0.02
%
^TA Coleman, LLC dba Tom's Truck Shop
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/12/2028

 
5.8

 
5.8

 
5.6

 
%
^Cater To You Agency, LLC, dba Cater To You
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/11/2043

 
22.5

 
22.5

 
23.4

 
0.01
%
^Faydon, Inc
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
10/10/2028

 
74.6

 
74.6

 
76.5

 
0.03
%
^MB Click It Photography, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/10/2043

 
38.2

 
38.2

 
40.7

 
0.01
%
^Wellfleet Consulting Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/9/2028

 
14.9

 
14.9

 
13.3

 
%
^Apps Inc and Market Share Inc.
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
10/5/2028

 
94.5

 
94.5

 
84.4

 
0.03
%
^Moore Care LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/4/2028

 
51.7

 
51.7

 
46.2

 
0.02
%
^SwabCo Inc.
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
9/28/2043

 
946.7

 
946.7

 
988.9

 
0.34
%
^A-1 Van Sevices, Inc.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/28/2028

 
105.1

 
105.1

 
102.7

 
0.04
%

F-18
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^La Venezia Corporation dba La Venezia Ballroom & Robertos Lounge
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/28/2043

 
330.5

 
330.5

 
350.1

 
0.12
%
^Burd Brothers Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/28/2028

 
534.0

 
534.0

 
513.1

 
0.18
%
^Mellow Sweets, Inc dba Jaafer Sweets & Marwan Hamdan
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/28/2028

 
55.5

 
55.5

 
49.8

 
0.02
%
^Throop Family Holdings, Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/28/2043

 
643.5

 
643.5

 
665.9

 
0.23
%
^JAM Media Solutions LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2028

 
887.5

 
887.5

 
813.2

 
0.28
%
^Rami Technology USA, LLC
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/28/2028

 
178.4

 
178.4

 
160.6

 
0.06
%
^Quality Electric & Data
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/27/2028

 
98.9

 
98.9

 
95.3

 
0.03
%
Blue Seven, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/27/2029

 
49.8

 
49.8

 
46.4

 
0.02
%
^Catherine Brandon, PSY.D., Inc dba Kenneth A Deluca, PH.D., & Associates
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2028

 
117.4

 
117.4

 
105.3

 
0.04
%
^TFR Transit Inc, The Free Ride Inc, South Florida Free Ride Inc.,Tag-A
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/27/2028

 
123.6

 
123.6

 
117.3

 
0.04
%
^Blackwater Diving, LLC
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
9/27/2028

 
791.1

 
791.1

 
723.2

 
0.25
%
^Barricade Holding LLC and Action Barricade Company, LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2043

 
177.3

 
177.3

 
180.7

 
0.06
%
^LG Law Center, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2028

 
14.8

 
14.8

 
13.6

 
%
^Quality Electric & Data Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/27/2043

 
129.7

 
129.7

 
132.6

 
0.05
%
^Zeeba Company, Inc dba Zeeba Rent-A-Van & 5 Star Rent- A-Van
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/27/2028

 
685.8

 
685.8

 
660.2

 
0.23
%
^Action Barricade Company, LLC and Barricade Holding LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2028

 
333.4

 
333.4

 
320.3

 
0.11
%
^Dentistry By Design, P.C
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2028

 
14.8

 
14.8

 
13.6

 
%
^US Shipping Trans Inc, Esteem Trucking Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2028

 
822.9

 
822.9

 
809.0

 
0.28
%
^Ace Auto Recovery, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2043

 
159.6

 
159.6

 
168.9

 
0.06
%

F-19
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Above and Beyond Preschool LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/26/2043

 
551.3

 
551.3

 
587.4

 
0.20
%
^Anglin Cultured Stone Products LLC dba Anglin Construction
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
9/26/2028

 
98.9

 
98.9

 
93.3

 
0.03
%
^LTS School, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2043

 
101.0

 
101.0

 
110.9

 
0.04
%
^Akron Biotechnology, LLC
 
Chemical Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/25/2028

 
494.5

 
494.5

 
492.7

 
0.17
%
^Bhatti LLC, Bhatti 3 LLC, dba Auntie Annes
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/25/2028

 
123.6

 
123.6

 
113.8

 
0.04
%
^Steadfast Support Services, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
9/25/2028

 
11.9

 
11.9

 
10.6

 
%
^Newsome Mobile Notary LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2028

 
5.2

 
5.2

 
4.6

 
%
^Alania Import & Export, Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/24/2028

 
11.1

 
11.1

 
10.1

 
%
^Phillip Ramos Upholstery Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/24/2028

 
15.3

 
15.3

 
13.6

 
%
^D & D Optics Inc dba Sterling Optical
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
53.0

 
53.0

 
48.1

 
0.02
%
^The Garden Club, LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/21/2028

 
6.5

 
6.5

 
5.8

 
%
^DC Lofty, LLC,
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/21/2028

 
22.3

 
22.3

 
20.1

 
0.01
%
^MillClem Corporation & Monticello Corporation
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/21/2043

 
330.8

 
330.8

 
363.1

 
0.13
%
^Southern Services and Equipment, Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/21/2028

 
424.3

 
424.3

 
406.5

 
0.14
%
^Southern Services and Equipment, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/21/2043

 
209.8

 
209.8

 
213.2

 
0.07
%
^Sommer Auto Sales, Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/20/2028

 
340.6

 
340.6

 
351.8

 
0.12
%
^Somerled Investments, LLC dba Mak's Place LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/20/2028

 
193.3

 
193.3

 
172.6

 
0.06
%
^Tables and Bars Services, Inc and Tables and Bars Rentals, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2028

 
17.8

 
17.8

 
16.8

 
0.01
%
^M&P RV LLC dba M&P RV
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/19/2043

 
112.2

 
112.2

 
122.2

 
0.04
%
^C3 Capital, Inc
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/19/2028

 
667.8

 
667.8

 
647.5

 
0.23
%

F-20
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Dash Point Distributing LLC, Dash Point Logistics LLC and Sara Consal
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/19/2028

 
455.4

 
455.4

 
406.4

 
0.14
%
^MB Xpress Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/19/2028

 
1,193.2

 
1193.2

 
1,121.1

 
0.39
%
^Watearth Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/19/2028

 
22.3

 
22.3

 
19.9

 
0.01
%
^Super Station Inc
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/19/2043

 
209.0

 
209.0

 
229.4

 
0.08
%
^Lewis River Golf Course, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/19/2043

 
498.9

 
498.9

 
547.5

 
0.19
%
^E & G Enterprises LLC dba Comfort Keepers
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/18/2028

 
5.9

 
5.9

 
5.3

 
%
^DB Talak LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/18/2043

 
151.7

 
151.7

 
158.5

 
0.06
%
^Culmination Motorsports, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2043

 
558.2

 
558.2

 
607.8

 
0.21
%
^Glendale Grill Inc, Roddy Cameron, Jr & John K Symasko
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/17/2043

 
174.6

 
174.6

 
183.4

 
0.06
%
^Pastel de Feira LLC dba Original Pastel De Feira
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/17/2028

 
6.0

 
6.0

 
5.7

 
%
^Baby's on Broadway LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/14/2028

 
49.4

 
49.4

 
46.9

 
0.02
%
^J & C Garcia LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/14/2028

 
73.2

 
73.2

 
66.6

 
0.02
%
^Innovim LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/14/2028

 
123.6

 
123.6

 
110.3

 
0.04
%
^LJS Electric, Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/14/2028

 
447.5

 
447.5

 
458.4

 
0.16
%
^Rihahn Inc. dba RDBL, Inc
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
9/14/2028

 
134.7

 
134.7

 
127.2

 
0.04
%
^QBS, LLC dba Sterling Optical Exton
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/14/2028

 
80.3

 
80.3

 
72.3

 
0.03
%
^L&M Equipment, Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/14/2043

 
1,247.2

 
1247.2

 
1,320.3

 
0.46
%
^Underground Productions LLC dba 31 Escape
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/13/2043

 
98.5

 
98.5

 
108.1

 
0.04
%
^Peter K Lee MD, PC dba Atlanta Primary Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2043

 
860.6

 
860.6

 
944.5

 
0.33
%

F-21
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
TPE Midstream LLC, Dasahm Company, S & S Ventures LLC and TPE Supply
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/13/2028

 
261.1

 
261.1

 
248.6

 
0.09
%
^Brewster Marketplace Pharmacy & Hardware, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/13/2028

 
86.5

 
86.5

 
77.2

 
0.03
%
^Peter K Lee MD, PC dba Atlanta Primary Care LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2028

 
383.2

 
383.2

 
398.0

 
0.14
%
^Innovative Network Solutions Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2028

 
123.6

 
123.6

 
113.1

 
0.04
%
^Perry Olson Insurance Agency Inc. dba State Farm Insurance
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/12/2028

 
14.8

 
14.8

 
13.3

 
%
^Rancho Paving, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/10/2028

 
185.4

 
185.4

 
183.3

 
0.06
%
^Pelican Executives Suites, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/7/2028

 
314.2

 
314.2

 
280.3

 
0.10
%
^NY Tent, LLC dba Tent Company of New York LLC, NY Tent Parent LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/7/2028

 
318.4

 
318.4

 
304.8

 
0.11
%
^MurlinComputerCompany LLC dba Murlin Computer
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/7/2028

 
15.4

 
15.4

 
14.1

 
%
^Dr. G's Urgent Care LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/7/2028

 
22.3

 
22.3

 
19.9

 
0.01
%
^Pool Guard of LA
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/7/2028

 
22.3

 
22.3

 
20.0

 
0.01
%
Amaka Consulting LLC dba Donut Minis
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/7/2028

 
52.0

 
52.0

 
48.1

 
0.02
%
^Asheville Spine and Nerve Institute PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/7/2043

 
91.0

 
91.0

 
98.9

 
0.03
%
^Trolley Express Philly, Inc dba Shuttlebee & Honeybee Transportation LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/6/2028

 
12.6

 
12.6

 
11.7

 
%
^Extreme Auto Repair, Inc dba 1st Class Towing
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/6/2028

 
107.5

 
107.5

 
111.7

 
0.04
%
^Living Centers Inc. dba Veranda House Senior Living
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
8/31/2043

 
420.3

 
420.3

 
461.3

 
0.16
%
National Stone LTD and NSI Group Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
8/31/2044

 
193.2

 
193.2

 
211.6

 
0.07
%
^LACCRB LLC dba PostNet
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/30/2028

 
14.9

 
14.9

 
13.5

 
%
^XL Soccer World Orlando. LLC, XL Soccer World Saco LLC, XL Sports World
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/30/2043

 
448.4

 
448.4

 
492.1

 
0.17
%

F-22
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Stat Constructor L.P
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/30/2028

 
102.3

 
102.3

 
106.2

 
0.04
%
^Extreme Engineering, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/29/2028

 
122.9

 
122.9

 
110.4

 
0.04
%
^Greenfield Hill Wines & Spirits, LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
8/29/2028

 
90.5

 
90.5

 
81.4

 
0.03
%
^ARVAmethod LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/29/2028

 
2.4

 
2.4

 
2.1

 
%
^Kotyark LLC dba Gibsonton Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
8/29/2043

 
82.2

 
82.2

 
90.2

 
0.03
%
^Graphish Studio, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2028

 
7.4

 
7.4

 
6.6

 
%
^JFK Transportation Inc
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/28/2028

 
159.4

 
159.4

 
144.5

 
0.05
%
^Atlas Geo-Constructors LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/24/2028

 
73.7

 
73.7

 
73.4

 
0.03
%
^Finn & Emma LLC
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
8/24/2028

 
122.9

 
122.9

 
109.6

 
0.04
%
^Montana Life Group, LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/24/2028

 
7.4

 
7.4

 
6.6

 
%
^Wearware Inc dba FlyWire Cameras
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/24/2028

 
22.1

 
22.1

 
20.1

 
0.01
%
^Evans and Paul LLC, Evans & Paul Unlimited Corp
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/24/2028

 
86.2

 
86.2

 
78.9

 
0.03
%
^Zash LLC dba Papa Murphy's Take 'N' Bake Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/23/2028

 
41.5

 
41.5

 
38.9

 
0.01
%
^Buffalo Biodiesel Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/21/2028

 
1,228.9

 
1228.9

 
1,218.3

 
0.42
%
^Ginekis Enterprises, Inc dba Locanda Veneta
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/20/2028

 
86.0

 
86.0

 
77.1

 
0.03
%
^Wilkie J. Stadeker DDS
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/17/2028

 
41.8

 
41.8

 
37.3

 
0.01
%
Geo Tek Alaska, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/17/2044

 
56.8

 
56.8

 
62.4

 
0.02
%
^ATI Jet, Inc.
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/16/2028

 
211.6

 
211.6

 
203.6

 
0.07
%

F-23
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Lewins Law, P.C.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/16/2028

 
17.7

 
17.7

 
15.8

 
0.01
%
^GS Bath Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/15/2028

 
565.3

 
565.3

 
560.3

 
0.19
%
^Pamletics LLC dba F45
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/14/2028

 
42.9

 
42.9

 
40.0

 
0.01
%
^Conference Services International ETC LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/14/2028

 
617.2

 
617.2

 
588.4

 
0.20
%
^L.A. Insurance Agency GA 10 LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/10/2028

 
11.1

 
11.1

 
9.9

 
%
^Crystal Shores Inc. dba Shorewood Laundromat
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/9/2028

 
22.0

 
22.0

 
20.3

 
0.01
%
^David D. Sullivan dba DMS Construction
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/9/2028

 
13.3

 
13.3

 
11.8

 
%
^Palanuk & Associates, Inc.dba Wolfpk
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/8/2028

 
100.8

 
100.8

 
90.6

 
0.03
%
^Red Tail Management, Inc dba Jon Smith Subs
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/8/2028

 
49.2

 
49.2

 
46.2

 
0.02
%
^CJNR, LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
8/7/2043

 
121.3

 
121.3

 
133.2

 
0.05
%
^Mercedes Cab Company, Inc
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/7/2028

 
127.8

 
127.8

 
117.3

 
0.04
%
^Ron's Pool and Spa Services LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/3/2028

 
3.7

 
3.7

 
3.3

 
%
^20th Century Lanes, Inc dba West Seattle Bowl
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/3/2028

 
110.6

 
110.6

 
108.5

 
0.04
%
^Alma Jacobsen,ODD Family Eye Care & Contact Lens LLC
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
8/3/2028

 
59.0

 
59.0

 
53.3

 
0.02
%
^Millwork Unlimited, Incorporated
 
Wholesale Electronic Markets and Agents and Brokers
 
Term Loan
 
Prime plus 2.75%
 
8/2/2028

 
7.4

 
7.4

 
6.6

 
%
^Accel Compression Inc., Accel Workover Services Inc.
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
8/1/2028

 
455.0

 
455.0

 
443.0

 
0.15
%
^Samy Optical LLC dba Site for Sore Eyes
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/1/2028

 
115.3

 
115.3

 
102.9

 
0.04
%
^Accel Compression Inc., Accel Workover Services, Inc
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
8/1/2043

 
310.2

 
310.2

 
319.9

 
0.11
%

F-24
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Nichols Stephens Funeral & Cremation Services Ltd
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2043

 
107.4

 
107.4

 
117.6

 
0.04
%
^CSL Services Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/27/2028

 
535.2

 
535.2

 
503.0

 
0.17
%
^Sandlot Sports Inc dba Play it Again Sports
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
7/26/2028

 
18.3

 
18.3

 
16.3

 
0.01
%
^Summitsoft Corporation
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
7/26/2028

 
240.6

 
240.6

 
215.1

 
0.07
%
^Nunez Enterprises Corporation dba La Casa
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/26/2028

 
8.1

 
8.1

 
7.2

 
%
^Relevant Elephant, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/25/2028

 
8.8

 
8.8

 
7.8

 
%
^Fitness Central, Inc dba Fitness Central
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
7/25/2028

 
61.1

 
61.1

 
55.5

 
0.02
%
^HAVL Enterprises Inc dba FedEx
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
7/24/2028

 
78.2

 
78.2

 
78.1

 
0.03
%
^Florida Apnea Diagnostics, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/24/2028

 
20.8

 
20.8

 
18.5

 
0.01
%
^Top Shelf Towing and Road Service, LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/24/2028

 
13.2

 
13.2

 
11.8

 
%
^TR Nails, LLC dba Simple Nails
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
7/20/2028

 
61.5

 
61.5

 
54.9

 
0.02
%
^Elephant's Trunk of Westchester, LTD
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
7/17/2028

 
38.9

 
38.9

 
40.4

 
0.01
%
^674 Club LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/17/2043

 
260.6

 
260.6

 
286.0

 
0.10
%
^ZA Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/17/2028

 
10.0

 
10.0

 
9.6

 
%
^Mother's Cantina LLC dba Mother's Cantina
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/13/2028

 
67.2

 
67.2

 
60.9

 
0.02
%
^Smart-tel Communications LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/13/2028

 
22.0

 
22.0

 
22.7

 
0.01
%
^HQTRONICS LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/13/2028

 
61.1

 
61.1

 
54.5

 
0.02
%
^Smoove Move Productions, LLC dba Smoove Move Productions
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
7/12/2028

 
10.5

 
10.5

 
10.9

 
%
^Talent Logistix, LLC, Pinpoint Staffing LLC & ITC 2.0 LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/3/2028

 
61.1

 
61.1

 
56.2

 
0.02
%

F-25
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^H.M.C, Incorporated
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/3/2028

 
188.1

 
188.1

 
169.5

 
0.06
%
^Deal to Win Inc
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/3/2028

 
122.2

 
122.2

 
109.0

 
0.04
%
^Vital Inspection Professionals, Inc. dba VIP
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/3/2028

 
304.2

 
304.2

 
294.9

 
0.10
%
^US Cargo Express, LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/2/2043

 
88.1

 
88.1

 
96.7

 
0.03
%
^M J Losito Electrical Contractor's, Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2028

 
57.1

 
57.1

 
51.2

 
0.02
%
Bio-Haz Solutions, Inc.
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2043

 
302.1

 
302.1

 
300.5

 
0.10
%
Bio-Haz Solutions, Inc
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
1/29/2029

 
112.0

 
112.0

 
110.9

 
0.04
%
^Critter Cabana, LLC dba Critter Cabana
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/28/2028

 
81.4

 
81.4

 
71.7

 
0.02
%
^Corptek Solutions LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2028

 
46.2

 
46.2

 
40.6

 
0.01
%
^Local Leads, LLC dba New Direction Chiropractic
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2028

 
17.5

 
17.5

 
15.5

 
0.01
%
^RLW4 Builders LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
6/27/2043

 
994.2

 
994.2

 
1,084.8

 
0.38
%
^InUSA Ventures, Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/27/2028

 
48.6

 
48.6

 
42.8

 
0.01
%
^Darnoc Enterprises Inc, Setira Paul Inc dba Conrad's Famous Bakery, Inc
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/27/2043

 
352.4

 
352.4

 
373.1

 
0.13
%
^Nick's Country Kitchen, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/27/2028

 
21.9

 
21.9

 
19.6

 
0.01
%
^National Dredging Services of North Florida, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/27/2043

 
28.6

 
28.6

 
31.2

 
0.01
%
^National Dredging Services of North Florida, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/27/2028

 
51.8

 
51.8

 
53.5

 
0.02
%
^Julie Cooper-Bierman dba Forever Shopper
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/27/2028

 
15.6

 
15.6

 
13.7

 
%
^Bengals, Inc. dba Royal Liquor Mart
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/26/2043

 
105.6

 
105.6

 
109.2

 
0.04
%

F-26
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Peter Thomas Roth Labs LLC, & June Jacobs Labs, LLC
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
6/26/2028

 
898.9

 
898.9

 
814.5

 
0.28
%
^Sun Pools, Inc
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/25/2043

 
304.2

 
304.2

 
295.0

 
0.10
%
^DPF Filters Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/25/2028

 
66.8

 
66.8

 
60.3

 
0.02
%
^Sun Pools, Inc dba Sun Fiberglass Pools
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/25/2028

 
759.3

 
759.3

 
692.4

 
0.24
%
^Sushi Prime, LLC and Vasilia Investments
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/22/2028

 
267.2

 
267.2

 
248.3

 
0.09
%
^Martha Beauty Supply And Braiding, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2043

 
139.7

 
139.7

 
152.4

 
0.05
%
^Judy E. Moncrief C.P.A LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2028

 
14.6

 
14.6

 
12.8

 
%
^Mr. Lube, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/22/2043

 
659.9

 
659.9

 
668.6

 
0.23
%
^The Desert House Assisted Living ,LLC dba The Desert House Assisted Living
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
6/22/2043

 
78.3

 
78.3

 
83.1

 
0.03
%
^Mr. Lube, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/22/2028

 
569.7

 
569.7

 
544.9

 
0.19
%
Surya Hotel LLC dba Hotel Royal
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
100.9

 
100.9

 
104.4

 
0.04
%
^York Woods Tree Service, LLC dba York Woods Tree and Products, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/21/2043

 
242.1

 
242.1

 
248.8

 
0.09
%
^Independent Life LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/21/2028

 
121.5

 
121.5

 
107.0

 
0.04
%
^York Woods Tree Service, LLC dba York Woods Tree and Products, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/21/2028

 
138.5

 
138.5

 
134.2

 
0.05
%
^Lilo Holdings LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/20/2028

 
18.3

 
18.3

 
16.5

 
0.01
%
^Olsen Bros. Transportation, Inc. & Golden Spike Leasing, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/20/2028

 
603.5

 
603.5

 
535.5

 
0.19
%
^Jones Roger Sherman Inn, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/19/2028

 
425.0

 
425.0

 
438.9

 
0.15
%
^LCP Transportation, LLC dba LCP Teleservices
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2028

 
794.4

 
794.4

 
699.5

 
0.24
%
^Mid America Motorworks, Inc and Yager Holdings L.P
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/19/2043

 
497.7

 
497.7

 
543.0

 
0.19
%

F-27
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Colovic Hackettstown Dairy LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/19/2043

 
274.0

 
274.0

 
296.8

 
0.10
%
^Allen Theatre and Back Stage Cafe LLC
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
6/18/2043

 
125.3

 
125.3

 
133.9

 
0.05
%
^Schumacker Recreation, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/18/2028

 
145.8

 
145.8

 
150.5

 
0.05
%
^Softrol Systems Inc dba Softrol Systems
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/15/2028

 
906.3

 
906.3

 
808.6

 
0.28
%
^Oil Palace Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/15/2043

 
143.4

 
143.4

 
156.6

 
0.05
%
^Kootenay Columbia LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/15/2028

 
5.8

 
5.8

 
5.6

 
%
^Northway Exit 29 Campground, Inc
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/15/2043

 
215.0

 
215.0

 
234.6

 
0.08
%
^Dianne Williams and Louis Williams dba Sweetlips Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/15/2043

 
46.0

 
46.0

 
48.5

 
0.02
%
^Venzix Ventures Inc. dba Venzix
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/15/2028

 
12.8

 
12.8

 
12.4

 
%
^Barrett Appliance Distributors Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/14/2043

 
619.3

 
619.3

 
611.5

 
0.21
%
^Tele Tax Express Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/14/2028

 
21.9

 
21.9

 
21.4

 
0.01
%
^Top Cat Ready Mix, LLC & Ples Investments LLC, Pappy's Sand & Gravel
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/14/2028

 
151.8

 
151.8

 
140.9

 
0.05
%
^E & J Sims Co. LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/14/2028

 
48.6

 
48.6

 
44.3

 
0.02
%
^Barrett Appliance Distributors, Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/14/2028

 
489.5

 
489.5

 
455.2

 
0.16
%
^Team Sandy Blanton Realty, Inc
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
6/14/2043

 
96.7

 
96.7

 
97.1

 
0.03
%
^Mastiff Studios LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/13/2043

 
42.5

 
42.5

 
45.8

 
0.02
%
^Golf Swing Prescription LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/11/2028

 
12.8

 
12.8

 
11.3

 
%
^Ciasom LLC dba Mosaic
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/11/2028

 
174.9

 
174.9

 
154.9

 
0.05
%

F-28
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Skyways LTD,Jet 60 LLC,Mendean Jonath, Inc,Jet AOG, Inc & Jonathan Men
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/8/2043

 
378.5

 
378.5

 
385.0

 
0.13
%
^Beyond Grooming LLC and Michelle McWatters
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/8/2043

 
42.7

 
42.7

 
46.0

 
0.02
%
^Camp K-9 Pet Resort & Spa, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/8/2028

 
8.0

 
8.0

 
7.2

 
%
^Icebox Cafe, L.C. and Icebox Cafe at Doral, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/8/2028

 
769.2

 
769.2

 
690.7

 
0.24
%
^Applied Behavioral Consulting, Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
6/7/2043

 
49.7

 
49.7

 
53.2

 
0.02
%
^H S Corporation dba Lake Anna Lodge
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/7/2043

 
130.5

 
130.5

 
142.4

 
0.05
%
^Anurag, LLC dba Oakwood Package Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/6/2043

 
136.5

 
136.5

 
139.0

 
0.05
%
^Sowells Consulting Engineers, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/6/2028

 
21.9

 
21.9

 
19.4

 
0.01
%
^Hardway Inc and A F C Leasing, Inc
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/6/2028

 
287.5

 
287.5

 
253.1

 
0.09
%
^SSD Designs LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2028

 
72.2

 
72.2

 
64.2

 
0.02
%
^Funtime ,LLC dba Indoor Playgrounds International
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/5/2028

 
243.4

 
243.4

 
214.5

 
0.07
%
^BTD Feed & Nutrition, LLC dba Thomaston Feed Cheshire
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/1/2028

 
51.3

 
51.3

 
45.2

 
0.02
%
AVM LLC dba Luv 2 Play
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
6/1/2028

 
26.1

 
26.1

 
25.2

 
0.01
%
^Mastrocinque Restaurant Management Company LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/1/2028

 
81.4

 
81.4

 
78.5

 
0.03
%
^Seraj Wireless, LLC
 
Electronics and Appliance Stores
 
Term Loan
 
Prime plus 2.75%
 
5/31/2028

 
120.7

 
120.7

 
123.4

 
0.04
%
^Awan Business Management Group LLC, Awan Sign Company lLLC &Awan Promo
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/31/2043

 
272.6

 
272.6

 
287.3

 
0.10
%
^Brooks Seaplane Service Inc and Lunt Enterprises LLC
 
Scenic and Sightseeing Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/31/2028

 
142.0

 
142.0

 
125.0

 
0.04
%
^SSMV LLC dba Burgerim
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/30/2028

 
64.5

 
64.5

 
61.6

 
0.02
%
^Eagle Aggregate Transportation, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/30/2028

 
84.5

 
84.5

 
78.0

 
0.03
%
^Crowley Ventures, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2028

 
72.1

 
72.1

 
64.5

 
0.02
%

F-29
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Iloka, Inc dba New Cloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2028

 
241.5

 
241.5

 
225.2

 
0.08
%
^Conan Enterprises LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
5/25/2028

 
21.7

 
21.7

 
19.1

 
0.01
%
Starship, LLC dba Tint World Smyrna
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/25/2043

 
88.8

 
88.8

 
96.1

 
0.03
%
^Ocean Breeze Holdings, LLC, Ocean Beach Resort LLC & Ocean Breeze
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/25/2043

 
1,245.1

 
1245.1

 
1,358.7

 
0.47
%
^Adow Pools LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2028

 
169.0

 
169.0

 
152.5

 
0.05
%
^Dream Spa LLC and Dream Spa Greenwich LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2028

 
97.4

 
97.4

 
86.7

 
0.03
%
^Broadalbin Properties LLC dba Broadalbin Hotel & 1854 Pub & Eatery
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
10/25/2043

 
201.0

 
201.0

 
219.7

 
0.08
%
^Seaside Acupuncture LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/24/2043

 
49.6

 
49.6

 
51.9

 
0.02
%
^DMA Equipment LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/24/2043

 
259.6

 
259.6

 
266.2

 
0.09
%
^Chem-Flotronics, Inc.
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/22/2028

 
96.6

 
96.6

 
86.9

 
0.03
%
^LightStorm Security LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/21/2028

 
5.2

 
5.2

 
4.6

 
%
^Yakov Levy M.D., P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2028

 
106.0

 
106.0

 
93.7

 
0.03
%
^Mark A Espinoza, DDS PLLC dba Central Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2028

 
58.9

 
58.9

 
51.9

 
0.02
%
^JVLS LLC dba Vaccines 2 Go
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/17/2028

 
8.0

 
8.0

 
7.0

 
%
^On Stage Enterprises LLC, On Stage Theaters Branson, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
5/17/2028

 
241.5

 
241.5

 
212.6

 
0.07
%
^Joshua One Limited Liability Company dba Genesis Personal Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/16/2043

 
319.2

 
319.2

 
324.5

 
0.11
%
^Clore Construction LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
5/16/2028

 
145.1

 
145.1

 
134.7

 
0.05
%
^James T. Hendel dba Autotexx Mobile Auto Repair
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/15/2028

 
7.2

 
7.2

 
7.5

 
%
^Fireplace Outlet Inc
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
5/15/2028

 
21.7

 
21.7

 
22.4

 
0.01
%

F-30
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Galore Salon & Extension Lounge Inc dba Pretty Chic Hair & Lashes
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/14/2028

 
4.3

 
4.3

 
3.9

 
%
^Circle and Square, Inc dba Stamford Kumon
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/11/2028

 
41.0

 
41.0

 
36.2

 
0.01
%
^Bote Virginia Beach, Inc. dba Bote Virginia Beach
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
5/11/2028

 
10.9

 
10.9

 
9.7

 
%
^Adhara, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/11/2043

 
43.5

 
43.5

 
45.5

 
0.02
%
^Daniel Woodward, DC PLLC dba Doc's Body Shop
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/11/2028

 
39.8

 
39.8

 
35.1

 
0.01
%
^Baby Gentry's Childcare & Learning Academy
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/10/2028

 
10.9

 
10.9

 
9.6

 
%
^P & M Entertainment, LLC dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/10/2028

 
116.3

 
116.3

 
106.9

 
0.04
%
^Buy Gitomer Inc., Gitgo LLC.,GitGo Archives, LLC, and Jeffrey Gitomer
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/9/2043

 
719.9

 
719.9

 
785.6

 
0.27
%
^Whitetail Nurseries Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/9/2028

 
258.4

 
258.4

 
247.0

 
0.09
%
^Oculi Entertainment Inc
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
5/8/2028

 
21.7

 
21.7

 
19.1

 
0.01
%
^Schmaltz Operations LLC dba Companion Camp
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/7/2028

 
58.0

 
58.0

 
55.5

 
0.02
%
^Container Shipping, LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/4/2028

 
48.3

 
48.3

 
42.5

 
0.01
%
^Wilbur Standford Jr Trucking and Excavating, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/3/2028

 
231.8

 
231.8

 
226.1

 
0.08
%
^Warner Family Restaurant LLC dba Burgerim
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/3/2028

 
20.1

 
20.1

 
18.5

 
0.01
%
Olmsted LLC and 626 Van LLC dba Maison Yaki
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/1/2029

 
188.2

 
188.2

 
171.7

 
0.06
%
^McIntosh Trail Management Service Organization, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/1/2028

 
91.8

 
91.8

 
94.8

 
0.03
%
^Sunlinc Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2028

 
9.4

 
9.4

 
8.2

 
%
^SOWC Associates LLC dba Serenity Oaks Wellness Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2043

 
1,242.1

 
1242.1

 
1,355.4

 
0.47
%
^Saltamontes Tire Company, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/30/2043

 
101.7

 
101.7

 
106.7

 
0.04
%

F-31
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Metropolitan Solutions Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2043

 
34.2

 
34.2

 
37.3

 
0.01
%
^Brenden Kehren Development LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2028

 
2.9

 
2.9

 
2.5

 
%
^Corona Dance, LLC dba Huracan Dance Studio
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
4/30/2028

 
11.5

 
11.5

 
10.1

 
%
^Little Angels Daycare and Learning Center LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/27/2043

 
159.4

 
159.4

 
173.9

 
0.06
%
^Rory James Contracting LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
4/27/2028

 
15.4

 
15.4

 
13.6

 
%
^Kastoria Inc. dba Bantam Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/27/2028

 
14.4

 
14.4

 
12.8

 
%
^Suraj Enterprises, Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/27/2028

 
300.6

 
300.6

 
284.5

 
0.10
%
^Contrada Snacks LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/27/2028

 
9.8

 
9.8

 
8.6

 
%
^Pledge 4 Hope LLC
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
4/26/2028

 
14.4

 
14.4

 
12.7

 
%
^RWT Corporation dba Welding Works
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/26/2028

 
498.6

 
498.6

 
458.4

 
0.16
%
^Matrix Z, LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/26/2028

 
72.6

 
72.6

 
72.0

 
0.03
%
^K&S Hardware LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
4/26/2028

 
21.6

 
21.6

 
19.0

 
0.01
%
^RWT Corporation dba Welding Works
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/26/2043

 
210.9

 
210.9

 
205.9

 
0.07
%
^LMH Optics LLC dba Sterling Optical
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/26/2028

 
48.0

 
48.0

 
42.4

 
0.01
%
^Joe & Sons Service, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/24/2028

 
108.0

 
108.0

 
111.5

 
0.04
%
Kneading Dough LLC dba NY Bagel Cafe & Deli, NY Bagel, New York Bagel
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/23/2029

 
18.1

 
18.1

 
16.7

 
0.01
%
^Just for Boats LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2043

 
17.4

 
17.4

 
18.9

 
0.01
%
^Nando LLC dba Tall Timbers Banquet and Conference Center
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/20/2028

 
19.4

 
19.4

 
17.6

 
0.01
%
^Digzy Dogz and Grill LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/20/2028

 
8.6

 
8.6

 
8.3

 
%

F-32
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Spitnale's Garage LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2043

 
59.8

 
59.8

 
62.1

 
0.02
%
^Rosemarie Products Company LLC
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
4/18/2028

 
14.4

 
14.4

 
12.7

 
%
^Means Enterprises LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
4/18/2028

 
7.2

 
7.2

 
6.4

 
%
^James L Shoemaker APCC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/18/2028

 
15.4

 
15.4

 
13.6

 
%
^Veterinary Preventive Care, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/18/2028

 
44.9

 
44.9

 
41.0

 
0.01
%
^A New Dawn Psychotherapy Associates, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/18/2043

 
86.8

 
86.8

 
88.0

 
0.03
%
^Southern HVAC LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/17/2043

 
22.3

 
22.3

 
22.4

 
0.01
%
^Southern Oaks Athletic Club, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/17/2043

 
364.3

 
364.3

 
389.5

 
0.14
%
^The Vine, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/17/2028

 
12.4

 
12.4

 
11.3

 
%
^Southern HVAC LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/17/2028

 
38.4

 
38.4

 
36.4

 
0.01
%
^1301 Starks Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/16/2028

 
21.6

 
21.6

 
21.8

 
0.01
%
^Patricia A. Freeman & Samuel C. Freeman dba Teenas Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/13/2043

 
43.1

 
43.1

 
45.1

 
0.02
%
^Precision Components Group Inc
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/11/2028

 
21.6

 
21.6

 
20.7

 
0.01
%
^Sexy Nails Center LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/10/2043

 
200.8

 
200.8

 
215.7

 
0.08
%
^Mark Baker
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/9/2028

 
11.5

 
11.5

 
10.5

 
%
^Innovation Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/6/2028

 
49.3

 
49.3

 
47.1

 
0.02
%
^Newsome Mobile Notary LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/5/2028

 
5.0

 
5.0

 
4.4

 
%
^Shree Lakshminarayyn Grocery Stores LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
4/5/2043

 
119.0

 
119.0

 
125.3

 
0.04
%
^Bean City Bar and Grill LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/4/2043

 
93.7

 
93.7

 
99.1

 
0.03
%

F-33
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Alaska Industrial Paint LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/30/2043

 
220.9

 
220.9

 
231.5

 
0.08
%
^GQ Investments,LLC
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028

 
200.8

 
200.8

 
180.6

 
0.06
%
^B&C Texas Leasing Inc and M&W Hot Oil, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028

 
935.0

 
935.0

 
894.7

 
0.31
%
^Master Roofing and Siding Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028

 
252.8

 
252.8

 
222.3

 
0.08
%
^Romancing the Stone
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/30/2043

 
345.3

 
345.3

 
356.8

 
0.12
%
^Alaska Industrial Paint LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028

 
119.0

 
119.0

 
118.3

 
0.04
%
^Michael S Brown Physical Therapy, P.C
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028

 
94.2

 
94.2

 
82.9

 
0.03
%
^Arrow Freight Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028

 
671.7

 
671.7

 
590.6

 
0.21
%
^B&C Texas Leasing Inc.,M & W Hot Oill, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2043

 
267.4

 
267.4

 
270.9

 
0.09
%
^Fifth Wheel Truck Stop 001
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/30/2043

 
1,135.3

 
1135.3

 
1,134.1

 
0.39
%
^Boulevard Books Inc.
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/30/2043

 
120.1

 
120.1

 
126.7

 
0.04
%
^Technical Ordnance Solutions,LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028

 
1,142.6

 
1142.6

 
1,012.9

 
0.35
%
^Payne's Environmental Services LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028

 
216.2

 
216.2

 
205.3

 
0.07
%
^America's Little Leaders Academy, Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/30/2043

 
22.3

 
22.3

 
23.6

 
0.01
%
^Kaz Wellness, LLC dba Grounded Wellness Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2028

 
15.2

 
15.2

 
14.0

 
%
^Hot Shot Services, Inc and TFB, Ltd Co
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2043

 
396.2

 
396.2

 
432.0

 
0.15
%
Lou & Choo Enterprises Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2044

 
33.8

 
33.8

 
37.0

 
0.01
%
^Montage Mountain Resorts, LP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/28/2043

 
1,238.0

 
1,238.0

 
1,350.0

 
0.47
%
^Clancy 15 LLC and Allied Molded Products LLC
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2028

 
147.5

 
147.5

 
140.2

 
0.05
%

F-34
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Kenneth Whelchel dba Whelchel Fencing and Construction
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/28/2028

 
62.0

 
62.0

 
57.6

 
0.02
%
^Clancy 15 LLC and Allied Molded Products LLC
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2043

 
212.9

 
212.9

 
214.7

 
0.07
%
^Corning Lumber Company Inc & Frank R Close & Son Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/28/2028

 
83.5

 
83.5

 
86.1

 
0.03
%
^Cartwright Termite & Pest Control Inc. and Cartwright Termite & Pest Co.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/28/2028

 
222.1

 
222.1

 
209.5

 
0.07
%
^K.C. Communications, Inc.
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
3/27/2028

 
59.6

 
59.6

 
61.5

 
0.02
%
^Towing Professionals of Arizona Inc dba Shamrock Towing
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/26/2028

 
143.1

 
143.1

 
131.4

 
0.05
%
^Towing Professionals of Arizona Inc dba Shamrock Towing
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/26/2043

 
533.6

 
533.6

 
520.4

 
0.18
%
^Cable Management, LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028

 
94.5

 
94.5

 
90.3

 
0.03
%
^Sunshine Tents and Event Rentals LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028

 
58.9

 
58.9

 
60.7

 
0.02
%
^Shweiki Media Inc dba Study Breaks Magazine
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028

 
71.6

 
71.6

 
72.4

 
0.03
%
^Aque Investment Group LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028

 
253.3

 
253.3

 
261.2

 
0.09
%
^Denton BioFuels LLC and Amercian BioSource, LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028

 
93.0

 
93.0

 
86.8

 
0.03
%
^All Regional Recyclers of Wood LLC dba ARROW
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028

 
125.2

 
125.2

 
119.5

 
0.04
%
^New York Label & Box Corp
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/23/2043

 
1,238.0

 
1,238.0

 
1,288.6

 
0.45
%
^Sofasco, Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/23/2043

 
99.0

 
99.0

 
99.2

 
0.03
%
^Kajun Martial Arts LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028

 
21.5

 
21.5

 
19.2

 
0.01
%
^ME Interiors LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/22/2028

 
17.9

 
17.9

 
15.7

 
0.01
%
^GeoTek Alaska, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2043

 
841.9

 
841.9

 
878.6

 
0.31
%

F-35
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Rexco Foods LLC dba Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/20/2028

 
40.6

 
40.6

 
35.7

 
0.01
%
^RTSP Union LLC
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
9/20/2028

 
1,182.3

 
1,182.3

 
1,107.4

 
0.39
%
^Cest Chic Concepts, LLC dba Salon Cest Chic
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/19/2028

 
10.7

 
10.7

 
9.7

 
%
^Petroleum Equipment & Services, Inc
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
3/16/2028

 
238.5

 
238.5

 
244.1

 
0.08
%
^Camerabots Media, LLC
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
3/16/2028

 
14.3

 
14.3

 
12.9

 
%
^Car Pro Auto Spa of Stuart, LLC dba Tide Pools Island Gifts
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/16/2028

 
21.5

 
21.5

 
22.1

 
0.01
%
^Rojenco, Inc. dba Buggy Bathe Auto Wash Lube & Detail Shoppe
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/15/2043

 
514.0

 
514.0

 
542.8

 
0.19
%
^Rojenco II,Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/15/2043

 
76.3

 
76.3

 
80.6

 
0.03
%
^Bear Bones, Inc.
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/15/2043

 
22.3

 
22.3

 
23.8

 
0.01
%
^CTD Operations Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2028

 
63.2

 
63.2

 
56.6

 
0.02
%
^Rojenco, Inc. dba The Buggy Bathe Auto Wash Lube & Detail Shoppe
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/15/2043

 
76.3

 
76.3

 
80.6

 
0.03
%
^Rojenco II, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/15/2043

 
398.6

 
398.6

 
420.9

 
0.15
%
^Summit Insights Group LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/14/2028

 
84.9

 
84.9

 
74.6

 
0.03
%
^Dante Ultimate Cleaning Service LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/9/2028

 
9.7

 
9.7

 
9.2

 
%
^SRG Waterfront LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/9/2028

 
298.2

 
298.2

 
265.8

 
0.09
%
^2b Mom Inc dba Mom's the Word Maternity
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
3/9/2028

 
93.1

 
93.1

 
81.9

 
0.03
%
^Bee Kidz Funzone Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/9/2028

 
186.6

 
186.6

 
169.9

 
0.06
%
^Integrity Machinery Moving, LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/8/2028

 
21.5

 
21.5

 
22.1

 
0.01
%

F-36
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Treft Systems Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/8/2028

 
14.3

 
14.3

 
12.7

 
%
^Unpainted Arizona, LLC dba Westside Bowl
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/7/2043

 
103.5

 
103.5

 
107.0

 
0.04
%
^Play4Fun dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/7/2028

 
170.4

 
170.4

 
156.8

 
0.05
%
^Espinoza & Salinas Group Ltd dba Credit 360 Consulting
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/2/2028

 
4.7

 
4.7

 
4.3

 
%
^BC Bishop Enterprises LLC dba 9Round Pooler
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/2/2028

 
8.0

 
8.0

 
7.2

 
%
^Stepping Stones Childrens Academy
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/2/2043

 
252.0

 
252.0

 
268.3

 
0.09
%
^Connie Engelbrecht
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/28/2028

 
2.8

 
2.8

 
2.6

 
%
^The Law Offices of Samuel R Miller LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2043

 
117.7

 
117.7

 
128.0

 
0.04
%
^Merciful Heavenly Homes, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
2/28/2043

 
65.6

 
65.6

 
71.5

 
0.02
%
^Urban Fitness Group LLC dba Crunch Fitness Group LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2028

 
212.4

 
212.4

 
219.0

 
0.08
%
^Carey Collision Repairs Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
2/27/2028

 
71.1

 
71.1

 
64.2

 
0.02
%
^Betty's Catering Corp, Betty's Decoration & Wedding Center Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/26/2043

 
352.9

 
352.9

 
384.8

 
0.13
%
^Purely Seed LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/26/2028

 
118.5

 
118.5

 
104.2

 
0.04
%
^Carries Cakes and Catering, Inc dba Carrie's Cakes and Confections
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/23/2028

 
4.9

 
4.9

 
4.3

 
%
^Jackpine Technologies Corporation
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/22/2028

 
75.0

 
75.0

 
72.3

 
0.03
%
^Crossfit iQ LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/21/2028

 
40.3

 
40.3

 
36.5

 
0.01
%
^Wellfleet Consulting Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/21/2028

 
14.2

 
14.2

 
12.5

 
%
^New View Media Group LLC
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/16/2028

 
78.2

 
78.2

 
80.7

 
0.03
%

F-37
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Town & Country Transportation Co.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/16/2028

 
62.8

 
62.8

 
64.8

 
0.02
%
^Lulinjett LLC dba All American Printing & Design
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/14/2043

 
105.4

 
105.4

 
115.0

 
0.04
%
^JumboMarkets, Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/13/2028

 
196.7

 
196.7

 
179.3

 
0.06
%
^Margab Inc dba Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/13/2028

 
12.1

 
12.1

 
10.9

 
%
^Tony Herring & Associates, Inc.
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
2/9/2028

 
7.8

 
7.8

 
7.9

 
%
^Start "UP "Dreams, Inc dba SDC Concrete and Start"UP" Dream Construction
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/9/2028

 
71.1

 
71.1

 
66.2

 
0.02
%
^Quality Machine of Iowa, Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/9/2028

 
1,223.3

 
1,223.3

 
1,172.9

 
0.41
%
^Apps Inc., Market Share, and Singular Leaseholdings LLC
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
2/8/2028

 
497.4

 
497.4

 
437.4

 
0.15
%
^De La Vega LLC dba De La Vega Deland and De La Vega Oviedo
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/7/2028

 
74.4

 
74.4

 
68.1

 
0.02
%
^Macrotech Integrated Management Solutions dba Extreme Lawn Care
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
2/5/2028

 
11.4

 
11.4

 
11.7

 
%
^Midlothian Hardware Inc dba Grills True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
2/2/2028

 
14.2

 
14.2

 
14.6

 
0.01
%
^M&R Wong LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
2/1/2028

 
11.3

 
11.3

 
10.0

 
%
^Chace Building Supply of CT Inc.,
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
1/31/2043

 
296.7

 
296.7

 
323.6

 
0.11
%
^Rocco'sLandscaping LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/31/2043

 
74.1

 
74.1

 
80.8

 
0.03
%
^USA General Investment LLC dba Braniff Paint and Body Shop
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2028

 
14.1

 
14.1

 
12.8

 
%
^WydeBodi, LLC dba Wyde Bodi Auto Tags
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/30/2043

 
46.9

 
46.9

 
49.4

 
0.02
%
^New Phaze Packaging Inc
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/26/2043

 
947.6

 
947.6

 
1,026.9

 
0.36
%
^Parati USA Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
1/25/2028

 
20.0

 
20.0

 
17.6

 
0.01
%
^Concrete Services LLC and James Ward
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
1/25/2028

 
94.2

 
94.2

 
87.9

 
0.03
%

F-38
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Southside BBQ Corp
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/25/2028

 
18.4

 
18.4

 
18.9

 
0.01
%
^Flair Interiors, Inc dba Giant Don's Flooring America
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
1/24/2028

 
129.5

 
129.5

 
133.6

 
0.05
%
^Tier1 Solutions LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/23/2028

 
7.1

 
7.1

 
6.4

 
%
^Lavish Specs Inc
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/19/2028

 
7.1

 
7.1

 
6.2

 
%
^Friend Contractors, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
1/19/2043

 
229.7

 
229.7

 
238.2

 
0.08
%
^Weeping Willow Kennels, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2028

 
9.9

 
9.9

 
10.2

 
%
^Lou & Choo Enterprises Inc dba Lou & Choo Lounge
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/18/2043

 
113.6

 
113.6

 
117.0

 
0.04
%
^MedWorxs Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/18/2028

 
74.2

 
74.2

 
65.2

 
0.02
%
^Specialized Dairy Processors LLC and Nathaly Zapata
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/16/2028

 
61.2

 
61.2

 
53.8

 
0.02
%
^Human Resource Time Manager LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/8/2028

 
14.6

 
14.6

 
15.0

 
0.01
%
^Impress Therapeutic Massage LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/8/2043

 
62.2

 
62.2

 
66.0

 
0.02
%
^Sandfree Systems LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
1/5/2028

 
7.1

 
7.1

 
7.3

 
%
^Crad Holding LLC dba Neighborhood Laundry of Bloomfield
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/5/2028

 
58.9

 
58.9

 
52.2

 
0.02
%
^Social Link LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/29/2027

 
10.5

 
10.5

 
9.2

 
%
^Anglin Cultured Stone Products LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/27/2042

 
635.1

 
635.1

 
629.6

 
0.22
%
^Morrocco Method, Inc
 
Chemical Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/27/2042

 
719.0

 
719.0

 
763.7

 
0.27
%
^Dudeck Enterprise LLC dba Detail Garage Las Vegas
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
15.2

 
15.2

 
15.7

 
0.01
%
^O'Rourke's Diner, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
3.5

 
3.5

 
3.4

 
%
^Muckamuck Trucks, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
12.9

 
12.9

 
12.3

 
%

F-39
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Advance Case Parts Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
46.4

 
46.4

 
44.6

 
0.02
%
^TrialHawk Litigation Group LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
14.7

 
14.7

 
12.9

 
%
^Landmark Ventures USA Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
58.5

 
58.5

 
51.4

 
0.02
%
^Medical Plaza of Boro Park PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
58.5

 
58.5

 
51.4

 
0.02
%
^Bisson Transportation Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
70.2

 
70.2

 
69.0

 
0.02
%
^Jacliff Investments Inc dba International Heal
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
46.8

 
46.8

 
41.1

 
0.01
%
^Salida Family Chiropractic-PPLC dba Salida Sport and Spine
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
11.2

 
11.2

 
9.9

 
%
^Lab Partner, LLC and Beechtree Diagnostics, LLP and Cottonwood Diagnostics
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
728.4

 
728.4

 
648.5

 
0.23
%
^CT Auto Spa LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/21/2027

 
202.8

 
202.8

 
206.6

 
0.07
%
^Blue Lagoon Resort, LLC dba Hill View Cottages
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/21/2042

 
186.6

 
186.6

 
203.3

 
0.07
%
^DHD Enterprise LLC dba Edible Arrangements #1699
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/21/2027

 
21.4

 
21.4

 
19.7

 
0.01
%
^Tropical Stone LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/21/2027

 
175.8

 
175.8

 
181.1

 
0.06
%
^Ameco Forest Products LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/21/2027

 
163.8

 
163.8

 
168.7

 
0.06
%
^DBMS Consulting, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2027

 
70.2

 
70.2

 
67.2

 
0.02
%
^Best Quality Home Care LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
12/19/2027

 
7.4

 
7.4

 
6.5

 
%
^CZAR Industries, Inc.
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/19/2027

 
248.9

 
248.9

 
233.3

 
0.08
%
^Auto Excellance of Fort Myers Inc.
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/19/2042

 
104.8

 
104.8

 
114.2

 
0.04
%
^1-0 Granny's Helpful Hands, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027

 
21.1

 
21.1

 
18.7

 
0.01
%

F-40
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Legion Bowl, Inc & Legion Pub Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/15/2042

 
329.7

 
329.7

 
359.3

 
0.12
%
^Montessori Community School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027

 
59.6

 
59.6

 
56.6

 
0.02
%
^Ocean Trans LLC & Dehal Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/15/2042

 
601.8

 
601.8

 
599.0

 
0.21
%
^Capital Containers LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027

 
21.1

 
21.1

 
18.9

 
0.01
%
^Crystal II Auto Glass Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027

 
14.1

 
14.1

 
12.4

 
%
Neville Galvanizing, Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2042

 
625.0

 
625.0

 
641.5

 
0.22
%
^JMD Aviation Holdings, LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027

 
468.0

 
468.0

 
473.7

 
0.16
%
^Peanut Butter & Co., Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027

 
210.6

 
210.6

 
184.9

 
0.06
%
^KR Calvert & Co, LLC
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
446.3

 
446.3

 
393.5

 
0.14
%
^Royalty Freight Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
625.9

 
625.9

 
549.6

 
0.19
%
^Atlas Geo-Constructors, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
284.5

 
284.5

 
275.3

 
0.10
%
^Barcade Holdings, LLC, Barcade LLC,& Barcade New Haven LLC
 
Management of Companies and Enterprises
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
59.0

 
59.0

 
52.8

 
0.02
%
^Heung Kyun Im
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
14.5

 
14.5

 
12.7

 
%
^AADJ Empire Inc and AADJ Galaxy Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/14/2042

 
178.8

 
178.8

 
181.2

 
0.06
%
^LP Industries Inc. dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
70.3

 
70.3

 
68.6

 
0.02
%
^Beale Street Blues Company Inc.dba B.B. King's Club-Memphis
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
942.9

 
942.9

 
834.9

 
0.29
%
^Hana Pastries Enterprises LLC dba Hana Kitchens, Hana Pastries, Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
90.3

 
90.3

 
89.6

 
0.03
%
^Nichols Fire and Security LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2042

 
86.3

 
86.3

 
89.3

 
0.03
%
^Hardway Inc & AFC Leasing Inc
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2027

 
871.8

 
871.8

 
765.5

 
0.27
%
^LPB LPB Property Management Inc dba Wilderness View Cabins & Ellijay C
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
12/12/2042

 
98.6

 
98.6

 
107.0

 
0.04
%

F-41
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Clore Construction LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027

 
433.2

 
433.2

 
415.5

 
0.14
%
^Jai Ganeshai LLC, Mahiveera 1 LLC, Mahiveera 2 LLC & KSVP LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027

 
46.8

 
46.8

 
41.1

 
0.01
%
^Big Picture Group LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027

 
351.0

 
351.0

 
321.7

 
0.11
%
^Sky Way Enterprises, Inc, A-Liner-8-Aviation, Inc, Kissimmee Aviation
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027

 
468.0

 
468.0

 
410.9

 
0.14
%
^A-1 Van Services Inc
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027

 
673.6

 
673.6

 
651.9

 
0.23
%
^The Ohio Valley Group Inc dba Ohio Valley Landscapes & Design
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027

 
14.0

 
14.0

 
12.8

 
%
^Clear Sound Communications, Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2027

 
3.5

 
3.5

 
3.1

 
%
^AV Strategy Inc
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2027

 
414.1

 
414.1

 
389.4

 
0.14
%
^JVLS LLC dba Vaccines 2 Go
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/7/2027

 
14.0

 
14.0

 
12.3

 
%
^Kim Howard Corp dba NPN Machine Tools
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/7/2042

 
568.2

 
568.2

 
617.2

 
0.21
%
^IHC Hardware Inc.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/6/2042

 
98.6

 
98.6

 
98.7

 
0.03
%
^Driven Powersports, Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/6/2027

 
81.9

 
81.9

 
71.9

 
0.03
%
^Earth First Recycling LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/6/2027

 
72.8

 
72.8

 
72.9

 
0.03
%
^ODS Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/6/2027

 
45.9

 
45.9

 
42.7

 
0.01
%
^Healthcare Interventions, Inc dba Brightstar Healthcare of & Brightstar
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/4/2027

 
14.0

 
14.0

 
12.3

 
%
^Oil Palace, Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/4/2042

 
976.8

 
976.8

 
1,064.4

 
0.37
%
^PS Camping Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/1/2027

 
18.9

 
18.9

 
19.1

 
0.01
%
^Square1 Partners, LLC
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
12/1/2027

 
58.5

 
58.5

 
51.4

 
0.02
%
^Utara LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/1/2027

 
22.0

 
22.0

 
20.4

 
0.01
%

F-42
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Linda Jean Howard Riley dba The Rusty Bolt
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/1/2042

 
20.7

 
20.7

 
22.6

 
0.01
%
^Salud Bar & Grill LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/1/2027

 
52.6

 
52.6

 
46.5

 
0.02
%
^Fortress Verve Inc, Maurice R. Margules and Antonie C. Reinhard
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027

 
122.0

 
122.0

 
122.1

 
0.04
%
^WTI Distribution Inc
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027

 
37.2

 
37.2

 
35.3

 
0.01
%
^Frontier Sand LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027

 
479.0

 
479.0

 
473.3

 
0.16
%
^Create- A- Stitch, Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/30/2042

 
86.2

 
86.2

 
92.7

 
0.03
%
^J. Venture Holdings, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027

 
11.6

 
11.6

 
11.9

 
%
^Skin Beauty Bar Inc. and Tameka J. Mathis
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027

 
8.4

 
8.4

 
7.6

 
%
^OPH Lexington, Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/29/2042

 
192.8

 
192.8

 
210.1

 
0.07
%
^Clearwater Transportation LTD dba Thrifty Car Rental, Dollar Rent A Car
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
11/29/2027

 
160.4

 
160.4

 
144.1

 
0.05
%
^Our Playhouse Preschool, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/29/2042

 
233.8

 
233.8

 
254.8

 
0.09
%
^Amped Coffee Company LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/28/2027

 
58.2

 
58.2

 
60.0

 
0.02
%
^Beacon Brewing LLC and C' Sons, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/27/2042

 
125.1

 
125.1

 
136.3

 
0.05
%
^Step Up Academy of the Arts, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/22/2027

 
14.7

 
14.7

 
12.9

 
%
^Webtez Inc dba Mod Vans
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/22/2027

 
65.1

 
65.1

 
57.5

 
0.02
%
^JMD Corporation dba Dart's True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/22/2027

 
17.4

 
17.4

 
16.5

 
0.01
%
^Glencadia Corporation
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2027

 
3.5

 
3.5

 
3.1

 
%
^Grumpy's Restaurant Company, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/21/2027

 
66.1

 
66.1

 
58.2

 
0.02
%
^Cali Fit Meals
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/21/2027

 
20.9

 
20.9

 
19.9

 
0.01
%
^PB Market LLC dba Pure Barre
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2027

 
100.9

 
100.9

 
88.7

 
0.03
%

F-43
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^N Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/20/2027

 
385.5

 
385.5

 
338.5

 
0.12
%
^N Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/20/2042

 
175.3

 
175.3

 
164.3

 
0.06
%
^B Lam LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/20/2042

 
178.6

 
178.6

 
190.0

 
0.07
%
^Maya Motel, LLC dba Town House Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/17/2042

 
56.2

 
56.2

 
61.2

 
0.02
%
^TPE Midstream LLC, Dasham Company dba Sahm Co & S & S Ventures Inc.
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
11/17/2027

 
175.8

 
175.8

 
170.7

 
0.06
%
^SSI Refrigerated Express Inc. and Robert M Stallone
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/17/2027

 
59.4

 
59.4

 
53.4

 
0.02
%
^Jacob's Towing, Inc.dba Jacob's Automotive Locksmith & Jacob's Auto Repair
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/17/2027

 
46.5

 
46.5

 
42.8

 
0.01
%
^Southern Specialty Contractor, LLC & Ronald David Holbrook Jr.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/17/2027

 
49.3

 
49.3

 
43.7

 
0.02
%
^H & H Hotshot Services, Inc.
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
11/16/2027

 
65.1

 
65.1

 
59.7

 
0.02
%
^Murf & Sons LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/16/2027

 
154.7

 
154.7

 
138.0

 
0.05
%
^J R Wholesale Tires & Auto Center, LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/15/2042

 
13.3

 
13.3

 
14.5

 
0.01
%
^Marcaco LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/15/2042

 
651.7

 
651.7

 
693.3

 
0.24
%
^Auto Rx LLC,J&P Auto Repair Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/15/2042

 
193.3

 
193.3

 
209.2

 
0.07
%
Paramount Dance Studios Inc. and Homestead Dance Supply
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
10/14/2043

 
408.5

 
408.5

 
432.7

 
0.15
%
^GFA International Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/13/2027

 
87.2

 
87.2

 
89.8

 
0.03
%
^Wing King at the Gardens LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/10/2027

 
9.1

 
9.1

 
8.0

 
%
^Linqserv Inc.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/9/2027

 
574.1

 
574.1

 
548.7

 
0.19
%
^Hofgard & Co, Inc dba Hofgard Benefits and James Marsh
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/8/2027

 
13.8

 
13.8

 
12.1

 
%
^JNP Delivery Inc
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
11/7/2027

 
104.1

 
104.1

 
97.5

 
0.03
%
^His Loving Hands Christian Academy, Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/6/2042

 
90.4

 
90.4

 
96.1

 
0.03
%

F-44
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Sterling Campbell Insurance Agency, Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/3/2027

 
7.0

 
7.0

 
6.1

 
%
^S & S Auto Body Shop Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/3/2042

 
162.6

 
162.6

 
175.5

 
0.06
%
^Top Quality Dent Service LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/2/2027

 
5.6

 
5.6

 
4.9

 
%
^Edge Studios Inc Radiant Yoga LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/1/2027

 
61.6

 
61.6

 
55.5

 
0.02
%
^Rachael Reel dba Rachel Reel Insurance Age
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
10/31/2027

 
6.9

 
6.9

 
6.1

 
%
^Berza TLG,LLC dba The Little Gym of Lake Charles
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/31/2027

 
39.2

 
39.2

 
35.1

 
0.01
%
^The Five Lakes LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
10/30/2042

 
467.3

 
467.3

 
509.2

 
0.18
%
^Die Hard Used Car Sales
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/30/2042

 
55.4

 
55.4

 
60.4

 
0.02
%
^Blue Eagle Transport Inc, Golden Eagle Transport, Inc
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
10/27/2027

 
34.7

 
34.7

 
31.4

 
0.01
%
^Sage Oil LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/27/2027

 
9.2

 
9.2

 
8.2

 
%
^Ashore Ventures Inc dba PuroClean Professional Restoration
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/27/2027

 
13.4

 
13.4

 
12.2

 
%
^Cardinal Homes, Inc
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/27/2027

 
101.0

 
101.0

 
104.1

 
0.04
%
^Suzie LLC dba Tony D's Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/25/2042

 
86.1

 
86.1

 
92.5

 
0.03
%
^White Walker LLC dba Frenchette
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/25/2027

 
258.9

 
258.9

 
266.7

 
0.09
%
^Grand Blanc Lanes, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/25/2027

 
13.9

 
13.9

 
14.3

 
%
^Schafer Fisheries Inc
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/25/2027

 
32.3

 
32.3

 
33.3

 
0.01
%
^Action Physical Therapy Yoga and Wellness Center Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/24/2027

 
20.8

 
20.8

 
20.4

 
0.01
%
^The Jig, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/24/2042

 
74.8

 
74.8

 
79.1

 
0.03
%
^Florida Apnea Diagnostics LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/20/2027

 
146.5

 
146.5

 
131.1

 
0.05
%

F-45
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Looky Enterprises, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/18/2027

 
61.4

 
61.4

 
55.4

 
0.02
%
^Island Refrigeration & AC Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/18/2042

 
138.6

 
138.6

 
144.3

 
0.05
%
^H and K Dry Cleaning LLC, Quintero Shopping Center LLC, Aqua Laundry
 
Electronics and Appliance Stores
 
Term Loan
 
8%
 
10/17/2042

 
63.3

 
63.3

 
69.0

 
0.02
%
^Blueridge Armor LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/17/2027

 
7.6

 
7.6

 
7.2

 
%
^Albas Bar & Grill LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/13/2042

 
44.3

 
44.3

 
44.5

 
0.02
%
^Cortez Landscaping, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/13/2027

 
17.7

 
17.7

 
16.5

 
0.01
%
^Crawfordsville Fitness LLC dba Planet Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/13/2027

 
114.6

 
114.6

 
103.4

 
0.04
%
^On Call Services LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/13/2027

 
16.6

 
16.6

 
17.1

 
0.01
%
^JD Ventures LLC and JD Roof Co LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/12/2027

 
20.8

 
20.8

 
18.7

 
0.01
%
^Pro Anderson, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/11/2027

 
49.9

 
49.9

 
44.5

 
0.02
%
^Sandbox Ventures LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/11/2027

 
17.3

 
17.3

 
17.0

 
0.01
%
^Eye Optique Inc.
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
10/5/2027

 
13.9

 
13.9

 
12.2

 
%
^Becky Lou Corp dba Rent A Center
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
10/2/2027

 
84.2

 
84.2

 
78.9

 
0.03
%
^Ains Holding Company LLC
 
Management of Companies and Enterprises
 
Term Loan
 
Prime plus 2.75%
 
10/2/2027

 
75.8

 
75.8

 
68.3

 
0.02
%
^Dan Cline Transport Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2030

 
948.9

 
948.9

 
864.6

 
0.30
%
^Cagwin Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
321.7

 
321.7

 
344.6

 
0.12
%
^Sashshel Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
209.1

 
209.1

 
227.7

 
0.08
%
^Threads of Time LLC
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
135.1

 
135.1

 
139.1

 
0.05
%
^Harco Metal Products Inc
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
483.3

 
483.3

 
479.2

 
0.17
%

F-46
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Miechella Suzette Decker
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
98.4

 
98.4

 
107.1

 
0.04
%
^Chicago American Manufacturing LLC, Dockside Steel Processing LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
1,230.3

 
1,230.3

 
1,289.0

 
0.45
%
^Pets A Go Go LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2042

 
195.5

 
195.5

 
206.8

 
0.07
%
^Rhode Island Tennis Management LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2042

 
540.4

 
540.4

 
555.3

 
0.19
%
^Nicholson Lumber Co Inc.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/28/2030

 
202.9

 
202.9

 
204.5

 
0.07
%
^Rhode Island Tennis Management LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2042

 
376.3

 
376.3

 
386.7

 
0.13
%
^National Media Services, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2027

 
17.2

 
17.2

 
15.1

 
0.01
%
^Complete Care IT LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2027

 
13.5

 
13.5

 
11.8

 
%
^Technologist Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/27/2027

 
318.5

 
318.5

 
316.0

 
0.11
%
^Rollins Construction & Trucking LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
9/26/2027

 
312.4

 
312.4

 
311.0

 
0.11
%
^Inspirations Food Design, Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/26/2042

 
460.0

 
460.0

 
478.7

 
0.17
%
^KB Waterjet Cutting LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/22/2027

 
9.4

 
9.4

 
8.7

 
%
^JPS Arthur Kill Rd Bakery Corp dba Aunt Butches of Brooklyn
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/22/2027

 
20.6

 
20.6

 
18.3

 
0.01
%
^Magnation Corporation
 
Utilities
 
Term Loan
 
Prime plus 2.75%
 
9/22/2027

 
45.9

 
45.9

 
47.2

 
0.02
%
^Sallee Pro-Custom Fabrication Shop LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/21/2027

 
8.3

 
8.3

 
8.5

 
%
^Sound Manufacturing, Inc. & Monster Power Equipment, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
183.3

 
183.3

 
177.1

 
0.06
%
^Alpha Preparatory Academy LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
159.7

 
159.7

 
163.6

 
0.06
%
^CR Park Incorporated dba Define Body and Mind
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
92.1

 
92.1

 
83.8

 
0.03
%
^Denek Contracting Inc and Denek Leasing LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
206.3

 
206.3

 
224.6

 
0.08
%

F-47
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Excel, RP Inc.
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
91.7

 
91.7

 
86.3

 
0.03
%
^Max Home Deliveries, Inc
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
74.1

 
74.1

 
69.1

 
0.02
%
^Montessori Community School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
387.8

 
387.8

 
390.9

 
0.14
%
^Imagine By Carleen, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
6.9

 
6.9

 
6.8

 
%
^NY Tent LLC & NY Tent Parent, LLC dba Tent Company of New York
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
942.4

 
942.4

 
917.5

 
0.32
%
^Alexander Pierce Corporation
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
613.6

 
613.6

 
632.7

 
0.22
%
^Commonwealth Diagnostics International, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
1,104.2

 
1,104.2

 
1,136.0

 
0.40
%
^Insight Diagnostic Technologist Services
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
278.4

 
278.4

 
254.6

 
0.09
%
^Venus Pizza, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
90.4

 
90.4

 
98.4

 
0.03
%
^CIS BIG DOG, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/19/2027

 
56.9

 
56.9

 
58.1

 
0.02
%
^Stone's Construction and Remodeling, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/19/2027

 
4.8

 
4.8

 
4.2

 
%
^Party By Design Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/18/2042

 
1,190.5

 
1,190.5

 
1,216.5

 
0.42
%
^Clark Realty LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
58.6

 
58.6

 
54.8

 
0.02
%
^Inglis Food Mart Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
20.6

 
20.6

 
21.0

 
0.01
%
^Clinton Food Market LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/15/2042

 
257.9

 
257.9

 
266.7

 
0.09
%
^Li Family Spokane LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2042

 
377.8

 
377.8

 
402.2

 
0.14
%
^Tarleton & Family Landscaping, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
76.8

 
76.8

 
69.8

 
0.02
%
^Alaska Motor Home Inc
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2027

 
304.0

 
304.0

 
266.6

 
0.09
%
^Nails By Mercede LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2027

 
13.1

 
13.1

 
12.4

 
%
^Fox Valley Rentals & Investments, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 3.75%
 
9/13/2027

 
6.9

 
6.9

 
7.0

 
%

F-48
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Town & Country Transportation Co. and Popco, LLC.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/12/2042

 
165.8

 
165.8

 
180.5

 
0.06
%
^Rajbai Maa Inc. dba Nara Lounge
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/12/2042

 
381.9

 
381.9

 
383.4

 
0.13
%
^Morgan Lynn Kerstetter dba Catherine School of Dance
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/11/2027

 
6.9

 
6.9

 
7.1

 
%
^Health & Performance Center, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2027

 
18.7

 
18.7

 
16.4

 
0.01
%
^Foxtail, LLC and Tottly New Services Corp
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/8/2042

 
286.2

 
286.2

 
296.9

 
0.10
%
^Desert Ribs, LLC and Famous Charlie, LLC and Famous Freddie, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/8/2042

 
1,233.2

 
1,233.2

 
1,206.1

 
0.42
%
^Echelon Planning Group, LLC dba Echelon Financial Services and Echelon
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/8/2027

 
6.9

 
6.9

 
6.9

 
%
^Crazy Beatz Productions LLC
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 3.75%
 
9/7/2027

 
4.9

 
4.9

 
4.6

 
%
^South Fulton Landscape & Nursery, Inc.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/7/2042

 
98.4

 
98.4

 
107.2

 
0.04
%
^Dreaming Big Learning Center Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/5/2042

 
364.1

 
364.1

 
377.4

 
0.13
%
^Big Coop's Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/1/2027

 
91.7

 
91.7

 
87.9

 
0.03
%
^Blue EagleTransport Inc, Greeneagle Transport Inc & Golden Eagle Transport
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
8/31/2027

 
349.9

 
349.9

 
316.4

 
0.11
%
^The Pink Alli, LLC dba The Alli
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/30/2027

 
16.4

 
16.4

 
15.0

 
0.01
%
^Busby Outdoor LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
8/29/2042

 
540.2

 
540.2

 
506.6

 
0.18
%
^Busby Outdoor LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
8/29/2042

 
687.6

 
687.6

 
644.9

 
0.22
%
^Parlay Disributors LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
8/25/2027

 
102.5

 
102.5

 
91.4

 
0.03
%
^Lake County Tow LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/25/2042

 
85.9

 
85.9

 
88.5

 
0.03
%
^InUSA Ventures Inc dba InUSA Services
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/24/2027

 
22.8

 
22.8

 
20.0

 
0.01
%

F-49
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Genuine Ventures LLC and Seaweed Ventures LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/24/2030

 
524.6

 
524.6

 
502.4

 
0.17
%
^R & R Strength & Conditioning Corp dba Crossfit Light House Point
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/23/2042

 
81.1

 
81.1

 
88.3

 
0.03
%
^Delicias de Minas Restaurant, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/22/2027

 
188.0

 
188.0

 
187.8

 
0.07
%
^L&V Auto Sales, Inc.
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
8/21/2027

 
16.4

 
16.4

 
16.9

 
0.01
%
^M.E. Interiors LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/21/2027

 
15.0

 
15.0

 
13.2

 
%
^Damiano Global Corp
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/21/2027

 
20.5

 
20.5

 
19.7

 
0.01
%
^Tier1 Solutions LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/18/2027

 
17.1

 
17.1

 
15.7

 
0.01
%
^Tony Herring & Associates, Inc
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
8/17/2027

 
6.8

 
6.8

 
6.0

 
%
^Chester's World Enterprise LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/16/2027

 
20.5

 
20.5

 
18.8

 
0.01
%
^D'Amato & Sons Construction, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/11/2027

 
7.5

 
7.5

 
7.0

 
%
^Roundhay Partners LLC and Roundhay Farming LLC
 
Crop Production
 
Term Loan
 
Prime plus 2.75%
 
8/8/2042

 
902.1

 
902.1

 
853.8

 
0.30
%
^L & J Corporate Services Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/4/2027

 
6.8

 
6.8

 
6.0

 
%
^Furniture Masters Limited Liability Company
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/3/2027

 
8.2

 
8.2

 
7.2

 
%
^HMG Strategy LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/2/2027

 
45.5

 
45.5

 
39.9

 
0.01
%
^Bowl Mor LLC dba Bowl Mor Lanes
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/31/2027

 
6.8

 
6.8

 
5.9

 
%
^Hope Health Care, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
7/31/2027

 
9.5

 
9.5

 
8.3

 
%
^Royal Blue Investments, Inc. and Cleland Pharmacy LLC
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
7/31/2042

 
51.9

 
51.9

 
55.6

 
0.02
%
^Raffi's Inc dba Atlantic Auto Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/31/2027

 
12.9

 
12.9

 
13.1

 
%

F-50
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Sharon G McMillen, MA Psychologist, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2027

 
16.8

 
16.8

 
14.8

 
0.01
%
^HQTRONIC LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/27/2027

 
20.4

 
20.4

 
17.8

 
0.01
%
^Oberon IT, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/26/2027

 
197.9

 
197.9

 
184.6

 
0.06
%
^Gilles Peress Studio LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/25/2027

 
56.6

 
56.6

 
49.6

 
0.02
%
^Obok LLC
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/21/2027

 
10.9

 
10.9

 
10.3

 
%
^Ocean Trans LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/21/2027

 
33.9

 
33.9

 
29.7

 
0.01
%
^Lil Tots' Learning Center LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/21/2042

 
46.6

 
46.6

 
48.0

 
0.02
%
^Matrix Z LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 3.75%
 
7/19/2027

 
6.8

 
6.8

 
7.1

 
%
^Nova Solutions, Inc.
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/19/2027

 
22.6

 
22.6

 
22.6

 
0.01
%
^Aitheras Aviation Group, LLC (OH) , Aitheras Aviation Group, LLC (FL)
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/18/2027

 
745.9

 
745.9

 
658.8

 
0.23
%
^Wildflour Bakery & Cafe, LLC
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/17/2027

 
20.3

 
20.3

 
20.9

 
0.01
%
^Koep Companies dba Pipestone True value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/14/2042

 
319.9

 
319.9

 
324.0

 
0.11
%
^Florida Home and Kitchen LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/14/2027

 
10.9

 
10.9

 
9.5

 
%
^Rocks Auto Exchange LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/13/2027

 
13.6

 
13.6

 
11.9

 
%
^McCord Holdings, Inc. dba Fast Signs 176101
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/7/2027

 
17.0

 
17.0

 
15.2

 
0.01
%
^Thrifty Market Inc dba Thrifty Foods
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/6/2027

 
92.9

 
92.9

 
85.5

 
0.03
%
^The Country House Restaurant, LLC and Pelton Real Estate, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2042

 
48.9

 
48.9

 
53.3

 
0.02
%
^Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
68.5

 
68.5

 
71.0

 
0.02
%
^J. T. O'Neill Company, L.L.C
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
13.5

 
13.5

 
12.4

 
%

F-51
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Hamilton & Associates Real Estate and Investments Firm LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
6/30/2042

 
52.9

 
52.9

 
56.9

 
0.02
%
^New Chicago Wholesale Bakery Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
13.5

 
13.5

 
13.5

 
%
^BQRS, Inc. DBA Gresham Meineke Car Care Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
56.1

 
56.1

 
52.6

 
0.02
%
^JWH Designs, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
95.4

 
95.4

 
88.1

 
0.03
%
^Veola's Day Spa and Wellness Center Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
8.2

 
8.2

 
7.8

 
%
^J&M Civil Construction Services LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
89.9

 
89.9

 
83.0

 
0.03
%
^Best Bees Company
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
20.2

 
20.2

 
18.7

 
0.01
%
^Stiegelbauer Associates Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
278.0

 
278.0

 
288.4

 
0.10
%
^Oakhill Farms, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2030

 
93.1

 
93.1

 
98.0

 
0.03
%
^Greensboro Plastic Surgical Associates, PA
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2042

 
565.8

 
565.8

 
600.4

 
0.21
%
^Malhame & Company Publishers & Importers Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
80.9

 
80.9

 
74.8

 
0.03
%
^Intellixion LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
3.4

 
3.4

 
3.1

 
%
^Ocean Trans LLC and Dehal Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
541.1

 
541.1

 
499.8

 
0.17
%
^Foxhop Fitness, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/28/2027

 
83.6

 
83.6

 
77.9

 
0.03
%
^Akal Express Inc. dba Truck Trailer Service Stop
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/28/2042

 
58.7

 
58.7

 
64.1

 
0.02
%
^Old Dominion Transportation Group, Inc.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/28/2027

 
909.2

 
909.2

 
855.7

 
0.30
%
^Citibin, Inc.
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/27/2027

 
112.3

 
112.3

 
103.7

 
0.04
%
^Auxiliary Systems Inc.,Sharrick Company, LLC & KMN, LLC
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/27/2030

 
228.3

 
228.3

 
236.6

 
0.08
%
^WB Cleaners Inc. DBA $2.75 Cleaners
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/27/2027

 
14.7

 
14.7

 
15.3

 
0.01
%

F-52
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Ains Holding Company, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/26/2027

 
1,056.4

 
1,056.4

 
992.7

 
0.35
%
^Four Seasons Laser Center Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2042

 
213.6

 
213.6

 
227.6

 
0.08
%
^Northern Industries, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/23/2042

 
56.5

 
56.5

 
62.5

 
0.02
%
^Rustic LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2042

 
15.9

 
15.9

 
15.8

 
0.01
%
^Vella Construction Enterprises, Inc. dba Vella Construction
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
6/23/2027

 
20.2

 
20.2

 
18.7

 
0.01
%
^Birches Group, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2027

 
44.9

 
44.9

 
41.5

 
0.01
%
^Sanabi Investment ,,LLC dba Oscar's Moving and Storage
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/20/2027

 
110.0

 
110.0

 
105.7

 
0.04
%
^Scarlet Spartan Inc.dba FastSigns of Brighton
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2027

 
50.0

 
50.0

 
47.0

 
0.02
%
^Don G. Timpton DDS & Associates PA and Indsaad Properties,LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/16/2042

 
391.7

 
391.7

 
406.8

 
0.14
%
^JAM Media Solutions, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2027

 
56.1

 
56.1

 
51.8

 
0.02
%
^All Regional Recyclers of Wood LLC dba ARROW, Superior Carting, LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2042

 
304.0

 
304.0

 
321.8

 
0.11
%
^Tele Tax Express Inc., El Rancho Paiso, LLC and Nestor Romero
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042

 
90.5

 
90.5

 
98.5

 
0.03
%
^ESA 365 Corp and Lucathor Realty LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042

 
22.0

 
22.0

 
23.7

 
0.01
%
^Susan Hughes dba Aloha Junction B and B
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042

 
60.7

 
60.7

 
67.2

 
0.02
%
^Hull's Kitchen, LLC and HK Too, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042

 
94.3

 
94.3

 
104.1

 
0.04
%
^Yachting Solutions LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/12/2027

 
106.7

 
106.7

 
105.2

 
0.04
%
^Refoleen Inc dba Spice and Tea Exchange
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/8/2027

 
3.2

 
3.2

 
2.9

 
%
^Earth First Recycling, LLC and 191 Clark Road, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/5/2027

 
338.0

 
338.0

 
347.6

 
0.12
%
^Skydive California, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2027

 
50.1

 
50.1

 
51.9

 
0.02
%

F-53
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^SCW, LLC dba Arthur Murray Dance Studio
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2042

 
142.8

 
142.8

 
152.4

 
0.05
%
^Speaker City, Inc.and Speaker Town, LLC dba Rollin Thunder
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/1/2042

 
44.6

 
44.6

 
48.2

 
0.02
%
^Impact Grounds Maintenance and Design, Inc.dba Impact Landscaping and
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/31/2042

 
77.6

 
77.6

 
85.0

 
0.03
%
^Funtime, LLC and Universal Entertainment Group LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/31/2027

 
59.2

 
59.2

 
55.4

 
0.02
%
^Ricnet III, Inc. dba Edible Arrangements
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/31/2027

 
13.2

 
13.2

 
12.4

 
%
^Haroon Baig,Inc.dba US1 Petrol
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/31/2042

 
257.8

 
257.8

 
285.3

 
0.10
%
^Sage Oil LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/31/2027

 
20.1

 
20.1

 
18.7

 
0.01
%
^Chet Lemon Enterprises LLC dba All American Sports
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/26/2042

 
774.0

 
774.0

 
856.5

 
0.30
%
^Mitchell Auto Repair, LLC and and C&M Mitchell, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/26/2042

 
191.0

 
191.0

 
206.9

 
0.07
%
^Eagle Wood Works LLC
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/26/2027

 
10.7

 
10.7

 
10.3

 
%
^Hurricane Group, Inc.
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
5/26/2027

 
66.9

 
66.9

 
61.8

 
0.02
%
^Swantown Inn & Spa LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/26/2042

 
124.2

 
124.2

 
136.4

 
0.05
%
^Beyond Waves A Unique Salon LLC and Lori Ann Carlson
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027

 
13.4

 
13.4

 
12.5

 
%
^Jung Design Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027

 
8.0

 
8.0

 
7.4

 
%
^Locavore LLC dba Paloma Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027

 
44.6

 
44.6

 
42.3

 
0.01
%
^Abdul Naushad MD PC dba Advanced Pain Centers
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2042

 
384.6

 
384.6

 
418.5

 
0.15
%
^Innovim, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/24/2027

 
300.9

 
300.9

 
277.9

 
0.10
%
^Gill Express Inc. and Gill Express 2 LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/23/2042

 
330.9

 
330.9

 
350.4

 
0.12
%
^Prestige Construction of Florida, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/23/2042

 
328.6

 
328.6

 
344.2

 
0.12
%

F-54
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^GEM2K, LLC dba Precision Precast Group
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027

 
145.9

 
145.9

 
138.9

 
0.05
%
^Hayden Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027

 
210.1

 
210.1

 
205.6

 
0.07
%
^Tres K Deli,Grocery,Fruit and Meat Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027

 
7.4

 
7.4

 
7.2

 
%
^Iron Men Home Repair, Inc. and Ironmen House Lifting Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/19/2042

 
568.9

 
568.9

 
611.3

 
0.21
%
^Enfield Tractor & Equipment Co
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027

 
264.6

 
264.6

 
264.9

 
0.09
%
^PS Camping, Inc. dba Prospectors RV Resort
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/19/2042

 
253.7

 
253.7

 
279.9

 
0.10
%
^Mr. B's Bicycles & Mopeds, Inc.
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
5/18/2042

 
143.3

 
143.3

 
153.4

 
0.05
%
^Waterford Plumbing Co, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/18/2027

 
44.6

 
44.6

 
41.7

 
0.01
%
^Bay Car Wash LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2042

 
117.9

 
117.9

 
126.9

 
0.04
%
^Computech Computers Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/17/2027

 
44.6

 
44.6

 
41.2

 
0.01
%
^Arco Electrical Contractors Inc. dba Arco Construction Group
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/16/2027

 
320.8

 
320.8

 
311.4

 
0.11
%
^Batter & Company,LLC dba Batter Co. Dessert Collection
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/16/2027

 
47.9

 
47.9

 
45.0

 
0.02
%
^5 Stars Learning Center Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/16/2042

 
60.4

 
60.4

 
64.7

 
0.02
%
^Band Sawn Lumber,LLC and Nathan Ryan Adams
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/15/2042

 
111.1

 
111.1

 
117.3

 
0.04
%
^Sanderson Distribution Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/12/2027

 
9.4

 
9.4

 
8.7

 
%
^Keys Armored Express, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/12/2027

 
35.7

 
35.7

 
34.0

 
0.01
%
^SG Linke LLC
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
5/12/2027

 
74.2

 
74.2

 
77.0

 
0.03
%
^B G F Bobby Q's Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/11/2027

 
6.7

 
6.7

 
6.8

 
%
^Estelle Finkel Educational Associates,LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/11/2027

 
107.8

 
107.8

 
99.6

 
0.03
%

F-55
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Labmates,LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
5/10/2027

 
89.2

 
89.2

 
89.1

 
0.03
%
^NHS, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/9/2027

 
78.9

 
78.9

 
75.3

 
0.03
%
^1872 Rosecrans, LLC dba Goodbar
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/9/2027

 
57.0

 
57.0

 
52.9

 
0.02
%
^NHS, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/9/2042

 
21.4

 
21.4

 
21.8

 
0.01
%
^Innovation Transport, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/9/2027

 
69.5

 
69.5

 
69.4

 
0.02
%
^Arclay, LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/5/2030

 
137.1

 
137.1

 
134.3

 
0.05
%
^Benchmark Building, Inc.
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/5/2027

 
20.1

 
20.1

 
18.5

 
0.01
%
^Cable Management LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
5/3/2027

 
51.1

 
51.1

 
50.5

 
0.02
%
^Fine Arts Center of Easley, Inc. dba Midtown Music
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
5/2/2042

 
114.0

 
114.0

 
126.1

 
0.04
%
^Zahmel Restaurant Suppliers Corp dba Cash & Carry; Zahners Hardware
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/28/2027

 
79.6

 
79.6

 
74.2

 
0.03
%
^Love and Glory Learning Center, Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/28/2042

 
76.1

 
76.1

 
80.9

 
0.03
%
^Georgia Productions Services LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
4/28/2027

 
80.8

 
80.8

 
78.3

 
0.03
%
^JMA Inc. dba Primecut and Mezzo; Primecut at Marquee
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/27/2042

 
216.8

 
216.8

 
239.9

 
0.08
%
^Sneads Ferry Foods, Inc. dba DQ Grill & Chill
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/27/2042

 
611.4

 
611.4

 
648.4

 
0.23
%
^Asheville's Fun Depot, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/26/2027

 
77.4

 
77.4

 
80.3

 
0.03
%
^Resident Research, LLC
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
4/24/2027

 
78.0

 
78.0

 
72.1

 
0.03
%
^Getting Even LLC dba The Zoo Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/21/2027

 
6.6

 
6.6

 
6.3

 
%
^Ralph's Hair Salon, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/21/2042

 
48.8

 
48.8

 
52.7

 
0.02
%

F-56
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^M.E. Interiors LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/20/2027

 
123.2

 
123.2

 
113.8

 
0.04
%
^Condron Brothers LLC DBA Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/19/2027

 
105.8

 
105.8

 
101.5

 
0.04
%
^Bloomer Machine & Fab, Inc and Dale Stertz Properties
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/13/2042

 
200.4

 
200.4

 
218.5

 
0.08
%
^Carpeteria (Markarian) Co.
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
4/13/2027

 
117.4

 
117.4

 
120.8

 
0.04
%
^Butternuts Beer and Ale LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/12/2027

 
65.3

 
65.3

 
67.7

 
0.02
%
^Citizens Lanes, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042

 
608.5

 
608.5

 
672.7

 
0.23
%
^Shelter Harbor Inn, Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042

 
202.6

 
202.6

 
224.0

 
0.08
%
^The Altitude Group, LLC and Core Home Security, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027

 
43.4

 
43.4

 
40.0

 
0.01
%
^MIT LLC
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042

 
85.4

 
85.4

 
94.5

 
0.03
%
^Bear Trail Lodge LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042

 
539.5

 
539.5

 
592.7

 
0.21
%
^Landmark Ventures USA, Inc.
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027

 
165.0

 
165.0

 
152.2

 
0.05
%
^Golden Hen Inc. dba Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027

 
57.0

 
57.0

 
53.1

 
0.02
%
^Applied Integrated Technologies, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027

 
110.1

 
110.1

 
101.5

 
0.04
%
^Signature Rooms, Inc dba Gallery Furniture
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/30/2042

 
484.1

 
484.1

 
533.5

 
0.19
%
^KWG Industries LLC dba Peterson & Marsh Metal Industries
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2027

 
26.4

 
26.4

 
26.9

 
0.01
%
^Sea Smoke Barbeque, Corp and Danwen LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/30/2042

 
230.9

 
230.9

 
247.9

 
0.09
%
^Schafer Fisheries Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2042

 
242.4

 
242.4

 
268.0

 
0.09
%

F-57
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Discount Price, LLC dba Robert's Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/29/2042

 
201.4

 
201.4

 
217.7

 
0.08
%
^Douglas K. Soderblom . dba Loma Linda Optometry
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2027

 
88.0

 
88.0

 
84.3

 
0.03
%
^Gauri Hospitality Group LLC dba Microtel Inns & Suites by Wyndham
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/29/2042

 
1,031.5

 
1,031.5

 
1,136.2

 
0.40
%
^First Sail Group Inc. and Omen Board Industires LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2027

 
17.6

 
17.6

 
17.1

 
0.01
%
^H and H Hotshot Services, Inc. dba AA Hotshot & Logistics
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2030

 
89.6

 
89.6

 
84.1

 
0.03
%
^New England Country Day School, Inc. and Thomas D. Walker
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/28/2042

 
362.6

 
362.6

 
388.6

 
0.14
%
^American Pharmaceutical Innovation Company, LLC
 
Chemical Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2027

 
26.4

 
26.4

 
24.4

 
0.01
%
^Pecos Entertainment LLC dba State Theater and Pecos Inn LLC
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
3/27/2042

 
400.7

 
400.7

 
443.0

 
0.15
%
^Heil & Hornik LLC dba Elysium Tennis
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/27/2042

 
907.1

 
907.1

 
968.8

 
0.34
%
^Robert Dixon PA dba Law Offices of Robert Dixon
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/24/2042

 
416.2

 
416.2

 
458.8

 
0.16
%
^Ericon Inc. dba Quik Pik
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/24/2027

 
55.0

 
55.0

 
55.4

 
0.02
%
^Executive Fitness & Nutrition Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/23/2027

 
18.0

 
18.0

 
18.4

 
0.01
%
^Denton Bio Fuels LLC and American Bio Source LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2027

 
52.1

 
52.1

 
50.3

 
0.02
%
^Color Graphic Press, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/23/2027

 
105.6

 
105.6

 
109.4

 
0.04
%
^JBK Truck Trailer and Bus Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/23/2042

 
86.6

 
86.6

 
92.5

 
0.03
%
^Baton Rouge Cargo Services Inc. and 6507 Westport, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/22/2042

 
628.0

 
628.0

 
683.9

 
0.24
%
^Vehicle Safety Supply LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/21/2027

 
19.8

 
19.8

 
18.3

 
0.01
%
^J Sivilis LLC dba Pet Wants
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/17/2027

 
10.8

 
10.8

 
10.2

 
%
^Texcor, Inc.dba Texas Corral,Texas Coral Restaurants II, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/16/2027

 
264.0

 
264.0

 
273.5

 
0.10
%

F-58
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^The Purple Cow House of Pancake Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/16/2042

 
156.9

 
156.9

 
173.4

 
0.06
%
^Reservoir International LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/16/2027

 
87.5

 
87.5

 
85.6

 
0.03
%
^1MTX LLC and Sunrise Transportation and Logistics, LLC and Mustafa M
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/13/2027

 
603.3

 
603.3

 
556.4

 
0.19
%
^Dwayne Bernard Tate
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/10/2027

 
9.2

 
9.2

 
8.9

 
%
^Elegant Occasions, LLC dba E Productions
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/10/2042

 
575.3

 
575.3

 
616.6

 
0.21
%
^E & P Holdings 1 LLC and Evans & Paul Unlimited Corp. and Evans & Paul
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/9/2027

 
109.9

 
109.9

 
103.2

 
0.04
%
^Anthony LLC dba Star of Woodward Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/9/2042

 
112.5

 
112.5

 
124.3

 
0.04
%
^Allegro Assisted Living Of Texas
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
3/6/2027

 
84.5

 
84.5

 
87.5

 
0.03
%
^Robbie E. Bakery and Cafe LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/3/2027

 
56.4

 
56.4

 
52.0

 
0.02
%
^Podium Auto Sales Inc and RRS Property, LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/3/2042

 
88.6

 
88.6

 
94.5

 
0.03
%
^Weeping Willow Kennels, Inc and Aileen N Black
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2042

 
136.6

 
136.6

 
147.8

 
0.05
%
^SSI Refrigerated Express Inc. and Robert M Stallone dba SSI Express
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/28/2027

 
205.8

 
205.8

 
189.8

 
0.07
%
^Getting Even LLC dba The Zoo Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2027

 
84.1

 
84.1

 
80.0

 
0.03
%
^Total Document Solutions Inc and,TDS Services, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/27/2030

 
285.1

 
285.1

 
279.5

 
0.10
%
^McNally Enterprises Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2027

 
56.8

 
56.8

 
54.0

 
0.02
%
^Teracore Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2027

 
143.0

 
143.0

 
131.9

 
0.05
%
^B & J Bicycle Shop Inc.
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
2/24/2027

 
8.4

 
8.4

 
8.7

 
%
^3W Enterprises LLC
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
2/24/2042

 
63.8

 
63.8

 
69.7

 
0.02
%
^TMJ Pizza Mesa LLC dba Rosati's Pizza Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/24/2027

 
93.9

 
93.9

 
92.2

 
0.03
%
^Victorian Restaurant and Tavern, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/22/2042

 
104.8

 
104.8

 
110.7

 
0.04
%

F-59
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^DER Services, LLC dba A.K.A. Sports
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
2/17/2042

 
39.1

 
39.1

 
43.2

 
0.02
%
^Bike Slug, LLC, Bike Slug Holdings Inc. and Seven Rivers Group, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
2/17/2027

 
17.0

 
17.0

 
15.7

 
0.01
%
^Ameritube, LLC and Ravone Properties, LLC
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/14/2042

 
180.7

 
180.7

 
199.8

 
0.07
%
^R&S Barnes Enterprises, Inc. dba Massage Envy Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/10/2027

 
81.9

 
81.9

 
76.2

 
0.03
%
^Baton Rouge Cargo Services Inc. and 2808 Court Street, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/10/2042

 
241.3

 
241.3

 
262.9

 
0.09
%
^Sushiya Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/10/2027

 
16.4

 
16.4

 
15.5

 
0.01
%
^Maximo Canot dba Wash and Dry Laundrymat
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/10/2042

 
134.3

 
134.3

 
146.5

 
0.05
%
^Marvic Enterprises Inc dba Jordan's Liquor
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/10/2042

 
213.6

 
213.6

 
231.6

 
0.08
%
^Harrison Logging Company LLC
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
2/9/2027

 
92.8

 
92.8

 
89.3

 
0.03
%
^8 Minute Oil Change Auto Repair & Tire Center and Jumir L.L.C.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
2/7/2042

 
320.7

 
320.7

 
339.0

 
0.12
%
^DBMS Consulting, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/1/2042

 
180.4

 
180.4

 
190.8

 
0.07
%
^Brandco, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/31/2027

 
37.9

 
37.9

 
35.0

 
0.01
%
^Chidlren's House Learning, Inc and Tarps Investment Group
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2042

 
313.3

 
313.3

 
335.5

 
0.12
%
^Fave Realty Inc.
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
1/30/2042

 
53.1

 
53.1

 
57.3

 
0.02
%
^Return to Excellence Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
1/27/2027

 
15.6

 
15.6

 
16.2

 
0.01
%
^House of Bread & Coffee Corp dba Casa Do Pao
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/27/2042

 
169.9

 
169.9

 
176.2

 
0.06
%
^ZMKNY Tires Inc dba Houston International Tires
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
1/27/2042

 
104.9

 
104.9

 
116.0

 
0.04
%
^SRC Publishing LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/27/2027

 
19.5

 
19.5

 
18.0

 
0.01
%

F-60
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Fox Valley Rentals & Investments LLC and Brian M Tomaszewski
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/20/2042

 
41.4

 
41.4

 
44.1

 
0.02
%
^Rhone Wolf Vineyard LLC, Goldline Brands Inc. and Myka Cellars, Inc.
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/19/2030

 
232.5

 
232.5

 
228.6

 
0.08
%
^Jolibe LLC and Jolibe Atelier LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/18/2027

 
9.1

 
9.1

 
8.6

 
%
^Eickmann Management Group LLC dba Jimmy Johns of Dundee
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/17/2027

 
86.4

 
86.4

 
88.2

 
0.03
%
^Fullbro Trust dba Menemsha Blues
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
1/13/2027

 
19.5

 
19.5

 
20.2

 
0.01
%
^Ramjay Inc.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/13/2027

 
389.8

 
389.8

 
375.4

 
0.13
%
^Echelon Enterprises, Inc
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
1/10/2027

 
43.4

 
43.4

 
44.9

 
0.02
%
^Fort Smith Wings Inc. dba Wing Stop
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/28/2026

 
16.8

 
16.8

 
16.0

 
0.01
%
^Sand Hill Associates, Ltd. dba Charlie O's Tavern on the Point
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/27/2041

 
413.0

 
413.0

 
438.0

 
0.15
%
^Joshua L. Baker
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
12/23/2026

 
13.5

 
13.5

 
12.5

 
%
^Jacliff Investments Inc. dba International health Technologies
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
12/23/2026

 
107.5

 
107.5

 
99.0

 
0.03
%
^Metropolitan Solutions Group Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/19/2041

 
267.1

 
267.1

 
278.2

 
0.10
%
^Means Enterprises LLC dba FastFrame Frisco
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/16/2026

 
19.4

 
19.4

 
18.0

 
0.01
%
^Soon Im. Chin dba Stan C-Store
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
206.4

 
206.4

 
225.9

 
0.08
%
^Sempco, Inc.
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
40.8

 
40.8

 
45.1

 
0.02
%
^New Chicago Wholesale Bakery, Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
440.6

 
440.6

 
467.2

 
0.16
%
^Ericon, Inc. dba Quik Pik
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
323.2

 
323.2

 
344.9

 
0.12
%
^White Hawk Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/15/2026

 
944.4

 
944.4

 
869.7

 
0.30
%
^Elita 7, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
692.2

 
692.2

 
749.9

 
0.26
%

F-61
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Allied Welding Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
729.8

 
729.8

 
771.5

 
0.27
%
^Techni-Pro Institute LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/15/2026

 
163.7

 
163.7

 
154.2

 
0.05
%
^Trison Enterprises Inc.dba Lee's Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041

 
395.9

 
395.9

 
426.4

 
0.15
%
^D and E Hardware Co. and D and E Pump Sales and Service
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041

 
513.5

 
513.5

 
547.0

 
0.19
%
^HMG Strategy, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/14/2026

 
43.0

 
43.0

 
39.6

 
0.01
%
^Cardinal Homes Inc,.Alouette Holdings Inc.,Bret Berneche
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2026

 
917.0

 
917.0

 
948.6

 
0.33
%
^AGG Management Team LLC dba Chevron
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041

 
279.3

 
279.3

 
308.5

 
0.11
%
^Cardinal Homes Inc. and Bret A Berneche
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041

 
117.8

 
117.8

 
129.9

 
0.05
%
^Success Advertising Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2041

 
453.2

 
453.2

 
496.5

 
0.17
%
^Wayfarer Bicycle LLC
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/13/2041

 
89.9

 
89.9

 
94.4

 
0.03
%
^Roast Beef Levittown LLC dba Arby's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/13/2026

 
280.5

 
280.5

 
290.2

 
0.10
%
^Queen Express LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/13/2041

 
182.1

 
182.1

 
199.7

 
0.07
%
^Mack Team Enterprises Inc.dba The UPS Store #6815
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
12/9/2026

 
17.5

 
17.5

 
16.8

 
0.01
%
^Myndshft Technologies LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/9/2026

 
666.6

 
666.6

 
633.9

 
0.22
%
^Recycling Revolution, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/9/2041

 
89.6

 
89.6

 
95.4

 
0.03
%
^Imagine By Carleen Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2041

 
51.0

 
51.0

 
54.6

 
0.02
%
^New Life Hospital LLC
 
Hospitals
 
Term Loan
 
Prime plus 2.75%
 
12/8/2041

 
1,184.9

 
1,184.9

 
1,308.9

 
0.46
%
^Hanson's Greeks LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2026

 
9.7

 
9.7

 
10.0

 
%

F-62
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Lan Doctors, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/7/2026

 
212.0

 
212.0

 
216.0

 
0.08
%
^Yachting Solutions LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/7/2029

 
64.5

 
64.5

 
64.5

 
0.02
%
^The Lake Shore Hospitality Inc dba Dowagiac Baymont Inn & Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2041

 
343.4

 
343.4

 
375.1

 
0.13
%
^Lilo Holdings LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/5/2026

 
13.7

 
13.7

 
13.2

 
%
^Noso Development LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/1/2026

 
64.5

 
64.5

 
59.4

 
0.02
%
^Ericon, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/1/2041

 
706.5

 
706.5

 
756.5

 
0.26
%
^Sharaz Shah DBA Thomas Jewelers
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
6.9

 
6.9

 
6.4

 
%
^Imaginarium Foods LLC,
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2042

 
364.4

 
364.4

 
393.9

 
0.14
%
^RD Management, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
182.4

 
182.4

 
169.6

 
0.06
%
^Pebble Wood Lane, LLC and Good Sam's Assisted Living Resiidence, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
11/30/2041

 
65.5

 
65.5

 
72.3

 
0.03
%
^Studio Find It Georgia, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
6.4

 
6.4

 
6.0

 
%
^B4 Fitness LLC dba The Zoo Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
19.2

 
19.2

 
18.3

 
0.01
%
^Quick Ship, LLC
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
9.0

 
9.0

 
8.3

 
%
^Access Staffing, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/29/2026

 
959.9

 
959.9

 
884.0

 
0.31
%
^Usman Jalil, LLC dba Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/29/2041

 
226.3

 
226.3

 
237.0

 
0.08
%
^WPN Recycling Company LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026

 
19.2

 
19.2

 
19.9

 
0.01
%
^Hafa Adai Signs and Graphics LLC dba Fastsigns of Auburn -#281901
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026

 
51.2

 
51.2

 
47.6

 
0.02
%
^CRK Mens, LLC dba Spiff for Men
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026

 
91.2

 
91.2

 
85.3

 
0.03
%
^Merchant Coterie, Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026

 
107.0

 
107.0

 
98.5

 
0.03
%

F-63
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Broms Asset Management LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/22/2026

 
107.3

 
107.3

 
98.8

 
0.03
%
^6E Technologies LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/22/2026

 
144.6

 
144.6

 
141.2

 
0.05
%
^JBK Truck Trailer and Bus Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/22/2041

 
403.0

 
403.0

 
431.5

 
0.15
%
^Bouquet Restaurant LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/22/2041

 
121.2

 
121.2

 
130.4

 
0.05
%
^Skaggs RV Outlet LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/21/2026

 
85.3

 
85.3

 
88.3

 
0.03
%
^Catherine Christine Morin dba Purr-Fect Pets
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/17/2026

 
16.0

 
16.0

 
14.7

 
0.01
%
^Stratmar Systems Inc dba Stratmar Retail Services
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/16/2026

 
58.4

 
58.4

 
60.4

 
0.02
%
^Hoosier Health Plus, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/15/2026

 
106.8

 
106.8

 
105.9

 
0.04
%
^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026

 
172.8

 
172.8

 
176.6

 
0.06
%
^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/10/2041

 
438.5

 
438.5

 
475.9

 
0.17
%
^Panther Ironworks and Rigging Solutions LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026

 
129.1

 
129.1

 
125.4

 
0.04
%
^Hackensack Steel Corporation and Luzerne Ironworks Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026

 
206.5

 
206.5

 
213.6

 
0.07
%
^Rich's Food Stores LLC dba Hwy 55 of Wallace
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026

 
37.3

 
37.3

 
36.7

 
0.01
%
^Dyer Properties, LLC and Bayview Pharmacy, Inc.
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
11/9/2041

 
233.0

 
233.0

 
247.0

 
0.09
%
^Big Apple Entertainment Partners LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026

 
149.3

 
149.3

 
137.5

 
0.05
%
^MIK LLC dba Firehouse Subs
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026

 
174.0

 
174.0

 
161.8

 
0.06
%
^Fine Line Interiors, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/4/2041

 
71.2

 
71.2

 
78.6

 
0.03
%

F-64
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^131 Miles LLC and Ohm Shubh Laxmi, LLC. dba Mr Hero
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/3/2041

 
122.6

 
122.6

 
133.1

 
0.05
%
^Veracruz Shabo, LLC, Waterfalls Quick Lube LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/1/2041

 
117.6

 
117.6

 
127.4

 
0.04
%
^Glocecol LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/1/2026

 
64.0

 
64.0

 
66.2

 
0.02
%
^Moolchan Enterprises LLC dba Staying Green
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2026

 
14.0

 
14.0

 
14.0

 
%
^Bloomquist Communications Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2026

 
50.8

 
50.8

 
46.8

 
0.02
%
^Middlesex Auto Sales Corp
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/31/2041

 
121.2

 
121.2

 
131.6

 
0.05
%
^Woodstock Enterprises Corp dba True Scent Candle Co
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/31/2041

 
86.1

 
86.1

 
90.4

 
0.03
%
^FibAire Communications, LLC
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
10/27/2026

 
91.6

 
91.6

 
89.0

 
0.03
%
^Elite Structures Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/27/2029

 
203.9

 
203.9

 
208.6

 
0.07
%
^Blakeslee Arpaia Chapman Inc and Chapman Construction Services LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
10/24/2026

 
359.7

 
359.7

 
372.1

 
0.13
%
^Worldwide Estate, Inc. dba Washington Heights Manor
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
10/21/2041

 
217.6

 
217.6

 
240.4

 
0.08
%
^Gold Wind Logistics LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/20/2041

 
171.1

 
171.1

 
189.0

 
0.07
%
^Speaker City, Inc. dba Rollin Thunder
 
Electronics and Appliance Stores
 
Term Loan
 
Prime plus 2.75%
 
10/14/2041

 
121.1

 
121.1

 
131.1

 
0.05
%
^Maine Service Corp
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/13/2026

 
158.6

 
158.6

 
157.7

 
0.05
%
^Justin Partlow
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
10/13/2026

 
16.5

 
16.5

 
15.2

 
0.01
%
^Reliable Recovery Services LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/7/2026

 
95.2

 
95.2

 
92.0

 
0.03
%
^Ailky Corporation
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/3/2026

 
211.6

 
211.6

 
198.8

 
0.07
%
^Wyspen Corporation dba Charlestown Ace
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/3/2026

 
30.5

 
30.5

 
28.1

 
0.01
%

F-65
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^MegaPhase, LLC
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2026

 
125.7

 
125.7

 
126.9

 
0.04
%
^Adelwerth Bus Corp.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2041

 
234.7

 
234.7

 
249.2

 
0.09
%
^JJA Transportation Management Inc.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2026

 
44.0

 
44.0

 
40.4

 
0.01
%
^Seaway LLC and Reklaw LLC dba Allure Lounge
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2041

 
132.6

 
132.6

 
146.4

 
0.05
%
^Adelwerth Bus Corporation, Transportation Leasing Corp.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029

 
581.3

 
581.3

 
589.7

 
0.21
%
^Thunderdome Racing Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/29/2026

 
15.0

 
15.0

 
15.5

 
0.01
%
^Graphics,Type and Color Enterprises Inc dba Clubflyers.com and GTC Med
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
9/28/2041

 
824.3

 
824.3

 
909.9

 
0.32
%
^CD Game Exchange Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/28/2026

 
18.8

 
18.8

 
17.3

 
0.01
%
^CNC Precision Machine, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/28/2041

 
1,235.9

 
1,235.9

 
1,319.6

 
0.46
%
^Beadon Inc
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/28/2026

 
18.8

 
18.8

 
19.5

 
0.01
%
^Reynolds Fence & Guardrail Inc.
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026

 
527.4

 
527.4

 
527.8

 
0.18
%
^Kyle M Walker DDS, PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026

 
193.4

 
193.4

 
181.9

 
0.06
%
^Luna Nueva LLC dba Bio Builders
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026

 
12.6

 
12.6

 
11.9

 
%
^Luv 2 Play Nor Cal, LLC dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026

 
44.0

 
44.0

 
41.9

 
0.01
%
^Sarah S Olelewe MD Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2041

 
282.4

 
282.4

 
302.6

 
0.11
%
^PeopleBest Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2026

 
12.6

 
12.6

 
11.6

 
%
^TPFC,LLC dbaThe Picture Frame Company
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/26/2041

 
56.7

 
56.7

 
60.8

 
0.02
%
^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
9/26/2026

 
7.5

 
7.5

 
7.7

 
%

F-66
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Mr. Mulch, Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/23/2041

 
391.3

 
391.3

 
401.1

 
0.14
%
^B4 Fitness LLC dba The Zoo Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/23/2026

 
73.3

 
73.3

 
69.6

 
0.02
%
^Cuppiecakes LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/21/2041

 
21.7

 
21.7

 
23.2

 
0.01
%
^Wrecking Crew Media LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/21/2026

 
41.9

 
41.9

 
38.5

 
0.01
%
^Benoit's Towing and Recovery LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/20/2026

 
10.1

 
10.1

 
9.3

 
%
^Consulting Solutions Inc. and Mark Luciani
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2026

 
18.8

 
18.8

 
18.7

 
0.01
%
^Brittany Burns LLC dba Dreams Come True
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/19/2026

 
11.2

 
11.2

 
11.6

 
%
^Eyncon LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/16/2041

 
48.2

 
48.2

 
52.0

 
0.02
%
^The Merrin Group LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2026

 
146.6

 
146.6

 
147.5

 
0.05
%
^Rich's Food Stores LLC dba Hwy 55 of Wallace
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/14/2026

 
124.9

 
124.9

 
122.6

 
0.04
%
^Atlantic Alarm Systems and Services LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/14/2026

 
12.9

 
12.9

 
12.2

 
%
^Metropet Dog Center, Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2041

 
105.4

 
105.4

 
113.9

 
0.04
%
^Marquis Cattle Company
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
9/13/2026

 
42.3

 
42.3

 
43.7

 
0.02
%
^Bingham Enterprises, Inc and Full Belli Deli and Sausage Company
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/12/2041

 
79.6

 
79.6

 
83.9

 
0.03
%
^SRA Mechanicial Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/6/2041

 
42.2

 
42.2

 
46.6

 
0.02
%
^Sandia Enterprises Inc dba Massage Envy Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/6/2026

 
52.4

 
52.4

 
48.1

 
0.02
%
^Animal Intrusion Prevention Systems Holding Company, LLC dba Critter C
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2026

 
104.2

 
104.2

 
97.7

 
0.03
%
^Raem Corporation dba Dryclean Express
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/29/2041

 
69.8

 
69.8

 
76.6

 
0.03
%
^Clark Realty LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
8/29/2041

 
73.3

 
73.3

 
80.9

 
0.03
%

F-67
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Warren Dale Warrington dba Custom Paint and Body
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/26/2041

 
97.5

 
97.5

 
105.8

 
0.04
%
^TAGR Inc dba Miami Grill 137and John Nakis
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/26/2026

 
88.7

 
88.7

 
83.2

 
0.03
%
^Albert Basse Associates Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
51.3

 
51.3

 
53.0

 
0.02
%
^Avery Management Inc. dba Whetstone Upholstery
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
8.8

 
8.8

 
8.1

 
%
^TR Companies LLC dba Liberty Rental 4 U
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
74.8

 
74.8

 
68.8

 
0.02
%
^Tabadesa Associates Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
18.7

 
18.7

 
17.2

 
0.01
%
^Rosmel Pools Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
18.7

 
18.7

 
17.5

 
0.01
%
^Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2041

 
492.0

 
492.0

 
540.6

 
0.19
%
^Luv 2 Play Temecula, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/15/2026

 
49.8

 
49.8

 
45.8

 
0.02
%
^2 Cool Beans LLC dba Menchies's Frozen Yogurt
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/11/2026

 
68.5

 
68.5

 
63.0

 
0.02
%
^Grayson O Company
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/10/2041

 
601.7

 
601.7

 
662.3

 
0.23
%
^Paul Belanger dba Paul Belanger Landscaping
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/9/2026

 
12.5

 
12.5

 
11.5

 
%
^Nicolette Reiser dba Comfort & Balance
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041

 
64.2

 
64.2

 
70.4

 
0.02
%
^USA General Investment LLC dba Braniff Paint and Body Shop
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2026

 
18.5

 
18.5

 
17.5

 
0.01
%
^The Hungry Rhino LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041

 
73.3

 
73.3

 
78.4

 
0.03
%
^303 Tower Drive LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041

 
384.7

 
384.7

 
419.2

 
0.15
%
^Little Tree Huggers Child Care LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041

 
134.6

 
134.6

 
148.5

 
0.05
%
^Big Apple Entertainment Partners LLC dba Ripley's Believe It or Not
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/28/2026

 
247.1

 
247.1

 
227.2

 
0.08
%
^676 Club LP dba The Green Door Tavern/The Drifter
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041

 
644.0

 
644.0

 
706.0

 
0.25
%

F-68
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^MacIver Corporation dba Division Camera
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2026

 
1,028.7

 
1,028.7

 
1,021.7

 
0.36
%
^Intrepid Trinity LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041

 
60.1

 
60.1

 
65.0

 
0.02
%
^Apple Tree NC Inc dba Williams Farm & Garden Center
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041

 
326.8

 
326.8

 
347.1

 
0.12
%
^EPEC Juice LLC dba Jamba Juice
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026

 
68.8

 
68.8

 
63.3

 
0.02
%
^Pinco Pizza LLC dba Jet's Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026

 
60.8

 
60.8

 
62.5

 
0.02
%
^Kidtastic LLC dba The Little Gym of Audubon
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026

 
46.7

 
46.7

 
43.0

 
0.01
%
^JAG Unit 1, LLC dba Arooga's Grille House and Sports Bar
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026

 
103.0

 
103.0

 
94.7

 
0.03
%
^The Grasso Companies, LLC and Grasso Pavement Maintenance, LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
7/26/2026

 
75.1

 
75.1

 
72.8

 
0.03
%
^My Sainath Inc dba Motel 6
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
7/22/2041

 
293.5

 
293.5

 
320.5

 
0.11
%
^Robert G Larson State Farm Insurance
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/22/2026

 
18.5

 
18.5

 
17.0

 
0.01
%
^J and D Resources LLC dba Aqua Science
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2026

 
97.0

 
97.0

 
90.1

 
0.03
%
^Robert P Daniels dba Ginger and Friend's Peppermint Village Gift Shop
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/18/2026

 
13.0

 
13.0

 
11.9

 
%
^Franklin Firm LLC dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/15/2041

 
154.7

 
154.7

 
167.1

 
0.06
%
^Jacob Rugs LLC dba Rugs Outlet
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
7/13/2026

 
54.1

 
54.1

 
55.8

 
0.02
%
^Takeuchi Commercial Cleaning Services, LLC dba We Clean San Diego
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/13/2026

 
38.1

 
38.1

 
35.0

 
0.01
%
^RM Hawkins LLC dba Pure Water Tech West
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/7/2026

 
41.2

 
41.2

 
41.4

 
0.01
%
^Dino Smiles Children's Cosmetic Dentistry
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/7/2026

 
11.7

 
11.7

 
11.0

 
%
^Nevey's LLC dba Stark Food III
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2041

 
283.0

 
283.0

 
319.4

 
0.11
%
^P L H Pharmaco Inc dba Farmacia San Jose
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026

 
140.2

 
140.2

 
146.9

 
0.05
%

F-69
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Martin Inventory Management LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026

 
21.1

 
21.1

 
22.2

 
0.01
%
^VMA Technologies LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026

 
18.4

 
18.4

 
18.2

 
0.01
%
^Desert Tacos LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026

 
82.8

 
82.8

 
85.1

 
0.03
%
^Corning Lumber Company Inc and Frank R Close and Son Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/30/2029

 
170.9

 
170.9

 
182.5

 
0.06
%
^WGI, LLC dba Williams Grant Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/29/2041

 
125.9

 
125.9

 
140.9

 
0.05
%
^O.D.S. Inc dba Four Seasons Health & Racquet and Step 'N' Motion, Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/29/2026

 
114.3

 
114.3

 
114.5

 
0.04
%
^KWG Industries, LLC dba Peterson & Marsh Metal Industries
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2041

 
292.6

 
292.6

 
329.0

 
0.11
%
^MaidPro Marin dba MaidPro
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2026

 
14.3

 
14.3

 
14.2

 
%
^E & P Holdings 1 LLC and Evans & Paul LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2026

 
110.3

 
110.3

 
110.7

 
0.04
%
^Edge Pest Control LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/27/2026

 
612.5

 
612.5

 
607.6

 
0.21
%
^All Printing Solutions, Inc. dba Pryntcomm
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
6/27/2041

 
528.8

 
528.8

 
583.8

 
0.20
%
^Island Time Investments, LLC dba Swantown Inn Bed & Breakfast
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/24/2041

 
97.2

 
97.2

 
110.1

 
0.04
%
^JumboMarkets Inc dba Rines Jumbomarkets
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/24/2026

 
40.8

 
40.8

 
40.5

 
0.01
%
^Visual Advantage LLC dba Signs Now Perryberg
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041

 
87.6

 
87.6

 
97.7

 
0.03
%
^Long Island Comedy LLC dba Governors and New York Comedy, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041

 
179.9

 
179.9

 
201.4

 
0.07
%
^Shooting Sports Academy LLC and Jetaa LLC dba Shooting Sports Academy
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041

 
478.1

 
478.1

 
530.3

 
0.18
%
^SNS of Central Alabama, LLC dba Steak N Shake dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/21/2026

 
46.9

 
46.9

 
47.6

 
0.02
%
^Evergreen Investment & Property Management LLC, Universal Kidney Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/20/2041

 
1,215.0

 
1,215.0

 
1,370.1

 
0.48
%
^Bagelicious, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/17/2026

 
44.5

 
44.5

 
44.3

 
0.02
%

F-70
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^NKJ Lusby Donuts LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026

 
18.4

 
18.4

 
18.2

 
0.01
%
^Winegirl Wines LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026

 
9.2

 
9.2

 
9.6

 
%
^Blue Eagle Transport Inc, Greeneagle Transport Inc and Golden Eagle Transport
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026

 
453.2

 
453.2

 
449.5

 
0.16
%
^Jai-Alexia Consulting, Inc.
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
6/15/2026

 
9.7

 
9.7

 
9.6

 
%
^Pumpkin Patch Child Care of Southington, LLC and Giuseppe Pugliares
 
Social Assistance
 
Term Loan
 
Prime plus 2%
 
6/15/2041

 
492.2

 
492.2

 
524.6

 
0.18
%
^Strag Industries LLC dba Meineke Car Care Center 841
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/15/2026

 
12.2

 
12.2

 
12.5

 
%
^Luv 2 Play AZ LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/10/2026

 
51.1

 
51.1

 
53.3

 
0.02
%
^Refoleen Inc dba Spice and Tea Exchange
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/10/2026

 
70.7

 
70.7

 
70.1

 
0.02
%
^VBGB Uptown, LLC dba VBGB Beer Hall & Garden
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/8/2026

 
43.5

 
43.5

 
43.1

 
0.01
%
^ScimTech Industries Inc dba Archer Aerospace
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/6/2026

 
9.8

 
9.8

 
9.7

 
%
^Larry H. Patterson and Rainbow Movers, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/6/2026

 
18.4

 
18.4

 
18.3

 
0.01
%
^Solvit Inc and Solvit North Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/3/2026

 
207.8

 
207.8

 
209.9

 
0.07
%
^AP5 LLC dba Krauser's Food Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/2/2041

 
186.1

 
186.1

 
210.6

 
0.07
%
^ATI Jet Inc
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/31/2026

 
419.1

 
419.1

 
422.9

 
0.15
%
^Angelo Faia dba AVF Construction
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/27/2041

 
95.4

 
95.4

 
106.7

 
0.04
%
^Premier Athletic Center of Ohio, Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/27/2026

 
70.8

 
70.8

 
74.2

 
0.03
%
^Jack Frost Firewood Inc. and David Dubinsky
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/26/2041

 
197.6

 
197.6

 
220.4

 
0.08
%
^Mersada Holdings LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
5/26/2026

 
273.5

 
273.5

 
286.7

 
0.10
%
^Southwest Division Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
5/26/2026

 
6.7

 
6.7

 
6.8

 
%

F-71
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^International Kitchen Supply LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/25/2026

 
151.2

 
151.2

 
153.1

 
0.05
%
^Groth Lumber Co. Inc. dba True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/25/2026

 
18.2

 
18.2

 
19.1

 
0.01
%
^Island Life Graphics Inc dba FASTSIGNS #576
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/24/2026

 
18.2

 
18.2

 
18.2

 
0.01
%
^Powerspec Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/24/2026

 
70.7

 
70.7

 
70.2

 
0.02
%
^Horseshoe Barbecue, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/23/2029

 
10.6

 
10.6

 
11.3

 
%
^Elderfriend Inc dba Granny Nannies dba GN Live Scan
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026

 
10.3

 
10.3

 
10.2

 
%
^National Air Cargo Holdings Inc
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026

 
1,014.0

 
1,014.0

 
1,061.5

 
0.37
%
^Pro Auto Repair LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026

 
6.0

 
6.0

 
6.2

 
%
^J&A Laundromat Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2026

 
54.6

 
54.6

 
54.8

 
0.02
%
^Dedicated Incorporated
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2041

 
44.5

 
44.5

 
50.0

 
0.02
%
^HBA LLC dba Palmetto Twist-Vista
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2026

 
15.7

 
15.7

 
15.7

 
0.01
%
^Studio Find It Georgia Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/13/2026

 
18.2

 
18.2

 
18.3

 
0.01
%
^FJN Catering Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/13/2041

 
251.8

 
251.8

 
285.0

 
0.10
%
^Pumpkin Patch Inc and Christine Feliciano and Antonio Feliciano
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/12/2041

 
126.9

 
126.9

 
141.8

 
0.05
%
^Sabir Inc. dba Bear Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/11/2041

 
118.7

 
118.7

 
133.8

 
0.05
%
^Gator D'Lites LLC dba D'Lites Emporium
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/5/2026

 
18.2

 
18.2

 
18.1

 
0.01
%
^Warner Home Comfort, LLC dba Smith Piping
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041

 
78.9

 
78.9

 
88.2

 
0.03
%
^Marc S. Rosenberg P.C. dba Mammuth and Rosenberg
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
18.1

 
18.1

 
17.9

 
0.01
%
^Keller, Fishback & Jackson LLP
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
104.5

 
104.5

 
109.5

 
0.04
%

F-72
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Euro Car Miami LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
50.1

 
50.1

 
52.5

 
0.02
%
^Hard Exercise Works Winter Park LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
32.7

 
32.7

 
32.4

 
0.01
%
^Alpha Omega Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041

 
168.3

 
168.3

 
190.7

 
0.07
%
^May-Craft Fiberglass Products Inc
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041

 
236.7

 
236.7

 
268.2

 
0.09
%
^Empowerschool LLC and Empower Autism Academy, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041

 
145.3

 
145.3

 
164.6

 
0.06
%
^La Nopalera Mexicano 2, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
0.2

 
0.2

 
0.2

 
%
^Loriet LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
6.0

 
6.0

 
6.0

 
%
^Shepherd Appraisal Services LLC dba Property Damage Appraisers of Oklahoma
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
4/28/2026

 
7.2

 
7.2

 
7.2

 
%
^Pecos Inn LLC dba Econo Lodge
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041

 
645.6

 
645.6

 
727.7

 
0.25
%
^Costume World Inc
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041

 
1,197.2

 
1,197.2

 
1,356.7

 
0.47
%
^Inner Beauty Salon and Suite LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041

 
62.2

 
62.2

 
70.3

 
0.02
%
^Green Country Filter Manufacturing LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/27/2026

 
68.3

 
68.3

 
68.5

 
0.02
%
^Accent Comfort Services, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/26/2026

 
72.2

 
72.2

 
71.6

 
0.02
%
^Homecare Casa Rhoda 123 Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2%
 
4/26/2041

 
643.3

 
643.3

 
688.8

 
0.24
%
^Automotive Core Recycling, LLC and 828 Old Colony Road, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/22/2041

 
239.1

 
239.1

 
263.9

 
0.09
%
^McIntosh Trail Management Services Organization Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/22/2041

 
407.1

 
407.1

 
461.3

 
0.16
%
^AAA Mill Direct, Inc. dba Carpet Mill Outlets
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
4/21/2026

 
6.3

 
6.3

 
6.6

 
%
^Jande Graphics LLC dba FastSigns #103201
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/21/2026

 
44.9

 
44.9

 
44.6

 
0.02
%
^Miguel Fernando Borda, P.A. dba BGR Dental
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/15/2026

 
18.1

 
18.1

 
18.1

 
0.01
%

F-73
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Sushiya Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/12/2026

 
70.3

 
70.3

 
70.7

 
0.02
%
^Sierra Foothill Cremation & Funeral Service, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/7/2026

 
42.5

 
42.5

 
42.1

 
0.01
%
^Waterfalls Quick Lube LLC and Veracruz Shabo LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/6/2041

 
265.4

 
265.4

 
298.1

 
0.10
%
^KNS Early Learning Academy LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/6/2041

 
48.8

 
48.8

 
54.4

 
0.02
%
^Men of Steel Enterprises LLC and Vogelbacher Properties LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
375.7

 
375.7

 
412.3

 
0.14
%
^Vehicle Safety Supply LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026

 
17.9

 
17.9

 
17.7

 
0.01
%
^Dana A. Farley dba Independent Cabinets
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
64.4

 
64.4

 
72.9

 
0.03
%
^Gill Express Inc and Blue Speed LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
494.5

 
494.5

 
552.6

 
0.19
%
^Christian Soderquist dba Soderquist Plumbing and Heating LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
54.2

 
54.2

 
61.3

 
0.02
%
^Duke's Cleaners Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026

 
37.4

 
37.4

 
38.2

 
0.01
%
^Cameo Carter, MD A Professional Corporation dba The Garden Pediatric Group
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026

 
59.6

 
59.6

 
59.1

 
0.02
%
^NOSO Development, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
149.1

 
149.1

 
147.7

 
0.05
%
^Wyldewood Cellars, Inc.
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2041

 
960.1

 
960.1

 
1,060.0

 
0.37
%
^Tom Sawyer Country Restaurant LLC and AM 3208 LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/30/2041

 
246.9

 
246.9

 
278.4

 
0.10
%
^Beale Street Blues Company-West Palm Beach, LLC dba Lafayette’s-West Palm
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
74.6

 
74.6

 
74.6

 
0.03
%
^Gordon Rogers and Heidi Rogers dba Stone House Motor Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
18.1

 
18.1

 
19.0

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

 
8.3

 
8.3

 
8.3

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

 
15.5

 
15.5

 
15.9

 
0.01
%
^Lust for Life Footwear, LLC
 
Leather and Allied Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026

 
298.2

 
298.2

 
295.3

 
0.10
%
^Vinmar Inc. dba Locanda Portofino
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026

 
64.6

 
64.6

 
64.0

 
0.02
%

F-74
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Marathon Engineering Corporation
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2041

 
43.0

 
43.0

 
48.3

 
0.02
%
^PHCDC1 LLC dba Quarter + Glory and Public House Collective, Corp.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/28/2026

 
39.8

 
39.8

 
40.2

 
0.01
%
^Revolution Physical Therapy LLC dba Apex Network Physical Therapy
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2026

 
18.1

 
18.1

 
18.1

 
0.01
%
^RCB Enterprises, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2026

 
44.7

 
44.7

 
44.3

 
0.02
%
^Excel RP Inc
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/25/2026

 
99.4

 
99.4

 
100.8

 
0.04
%
^Flooring Liquidators Inc and Premier Flooring Yonkers Inc and Flooring
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/24/2026

 
39.7

 
39.7

 
41.5

 
0.01
%
^ActKnowledge, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/24/2026

 
99.4

 
99.4

 
104.0

 
0.04
%
^International Construction Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041

 
47.8

 
47.8

 
53.3

 
0.02
%
^Acton Hardware LLC and Mark Allgood & Jamie Allgood
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041

 
478.2

 
478.2

 
529.5

 
0.18
%
^Magnation Corporation and Misha Family Trust
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/22/2041

 
96.9

 
96.9

 
109.7

 
0.04
%
^growth.period LLC and Potomac Recruiting LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026

 
28.6

 
28.6

 
28.4

 
0.01
%
^Precious Care LLC and Precious Care Management LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026

 
444.9

 
444.9

 
441.7

 
0.15
%
^Media Capital Partners, Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026

 
17.9

 
17.9

 
17.7

 
0.01
%
^Kekoa Enterprises Inc dba Signarama Sandy
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2026

 
39.4

 
39.4

 
39.0

 
0.01
%
^Taylors Zinn Enterprises Inc dba Eons Auto Care Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/18/2041

 
77.1

 
77.1

 
87.1

 
0.03
%
^ERT Group Inc and Curt's Tools Inspection Inc
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
3/18/2041

 
1,197.6

 
1,197.6

 
1,336.4

 
0.46
%
^Brian T Rice dba BD Logging
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
3/17/2026

 
1.5

 
1.5

 
1.5

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

 
17.9

 
17.9

 
17.7

 
0.01
%

F-75
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Evergreen Pallet LLC and Evergreen Recycle LLC
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026

 
912.8

 
912.8

 
921.6

 
0.32
%
^LAN Doctors Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026

 
45.2

 
45.2

 
47.3

 
0.02
%
^R & D Enterprises Inc dba My Pool Man
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/15/2026

 
39.8

 
39.8

 
39.4

 
0.01
%
^HEWZ, LLC dba Hard Exercise Works
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/14/2026

 
17.8

 
17.8

 
17.7

 
0.01
%
^Mustafa Inc and Raouf Properties LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/14/2041

 
71.6

 
71.6

 
80.8

 
0.03
%
^Country Paint and Hardware Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
69.5

 
69.5

 
69.4

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

 
8.9

 
8.9

 
8.9

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

 
119.3

 
119.3

 
119.1

 
0.04
%
^Magill Truck Line LLC and Jeff J. Ralls
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/11/2029

 
193.4

 
193.4

 
199.0

 
0.07
%
^Dupre Capital LLC dba Fastsigns
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
46.4

 
46.4

 
46.0

 
0.02
%
^State Painting & Decorating Co., Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/10/2026

 
82.5

 
82.5

 
81.7

 
0.03
%
^Step Up Academy of the Arts LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/9/2026

 
6.4

 
6.4

 
6.3

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

 
17.9

 
17.9

 
18.2

 
0.01
%
^Swerve Salon LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/8/2026

 
62.8

 
62.8

 
62.2

 
0.02
%
^J & W Hardwood Flooring Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/7/2026

 
6.0

 
6.0

 
5.9

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

 
104.3

 
104.3

 
118.1

 
0.04
%
^Hueston and Company CPA LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/4/2026

 
6.5

 
6.5

 
6.5

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

 
43.0

 
43.0

 
44.8

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

 
75.7

 
75.7

 
75.6

 
0.03
%

F-76
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Doxa Deo Inc dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
86.6

 
86.6

 
86.9

 
0.03
%
^Powerpits CS1, LLC dba Pita Pit
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
14.8

 
14.8

 
14.9

 
0.01
%
^Drug Detection Laboratories, Inc. and Minh Tran
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
15.6

 
15.6

 
15.5

 
0.01
%
^The River Beas, LLC dba Subway and Punam Singh
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2041

 
129.4

 
129.4

 
146.1

 
0.05
%
^Living Essentials HVAC Corp
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
11.8

 
11.8

 
11.8

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

 
8.8

 
8.8

 
9.2

 
%
^Aaradhya LLC dba Market Square Laundry
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/23/2026

 
63.0

 
63.0

 
62.4

 
0.02
%
^Blackstones Hairdressing LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/23/2026

 
41.3

 
41.3

 
41.0

 
0.01
%
^R & K Contracting Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/18/2026

 
12.5

 
12.5

 
13.1

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

 
49.5

 
49.5

 
49.0

 
0.02
%
^Jersey Shore Marina & Boat Sales, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/12/2041

 
596.7

 
596.7

 
675.4

 
0.23
%
^Gilmore Heights Dental Holdings, LTD and Chas Rob LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2029

 
265.4

 
265.4

 
274.9

 
0.10
%
^Ei3 Corporation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2026

 
257.6

 
257.6

 
269.5

 
0.09
%
^Base USA, Inc.
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
2/2/2026

 
39.4

 
39.4

 
41.3

 
0.01
%
^Zouk Ltd dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/29/2026

 
17.6

 
17.6

 
18.4

 
0.01
%
^SuzyQue's LLC dba SuzyQue's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026

 
17.6

 
17.6

 
18.4

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

 
48.8

 
48.8

 
51.1

 
0.02
%
^Tammy Lavertue
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026

 
8.8

 
8.8

 
9.1

 
%

F-77
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Gendron Funeral and Cremation Services, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/11/2041

 
105.8

 
105.8

 
119.7

 
0.04
%
^Dolarian Realty LLC and OV's Restaurant Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/5/2041

 
64.5

 
64.5

 
73.1

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

 
87.1

 
87.1

 
87.3

 
0.03
%
^MCF Forte LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/29/2025

 
14.5

 
14.5

 
14.4

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

 
967.3

 
967.3

 
957.5

 
0.33
%
^Panditos LLC dba White Lotus Home
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/28/2025

 
12.3

 
12.3

 
12.2

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

 
193.5

 
193.5

 
193.6

 
0.07
%
^800 on the Trax LLC and Matrix Z LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2040

 
229.7

 
229.7

 
256.8

 
0.09
%
^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/23/2040

 
97.3

 
97.3

 
109.0

 
0.04
%
^Joyce Outdoor Advertising Chicago LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2040

 
286.6

 
286.6

 
319.8

 
0.11
%
^Premier Athletic Center of Ohio Inc. and Gates Investments and Wade Gates
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2028

 
744.8

 
744.8

 
793.0

 
0.28
%
^Hattingh Incorporated dba Prosthetic Care Facility
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2025

 
13.9

 
13.9

 
14.1

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

 
58.0

 
58.0

 
57.9

 
0.02
%
^Trip Consultants U.S.A. Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
135.4

 
135.4

 
133.9

 
0.05
%
^Accent Tag and Label Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040

 
629.4

 
629.4

 
704.6

 
0.25
%
^Labmates LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040

 
154.2

 
154.2

 
174.4

 
0.06
%
^Abbondanza Market LLC dba Hampton Falls Village Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
51.9

 
51.9

 
52.0

 
0.02
%
^Learning Skills LLC and Christopher Shrope
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025

 
8.4

 
8.4

 
8.3

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

 
80.7

 
80.7

 
84.3

 
0.03
%

F-78
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^New York Home Health Care Equipment, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
758.9

 
758.9

 
789.8

 
0.27
%
^Moments to Remember USA LLC dba Retain Loyalty
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
58.0

 
58.0

 
59.5

 
0.02
%
^Swalm Street LLC and New York Home Health Care Equipment LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2040

 
363.0

 
363.0

 
408.8

 
0.14
%
^JAG Unit 1, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
193.5

 
193.5

 
191.2

 
0.07
%
^Abitino's JFK LLC dba Abitino's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2022

 
81.6

 
81.6

 
80.8

 
0.03
%
^Evans & Paul LLC and E&P Holdings I LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2025

 
105.1

 
105.1

 
105.1

 
0.04
%
^Basista Family Limited Partnership and UPE, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/14/2040

 
325.1

 
325.1

 
363.4

 
0.13
%
^DC Enterprises Ltd. dba Lakeview True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2025

 
17.4

 
17.4

 
18.0

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

 
28.1

 
28.1

 
31.8

 
0.01
%
^AGR Foodmart Inc dba Nashua Road Mobil
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/11/2025

 
17.4

 
17.4

 
18.0

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

 
5.8

 
5.8

 
6.1

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

 
77.4

 
77.4

 
77.6

 
0.03
%
^Sushiya, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/8/2025

 
84.2

 
84.2

 
84.5

 
0.03
%
^My Jewels, LLC dba The UPS Store #6712
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/7/2025

 
27.4

 
27.4

 
27.1

 
0.01
%
^LC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040

 
477.8

 
477.8

 
536.6

 
0.19
%
^Tariq, LLC dba 76 Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/2/2040

 
356.0

 
356.0

 
400.0

 
0.14
%
^Hurshell Leon Dutton dba High Jump Party Rentals
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
13.6

 
13.6

 
14.3

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

 
95.9

 
95.9

 
96.7

 
0.03
%
^Delta Aggregate, LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
83.9

 
83.9

 
87.7

 
0.03
%
^Smokeyard Inc dba Smokeyard BBQ and Chop Shop
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
95.8

 
95.8

 
95.5

 
0.03
%

F-79
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^State Painting and Decorating Co Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025

 
55.4

 
55.4

 
54.8

 
0.02
%
^DWeb Studio, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025

 
8.6

 
8.6

 
8.5

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

 
738.3

 
738.3

 
832.8

 
0.29
%
^Play and Learn Child Care and School Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/23/2025

 
8.5

 
8.5

 
8.9

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

 
69.3

 
69.3

 
69.0

 
0.02
%
^CNYP 717 Irondequoit LLC and CNYP 2002 Ontario LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/20/2040

 
232.4

 
232.4

 
255.2

 
0.09
%
^S.B.B. Enterprises Inc dba Williamston Hardware
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/19/2040

 
102.8

 
102.8

 
113.0

 
0.04
%
^Key Pix Productions Inc. dba Air Bud Entertainment
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
11/18/2040

 
597.3

 
597.3

 
675.5

 
0.24
%
^E.S.F.P. LLC dba Volusia Van and Storage
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/11/2025

 
68.2

 
68.2

 
68.1

 
0.02
%
^Green Life Lawnscapes LLC dba Green Life Lawn Care
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/6/2025

 
105.6

 
105.6

 
109.8

 
0.04
%
^JumboMarkets Inc dba Rines Jumbomarkets
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/4/2025

 
234.7

 
234.7

 
244.7

 
0.09
%
^Bisson Transportation Inc dba I & R Associates and Document Secutiry
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/30/2025

 
17.1

 
17.1

 
17.6

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

 
538.5

 
538.5

 
540.3

 
0.19
%
^Windsor Direct Distribution LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/26/2025

 
10.8

 
10.8

 
10.7

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

 
30.4

 
30.4

 
30.0

 
0.01
%
^ADMO Inc dba Mid States Equipment
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/8/2025

 
17.1

 
17.1

 
17.0

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

 
487.7

 
487.7

 
501.5

 
0.17
%
^SCJEN Management Inc dba Bowl of Heaven
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
54.1

 
54.1

 
53.4

 
0.02
%
^Accent Homes Services LLC dba Benjamin Franklin Plumbing of Kansas City
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/30/2028

 
55.1

 
55.1

 
58.1

 
0.02
%

F-80
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Barub Realty LLC and Barub LLC dba Woodlawn Cabinets
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/30/2040

 
135.0

 
135.0

 
152.5

 
0.05
%
^R.H. Hummer Jr., Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
292.1

 
292.1

 
302.3

 
0.11
%
^Binky's Vapes LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
16.9

 
16.9

 
16.7

 
0.01
%
^Greensward of Marco Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040

 
82.6

 
82.6

 
92.1

 
0.03
%
^RIM Investments LLC and RIM Architects LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040

 
376.7

 
376.7

 
419.3

 
0.15
%
^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

 
387.2

 
387.2

 
403.7

 
0.14
%
^Daniel W. Stark dba Mountain Valley Lodge and RV Park
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
12.7

 
12.7

 
14.4

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

 
7.4

 
7.4

 
7.5

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

 
418.9

 
418.9

 
464.0

 
0.16
%
^Yachting Solutions LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
908.7

 
908.7

 
1,006.0

 
0.35
%
^St Lawrence Hotel Corp and Oheka Catering Inc dba Quality Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/24/2040

 
590.0

 
590.0

 
659.8

 
0.23
%
^Hagerstown Muffler, Inc. and JMS Muffler, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/24/2040

 
311.5

 
311.5

 
351.9

 
0.12
%
^Rutledge Enterprises Inc dba BLC Property Management
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/23/2040

 
58.5

 
58.5

 
65.5

 
0.02
%
^J3K LLC dba Ronan True Value Hardware
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025

 
114.6

 
114.6

 
113.1

 
0.04
%
^Finish Strong Inc dba FASTSIGNS St Peters
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025

 
37.6

 
37.6

 
37.1

 
0.01
%
^Nova Solutions Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/22/2040

 
302.1

 
302.1

 
337.9

 
0.12
%
^Pine Belt Wood Products LLC
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
9/22/2040

 
154.6

 
154.6

 
168.5

 
0.06
%
^IIoka Inc dba New Cloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025

 
502.2

 
502.2

 
495.6

 
0.17
%
^Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025

 
37.5

 
37.5

 
37.8

 
0.01
%

F-81
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Vanderhoof LLC dba Soxfords
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/18/2025

 
11.9

 
11.9

 
11.8

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

 
6.2

 
6.2

 
6.1

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

 
94.0

 
94.0

 
92.7

 
0.03
%
^Import Car Connection Inc dba Car Connection
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/16/2040

 
384.7

 
384.7

 
433.5

 
0.15
%
^FirstVitals Health and Wellness Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/15/2025

 
112.7

 
112.7

 
111.2

 
0.04
%
^Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2025

 
8.2

 
8.2

 
8.6

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

 
132.4

 
132.4

 
149.5

 
0.05
%
^Empower Autism Academy
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/4/2040

 
646.7

 
646.7

 
730.6

 
0.25
%
^Higher Grounds Community Coffeehouse, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/2/2025

 
6.2

 
6.2

 
6.2

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

 
929.6

 
929.6

 
947.0

 
0.33
%
^LAN Doctors Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
62.7

 
62.7

 
63.6

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

 
11.3

 
11.3

 
11.2

 
%
^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

 
90.1

 
90.1

 
101.4

 
0.04
%
^3000 CSI Property LLC and Consulting Solutions Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/20/2040

 
129.8

 
129.8

 
146.2

 
0.05
%
^God Be Glorified Inc dba GBG Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/20/2025

 
39.4

 
39.4

 
38.9

 
0.01
%
^GDP Gourmet LLC dba Joe and John's Pizza Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/19/2040

 
136.9

 
136.9

 
152.8

 
0.05
%
^Gold Jet Corp.
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
8/14/2025

 
53.5

 
53.5

 
54.3

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

 
62.9

 
62.9

 
62.4

 
0.02
%
^LP Industries Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/29/2025

 
92.0

 
92.0

 
94.5

 
0.03
%

F-82
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Pauley Tree and Lawn Care Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2025

 
48.3

 
48.3

 
48.8

 
0.02
%
^Beale Street Blues Company-West Palm Beach LLC dba Lafayette's-West Palm
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/24/2025

 
48.8

 
48.8

 
48.9

 
0.02
%
^Smart Artists Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/23/2025

 
16.6

 
16.6

 
16.4

 
0.01
%
^Free Ion Advisors LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/21/2025

 
47.3

 
47.3

 
46.7

 
0.02
%
^Murrayville Donuts, Inc dba Dunkin' Donuts
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/15/2040

 
330.7

 
330.7

 
366.5

 
0.13
%
^Union 2 LLC dba The Standard
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/10/2025

 
74.6

 
74.6

 
76.0

 
0.03
%
^Thrifty Market, Inc. dba Thrifty Foods
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2030

 
225.1

 
225.1

 
240.1

 
0.08
%
^Jonathan E Nichols and Nichols Fire and Security LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
54.7

 
54.7

 
57.2

 
0.02
%
^Anglin Cultured Stone Products LLC dba Anglin Construction
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
205.4

 
205.4

 
212.0

 
0.07
%
^Danny V, LLC dba Hugo's Taproom
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
38.6

 
38.6

 
43.8

 
0.02
%
^BJ's Tavern LLC and BJ's Cabana Bar Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
199.5

 
199.5

 
227.3

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

 
11.6

 
11.6

 
11.9

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

 
248.8

 
248.8

 
266.7

 
0.09
%
^Advanced Skincare Medcenter Inc dba Advanced Skincare Surgery
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
246.0

 
246.0

 
252.6

 
0.09
%
^CEM Autobody LLC dba Dawn's Autobody
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040

 
127.4

 
127.4

 
144.7

 
0.05
%
^SofRep, Inc dba Force 12 Media
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025

 
48.3

 
48.3

 
49.4

 
0.02
%
^TJU-DGT Inc dba The Lorenz Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/26/2029

 
17.2

 
17.2

 
18.5

 
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

 
356.7

 
356.7

 
405.9

 
0.14
%
^E & G Enterprises LLC dba Comfort Keepers
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025

 
16.4

 
16.4

 
16.8

 
0.01
%
^Ohs Auto Body, Inc. dba Ohs Body Shop
 
Repair and Maintenance
 
Term Loan
 
7.72%
 
6/25/2040

 
1,145.8

 
1,145.8

 
1,301.2

 
0.45
%

F-83
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Wolf Enviro Interests, LLC and Enviromax Services Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2040

 
231.4

 
231.4

 
261.3

 
0.09
%
^Evinger PA One, Inc. dba Postal Annex, Falcon
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025

 
16.4

 
16.4

 
17.0

 
0.01
%
^RJI Services, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2025

 
16.2

 
16.2

 
16.6

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

 
38.7

 
38.7

 
40.6

 
0.01
%
^PM Cassidy Enterprises, Inc. dba Junk King
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
10.9

 
10.9

 
11.1

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

 
391.4

 
391.4

 
406.1

 
0.14
%
^Inverted Healthcare Staffing of Florida LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025

 
44.7

 
44.7

 
45.7

 
0.02
%
^Flooring Liquidators Inc and Flooring Liquidators of Mt Kisco LLC
 
Specialty Trade Contractors
 
Term Loan
 
6.75%
 
6/17/2025

 
316.5

 
316.5

 
332.0

 
0.12
%
^AM PM Properties, LLC and AM PM Willington, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/17/2040

 
81.5

 
81.5

 
93.1

 
0.03
%
^Bizzare Foods Inc dba Trooper Foods
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/12/2025

 
80.2

 
80.2

 
82.0

 
0.03
%
^Anturio Marketing Inc dba Logic Consulting
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040

 
272.4

 
272.4

 
311.8

 
0.11
%
^Mirage Plastering Inc and Mpire LLC and Mpire II LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040

 
130.3

 
130.3

 
146.3

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

 
52.8

 
52.8

 
60.4

 
0.02
%
^Nicor LLC dba Fibrenew Sacramento
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/5/2022

 
7.8

 
7.8

 
7.9

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

 
45.2

 
45.2

 
46.5

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

 
11.4

 
11.4

 
11.7

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

 
85.3

 
85.3

 
97.6

 
0.03
%
^Medworxs LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/3/2025

 
91.1

 
91.1

 
93.4

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

 
5.9

 
5.9

 
6.1

 
%

F-84
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Villela CPA PL
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/27/2025

 
6.5

 
6.5

 
6.7

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

 
163.2

 
163.2

 
186.2

 
0.06
%
^15 McArdle LLC and No Other Impressions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/15/2040

 
240.9

 
240.9

 
272.9

 
0.09
%
^Guard Dogs MFS LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/8/2025

 
46.7

 
46.7

 
47.9

 
0.02
%
^George S Cochran DDS Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/7/2025

 
93.8

 
93.8

 
96.0

 
0.03
%
^South Park Properties LLC and Midlothian Hardware LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/6/2040

 
45.1

 
45.1

 
51.6

 
0.02
%
^Matthew Taylor and Landon Farm LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/4/2040

 
94.4

 
94.4

 
106.2

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

 
75.9

 
75.9

 
86.9

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

 
10.7

 
10.7

 
11.0

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

 
12.9

 
12.9

 
13.3

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

 
14.6

 
14.6

 
15.0

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

 
16.1

 
16.1

 
16.5

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

 
31.7

 
31.7

 
32.5

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

 
68.8

 
68.8

 
78.3

 
0.03
%
^HAVANA CENTRAL NJ1, LLC dba Havana Central
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
203.4

 
203.4

 
213.0

 
0.07
%
^Advance Case Parts RE Holdings LLC and Advance Case Parts Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040

 
707.0

 
707.0

 
798.7

 
0.28
%
^Mid-South Lumber Co. of Northwest Florida, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040

 
400.2

 
400.2

 
451.7

 
0.16
%
^Copper Beech Financial Group LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025

 
88.3

 
88.3

 
91.5

 
0.03
%

F-85
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Delta Aggregate LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025

 
72.3

 
72.3

 
75.7

 
0.03
%
^Sunset Marine Resort LLC and GoXpeditions LLC and Lavon Gomes and Trac
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
281.7

 
281.7

 
322.0

 
0.11
%
^Foresite Realty Partners LLC and Foresite Real Estate Holdings LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
874.5

 
874.5

 
893.4

 
0.31
%
^Shellhorn and Hill Inc dba Total Fleet Service
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
967.3

 
967.3

 
1,091.8

 
0.38
%
^Shorr Enterprises Inc dba New Design Furniture Manufacturers
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
75.4

 
75.4

 
78.4

 
0.03
%
^Joyce Outdoor Advertising NJ LLC and Joyce Outdoor Advertising LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2040

 
50.4

 
50.4

 
57.6

 
0.02
%
^Zero-In Media Inc
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2025

 
15.9

 
15.9

 
16.2

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

 
8.5

 
8.5

 
8.7

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

 
105.0

 
105.0

 
120.0

 
0.04
%
^Jaymie Hazard dba Indigo Hair Studio and Day Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040

 
40.1

 
40.1

 
45.5

 
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

 
79.7

 
79.7

 
91.1

 
0.03
%
^MMS Realty, LLC and Molecular MS Diagnostics LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2040

 
150.0

 
150.0

 
170.2

 
0.06
%
^Royal Crest Motors LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040

 
85.1

 
85.1

 
96.8

 
0.03
%
^BND Sebastian Limited Liability Company and Sebastian Fitness LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040

 
161.0

 
161.0

 
183.5

 
0.06
%
^Douglas Printy Motorsports, Inc. dba Blackburn Trike
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/9/2040

 
179.1

 
179.1

 
203.1

 
0.07
%
^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

 
7.9

 
7.9

 
8.3

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

 
44.2

 
44.2

 
45.2

 
0.02
%
^Pace Motor Lines, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/26/2025

 
46.0

 
46.0

 
48.2

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

 
1,190.4

 
1,190.4

 
1,360.8

 
0.47
%

F-86
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Nelson Financial Services LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/24/2025

 
8.7

 
8.7

 
8.9

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

 
57.8

 
57.8

 
65.5

 
0.02
%
^Triangle Trash LLC dba Bin There Dump That
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
2/18/2025

 
51.9

 
51.9

 
53.7

 
0.02
%
^Silva Realty Holdings, LLC and MF-Silva Enterprises, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/11/2040

 
159.9

 
159.9

 
181.2

 
0.06
%
^740 Barry Street Realty LLC and Wild Edibles Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/10/2040

 
459.6

 
459.6

 
525.4

 
0.18
%
^Kostekos Inc dba New York Style Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/6/2040

 
61.9

 
61.9

 
70.3

 
0.02
%
^DuCharme Realty LLC and DuCharme Enterprises LLC
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/2/2040

 
210.1

 
210.1

 
237.7

 
0.08
%
^Dean 1021 LLC dba Pure Pita
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/29/2025

 
59.4

 
59.4

 
61.0

 
0.02
%
^Limameno LLC dba Sal's Italian Ristorante
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/23/2025

 
57.5

 
57.5

 
59.1

 
0.02
%
^Palmabak Inc dba Mami Nora's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/22/2025

 
8.5

 
8.5

 
8.9

 
%
^Jung Design Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/20/2022

 
4.3

 
4.3

 
4.3

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

 
123.5

 
123.5

 
140.9

 
0.05
%
^Evans and Paul LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
167.9

 
167.9

 
175.2

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

 
204.0

 
204.0

 
212.4

 
0.07
%
^Bowlerama Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2039

 
1,117.6

 
1,117.6

 
1,276.1

 
0.44
%
^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

 
492.1

 
492.1

 
555.0

 
0.19
%
^Thermoplastic Services Inc and Paragon Plastic Sheet, Inc
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
464.0

 
464.0

 
529.8

 
0.18
%
^Beale Street Blues Company-West Palm Beach, LLC dba Lafayette Music Hall
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2024

 
128.1

 
128.1

 
131.9

 
0.05
%
^MM and M Management Inc dba Pizza Artista
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/19/2025

 
32.8

 
32.8

 
33.7

 
0.01
%

F-87
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(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

 
49.9

 
49.9

 
57.0

 
0.02
%
^Will Zac Management LLC dba Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
12/19/2024

 
112.1

 
112.1

 
117.2

 
0.04
%
^The Jewelers Inc. dba The Jewelers of Las Vegas
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/19/2024

 
851.7

 
851.7

 
870.1

 
0.30
%
^B & W Towing, LLC and Boychucks Fuel LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/17/2039

 
152.6

 
152.6

 
172.7

 
0.06
%
^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

 
273.2

 
273.2

 
281.6

 
0.10
%
^Kemmer LLC and Apples Tree Top Liquors LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/4/2039

 
130.0

 
130.0

 
146.9

 
0.05
%
^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

 
110.3

 
110.3

 
125.5

 
0.04
%
^DeRidder Chiropractic LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
8.9

 
8.9

 
9.3

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

 
148.5

 
148.5

 
151.9

 
0.05
%
^J&D Resources, LLC dba Aqua Science
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024

 
512.0

 
512.0

 
524.1

 
0.18
%
^Legacy Estate Planning Inc dba American Casket Enterprises
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024

 
28.4

 
28.4

 
28.9

 
0.01
%
^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

 
111.1

 
111.1

 
126.5

 
0.04
%
^Joey O's LLC and Jennifer Olszewski
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/7/2024

 
0.6

 
0.6

 
0.6

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

 
442.8

 
442.8

 
503.8

 
0.18
%
^Seelan Inc dba Candleridge Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/27/2039

 
83.7

 
83.7

 
94.8

 
0.03
%
^Navdeep B Martins and Busy Bubbles LLC dba Wishy Washy
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/24/2039

 
82.4

 
82.4

 
93.1

 
0.03
%
^One Hour Jewelry Repair Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/14/2024

 
13.7

 
13.7

 
14.0

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

 
1,173.5

 
1,173.5

 
1,339.9

 
0.47
%
^Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/10/2024

 
124.7

 
124.7

 
128.3

 
0.04
%

F-88
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^DNT Storage and Properties LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
10/10/2039

 
94.1

 
94.1

 
107.2

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

 
55.5

 
55.5

 
63.1

 
0.02
%
^Doctors Express Management of Central Texas LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2024

 
32.4

 
32.4

 
33.9

 
0.01
%
^Michael Rey Jr. and Lynn J. Williams and GIG Petcare dba Hickory
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/3/2039

 
114.0

 
114.0

 
129.9

 
0.05
%
^Sumad LLC dba BrightStar Care of Encinitas
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/2/2024

 
35.5

 
35.5

 
37.1

 
0.01
%
^Roccos LLC and Sullo Pantalone Inc dba Rocco's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2039

 
235.9

 
235.9

 
266.8

 
0.09
%
^Gordon E Rogers dba Stonehouse Motor Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
53.0

 
53.0

 
60.5

 
0.02
%
^North Columbia LLC and Loop Liquor and Convenience Store LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/24/2039

 
146.9

 
146.9

 
167.1

 
0.06
%
^6 Price Avenue, LLC and Pauley Tree & Lawn Care, Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/24/2039

 
432.6

 
432.6

 
486.3

 
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

 
19.1

 
19.1

 
19.4

 
0.01
%
^Ryan Crick and Pamela J. Crick and Crick Enterprises Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2039

 
134.2

 
134.2

 
153.1

 
0.05
%
^Modern Leather Goods Repair Shop Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2024

 
38.2

 
38.2

 
38.9

 
0.01
%
^Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/15/2024

 
180.1

 
180.1

 
185.4

 
0.06
%
^Tavern Properties LLC and Wildwood Tavern LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2039

 
394.7

 
394.7

 
448.5

 
0.16
%
^Indy East Smiles Youth Dentistry LLC dba Prime Smile East
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2024

 
415.6

 
415.6

 
423.5

 
0.15
%
^B&P Diners LLC dba Engine House Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/10/2024

 
52.8

 
52.8

 
53.7

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

 
859.0

 
859.0

 
979.7

 
0.34
%
^Orange County Cleaning Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024

 
9.4

 
9.4

 
9.6

 
%
^Lamjam LLC, Goldsmith Lambros Inc
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024

 
88.4

 
88.4

 
92.2

 
0.03
%
^Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/26/2024

 
78.5

 
78.5

 
81.1

 
0.03
%

F-89
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Atlas Auto Body Inc dba Atlas Auto Sales
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/22/2039

 
47.5

 
47.5

 
53.8

 
0.02
%
^Alpha Preparatory Academy LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
134.3

 
134.3

 
153.1

 
0.05
%
^Katie Senior Care LLC dba Home Instead Senior Care
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2024

 
80.8

 
80.8

 
82.2

 
0.03
%
^Hamer Road Auto Salvage, LLC and Scott T. Cook and Nikki J. Cook
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6%
 
8/8/2039

 
176.0

 
176.0

 
200.8

 
0.07
%
^Almost Home Property LLC and Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/7/2039

 
677.8

 
677.8

 
771.8

 
0.27
%
^AGV Enterprises LLC dba Jet's Pizza #42
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
35.2

 
35.2

 
36.0

 
0.01
%
^iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
253.5

 
253.5

 
261.8

 
0.09
%
^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

 
19.4

 
19.4

 
22.1

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

 
137.8

 
137.8

 
157.1

 
0.05
%
^Miss Cranston Diner II, LLC and Miss Cranston II Realty LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/17/2039

 
93.8

 
93.8

 
106.6

 
0.04
%
^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
63.3

 
63.3

 
66.2

 
0.02
%
^iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
579.0

 
579.0

 
662.6

 
0.23
%
^Honeyspot Investors LLP and Pace Motor Lines Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
803.5

 
803.5

 
924.8

 
0.32
%
^AMG Holding, LLC and Stetson Automotive, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
190.9

 
190.9

 
219.7

 
0.08
%
^Zinger Hardware and General Merchant Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
7.25%
 
6/26/2024

 
43.8

 
43.8

 
45.8

 
0.02
%
^JPM Investments LLC and Carolina Family Foot Care P.A.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2039

 
129.6

 
129.6

 
148.9

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

 
444.1

 
444.1

 
510.3

 
0.18
%
^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

 
214.0

 
214.0

 
245.9

 
0.09
%
^Nirvi Enterprises LLC dba Howard Johnson / Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/17/2039

 
843.8

 
843.8

 
971.2

 
0.34
%

F-90
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(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

 
85.5

 
85.5

 
98.4

 
0.03
%
^Sujata Inc dba Stop N Save Food Mart and Dhruvesh Patel
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/3/2024

 
14.3

 
14.3

 
14.9

 
0.01
%
^Long Island Barber Institute Inc
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2039

 
50.9

 
50.9

 
58.4

 
0.02
%
^CJR LLC and PowerWash Plus, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024

 
33.1

 
33.1

 
34.7

 
0.01
%
^Pocono Coated Products, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024

 
14.1

 
14.1

 
14.8

 
0.01
%
^Wilton Dental Care P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024

 
81.9

 
81.9

 
84.9

 
0.03
%
^EGM Food Services Inc dba Gold Star Chili
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024

 
12.3

 
12.3

 
12.7

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

 
38.7

 
38.7

 
40.1

 
0.01
%
^Hae M. and Jin S. Park dba Buford Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/15/2039

 
151.7

 
151.7

 
173.9

 
0.06
%
^The River Beas LLC and Punam Singh
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/8/2039

 
82.9

 
82.9

 
95.2

 
0.03
%
^AS Boyals LLC dba Towne Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/29/2039

 
99.4

 
99.4

 
114.4

 
0.04
%
^Gerami Realty, LC, Sherrill Universal City Corral, LP dba Golden
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/23/2027

 
58.1

 
58.1

 
62.1

 
0.02
%
^Complete Body & Paint, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/23/2039

 
19.0

 
19.0

 
21.9

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

 
94.8

 
94.8

 
109.1

 
0.04
%
^Wilshire Media Systems Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/17/2024

 
115.0

 
115.0

 
119.4

 
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

 
124.6

 
124.6

 
143.3

 
0.05
%
^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

 
409.2

 
409.2

 
469.9

 
0.16
%
^Dantanna's Tavern LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
103.3

 
103.3

 
107.4

 
0.04
%
^Little People's Village II LLC and Iliopoulos Realty LLC
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
84.4

 
84.4

 
96.6

 
0.03
%
^Little People's Village II LLC and Iliopoulos Realty LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
93.2

 
93.2

 
106.6

 
0.04
%

F-91
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/31/2024

 
430.2

 
430.2

 
448.9

 
0.16
%
^Kemmer, LLC and Pitts Package Store, Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
108.2

 
108.2

 
123.5

 
0.04
%
^Lake Area Autosound LLC and Ryan H. Whittington
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2039

 
115.7

 
115.7

 
133.0

 
0.05
%
^Knowledge First Inc dba Magic Years of Learning and Kimberly Knox
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/21/2039

 
133.3

 
133.3

 
152.7

 
0.05
%
^636 South Center Holdings, LLC and New Mansfield Brass and Aluminum Co
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039

 
71.9

 
71.9

 
82.6

 
0.03
%
^Cormac Enterprises and Wyoming Valley Beverage Incorporated
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039

 
101.1

 
101.1

 
116.2

 
0.04
%
^Kinisi, Inc. dba The River North UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2024

 
13.1

 
13.1

 
13.7

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

 
42.2

 
42.2

 
48.5

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

 
824.3

 
824.3

 
889.8

 
0.31
%
^Bowl Mor, LLC dba Bowl Mor Lanes / Spare Lounge, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/13/2039

 
203.7

 
203.7

 
234.1

 
0.08
%
^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

 
379.8

 
379.8

 
435.5

 
0.15
%
^Summit Beverage Group LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024

 
211.5

 
211.5

 
220.4

 
0.08
%
^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

 
192.0

 
192.0

 
219.9

 
0.08
%
^Choe Trade Group Inc dba Rapid Printers of Monterey
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024

 
96.1

 
96.1

 
100.3

 
0.03
%
^Faith Memorial Chapel LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039

 
195.1

 
195.1

 
223.5

 
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

 
128.8

 
128.8

 
148.0

 
0.05
%
^JWB Industries, Inc. dba Carteret Die Casting
 
Primary Metal Manufacturing
Term Loan
 
Prime plus 2.75%
 
2/11/2024

 
168.9

 
168.9

 
175.0

 
0.06
%
^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

 
90.5

 
90.5

 
103.9

 
0.04
%
^Awesome Pets II Inc dba Mellisa's Pet Depot
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
2/7/2024

 
50.8

 
50.8

 
52.7

 
0.02
%
^Sarah Sibadan dba Sibadan Agency
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/27/2039

 
117.4

 
117.4

 
134.9

 
0.05
%

F-92
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Icore Enterprises Inc dba Air Flow Filters Inc
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/15/2024

 
12.9

 
12.9

 
13.5

 
%
^Nutmeg North Associates LLC, Steeltech Building Products Inc
 
Construction of Buildings
Term Loan
 
Prime plus 2.75%
 
12/31/2038

 
830.5

 
830.5

 
950.2

 
0.33
%
^KK International Trading Corporation
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/23/2028

 
146.3

 
146.3

 
158.1

 
0.06
%
^Kurtis Sniezek dba Wolfe's Foreign Auto
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038

 
80.5

 
80.5

 
92.4

 
0.03
%
^PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/19/2038

 
502.8

 
502.8

 
573.5

 
0.20
%
^TAK Properties LLC and Kinderland Inc
 
Social Assistance
Term Loan
 
Prime plus 2.75%
 
12/18/2038

 
367.1

 
367.1

 
420.5

 
0.15
%
^TOL LLC dba Wild Birds Unlimited
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/13/2023

 
10.9

 
10.9

 
11.3

 
%
^920 CHR Realty LLC, V. Garofalo Carting Inc
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
12/10/2038

 
379.3

 
379.3

 
435.5

 
0.15
%
^DKB Transport Corp
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2038

 
125.7

 
125.7

 
144.3

 
0.05
%
^Firm Foundations Inc David S Gaitan Jr and Christopher K Daigle
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/3/2038

 
94.4

 
94.4

 
107.7

 
0.04
%
^Spectrum Development LLC and Solvit Inc & Solvit North, Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/2/2023

 
235.8

 
235.8

 
244.0

 
0.08
%
^BVIP Limousine Service LTD
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/27/2038

 
69.1

 
69.1

 
79.3

 
0.03
%
^Wallace Holdings LLC, GFA International Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.5%
 
11/25/2023

 
71.9

 
71.9

 
74.5

 
0.03
%
^AcuCall LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2023

 
8.9

 
8.9

 
9.2

 
%
^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

 
26.5

 
26.5

 
27.4

 
0.01
%
^Yousef Khatib dba Y&M Enterprises
 
Wholesale Electronic Markets and Agents and Brokers
 
Term Loan
 
Prime plus 2.75%
 
11/15/2023

 
43.4

 
43.4

 
44.8

 
0.02
%
^Howell Gun Works LLC
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
11/14/2023

 
2.7

 
2.7

 
2.8

 
%
^Polpo Realty, LLC, Polpo Restaurant, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/6/2038

 
56.3

 
56.3

 
64.6

 
0.02
%

F-93
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Twinsburg Hospitality Group LLC dba Comfort Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
853.9

 
853.9

 
977.5

 
0.34
%
^Mid-Land Sheet Metal Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
124.1

 
124.1

 
142.4

 
0.05
%
^Master CNC Inc & Master Properties LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
538.0

 
538.0

 
614.7

 
0.21
%
^Janice B. McShan and The Metropolitan Day School, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/31/2023

 
24.9

 
24.9

 
26.0

 
0.01
%
^1 North Restaurant Corp dba 1 North Steakhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
191.6

 
191.6

 
219.8

 
0.08
%
^Clairvoyant Realty Corp. and Napoli Marble & Granite Design, Ltd
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/24/2038

 
133.6

 
133.6

 
153.4

 
0.05
%
^Greenbrier Technical Services, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/24/2023

 
117.5

 
117.5

 
122.4

 
0.04
%
^First Steps Real Estate Company, LLC and First Steps Preschool
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
87.8

 
87.8

 
100.2

 
0.03
%
^Lenoir Business Partners LLC, LP Industries, Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
265.5

 
265.5

 
304.2

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

 
108.2

 
108.2

 
124.1

 
0.04
%
^Cencon Properties LLC and Central Connecticut Warehousing Company, Inc
 
Warehousing and Storage
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
310.2

 
310.2

 
355.7

 
0.12
%
^Discount Wheel and Tire of Broken Bow Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
201.2

 
201.2

 
230.0

 
0.08
%
^Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038

 
301.3

 
301.3

 
344.8

 
0.12
%
^Gabrielle Realty, LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038

 
681.1

 
681.1

 
778.4

 
0.27
%
^Eastside Soccer Dome, Inc .
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
416.9

 
416.9

 
478.0

 
0.17
%
^Anthony C Dinoto and Susan S P Dinoto and Anthony C Dinoto Funeral Homes
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
89.9

 
89.9

 
103.1

 
0.04
%
^Southeast Chicago Soccer, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
46.0

 
46.0

 
52.8

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

 
81.8

 
81.8

 
93.5

 
0.03
%
^Diamond Memorials Incorporated
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2023

 
6.3

 
6.3

 
6.5

 
%

F-94
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Serious-Fun in Alpharetta, LLC dba The Little Gym of Alpharetta
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2023

 
26.1

 
26.1

 
27.0

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

 
241.6

 
241.6

 
276.1

 
0.10
%
^Westville Seafood LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2038

 
101.0

 
101.0

 
115.5

 
0.04
%
^Maynard Enterprises Inc dba Fastsigns of Texarkana
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/18/2023

 
9.1

 
9.1

 
9.4

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

 
93.2

 
93.2

 
96.3

 
0.03
%
^The Berlerro Group, LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/12/2023

 
243.6

 
243.6

 
251.4

 
0.09
%
^Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/12/2028

 
41.4

 
41.4

 
44.5

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

 
111.7

 
111.7

 
127.9

 
0.04
%
^Alma J. and William R. Walton and Almas Child Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038

 
35.6

 
35.6

 
40.9

 
0.01
%
^B for Brunette dba Blo
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/10/2023

 
30.4

 
30.4

 
31.3

 
0.01
%
^Schmaltz Holdings, LLC and Schmaltz Operations, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/4/2038

 
200.3

 
200.3

 
228.6

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

 
72.1

 
72.1

 
74.5

 
0.03
%
^ACI Northwest Inc.
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
300.1

 
300.1

 
312.1

 
0.11
%
^Gulfport Academy Child Care and Learning Center, Inc. and Jennifer Sis
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
23.9

 
23.9

 
24.9

 
0.01
%
^IlOKA Inc dba Microtech Tel and NewCloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
359.7

 
359.7

 
371.6

 
0.13
%
^Ramard Inc and Advanced Health Sciences Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/28/2023

 
103.8

 
103.8

 
106.8

 
0.04
%
^RM Hawkins LLC dba Pure Water Tech West and Robert M Hawkins
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/26/2023

 
44.7

 
44.7

 
46.4

 
0.02
%
^JSIL LLC dba Blackstones Hairdressing
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/16/2023

 
10.7

 
10.7

 
11.0

 
%
^Island Nautical Enterprises, Inc. and Ingwall Holdings, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/14/2038

 
311.1

 
311.1

 
355.3

 
0.12
%
^Caribbean Concepts, Inc. dba Quick Bleach
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/12/2023

 
12.4

 
12.4

 
12.8

 
%

F-95
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^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

 
6.5

 
6.5

 
6.7

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

 
83.4

 
83.4

 
95.5

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

 
2.1

 
2.1

 
2.4

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

 
47.8

 
47.8

 
49.8

 
0.02
%
^Morning Star Trucking LLC and Morning Star Equipment and Leasing LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/17/2023

 
29.3

 
29.3

 
30.1

 
0.01
%
^Maxiflex LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2023

 
24.2

 
24.2

 
25.2

 
0.01
%
^GIA Realty LLC and VRAJ GIA LLC dba Lakeview Laundromat
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2038

 
87.0

 
87.0

 
100.2

 
0.03
%
^2161 Highway 6 Trail, LLC, R. H. Hummer JR., Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2026

 
449.8

 
449.8

 
479.3

 
0.17
%
^Blakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial Services
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/18/2028

 
648.9

 
648.9

 
701.9

 
0.24
%
^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

 
184.5

 
184.5

 
191.1

 
0.07
%
^Elite Structures Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/12/2038

 
812.2

 
812.2

 
933.6

 
0.32
%
^Willowbrook Properties LLC, Grove Gardens Landscaping Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038

 
166.4

 
166.4

 
191.4

 
0.07
%
^Absolute Desire LLC and Mark H. Szierer, Sophisticated Smile
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038

 
168.3

 
168.3

 
193.3

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

 
33.1

 
33.1

 
34.4

 
0.01
%
^Ryan D. Thornton and Thornton & Associates LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
5/24/2023

 
25.2

 
25.2

 
26.1

 
0.01
%
^Peanut Butter & Co., Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/30/2023

 
51.7

 
51.7

 
53.5

 
0.02
%
^PowerWash Plus, Inc. and CJR, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/30/2038

 
489.6

 
489.6

 
562.9

 
0.20
%
^Kidrose, LLC dba Kidville Riverdale
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/22/2023

 
41.4

 
41.4

 
43.0

 
0.01
%
^1258 Hartford TPKE, LLC and Phelps and Sons, Inc
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
110.6

 
110.6

 
126.9

 
0.04
%

F-96
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^A & M Commerce, Inc. dba Cranberry Sunoco
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/27/2038

 
292.9

 
292.9

 
336.5

 
0.12
%
^Xela Pack, Inc. and Aliseo and Catherine Gentile
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2028

 
197.7

 
197.7

 
213.5

 
0.07
%
^American Diagnostic Imaging, Inc. dba St. Joseph Imaging Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2038

 
476.9

 
476.9

 
547.6

 
0.19
%
^Michael A.and HeatherR. Welsch dba Art & FrameEtc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/22/2038

 
59.9

 
59.9

 
68.8

 
0.02
%
^Truth Technologies Inc dba Truth Technologies Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023

 
44.1

 
44.1

 
45.6

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

 
261.6

 
261.6

 
271.4

 
0.09
%
^Golden Gate Lodging LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2038

 
102.2

 
102.2

 
117.4

 
0.04
%
^Bakhtar Group LLC dba Malmaison
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2023

 
52.6

 
52.6

 
54.3

 
0.02
%
^Osceola River Mill, LLC, Ironman Machine, Inc.
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/20/2038

 
76.3

 
76.3

 
87.7

 
0.03
%
^Java Warung, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/19/2038

 
45.2

 
45.2

 
52.0

 
0.02
%
^Retain Loyalty LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/15/2038

 
94.1

 
94.1

 
108.0

 
0.04
%
^North Country Transport, LLC
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/6/2023

 
7.7

 
7.7

 
8.0

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

 
228.1

 
228.1

 
261.9

 
0.09
%
^Sherill Universal City dba Golden Corral LP
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2038

 
390.6

 
390.6

 
449.0

 
0.16
%
^Elegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2022

 
47.3

 
47.3

 
48.7

 
0.02
%
^Macho LLC, Madelaine Chocolate Novelties Inc
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/31/2037

 
442.9

 
442.9

 
508.6

 
0.18
%
^Babie Bunnie Enterprises Inc dba Triangle Mothercare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2027

 
29.9

 
29.9

 
32.1

 
0.01
%
^John Duffy Fuel Co., Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/28/2022

 
249.5

 
249.5

 
257.5

 
0.09
%
^Polpo Realty LLC & Polpo Restaurant LLC dba Polpo Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/27/2037

 
456.9

 
456.9

 
524.6

 
0.18
%
^Martin L Hopp, MD PHD A Medical Corp dba Tower ENT
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2022

 
32.0

 
32.0

 
33.1

 
0.01
%

F-97
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Cheryle A Baptiste and Cheryle Baptiste DDS PLLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2037

 
252.5

 
252.5

 
289.8

 
0.10
%
^Daniel Gordon and Erin Gordon and Silver Lining Stables CT, LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
11/28/2037

 
201.4

 
201.4

 
231.3

 
0.08
%
^D&L Rescources, Inc. dba The UPS Store
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/27/2022

 
4.6

 
4.6

 
4.8

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

 
162.9

 
162.9

 
186.9

 
0.07
%
^DRV Enterprise, Inc. dba Cici's Pizza # 339
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/26/2022

 
28.8

 
28.8

 
29.9

 
0.01
%
^U & A Food and Fuel, Inc. dba Express Gas & Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/21/2037

 
84.6

 
84.6

 
97.2

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

 
129.9

 
129.9

 
134.3

 
0.05
%
^R & J Petroleum LLC, Manar USA, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/20/2037

 
158.2

 
158.2

 
181.6

 
0.06
%
^St Judes Physical Therapy P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2022

 
10.0

 
10.0

 
10.4

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

 
10.6

 
10.6

 
10.9

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

 
234.6

 
234.6

 
268.7

 
0.09
%
^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

 
86.2

 
86.2

 
88.8

 
0.03
%
^University Park Retreat, LLC dba Massage Heights
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2022

 
34.8

 
34.8

 
36.0

 
0.01
%
^O'Rourkes Diner LLC dba O'Rourke's Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2037

 
57.3

 
57.3

 
65.6

 
0.02
%
^AJK Enterprise LLC dba AJK Enterprise LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/27/2022

 
7.3

 
7.3

 
7.6

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

 
314.4

 
314.4

 
360.5

 
0.13
%
^Hofgard & Co., Inc. dba HofgardBenefits
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022

 
46.2

 
46.2

 
47.5

 
0.02
%
^Georgia Safe Sidewalks LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022

 
6.5

 
6.5

 
6.7

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

 
641.8

 
641.8

 
662.8

 
0.23
%
^Central Tire, Inc. dba Cooper Tire & Auto Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/29/2037

 
250.3

 
250.3

 
287.6

 
0.10
%

F-98
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/27/2037

 
60.5

 
60.5

 
69.5

 
0.02
%
^KIND-ER-ZZ Inc dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2022

 
21.4

 
21.4

 
22.1

 
0.01
%
^Graphish Studio, Inc. and Scott Fishoff
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/14/2022

 
8.7

 
8.7

 
8.9

 
%
^ALF, LLC, Mulit-Service Eagle Tires
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/31/2037

 
54.5

 
54.5

 
62.6

 
0.02
%
^Christou Real Estate Holdings LLC dba Tops American Grill
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/17/2037

 
245.4

 
245.4

 
282.0

 
0.10
%
^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

 
9.5

 
9.5

 
9.8

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

 
330.0

 
330.0

 
379.2

 
0.13
%
^Tanner Optical, Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/27/2022

 
3.4

 
3.4

 
3.5

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

 
229.4

 
229.4

 
236.9

 
0.08
%
^Indoor Playgrounds Limited Liability Company dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/5/2022

 
2.0

 
2.0

 
2.0

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

 
73.7

 
73.7

 
75.9

 
0.03
%
^Brandywine Picnic Park, Inc. and B.Ross Capps & Linda Capps
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/30/2031

 
179.3

 
179.3

 
198.2

 
0.07
%
^DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
3/23/2037

 
2,623.4

 
2,623.4

 
3,010.5

 
1.05
%
^DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6.25%
 
3/23/2022

 
609.9

 
609.9

 
628.6

 
0.22
%
^Manuel P. Barrera and Accura Electrical Contractor, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028

 
72.1

 
72.1

 
78.0

 
0.03
%
^Shweiki Media, Inc. dba Study Breaks Magazine
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/22/2027

 
786.4

 
786.4

 
844.5

 
0.29
%
^ATI Jet, Inc.
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/28/2026

 
548.2

 
548.2

 
587.5

 
0.20
%
^J. Kinderman & Sons, Inc. dba Brite Star Manufacturing Company
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/22/2036

 
352.6

 
352.6

 
404.1

 
0.14
%
^K's Salon, LLC d/b/a K's Salon
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2021

 
27.8

 
27.8

 
28.5

 
0.01
%

F-99
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^15 Frederick Place LLC & Pioneer Windows Holdings Inc & Subs
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/16/2021

 
92.2

 
92.2

 
94.7

 
0.03
%
^Taylor Transport, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/8/2021

 
93.2

 
93.2

 
95.8

 
0.03
%
^K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
10/26/2021

 
21.7

 
21.7

 
22.3

 
0.01
%
^28 Cornelia Street Properties, LLC and Zouk, Ltd.dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/25/2021

 
7.9

 
7.9

 
8.2

 
%
^39581 Garfield, LLC and Tri County Neurological Associates, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
70.4

 
70.4

 
80.5

 
0.03
%
^Robert E. Caves, Sr. and American Plank dba Caves Enterprises
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2021

 
104.5

 
104.5

 
107.2

 
0.04
%
^39581 Garfield, LLC and Tricounty Neurological Associates, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
23.9

 
23.9

 
27.4

 
0.01
%
^Big Apple Entertainment Partners, LLC dba Ripley's Believe it or Not
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2021

 
363.9

 
363.9

 
373.0

 
0.13
%
^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

 
21.8

 
21.8

 
22.4

 
0.01
%
^Michael S. Decker & Janet Decker dba The Hen House Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2036

 
13.9

 
13.9

 
15.9

 
0.01
%
^Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/19/2021

 
60.1

 
60.1

 
61.6

 
0.02
%
^Trademark Equipment Company Inc and David A. Daniel
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/19/2036

 
113.0

 
113.0

 
129.3

 
0.04
%
^Valiev Ballet Academy, Inc
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
8/12/2036

 
35.9

 
35.9

 
41.0

 
0.01
%
^LaHoBa, LLC d/b/a Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/3/2036

 
65.1

 
65.1

 
74.5

 
0.03
%
^MTV Bowl, Inc. dba Legend Lanes
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2036

 
213.2

 
213.2

 
243.8

 
0.08
%
^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

 
37.8

 
37.8

 
43.2

 
0.02
%
^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/29/2036

 
295.7

 
295.7

 
338.0

 
0.12
%

F-100
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(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

 
215.3

 
215.3

 
246.1

 
0.09
%
^J&K Fitness, LLC dba Physiques Womens Fitness Center
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/8/2036

 
392.9

 
392.9

 
449.2

 
0.16
%
^Peanut Butter & Co., Inc. d/b/a Peanut Butter & Co.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/3/2021

 
14.0

 
14.0

 
14.3

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

 
64.3

 
64.3

 
65.8

 
0.02
%
^Profile Performance, Inc. and Eidak Real Estate, L.L.C.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2036

 
106.6

 
106.6

 
121.9

 
0.04
%
^Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/18/2036

 
113.8

 
113.8

 
130.1

 
0.05
%
^Michael S. Korfe dba North Valley Auto Repair
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/24/2036

 
12.9

 
12.9

 
14.7

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

 
16.7

 
16.7

 
17.1

 
0.01
%
^Stephen Frank, Patricia Frank and Suds Express LLC dba Frank Chiropra
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/25/2023

 
26.1

 
26.1

 
27.1

 
0.01
%
^SuzyQue’s LLC dba Suzy Que’s
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/11/2036

 
50.9

 
50.9

 
58.1

 
0.02
%
^Little People’s Village, LLC dba Little People’s Village
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2036

 
25.8

 
25.8

 
29.4

 
0.01
%
^Seagate Group Holdings, Inc. dba Seagate Logistics, Inc.
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/28/2036

 
94.0

 
94.0

 
107.4

 
0.04
%
^Dixie Transport, Inc. & Johnny D. Brown & Jimmy Brown & Maudain Brown
 
Support Activities for Transportation
 
Term Loan
 
5.25%
 
12/28/2035

 
1,316.8

 
1,316.8

 
1,501.0

 
0.52
%
^Shree OM Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/17/2035

 
22.9

 
22.9

 
26.1

 
0.01
%
^Lodin Medical Imaging, LLC dba Watson Imaging Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/1/2020

 
17.1

 
17.1

 
17.4

 
0.01
%
^Robert F. Schuler and Lori A. Schuler dba Bob’s Service Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/30/2035

 
28.0

 
28.0

 
31.9

 
0.01
%
^K9 Bytes, Inc & Epazz, Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
9/30/2020

 
4.4

 
4.4

 
4.4

 
%
^Elan Realty, LLC and Albert Basse Asociates, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
9/30/2035

 
187.1

 
187.1

 
212.9

 
0.07
%
^Success Express,Inc. dba Success Express
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2020

 
19.5

 
19.5

 
19.8

 
0.01
%

F-101
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(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

 
47.4

 
47.4

 
48.2

 
0.02
%
^Dirk's Trucking, L.L.C. dba Dirk's Trucking
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/17/2020

 
4.0

 
4.0

 
4.1

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

 
41.0

 
41.0

 
46.6

 
0.02
%
^Newsome Trucking Inc and Kevin Newsome
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035

 
201.6

 
201.6

 
229.4

 
0.08
%
^DDLK Investments LLC d/b/a Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020

 
0.6

 
0.6

 
0.6

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

 
8.5

 
8.5

 
8.7

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

 
10.1

 
10.1

 
10.3

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

 
60.8

 
60.8

 
69.2

 
0.02
%
^Zouk, Ltd. dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/25/2020

 
5.9

 
5.9

 
6.0

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

 
4.1

 
4.1

 
4.1

 
%
^B&B Fitness and Barbell, Inc. dba Elevations Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
6/22/2035

 
200.3

 
200.3

 
227.7

 
0.08
%
^Tanner Optical Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2035

 
76.6

 
76.6

 
87.1

 
0.03
%
^Excel RP, Inc./Kevin and Joann Foley
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/8/2028

 
33.4

 
33.4

 
36.3

 
0.01
%
^ValleyStar, Inc. dba BrightStar Healthcare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020

 
1.5

 
1.5

 
1.5

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

 
1.1

 
1.1

 
1.2

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

 
7.1

 
7.1

 
7.2

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

 
0.3

 
0.3

 
0.4

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

 
1.1

 
1.1

 
1.1

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

 
34.1

 
34.1

 
38.6

 
0.01
%

F-102
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(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

 
22.0

 
22.0

 
23.1

 
0.01
%
^David A. Nusblatt, D.M.D, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
1.2

 
1.2

 
1.2

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

 
46.5

 
46.5

 
52.8

 
0.02
%
^ROVER REPAIRS
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.5%
 
11/28/2029

 
48.5

 
48.5

 
52.6

 
0.02
%
^Supreme Screw Products
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/17/2019

 
14.2

 
14.2

 
14.3

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

 
0.3

 
0.3

 
0.3

 
%
^The Alba Financial Group, Inc.
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
6%
 
1/10/2019

 
7.0

 
7.0

 
7.0

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

 
46.6

 
46.6

 
51.7

 
0.02
%
Bliss Coffee and Wine Bar, LLC
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
8/31/2019

 
66.1

 
66.1

 
66.7

 
0.02
%
^Zog Inc.
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2020

 
32.1

 
32.1

 
32.6

 
0.01
%
^Connect Litigation Technology, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2%
 
10/18/2025

 
22.7

 
22.7

 
23.5

 
0.01
%
^1911 East Main Street Holdings, Corp
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2032

 
11.4

 
11.4

 
12.7

 
%
^Water Works Laundromat, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.25%
 
9/7/2027

 
160.0

 
160.0

 
169.3

 
0.06
%
^Dave Kris, and MDK Ram Corp.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/5/2026

 
26.8

 
26.8

 
28.6

 
0.01
%
^Gill Express Inc. dba American Eagle Truck Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/5/2027

 
160.1

 
160.1

 
172.1

 
0.06
%
^Smooth Grounds, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
7.75%
 
1/31/2019

 
23.7

 
23.7

 
23.8

 
0.01
%
^Fran-Car Corporation dba Horizon Landscape Management
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/3/2028

 
61.9

 
61.9

 
67.0

 
0.02
%
^Head To Toe Personalized Pampering, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/27/2031

 
8.2

 
8.2

 
9.0

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

 
2.7

 
2.7

 
2.9

 
%
^Mogas Limited
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/31/2030

 
66.1

 
66.1

 
72.8

 
0.03
%

F-103
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Shree Om Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/2/2030

 
58.4

 
58.4

 
64.3

 
0.02
%
^Pedzik's Pets, LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
3/31/2030

 
8.1

 
8.1

 
8.9

 
%
^Nancy Carapelluci & A & M Seasonal Corner Inc.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/1/2025

 
11.7

 
11.7

 
12.4

 
%
^Patricia Hughes Jones, MD PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/13/2020

 
1.9

 
1.9

 
1.9

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

 
2.2

 
2.2

 
2.3

 
%
David M. Goens dba Superior Auto Paint & Body, Inc.
 
Repair and Maintenance
 
Term Loan
 
6%
 
8/26/2024

 
13.8

 
13.8

 
14.6

 
0.01
%
^McCallister Venture Group, LLC and Maw's Vittles, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/30/2029

 
10.3

 
10.3

 
11.3

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

 
7.3

 
7.3

 
7.6

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

 
13.8

 
13.8

 
14.6

 
0.01
%
^Shuttle Car Wash, Inc. dba Shuttle Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.25%
 
11/10/2028

 
15.0

 
15.0

 
16.0

 
0.01
%
^Min Hui Lin
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2028

 
15.2

 
15.2

 
16.5

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

 
37.8

 
37.8

 
40.8

 
0.01
%
^Auto Sales, Inc.
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6%
 
8/17/2023

 
5.8

 
5.8

 
6.0

 
%
^RAB Services, Inc. & Professional Floor Installations
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.5%
 
1/31/2023

 
5.0

 
5.0

 
5.2

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

 
7.1

 
7.1

 
7.4

 
%
^Ralph Werner dba Werner Transmission Inc
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/29/2021

 
1.5

 
1.5

 
1.5

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

 
27.6

 
27.6

 
28.8

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

 
2.5

 
2.5

 
2.6

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

 
4.0

 
4.0

 
4.2

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

 
9.1

 
9.1

 
9.4

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

 
22.0

 
22.0

 
22.9

 
0.01
%

F-104
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Maruti, Inc
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
11/25/2024

 
20.2

 
20.2

 
21.0

 
0.01
%
^Randall D. & Patricia D. Casaburi dba Pat's Pizzazz
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/13/2023

 
5.1

 
5.1

 
5.3

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

 
14.7

 
14.7

 
15.2

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

 
22.9

 
22.9

 
23.7

 
0.01
%
^Stillwell Ave Prep School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/14/2023

 
4.6

 
4.6

 
4.8

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

 
10.1

 
10.1

 
10.4

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

 
1.7

 
1.7

 
1.7

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

 
36.2

 
36.2

 
37.4

 
0.01
%
^Bhailal Patel dba New Falls Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
2.4

 
2.4

 
2.5

 
%
^Pegasus Automotive, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/23/2022

 
7.2

 
7.2

 
7.5

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

 
5.2

 
5.2

 
5.4

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

 
5.2

 
5.2

 
5.3

 
%
Total Performing SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
318,862.2

 
$
318,862.2

 
$
329,339.7

 
114.57%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Performing SBA Unguaranteed Investments (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*^200 North 8th Street Associates LLC and Enchanted Acres Fa
 
Food Manufacturing
 
Term Loan
 
6.25%
 
5/4/2028
 
$
469.3

 
$
469.3

 
$
366.0

 
0.13%
*^A & A Auto Care LLC
 
Repair and Maintenance
 
Term Loan
 
7.5%
 
3/9/2026
 
10.4

 
10.4

 
4.5

 
—%
*^A & A Auto Care, LLC d/b/a A & A Auto Care, LLC
 
Repair and Maintenance
 
Term Loan
 
7.25%
 
8/12/2036
 
88.0

 
88.0

 
84.7

 
0.03%
*Alive Design, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/13/2027
 
17.9

 
17.9

 
13.7

 
—%
*^Amboy Group, LLC dba Tommy's Moloney's
 
Food Manufacturing
 
Term Loan
 
7%
 
6/24/2025
 
375.2

 
375.2

 
367.9

 
0.13%
*^American Reclamation LLC
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/1/2027
 
7.2

 
7.2

 
6.4

 
—%
*Anderson Farms Inc
 
Truck Transportation
 
Term Loan
 
7.5%
 
12/22/2027
 
1,217.1

 
1,217.1

 
947.3

 
0.33%
*^Auto Shine Carwash Inc and AKM R. Hossain and Jessica F. Masud
 
Gasoline Stations
 
Term Loan
 
7.75%
 
9/26/2024
 
15.7

 
15.7

 
14.8

 
0.01%

F-105
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*AWA Fabrication & Construction, L.L.C.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
4/30/2025
 
34.8

 
34.8

 
5.2

 
—%
*^B & J Manufacturing Corporation and Benson Realty Trust
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2%
 
3/30/2021
 
11.0

 
11.0

 
9.8

 
—%
*^B and J Catering Inc dba Culinary Solutions
 
Food Services and Drinking Places
 
Term Loan
 
7%
 
8/27/2040
 
532.9

 
532.9

 
486.2

 
0.17%
*Baker Sales, Inc. d/b/a Baker Sales, Inc.
 
Nonstore Retailers
 
Term Loan
 
6%
 
3/29/2036
 
177.4

 
177.4

 
81.8

 
0.03%
*^Fieldstone Quick Stop LLC(OC) Barber Investments LLC (EPC) Thadius M B
 
Gasoline Stations
 
Term Loan
 
6%
 
9/30/2038
 
400.4

 
400.4

 
36.4

 
0.01%
*^Barber Investments LLC and Fieldstone Quickstop LLC and Maine Dollar D
 
Gasoline Stations
 
Term Loan
 
6.25%
 
8/15/2039
 
146.3

 
146.3

 

 
—%
*^Bear Creek Entertainment LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
8/12/2041
 
1,608.1

 
1,671.3

 
412.9

 
0.14%
*^Bear Creek Entertainment, LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
7.25%
 
12/30/2024
 
85.4

 
85.4

 
79.0

 
0.03%
*Bebos Inc dba Pizza Hut & Sunoco
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/28/2028
 
214.1

 
214.1

 
99.5

 
0.03%
*^Bobcatt Solutions, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/8/2027
 
35.8

 
35.8

 
33.1

 
0.01%
*Bone Bar & Grill LLC
 
Food Services and Drinking Places
 
Term Loan
 
7%
 
6/30/2042
 
73.4

 
73.4

 
57.5

 
0.02%
*^Calhoun Satellite Communications Inc and Transmission Solutions Group
 
Broadcasting (except Internet)
 
Term Loan
 
6.75%
 
2/27/2025
 
724.2

 
724.2

 

 
—%
*Calhoun Satellite Communications, Inc.
 
Telecommunications
 
Term Loan
 
7%
 
12/2/2026
 
189.1

 
189.1

 
40.9

 
0.01%
*^Capstone Pediatrics PLLC and Capstone Healthcare Consulting LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/15/2025
 
556.4

 
556.4

 
314.8

 
0.11%
*^Carl R. Bieber, Inc. dba Bieber Tourways/Bieber Transportation/Bieber
 
Transit and Ground Passenger Transportation
 
Term Loan
 
7.5%
 
9/30/2027
 
573.2

 
573.2

 
551.2

 
0.19%
*^Central Ohio Cleaners Inc
 
Personal and Laundry Services
 
Term Loan
 
7%
 
6/13/2024
 
90.5

 
90.5

 
8.9

 
—%
*^Chickamauga Properties, Inc., MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6.25%
 
12/22/2035
 
59.0

 
59.0

 
56.8

 
0.02%
*^Chickamauga Properties, Inc. and MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6.25%
 
10/19/2022
 
43.5

 
43.5

 

 
—%
*^CLU Amboy, LLC (EPC) and Amboy Group, LLC (OC) dba Tommy Moloney's
 
Food Manufacturing
 
Term Loan
 
7%
 
12/27/2023
 
469.0

 
469.0

 
459.9

 
0.16%
*^CM Lab Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6.75%
 
5/20/2026
 
166.1

 
166.1

 
134.9

 
0.05%

F-106
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*^Colts V LLC and Nowatzke Service Center, Inc dba Nowatzke Truck & Trai
 
Repair and Maintenance
 
Term Loan
 
6.75%
 
9/26/2039
 
553.3

 
553.3

 
528.7

 
0.18%
*^Custom Software, Inc. a Colorado Corporation dba M-33 Access
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6.25%
 
6/17/2021
 
256.7

 
256.7

 
226.1

 
0.08%
*^Custom Software, Inc. a Colorado Corporation dba M-33 Access
 
Broadcasting (except Internet)
 
Term Loan
 
6.25%
 
4/30/2022
 
94.3

 
94.3

 

 
—%
*^D&G Capital LLC dba Miami Grill 277
 
Food Services and Drinking Places
 
Term Loan
 
6.5%
 
12/16/2025
 
81.2

 
81.2

 
28.7

 
0.01%
*^Demand Printing Solutions, Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
10/29/2034
 
119.5

 
119.5

 
110.5

 
0.04%
*^Demand Printing Solutions, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/12/2019
 
1.6

 
1.6

 
1.5

 
—%
*^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
 
5.5

 
5.5

 
5.1

 
—%
*^MLM Enterprises LLC and Demand Printing Solutions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/18/2024
 
50.2

 
50.2

 
46.4

 
0.02%
*^Demand Printing Solutions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027
 
17.0

 
17.0

 
15.7

 
0.01%
*^Demand Printing Solutions Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026
 
17.8

 
17.8

 
16.5

 
0.01%
*^Demand Printing Solutions Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027
 
199.2

 
199.2

 
82.1

 
0.03%
*^Dr Richard Rolle JR, PLLC dba Rolle Oral & Facial Surgery PLLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042
 
869.9

 
869.9

 
679.6

 
0.24%
*^Dr. Richard R. Rolle, Jr., PLLC dba Rolle Oral & Facial Surgery
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2027
 
122.3

 
122.3

 

 
—%
*^Driven Warehouse/Distribution LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027
 
726.2

 
726.2

 
671.6

 
0.23%
*^Driven Warehouse/Distribution LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/18/2028
 
129.0

 
129.0

 
10.2

 
—%
*^DTM Parts Supply Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
7%
 
6/2/2025
 
54.8

 
54.8

 
43.9

 
0.02%
*^E & I Holdings, LP & PA Farm Products, LLC
 
Food Manufacturing
 
Term Loan
 
6%
 
4/30/2030
 
4,705.2

 
4,822.6

 
2,741.0

 
0.95%
*^Europlast Ltd
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
6%
 
9/26/2022
 
313.0

 
313.0

 
22.3

 
0.01%
*^Europlast Ltd
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
6%
 
5/31/2023
 
73.4

 
73.4

 

 
—%
*^Event Mecca LLC
 
Other Information Services
 
Term Loan
 
6%
 
4/10/2023
 
11.4

 
11.4

 
9.0

 
—%
*^Evernook Valley Milk LLC
 
Animal Production and Aquaculture
 
Term Loan
 
7.5%
 
8/31/2042
 
637.5

 
637.5

 
545.9

 
0.19%

F-107
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(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
 
6%
 
1/31/2023
 
86.4

 
86.4

 
1.2

 
—%
*^Ezzo Properties, LLC and Great Lakes Cleaning, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2027
 
286.5

 
286.5

 
72.5

 
0.03%
*^New Image Building Services, Inc. dba New Image Repair Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/23/2037
 
251.9

 
251.9

 
152.9

 
0.05%
*^New Image Building Services Inc. dba New Image Repair Services; The Ma
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/29/2023
 
197.1

 
197.1

 

 
—%
*^New Image Building Services, Inc. dba The Maids serving Oakland and Ma
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2026
 
67.8

 
67.8

 

 
—%
*^New Image Building Services, Inc.dba The Maids Servicing Oakland &Maco
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2026
 
39.0

 
39.0

 

 
—%
*^New Image Building Services, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2027
 
138.9

 
138.9

 

 
—%
*Farec, Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
7.5%
 
12/29/2042
 
267.9

 
267.9

 
248.9

 
0.09%
*^Galaforo Construction and Companies LLC
 
Construction of Buildings
 
Term Loan
 
7.5%
 
12/15/2042
 
207.8

 
207.8

 
196.0

 
0.07%
*Galaforo Construction LLC and Paul M Galaforo, Jr.
 
Construction of Buildings
 
Term Loan
 
7.5%
 
12/15/2027
 
334.0

 
334.0

 
82.8

 
0.03%
*^Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
6.25%
 
3/30/2022
 
233.5

 
233.5

 

 
—%
*^Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
6.25%
 
4/25/2022
 
157.8

 
157.8

 

 
—%
*^Gator Communications Group, LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
6.25%
 
3/27/2023
 
13.3

 
13.3

 

 
—%
*^Gino Italian American Deli and Meat Market Inc
 
Food and Beverage Stores
 
Term Loan
 
7%
 
7/25/2041
 
119.9

 
119.9

 
113.1

 
0.04%
*^Groundworks Unlimited LLC
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
12/17/2023
 
8.8

 
8.8

 
8.3

 
—%
*^Grand Manor Realty, Inc. & Kevin LaRoe
 
Real Estate
 
Term Loan
 
6%
 
2/20/2023
 
19.0

 
19.0

 
17.2

 
0.01%
*Guzman Group,LLC
 
Rental and Leasing Services
 
Term Loan
 
6%
 
9/30/2019
 
173.8

 
173.8

 
37.6

 
0.01%
*Harrelson Materials Management,Inc
 
Waste Management and Remediation Services
 
Term Loan
 
6%
 
6/24/2021
 
465.2

 
465.2

 
23.8

 
0.01%
*^Hartford Cardiology Group LLC and Ideal Nutrition of Connecticut LLC
 
Ambulatory Health Care Services
 
Term Loan
 
6.25%
 
6/30/2026
 
462.5

 
462.5

 

 
—%
*^Hascher Gabelstapler Inc
 
Repair and Maintenance
 
Term Loan
 
7%
 
3/26/2024
 
106.6

 
106.6

 
58.8

 
0.02%
*^HG Ventures, Inc.
 
Truck Transportation
 
Term Loan
 
7.5%
 
3/9/2028
 
125.9

 
125.9

 
96.7

 
0.03%
*^HG Ventures, Inc. dba Diamond Head Trucking
 
Truck Transportation
 
Term Loan
 
7.5%
 
6/29/2030
 
929.1

 
929.1

 
715.9

 
0.25%

F-108
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*^Home Again Restaurant LLC
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
6/30/2040
 
0.4

 
0.4

 
0.4

 
—%
*^Ian Winterbotham dba Furnishing America
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
11/17/2027
 
93.4

 
93.4

 
73.9

 
0.03%
*^InformationTelevision Network Inc
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
7.5%
 
9/22/2041
 
823.0

 
823.0

 
761.1

 
0.26%
*^J And G Group Services LLC and United Vending of Florida Inc and John
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
7.25%
 
7/28/2026
 
29.6

 
29.6

 
28.5

 
0.01%
*J Harris Trucking LLC
 
Truck Transportation
 
Term Loan
 
7.25%
 
5/19/2027
 
18.7

 
18.7

 
8.3

 
—%
*^J Harris Trucking, LLC
 
Truck Transportation
 
Term Loan
 
7.25%
 
5/13/2026
 
38.1

 
38.1

 
36.5

 
0.01%
*^J Olson Enterprises LLC and Olson Trucking Direct, Inc.
 
Truck Transportation
 
Term Loan
 
6%
 
6/28/2025
 
628.4

 
628.4

 
44.2

 
0.02%
*^Jacksonville Beauty Institute Inc. dba Beauty Institute's
 
Educational Services
 
Term Loan
 
7%
 
10/23/2025
 
40.9

 
40.9

 
31.7

 
0.01%
*Jenny's Wunderland, Inc.
 
Social Assistance
 
Term Loan
 
6%
 
6/29/2036
 
98.8

 
98.8

 
14.6

 
0.01%
*Juliador Resources LLC DBA Cue Hair Salon and Skin Care
 
Personal and Laundry Services
 
Term Loan
 
7.25%
 
5/24/2027
 
21.9

 
21.9

 
19.4

 
0.01%
*^Kantz LLC and Kantz Auto LLC dba Kantz's Hometown Auto
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6.25%
 
10/29/2039
 
11.1

 
11.1

 
8.7

 
—%
*^Kids at Heart,LLC dba Monster Mini Golf
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6.75%
 
9/22/2026
 
20.4

 
20.4

 
15.9

 
0.01%
*Krishna of Orangeburg, Inc.
 
Accommodation
 
Term Loan
 
6%
 
2/20/2032
 
10.3

 
10.3

 
5.5

 
—%
*^Kup's Auto Spa Inc
 
Repair and Maintenance
 
Term Loan
 
6.25%
 
11/15/2038
 
70.5

 
70.5

 
31.6

 
0.01%
*Kup’s Auto Spa, Inc.
 
Repair and Maintenance
 
Term Loan
 
6.25%
 
10/23/2025
 
54.7

 
54.7

 

 
—%
*^L.M. Jury Enterprises, Inc dba Midwest Monograms
 
Textile Product Mills
 
Term Loan
 
7.25%
 
10/28/2025
 
60.6

 
60.6

 
9.1

 
—%
*^LA Diner Inc dba Loukas L A Diner
 
Food Services and Drinking Places
 
Term Loan
 
7.25%
 
9/28/2037
 
617.8

 
617.8

 
571.4

 
0.20%
*^Las Casuelas Del Este Inc.
 
Food Services and Drinking Places
 
Term Loan
 
7%
 
9/29/2041
 
791.6

 
791.6

 
356.0

 
0.12%
*^Lowgap Grocery & Grill LLC
 
General Merchandise Stores
 
Term Loan
 
7.25%
 
3/24/2041
 
48.0

 
48.0

 
40.0

 
0.01%
*^M & H Pine Straw Inc and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
7.5%
 
3/21/2023
 
197.4

 
197.4

 
58.4

 
0.02%
*^M & H Pine Straw, Inc and Harris L. Maloy
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
6%
 
4/30/2020
 
54.2

 
54.2

 
52.1

 
0.02%
*^M & H Pine Straw, Inc.and Harris Maloy
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
7.5%
 
7/10/2020
 
27.4

 
27.4

 
19.8

 
0.01%

F-109
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(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
 
7.5%
 
12/15/2021
 
133.8

 
133.8

 
48.7

 
0.02%
*^M and C Renovations Inc
 
Construction of Buildings
 
Term Loan
 
6.25%
 
10/31/2024
 
13.0

 
13.0

 
7.8

 
—%
*^Mariam Diner Inc dba Country Kitchen Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/18/2026
 
42.8

 
42.8

 
24.5

 
0.01%
*^Matchless Transportation LLC dba First Class Limo
 
Transit and Ground Passenger Transportation
 
Term Loan
 
6.25%
 
8/3/2022
 
123.3

 
123.3

 
103.0

 
0.04%
*^Medeiros Holdings Inc dba Outdoor Lighting Perspectives of the Triad
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
7%
 
11/25/2025
 
19.6

 
19.6

 
12.7

 
—%
*^Mojo Brands Media, LLC
 
Broadcasting (except Internet)
 
Term Loan
 
6%
 
8/28/2023
 
725.0

 
725.0

 
325.3

 
0.11%
*^Morris Glass and Construction Inc
 
Specialty Trade Contractors
 
Term Loan
 
15%
 
10/1/2023
 
448.0

 
448.0

 
350.5

 
0.12%
*^Nelson Sargsyan dba HDA Trucking
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025
 
100.8

 
100.8

 
63.7

 
0.02%
*^Nowatzke Service Center Inc dba Nowatzke Truck and Trailer
 
Repair and Maintenance
 
Term Loan
 
7%
 
1/29/2026
 
96.9

 
96.9

 
61.3

 
0.02%
*Paragon Fabricators Inc, Paragon Field Services, Inc and Paragon Globa
 
Heavy and Civil Engineering Construction
 
Term Loan
 
7%
 
9/28/2026
 
571.2

 
571.2

 
25.9

 
0.01%
*^Paragon Global, LLC and Paragon Fabricators Inc and Paragon Field Serv
 
Heavy and Civil Engineering Construction
 
Term Loan
 
7%
 
9/28/2041
 
110.1

 
110.1

 
101.9

 
0.04%
*^Peckett's Inc
 
Crop Production
 
Term Loan
 
7%
 
7/27/2041
 
219.6

 
219.6

 
169.0

 
0.06%
*^Pooh's Corner Realty LLC and Pooh's Corner Inc
 
Social Assistance
 
Term Loan
 
7%
 
7/23/2040
 
100.3

 
100.3

 
96.4

 
0.03%
*^RDT Enterprises LLC
 
Specialty Trade Contractors
 
Term Loan
 
7%
 
9/15/2027
 
136.9

 
136.9

 
77.9

 
0.03%
*^RDT Enterprises, L.L.C.
 
Specialty Trade Contractors
 
Term Loan
 
7%
 
11/12/2025
 
19.6

 
19.6

 

 
—%
*^RDT Enterprises, LLC
 
Specialty Trade Contractors
 
Term Loan
 
7%
 
12/31/2028
 
111.5

 
111.5

 
70.1

 
0.02%
*^Route 130 SCPI Holdings LLC (EPC) Route 130 SCPI Operations LLC (OC) d
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
9/30/2039
 
279.5

 
279.5

 
125.2

 
0.04%
*^Scoler LLC dba Gold's Gym
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026
 
219.3

 
219.3

 
26.7

 
0.01%
*^Scoville Plumbing & Heating Inc and Thomas P. Scoville
 
Specialty Trade Contractors
 
Term Loan
 
6.75%
 
7/25/2022
 
32.1

 
32.1

 
30.8

 
0.01%
*^SDA Holdings LLC and Les Cheveux Salon Inc
 
Personal and Laundry Services
 
Term Loan
 
7.5%
 
12/15/2040
 
108.5

 
108.5

 
104.3

 
0.04%
*Select Propane & Fuel Inc. and Select Fuel & Convenience LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
7.5%
 
2/10/2030
 
593.3

 
593.3

 
109.4

 
0.04%
*Shaffer Automotive Repair, LLC
 
Repair and Maintenance
 
Term Loan
 
7%
 
5/24/2030
 
132.8

 
132.8

 
120.1

 
0.04%

F-110
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*^Shane M. Howell and Buck Hardware and Garden Center, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
7.5%
 
12/27/2038
 
120.2

 
120.2

 
93.3

 
0.03%
*^Shivsakti, LLC dba Knights Inn
 
Accommodation
 
Term Loan
 
6.25%
 
12/20/2032
 
3.3

 
3.3

 

 
—%
*^Soregard Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
7.5%
 
6/30/2041
 
158.9

 
158.9

 
81.3

 
0.03%
*^Sourceco Limited Liability Company
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
6.5%
 
12/17/2025
 
45.0

 
45.0

 
44.1

 
0.02%
*^Sovereign Communications LLC
 
Broadcasting (except Internet)
 
Term Loan
 
6.75%
 
2/7/2024
 
654.2

 
654.2

 
517.0

 
0.18%
*^Square Deal Siding Company,LLC dba Square Deal Siding Company
 
Specialty Trade Contractors
 
Term Loan
 
7.5%
 
6/18/2025
 
2.1

 
2.1

 
2.0

 
—%
*^Stellar Environmental LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2023
 
30.6

 
30.6

 
28.3

 
0.01%
*^STK Ventures Inc dba JP Dock Service & Supply
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
5/9/2037
 
31.6

 
31.6

 
11.2

 
—%
*^Stormrider Inc dba Shirley's Stormrider Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025
 
50.9

 
50.9

 

 
—%
*^Stormrider Inc dba Shirley's Stormrider, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024
 
102.9

 
102.9

 
37.5

 
0.01%
*^Street Magic Enterprise LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/21/2027
 
86.3

 
86.3

 
15.7

 
0.01%
*^Street Magic Enterprise LLC dba New Lisbon Travel Mart
 
Gasoline Stations
 
Term Loan
 
7.5%
 
11/7/2042
 
419.0

 
419.0

 
387.5

 
0.13%
*^Suncrest Stone Products LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
7.25%
 
8/29/2041
 
638.7

 
638.7

 
262.8

 
0.09%
*^Suncrest Stone Products LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
7.5%
 
8/29/2026
 
539.6

 
539.6

 
131.3

 
0.05%
*^T and B Boots Inc dba Takken's Shoes
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
7%
 
3/31/2025
 
23.0

 
23.0

 
20.2

 
0.01%
*^T and B Boots Inc dba Takken's Shoes
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
7.25%
 
6/17/2026
 
204.5

 
204.5

 

 
—%
*T and B Boots Inc dba Takken's Shoes
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
7.25%
 
12/7/2026
 
95.2

 
95.2

 
89.8

 
0.03%
*^Tannehill Enterprises Inc dba Hobbytown USA Folsom
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
7.75%
 
10/14/2025
 
71.1

 
71.1

 
45.5

 
0.02%
*^Tarver-Henley Inc. and Tar-Hen LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/21/2042
 
314.6

 
314.6

 
302.5

 
0.11%

F-111
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*^The Delon Group LLC dba I Love Juice Bar
 
Food Services and Drinking Places
 
Term Loan
 
7%
 
5/12/2026
 
19.3

 
19.3

 
18.6

 
0.01%
*^Tim's Tire & Automotive Center, LLC
 
Support Activities for Transportation
 
Term Loan
 
7%
 
8/16/2026
 
410.2

 
410.2

 
98.6

 
0.03%
*^The Woods at Bear Creek LLC and Bear Creek Entertainment LLC dba The
 
Accommodation
 
Term Loan
 
7%
 
9/29/2039
 
489.6

 
489.6

 
452.8

 
0.16%
*^Thomas P. Scoville dba Scoville Plumbing & Heating, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
6.75%
 
11/16/2021
 
33.6

 
33.6

 
32.3

 
0.01%
*Transmission Solutions Group, Inc. and Calhoun Satellite Communicatio
 
Telecommunications
 
Term Loan
 
7%
 
12/2/2041
 
141.3

 
141.3

 
65.7

 
0.02%
*^Tri-State Remodeling & Investments, LLC
 
Specialty Trade Contractors
 
Term Loan
 
7.5%
 
12/11/2025
 
13.3

 
13.3

 
11.5

 
—%
*^TX Superior Communications, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/19/2028
 
90.3

 
90.3

 
30.5

 
0.01%
*^Vision Automotive LLC dba Vision Chrysler Jeep Dodge Ram of Defiance
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
7.5%
 
9/29/2029
 
570.1

 
570.1

 
299.4

 
0.10%
*Vision Collision Center LLC dba Integrity Auto Body & Vision Automoti
 
Repair and Maintenance
 
Term Loan
 
7.5%
 
11/21/2027
 
349.2

 
349.2

 

 
—%
*^Webb Eye Associates, PA
 
Ambulatory Health Care Services
 
Term Loan
 
7.25%
 
7/19/2027
 
71.2

 
71.2

 
28.9

 
0.01%
*^Wilban LLC
 
Food Services and Drinking Places
 
Term Loan
 
7.5%
 
3/11/2026
 
93.2

 
93.2

 
86.2

 
0.03%
*^Wilban LLC
 
Food Services and Drinking Places
 
Term Loan
 
7.25%
 
3/28/2039
 
402.7

 
402.7

 
289.6

 
0.10%
*Work of Heart Inc dba Little Nest Portraits
 
Professional, Scientific, and Technical Services
 
Term Loan
 
7.5%
 
1/10/2028
 
5.2

 
5.2

 
5.1

 
—%
*^Work of Heart Inc dba Little Nest Portraits
 
Professional, Scientific, and Technical Services
 
Term Loan
 
7.5%
 
7/28/2027
 
47.1

 
47.1

 
46.2

 
0.02%
Total Non-Performing SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
36,546.2

 
$
36,726.8

 
$
20,062.3

 
6.98%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
355,408.4

 
$
355,589.0

 
$
349,402.0

 
121.55%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performing SBA Guaranteed Investments (4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Always Goldie's Florist
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/19/2028

 
66.3

 
66.3

 
72.7

 
0.03
%
The Law Office of Jared E. Shapiro, P.A.
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
63.8

 
63.8

 
69.9

 
0.02
%
Medworxs Inc.
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/27/2028

 
59.5

 
59.5

 
65.2

 
0.02
%

F-112
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Fave Realty Inc.
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/27/2043

 
370.5

 
370.5

 
415.3

 
0.14
%
East Breeze LLC dba Historic Springdale Pub and Eatery
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/27/2043

 
384.8

 
384.8

 
431.3

 
0.15
%
Children First Home Health Care Inc
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/27/2028

 
900.0

 
900.0

 
988.2

 
0.34
%
Superior Concepts Acquisition Corp
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/28/2028

 
359.5

 
359.5

 
395.1

 
0.14
%
Superior Concepts Acquisition Corp
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043

 
1,528.8

 
1,528.8

 
1,710.0

 
0.59
%
Nix and Nix Funeral Home North Inc,
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043

 
1,708.5

 
1,708.5

 
1,905.0

 
0.66
%
Galt Insurance Group of Bonita Springs, LLC & Bonita Safety Institute
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043

 
106.3

 
106.3

 
119.1

 
0.04
%
Omega Funeral and Cremation Services, LLC
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043

 
1,028.6

 
1,028.6

 
1,152.0

 
0.40
%
Capitol Fitness Shelby Inc.
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/28/2028

 
102.9

 
102.9

 
113.0

 
0.04
%
The Chop House Inc.
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/31/2043

 
1,673.3

 
1,673.3

 
1,870.7

 
0.65
%
Romain Tower Inc. David Romaine, Sugar Land Crane and Rigging, LLC
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028

 
712.5

 
712.5

 
783.0

 
0.27
%
HDD Solutions, LLC
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028

 
1,661.3

 
1,661.3

 
1,816.6

 
0.63
%
Paramount Dance Studios Inc. and Homestead Dance Supply
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
10/14/2043

 
1,225.5

 
1,225.5

 
1,360.4

 
0.47
%
Lou & Choo Enterprises Inc.
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
2/28/2044

 
101.4

 
101.4

 
113.1

 
0.04
%
Metropolitan Solutions Inc.
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
4/30/2043

 
102.7

 
102.7

 
114.5

 
0.04
%
Kneading Dough LLC dba NY Bagel Cafe & Deli, NY Bagel, New York Bagel
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
2/23/2029

 
102.5

 
102.5

 
111.8

 
0.04
%
Olmsted LLC and 626 Van LLC dba Maison Yaki
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
2/1/2029

 
564.5

 
564.5

 
617.0

 
0.21
%
Starship, LLC dba Tint World Smyrna
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
5/25/2043

 
266.3

 
266.3

 
297.1

 
0.10
%
AVM LLC dba Luv 2 Play
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
6/1/2028

 
78.2

 
78.2

 
84.4

 
0.03
%
Surya Hotel LLC dba Hotel Royal
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
302.6

 
302.6

 
331.1

 
0.12
%
Bio-Haz Solutions, Inc.
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
6/29/2043

 
906.3

 
906.3

 
1,011.7

 
0.35
%

F-113
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Bio-Haz Solutions, Inc
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
1/29/2029

 
335.9

 
335.9

 
367.5

 
0.13
%
Geo Tek Alaska, Inc
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
2/17/2044

 
170.3

 
170.3

 
190.5

 
0.07
%
National Stone LTD and NSI Group Inc
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
8/31/2044

 
579.5

 
579.5

 
645.4

 
0.22
%
Blue Seven, LLC
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
1/27/2029

 
149.3

 
149.3

 
164.1

 
0.06
%
Hackstaff Restaurants LLC
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
1/15/2029

 
172.6

 
172.6

 
189.7

 
0.07
%
UK, LLC dba Pita Pit
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
1/30/2029

 
97.2

 
97.2

 
106.8

 
0.04
%
JP Dhillon's Foods LLC
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
2/1/2029

 
77.5

 
77.5

 
85.2

 
0.03
%
Vancole Investments, Inc. dba Smoothie King #913
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
5/7/2044

 
687.7

 
687.7

 
770.6

 
0.27
%
Beau & HB Inc dba Beau's Billiard, Bowling & Arcade
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
3/16/2029

 
20.7

 
20.7

 
22.8

 
0.01
%
Thames Aquatic Club, LLC
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
7/21/2029

 
55.5

 
55.5

 
61.0

 
0.02
%
D for Dream LLC dba Blow Dry Bar Inc
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
5/13/2029

 
73.2

 
73.2

 
80.4

 
0.03
%
JejoJesi Corp dba Dukunoo Jamaican Kitchen, Dunkunoo
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
3/19/2029

 
126.4

 
126.4

 
138.9

 
0.05
%
Sheldon T Banks and Sheldon T Banks LLC dba Serenity Funeral Chapel ll
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
9/19/2044

 
86.7

 
86.7

 
97.0

 
0.03
%
Healthy and Fresco LLC
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
2/20/2029

 
75.0

 
75.0

 
82.4

 
0.03
%
Accel Compression Inc., Accel Workover Services Inc
 
Prime plus 2.75%
 
Term Loan
 
Prime plus 2.75%
 
6/21/2044

 
133.6

 
133.6

 
149.7

 
0.05
%
Total SBA Guaranteed Performing Investments
 
 
 
 
 
 
 
 
 
$
17,217.4

 
$
17,217.4

 
$
19,100.2

 
6.64%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed and Guaranteed Investments
 
 
 
 
 
 
 
 
 
$
372,625.8

 
$
372,806.4

 
$
368,502.2

 
128.20%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Controlled Investments (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*Advanced Cyber Security Systems, LLC (6), (20)
 
Data processing, hosting and related services.
 
50% Membership Interest
 
%
 

 

 

 

 
%
 
 
 
 
Term Loan
 
3
%
 
December 2014

 
381.0

 
381.0

 

 
%
*Automated Merchant Services, Inc. (7), (20)
 
Data processing, hosting and related services.
 
100% Common Stock
 
%
 

 

 

 

 
%

F-114
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
CDS Business Services, Inc. (8)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
%
 

 

 
4,428.0

 
5,000.0

 
1.74
%
 
 
 
 
Line of Credit
 
Prime plus 2.5%

 
December 2019

 
5,000.0

 
5,000.0

 
5,000.0

 
1.74
%
 
 
 
 
Term Loan
 
10
%
 
April 2020

 
1,000.0

 
1,000.0

 
1,000.0

 
0.35
%
*Newtek Technology Solutions, Inc. (11)
 
Data processing, hosting and related services.
 
100% Common Stock
 
%
 

 

 
8,384.0

 
8,500.0

 
2.96
%
 
 
 
 
Line of Credit
 
LIBOR plus 2.5%

 
November 2028

 
6,800.0

 
6,800.0

 
6,800.0

 
2.37
%
*Newtek Insurance Agency, LLC (13)
 
Insurance Carriers and Related Activities
 
100% Membership Interest
 
%
 

 

 
135.0

 
2,215.0

 
0.77
%
*PMTWorks Payroll, LLC (9)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
%
 

 

 
1,106.1

 

 
%
 
 
 
 
Term Loan
 
10%-12%

 
Various maturities through May 2020

 
2,685.0

 
2,685.0

 

 
%
Small Business Lending, LLC (12), (20)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 
%
 

 

 
250.0

 
3,300.0

 
1.15
%
*ADR Partners, LLC dba banc-serv Partners, LLC (12)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 
%
 

 

 
6,799.2

 

 
%
International Professional Marketing, Inc. (16)
 
Professional, Scientific, and Technical Services
 
100% Common Stock
 
%
 

 

 
4,000.0

 
3,300.0

 
1.15
%
 
 
 
 
Line of Credit
 
Prime plus 0.5%

 
April 2019

 
800.0

 
800.0

 
800.0

 
0.28
%
SIDCO, LLC (16)
 
Professional, Scientific, and Technical Services
 
100% Membership Interest
 
%
 

 

 
7,119.7

 
7,819.7

 
2.72
%
 
 
 
 
Line of Credit
 
Prime plus 0.5%

 
July 2019

 
175.0

 
175.0

 
175.0

 
0.06
%
Newtek Merchant Solutions, LLC (11)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
%
 

 

 
16,438.0

 
116,250.0

 
40.44
%
Mobil Money, LLC (17)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
%
 

 

 
2,980.0

 
2,980.0

 
1.04
%
Newtek Business Lending, LLC (10)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 
%
 

 

 
5,445.0

 
8,445.0

 
2.94
%

F-115
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Newtek Conventional Lending, LLC (18)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
50% Membership Interest
 
%
 

 

 

 

 
%
Titanium Asset Management, LLC (14)
 
Administrative and Support Services
 
Term Loan
 
10
%
 
December 2018

 
193.9

 
193.9

 

 
%
 
 
 
 
100% Membership Interest
 
%
 

 

 

 

 
%
Excel WebSolutions, LLC (15)
 
Data processing, hosting and related services.
 
Term Loan
 
10
%
 
September 2020

 
159.2

 
159.2

 

 
%
 
 
 
 
50% Membership Interest
 
%
 

 

 

 

 
%
Total Controlled Investments
 
 
 
 
 
 
 
 
 
$
17,194.1

 
$
74,279.1

 
$
171,584.7

 
59.69%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-control/Affiliate Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EMCAP Loan Holdings, LLC (19) (23)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
6.04% Membership Interest
 
%
 

 
$

 
$
1,000.0

 
$
1,000.0

 
0.35%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments in Money Market Funds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Select Treasury Institutional Fund - 2.17% yield
 
 
 
 
 
 
 
 
 
$
9.0

 
$
9.0

 
$
9.0

 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Investments
 
 
 
 
 
 
 
 
 
$
389,828.9

 
$
448,094.5

 
$
541,095.9

 
188.24%

^ Denotes investment that has been pledged as collateral under the Securitization Trusts.
* 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. 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 5.25% as of December 31, 2018.
(3) Newtek values non-performing SBA 7(a) loans using a discounted cash flow analysis of the underlying collateral which supports the loan. Net recovery of collateral, (fair value less cost to liquidate) is applied to the discounted cash flow analysis based upon a time to liquidate estimate. Modified loans are valued based upon current payment streams and are re-amortized at the end of the modification period.

F-116
See accompanying notes to these consolidated financial statements



(4) Newtek values guaranteed performing SBA 7(a) loans using the secondary SBA 7(a) market as a reference point. Newtek routinely sells performing SBA 7(a) loans into this secondary market. Guaranteed portions of SBA 7(a) loans partially funded as of the valuation date are valued using level two inputs as disclosed in Note 6.
(5) Controlled Investments are disclosed above as equity investments (except as otherwise noted) in those companies that are “Controlled Investments” of the Company as defined in the Investment Company Act of 1940. A company is deemed to be a “Controlled Investment” of Newtek Business Services Corp. if Newtek Business Services Corp. or its subsidiaries owns more than 25% of the voting securities of such company. See Note 5 in the accompanying notes to the consolidated financial statements for transactions during the year ended December 31, 2017 with affiliates the Company is deemed to control.
(6) 50% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), 50% owned by non-affiliate. The term loan is past its original maturity date and currently in default. As such, the fair value of the investment is zero.
(7) 96.11% owned by Wilshire Partners, LLC (a subsidiary of Newtek Business Services Corp.), 3.89% owned by Newtek Business Services Corp.
(8) 50.15% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.) and 49.85% owned by Wilshire Holdings 1, Inc. (a subsidiary of Newtek Business Services Corp.).
(9) 25% owned by The Whitestone Group, LLC, (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.), 65% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), and 10% owned by Exponential Business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.).
(10) 100% owned by Newtek Business Services Holdco 6, Inc. (a subsidiary of Newtek Business Services Corp.
(11) 100% owned by NBSH Holdings, LLC (a subsidiary of Newtek Business Services Holdco 1, Inc., a subsidiary of Newtek Business Services Corp.). Premier was merged with NMS at December 31, 2018.
(12) 100% owned by Newtek LSP Holdco, LLC (a subsidiary of Wilshire Holdings I, Inc. and Newtek Business Services Holdco 5, Inc., both subsidiaries of Newtek Business Services Corp.).
(13) 100% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.).
(14) 50% owned by Exponential Business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.), 47.8% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.) and 2.2% owned by Wilshire New York Advisers II, LLC (a subsidiary of Newtek Business Services Corp.).
(15) 50% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.) and 50% owned by non-affiliate.
(16) 100% owned by Newtek Business Services Holdco 2, Inc. (a subsidiary of Newtek Business Services Corp.). During the year ended December 31, 2017, a portion of IPM’s business was spun off into a new wholly-owned controlled portfolio company, SIDCO. As a result, the underlying IPM business has not changed. The Company determined the cost basis of its investments in IPM and SIDCO to be $4,000,000 and $7,120,000, respectively.
(17) 100% owned by Newtek Business Services Holdco 4, Inc. (a subsidiary of Newtek Business Services Corp.).
(18) 100% owned by Newtek Conventional Lending, Inc. (a subsidiary of Newtek Business Services Corp.).
(19) 6.04% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.).
(20) 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.
(21) 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.
(22) The fair value of the investment was determined using significant unobservable inputs.
(23) The Company’s investments generally are acquired in private transactions exempt from registration under the Securities Act and, therefore, generally are subject to limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. However, unless otherwise indicated, such securities may be sold in certain transactions (generally to qualified institutional buyers) and remain exempt from registration.
(24) Restricted security initially obtained on April 25, 2018.
(25) Under the Investment Company Act of 1940, as amended, the Company may not acquire any non-qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. At December 31, 2018, 4.2% of total assets are non-qualifying assets.

As of December 31, 2018, the federal tax cost of investments was $439,711,000 resulting in estimated gross unrealized gains and losses of $136,870,000 and $35,485,000, respectively.







F-117
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Performing SBA Unguaranteed Investments (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Farec, Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/29/2042

 
$
281.2

 
$
281.2

 
$
286.1

 
0.10
%
Best Choice Meats, Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/29/2027

 
65.0

 
65.0

 
65.1

 
0.02
%
Social Link LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/29/2027

 
11.3

 
11.3

 
9.8

 
%
Morrocco Method, Inc
 
Chemical Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/27/2042

 
861.3

 
861.3

 
876.0

 
0.31
%
Anglin Cultured Stone Products LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/27/2042

 
643.8

 
643.8

 
623.7

 
0.22
%
Landmark Ventures USA Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
62.5

 
62.5

 
54.3

 
0.02
%
^Salida Family Chiropractic-PPLC dba Salida Sport and Spine
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
12.0

 
12.0

 
10.4

 
%
^Lab Partner, LLC and Beechtree Diagnostics, LLP and Cottonwood Diagnostics
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
778.3

 
778.3

 
685.7

 
0.25
%
^TrialHawk Litigation Group LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
15.8

 
15.8

 
13.7

 
%
Gorilla Warfare LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
22.5

 
22.5

 
20.4

 
0.01
%
^Advance Case Parts Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
50.0

 
50.0

 
47.3

 
0.02
%
Muckamuck Trucks, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
13.8

 
13.8

 
13.0

 
%
O'Rourke's Diner, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
3.8

 
3.8

 
3.6

 
%
^Dudeck Enterprise LLC dba Detail Garage Las Vegas
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
16.1

 
16.1

 
16.4

 
0.01
%
Driven Warehouse/Distribution LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
750.0

 
750.0

 
652.1

 
0.23
%
Bisson Transportation Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
75.0

 
75.0

 
72.6

 
0.03
%
Anderson Farms Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
1,250.0

 
1,250.0

 
1,098.6

 
0.39
%

F-118
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Medical Plaza of Boro Park PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
62.5

 
62.5

 
54.3

 
0.02
%
Jacliff Investments Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
50.0

 
50.0

 
43.5

 
0.02
%
^Street Magic Enterprise LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/21/2027

 
87.8

 
87.8

 
84.2

 
0.03
%
^Tropical Stone LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/21/2027

 
187.5

 
187.5

 
191.8

 
0.07
%
Ameco Forest Products LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/21/2027

 
175.0

 
175.0

 
179.0

 
0.06
%
DHD Enterprise LLC dba Edible Arrangements #1699
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/21/2027

 
8.4

 
8.4

 
8.1

 
%
^Blue Lagoon Resort, LLC dba Hill View Cottages
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/21/2042

 
188.8

 
188.8

 
201.1

 
0.07
%
^CT Auto Spa LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/21/2027

 
215.6

 
215.6

 
216.2

 
0.08
%
^DBMS Consulting, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2027

 
75.0

 
75.0

 
70.9

 
0.03
%
^Auto Excellance of Fort Myers Inc.
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/19/2042

 
106.3

 
106.3

 
113.2

 
0.04
%
^CZAR Industries, Inc.
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/19/2027

 
262.5

 
262.5

 
243.1

 
0.09
%
Best Quality Home Care LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
12/19/2027

 
8.0

 
8.0

 
6.9

 
%
^Dr. Richard R. Rolle, Jr., PLLC dba Rolle Oral & Facial Surgery
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2027

 
125.0

 
125.0

 
117.3

 
0.04
%
Neville Galvanizing, Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2042

 
625.0

 
625.0

 
626.2

 
0.22
%
^Ocean Trans LLC & Dehal Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/15/2042

 
610.0

 
610.0

 
591.6

 
0.21
%
^1-0 Granny's Helpful Hands, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027

 
22.5

 
22.5

 
19.7

 
0.01
%
^Galaforo Construction and Companies LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/15/2042

 
208.5

 
208.5

 
212.3

 
0.08
%
^Crystal II Auto Glass Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027

 
15.0

 
15.0

 
13.1

 
%
Demand Printing Solutions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027

 
17.7

 
17.7

 
16.6

 
0.01
%
^Galaforo Construction LLC and Paul M Galaforo, Jr.
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027

 
337.5

 
337.5

 
293.5

 
0.11
%

F-119
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Legion Bowl, Inc & Legion Pub Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/15/2042

 
333.6

 
333.6

 
355.5

 
0.13
%
^Montessori Community School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027

 
62.5

 
62.5

 
58.6

 
0.02
%
^Capital Containers LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027

 
22.5

 
22.5

 
20.0

 
0.01
%
^JMD Aviation Holdings, LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027

 
500.0

 
500.0

 
498.0

 
0.18
%
^Peanut Butter & Co., Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027

 
225.0

 
225.0

 
195.6

 
0.07
%
Royalty Freight Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
668.8

 
668.8

 
581.5

 
0.21
%
^KR Calvert & Co, LLC
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
468.0

 
468.0

 
408.6

 
0.15
%
^Atlas Geo-Constructors, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
304.0

 
304.0

 
290.0

 
0.10
%
^LP Industries Inc. dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
75.0

 
75.0

 
72.1

 
0.03
%
Beale Street Blues Company Inc.dba Beatle Street Blues Company, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
968.8

 
968.8

 
849.1

 
0.31
%
^Hana Pastries Enterprises LLC dba Hana Kitchens, Hana Pastries, Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
96.5

 
96.5

 
94.3

 
0.03
%
^AADJ Empire Inc and AADJ Galaxy Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/14/2042

 
181.3

 
181.3

 
179.0

 
0.06
%
^Heung Kyun Im
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
15.5

 
15.5

 
13.4

 
%
^Barcade Holdings, LLC ,Barcade LLC,& Barcade New Haven LLC
 
Management of Companies and Enterprises
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
125.0

 
125.0

 
109.7

 
0.04
%
^Hardway Inc & AFC Leasing Inc
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2027

 
937.5

 
937.5

 
815.2

 
0.29
%
^Nichols Fire and Security LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2042

 
87.5

 
87.5

 
88.3

 
0.03
%
Polymer Dynamics, Inc and Carl Bent
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027

 
72.5

 
72.5

 
73.2

 
0.03
%
^LPB Property Management Inc dba Wilderness View Cabins & Ellijay Cabin
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
12/12/2042

 
100.0

 
100.0

 
105.9

 
0.04
%
A-1 Van Services Inc
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027

 
719.8

 
719.8

 
690.0

 
0.25
%

F-120
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Clore Construction LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027

 
462.5

 
462.5

 
437.6

 
0.16
%
^Sky Way Enterprises, Inc, A-Liner-8-Aviation, Inc, Kissimmee Aviation
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027

 
500.0

 
500.0

 
434.8

 
0.16
%
^Jai Ganeshai LLC, Mahiveera 1 LLC, Mahiveera 2 LLC & KSVP LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027

 
50.0

 
50.0

 
43.5

 
0.02
%
^Big Picture Group LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027

 
375.0

 
375.0

 
339.7

 
0.12
%
^The Ohio Valley Group Inc dba Ohio Valley Landscapes & Design
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027

 
15.0

 
15.0

 
13.5

 
%
^Clear Sound Communications, Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2027

 
3.8

 
3.8

 
3.3

 
%
^AV Strategy Inc
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2027

 
442.5

 
442.5

 
410.7

 
0.15
%
^JVLS LLC dba Vaccines 2 Go
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/7/2027

 
15.0

 
15.0

 
13.0

 
%
^Kim Howard Corp dba NPN Machine Tools
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/7/2042

 
575.0

 
575.0

 
609.8

 
0.22
%
^IHC Hardware Inc.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/6/2042

 
100.0

 
100.0

 
97.5

 
0.04
%
^Earth First Recycling LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/6/2027

 
75.0

 
75.0

 
74.3

 
0.03
%
^ODS Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/6/2027

 
49.0

 
49.0

 
45.0

 
0.02
%
^Driven Powersports, Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/6/2027

 
87.5

 
87.5

 
76.1

 
0.03
%
^Affordable Auto Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2027

 
7.5

 
7.5

 
6.8

 
%
^Healthcare Interventions, Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/4/2027

 
15.0

 
15.0

 
13.0

 
%
Oil Palace, Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/4/2042

 
818.4

 
818.4

 
872.1

 
0.31
%
^PS Camping Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/1/2027

 
19.7

 
19.7

 
19.7

 
0.01
%
^Linda Jean Howard Riley dba The Rusty Bolt Gift Shop
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/1/2042

 
21.0

 
21.0

 
22.4

 
0.01
%
^Salud Bar & Grill LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/1/2027

 
56.3

 
56.3

 
49.2

 
0.02
%

F-121
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Utara LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/1/2027

 
6.4

 
6.4

 
6.6

 
%
^Square 1 Partners, LLC
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
12/1/2027

 
62.5

 
62.5

 
54.3

 
0.02
%
^Fortress Verve Inc, Maurice R. Margules and Antonie C. Reinhard
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027

 
131.3

 
131.3

 
129.2

 
0.05
%
^Frontier Sand LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027

 
500.0

 
500.0

 
487.9

 
0.18
%
^WTI Distribution Inc
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027

 
40.0

 
40.0

 
37.5

 
0.01
%
^Create- A- Stitch, Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/30/2042

 
87.5

 
87.5

 
91.8

 
0.03
%
^J. Venture Holdings, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027

 
12.5

 
12.5

 
12.7

 
%
^Skin Beauty Bar Inc. and Tameka J. Mathis
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027

 
9.0

 
9.0

 
8.1

 
%
^Clearwater Transportation LTD dba Thrifty Car Rental, Dollar Rent A Car
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
11/29/2027

 
172.5

 
172.5

 
153.3

 
0.06
%
^Our Playhouse Preschool, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/29/2042

 
235.0

 
235.0

 
250.4

 
0.09
%
^OPH Lexington, Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/29/2042

 
193.8

 
193.8

 
206.5

 
0.07
%
Amped Coffee Company LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/28/2027

 
3.8

 
3.8

 
3.8

 
%
Beacon Brewing LLC and C' Sons, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/27/2042

 
50.4

 
50.4

 
53.7

 
0.02
%
^JMD Corporation dba Dart's True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/22/2027

 
18.8

 
18.8

 
17.6

 
0.01
%
^Webtez Inc dba Mod Vans
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/22/2027

 
70.0

 
70.0

 
61.2

 
0.02
%
^Step Up Academy of the Arts, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/22/2027

 
15.8

 
15.8

 
13.7

 
%
PB Market LLC dba Pure Barre
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2027

 
108.5

 
108.5

 
94.5

 
0.03
%
^Cali Fit Meals
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/21/2027

 
22.5

 
22.5

 
21.1

 
0.01
%
^Vision Collision Center LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/21/2027

 
408.8

 
408.8

 
380.1

 
0.14
%
^Grumpy's Restaurant Company, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/21/2027

 
71.1

 
71.1

 
62.0

 
0.02
%

F-122
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Glencadia Corporation
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2027

 
3.8

 
3.8

 
3.3

 
%
^B Lam LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/20/2042

 
181.3

 
181.3

 
188.1

 
0.07
%
N Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/20/2027

 
410.0

 
410.0

 
356.5

 
0.13
%
N Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/20/2042

 
176.3

 
176.3

 
160.8

 
0.06
%
^TPE Midstream LLC, Dasham Company dba Sahm Co & S & S Ventures Inc.
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
11/17/2027

 
189.1

 
189.1

 
180.9

 
0.06
%
^Maya Motel, LLC dba Town House Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/17/2042

 
57.0

 
57.0

 
60.7

 
0.02
%
^Southern Specialty Contractor, LLC & Ronald David Holbrook Jr.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/17/2027

 
53.0

 
53.0

 
46.5

 
0.02
%
^SSI Refrigerated Express Inc. and Robert M Stallone
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/17/2027

 
64.0

 
64.0

 
56.9

 
0.02
%
^Jacob's Towing, Inc.
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/17/2027

 
50.0

 
50.0

 
45.5

 
0.02
%
^Ian Winterbotham dba Furnishing America
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
11/17/2027

 
253.9

 
253.9

 
220.8

 
0.08
%
^H & H Hotshot Services, Inc.
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
11/16/2027

 
70.0

 
70.0

 
63.5

 
0.02
%
Murf & Sons LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/16/2027

 
60.1

 
60.1

 
55.1

 
0.02
%
^J R Wholesale Tires & Auto Center, LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/15/2042

 
13.5

 
13.5

 
14.4

 
0.01
%
^Marcaco LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/15/2042

 
677.5

 
677.5

 
701.0

 
0.25
%
^Auto Rx LLC,J&P Auto Repair Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/15/2042

 
196.3

 
196.3

 
207.2

 
0.07
%
Paramount Dance Studios Inc. and Homestead Dance Supply
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/14/2043

 
216.0

 
216.0

 
229.7

 
0.08
%
^GFA International Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/13/2027

 
93.8

 
93.8

 
95.9

 
0.03
%
^Wing King at the Gardens LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/10/2027

 
9.8

 
9.8

 
8.5

 
%
^Linqserv Inc.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/9/2027

 
617.5

 
617.5

 
581.9

 
0.21
%
^Bobcatt Solutions, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/8/2027

 
95.0

 
95.0

 
88.8

 
0.03
%

F-123
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Hofgard & Co, Inc dba Hofgard Benefits and James Marsh
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/8/2027

 
14.9

 
14.9

 
13.0

 
%
^JNP Delivery Inc
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
11/7/2027

 
112.5

 
112.5

 
104.0

 
0.04
%
^Street Magic Enterprise LLC dba New Lisbon Travel Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/7/2042

 
420.0

 
420.0

 
428.8

 
0.15
%
^His Loving Hands Christian Academy, Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/6/2042

 
91.8

 
91.8

 
95.2

 
0.03
%
^S & S Auto Body Shop Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/3/2042

 
165.0

 
165.0

 
173.8

 
0.06
%
^Sterling Campbell Insurance Agency, Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/3/2027

 
7.5

 
7.5

 
6.5

 
%
^Top Quality Dent Service LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/2/2027

 
6.0

 
6.0

 
5.2

 
%
^American Reclamation LLC
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/1/2027

 
7.5

 
7.5

 
7.3

 
%
^ Edge Studios Inc Radiant Yoga LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/1/2027

 
66.3

 
66.3

 
58.9

 
0.02
%
Berza TLG,LLC dba The Little Gym of Lake Charles
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/31/2027

 
24.3

 
24.3

 
21.9

 
0.01
%
^Rachael Reel dba Rachel Reel Insurance Age
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
10/31/2027

 
7.5

 
7.5

 
6.5

 
%
^The Five Lakes LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
10/30/2042

 
474.4

 
474.4

 
505.5

 
0.18
%
^Die Hard Used Car Sales
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/30/2042

 
56.2

 
56.2

 
59.9

 
0.02
%
^Hip Hop Style Inc dba Serene Haven
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/27/2027

 
16.5

 
16.5

 
14.8

 
0.01
%
^Blue Eagle Transport Inc , Golden Eagle Transport, Inc & Green Eagle Transport
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
10/27/2027

 
37.3

 
37.3

 
33.4

 
0.01
%
^Sage Oil LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/27/2027

 
9.9

 
9.9

 
8.8

 
%
^Ashore Ventures Inc dba PuroClean Professional Restoration
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/27/2027

 
14.5

 
14.5

 
12.9

 
%
^Cardinal Homes, Inc
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/27/2027

 
108.8

 
108.8

 
110.9

 
0.04
%
^Suzie LLC dba Tony D's Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/25/2042

 
87.4

 
87.4

 
91.6

 
0.03
%

F-124
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^White Walker LLC dba Frenchette
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/25/2027

 
276.6

 
276.6

 
282.9

 
0.10
%
^Grand Blanc Lanes, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/25/2027

 
14.9

 
14.9

 
15.3

 
0.01
%
^Schafer Fisheries Inc
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/25/2027

 
34.9

 
34.9

 
35.7

 
0.01
%
^The Jig, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/24/2042

 
75.7

 
75.7

 
78.0

 
0.03
%
^Action Physical Therapy Yoga and Wellness Center Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/24/2027

 
22.4

 
22.4

 
21.6

 
0.01
%
^Florida Apnea Diagnostics LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/20/2027

 
155.3

 
155.3

 
137.6

 
0.05
%
^Berens & Miller P. A.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/19/2027

 
149.1

 
149.1

 
129.7

 
0.05
%
^Alpha Auto Sales, LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/19/2027

 
79.5

 
79.5

 
81.3

 
0.03
%
^Island Refrigeration & AC Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/18/2042

 
141.5

 
141.5

 
143.6

 
0.05
%
Looky Enterprises, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/18/2027

 
17.2

 
17.2

 
16.5

 
0.01
%
^H and K Dry Cleaning LLC, Quintero Shopping Center LLC, Aqua Laundry
 
Electronics and Appliance Stores
 
Term Loan
 
7.75%
 
10/17/2042

 
66.8

 
66.8

 
71.2

 
0.03
%
^Blueridge Armor LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/17/2027

 
8.2

 
8.2

 
7.6

 
%
^Albas Bar & Grill LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/13/2042

 
44.9

 
44.9

 
44.0

 
0.02
%
^Cortez Landscaping, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/13/2027

 
19.1

 
19.1

 
17.6

 
0.01
%
^Crawfordsville Fitness LLC dba Planet Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/13/2027

 
123.4

 
123.4

 
110.1

 
0.04
%
^On Call Services LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/13/2027

 
17.9

 
17.9

 
18.3

 
0.01
%
^JD Ventures LLC and JD Roof Co LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/12/2027

 
22.4

 
22.4

 
19.9

 
0.01
%
Pro Anderson, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/11/2027

 
19.3

 
19.3

 
17.5

 
0.01
%
^Sandbox Ventures LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/11/2027

 
18.6

 
18.6

 
18.1

 
0.01
%

F-125
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Eye Optique Inc.
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
10/5/2027

 
14.9

 
14.9

 
13.0

 
%
^Ains Holding Company LLC
 
Management of Companies and Enterprises
 
Term Loan
 
Prime plus 2.75%
 
10/2/2027

 
80.8

 
80.8

 
72.1

 
0.03
%
^Becky Lou Corp dba Rent A Center
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
10/2/2027

 
90.7

 
90.7

 
83.8

 
0.03
%
^Dan Cline Transport Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2030

 
997.5

 
997.5

 
895.7

 
0.32
%
^Lone Star Hardware and Home Decor, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2027

 
71.7

 
71.7

 
62.6

 
0.02
%
^Threads of Time LLC
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
137.2

 
137.2

 
137.7

 
0.05
%
^Miechella Suzette Decker
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
99.8

 
99.8

 
106.2

 
0.04
%
^Harco Metal Products Inc
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
490.8

 
490.8

 
474.1

 
0.17
%
^Chicago American Manufacturing LLC, Dockside Steel Processing, LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
1,249.3

 
1,249.3

 
1,276.6

 
0.46
%
^Sashshel Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
212.0

 
212.0

 
225.8

 
0.08
%
^Dr Richard Rolle JR, PLLC dba Rolle Oral & Facial Surgery PLLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
873.9

 
873.9

 
871.8

 
0.31
%
^Cagwin Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
324.2

 
324.2

 
339.1

 
0.12
%
^Pets A Go Go LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2042

 
197.6

 
197.6

 
204.1

 
0.07
%
^Rhode Island Tennis Management LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2042

 
548.6

 
548.6

 
549.6

 
0.20
%
^Moreno Brother's Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/28/2027

 
14.8

 
14.8

 
12.9

 
%
^National Media Services, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2027

 
18.5

 
18.5

 
16.1

 
0.01
%
^Rhode Island Tennis Management LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2042

 
382.0

 
382.0

 
382.8

 
0.14
%
^Nicholson Lumber Co Inc.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/28/2030

 
213.3

 
213.3

 
211.4

 
0.08
%

F-126
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Complete Care IT LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2027

 
14.6

 
14.6

 
12.7

 
%
^Technologist Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/27/2027

 
429.4

 
429.4

 
410.0

 
0.15
%
^Rollins Construction & Trucking LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
9/26/2027

 
337.2

 
337.2

 
330.4

 
0.12
%
^Inspirations Food Design, Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/26/2042

 
464.9

 
464.9

 
472.1

 
0.17
%
^JPS Arthur Kill Rd Bakery Corp dba Aunt Butches of Brooklyn
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/22/2027

 
22.2

 
22.2

 
19.5

 
0.01
%
^KB Waterjet Cutting LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/22/2027

 
10.1

 
10.1

 
9.2

 
%
^Magnation Corporation
 
Utilities
 
Term Loan
 
Prime plus 2.75%
 
9/22/2027

 
49.4

 
49.4

 
50.5

 
0.02
%
^Sallee Pro-Custom Fabrication Shop LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/21/2027

 
8.9

 
8.9

 
9.1

 
%
^Excel, RP Inc.
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
98.8

 
98.8

 
91.8

 
0.03
%
^Denek Contracting Inc and Denek Leasing LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
209.5

 
209.5

 
223.1

 
0.08
%
^Max Home Deliveries, Inc
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
79.8

 
79.8

 
73.5

 
0.03
%
CR Park Incorporated dba Define Body and Mind
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
47.6

 
47.6

 
44.4

 
0.02
%
^Sound Manufacturing, Inc. & Monster Power Equipment, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
197.8

 
197.8

 
188.3

 
0.07
%
^Alpha Preparatory Academy LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
162.1

 
162.1

 
162.0

 
0.06
%
^Montessori Community School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
390.8

 
390.8

 
384.2

 
0.14
%
^Alexander Pierce Corporation
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
623.4

 
623.4

 
626.8

 
0.23
%
^NY Tent LLC & NY Tent Parent, LLC dba Tent Company of New York
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
1,015.5

 
1,015.5

 
974.1

 
0.35
%
^Imagine By Carleen, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
7.4

 
7.4

 
7.2

 
%
^Commonwealth Diagnostics International, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
1,250.0

 
1,250.0

 
1,277.5

 
0.46
%
^Venus Pizza, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
91.0

 
91.0

 
96.9

 
0.03
%

F-127
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Insight Diagnostic Technologist Services
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
299.4

 
299.4

 
270.7

 
0.10
%
^CIS Big Dog, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/19/2027

 
60.5

 
60.5

 
60.8

 
0.02
%
^Stone's Construction and Remodeling, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/19/2027

 
5.2

 
5.2

 
4.5

 
%
^Party By Design Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/18/2042

 
1,203.7

 
1,203.7

 
1,199.5

 
0.43
%
^Li Family Spokane LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2042

 
383.5

 
383.5

 
398.4

 
0.14
%
^SD Kickboxing LLC dba CKO Kickboxing Dan Diego
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
39.5

 
39.5

 
35.9

 
0.01
%
^Clark Realty LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
61.8

 
61.8

 
57.0

 
0.02
%
^Inglis Food Mart Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
22.2

 
22.2

 
22.2

 
0.01
%
^Clinton Food Market LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/15/2042

 
262.2

 
262.2

 
264.4

 
0.09
%
^Tarleton & Family Landscaping, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
82.8

 
82.8

 
74.3

 
0.03
%
^Alaska Motor Home Inc
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2027

 
327.6

 
327.6

 
284.6

 
0.10
%
^Fox Valley Rentals & Investments, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 3.75%
 
9/13/2027

 
7.4

 
7.4

 
7.5

 
%
^Nails By Mercede LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2027

 
14.1

 
14.1

 
13.2

 
%
^Town & Country Transportation Co. and Popco, LLC.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/12/2042

 
168.3

 
168.3

 
179.3

 
0.06
%
^Rajbai Maa Inc. dba Nara Lounge
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/12/2042

 
387.1

 
387.1

 
378.7

 
0.14
%
^Morgan Lynn Kerstetter dba Catherine School of Dance
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/11/2027

 
7.4

 
7.4

 
7.6

 
%
^Health & Performance Center, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2027

 
20.2

 
20.2

 
17.5

 
0.01
%
^Foxtail, LLC and Tottly New Services Corp
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/8/2042

 
290.5

 
290.5

 
294.0

 
0.11
%
^Desert Ribs, LLC and Famous Charlie, LLC and Famous Freddie, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/8/2042

 
1,250.0

 
1,250.0

 
1,191.0

 
0.43
%

F-128
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Echelon Planning Group, LLC dba Echelon Financial Services
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/8/2027

 
7.4

 
7.4

 
7.3

 
%
^Crazy Beatz Productions LLC
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 3.75%
 
9/7/2027

 
5.3

 
5.3

 
4.9

 
%
^South Fulton Landscape & Nursery, Inc.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/7/2042

 
99.8

 
99.8

 
106.2

 
0.04
%
^Dreaming Big Learning Center Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/5/2042

 
367.8

 
367.8

 
371.9

 
0.13
%
^Big Coop's Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/1/2027

 
98.8

 
98.8

 
93.4

 
0.03
%
^Blue Eagle Transport Inc, Greeneagle Transport Inc & Golden Eagle Transport
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
8/31/2027

 
376.7

 
376.7

 
336.9

 
0.12
%
^Evernook Valley Milk LLC
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
8/31/2042

 
640.1

 
640.1

 
643.7

 
0.23
%
^Bark Life, Inc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/31/2027

 
22.1

 
22.1

 
19.2

 
0.01
%
^The Pink Alli, LLC dba The Alli
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/30/2027

 
17.7

 
17.7

 
15.9

 
0.01
%
^Busby Outdoor LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
8/29/2042

 
697.4

 
697.4

 
636.6

 
0.23
%
^Busby Outdoor LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
8/29/2042

 
547.9

 
547.9

 
500.2

 
0.18
%
^Parlay Disributors LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
8/25/2027

 
110.5

 
110.5

 
97.5

 
0.04
%
^Lake County Tow LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/25/2042

 
87.2

 
87.2

 
87.6

 
0.03
%
^InUSA Ventures Inc dba InUSA Services
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/24/2027

 
24.6

 
24.6

 
21.3

 
0.01
%
^Genuine Ventures LLC and Seaweed Ventures LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/24/2030

 
551.0

 
551.0

 
519.3

 
0.19
%
^R & R Strength & Conditioning Corp dba Crossfit Light House Point
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/23/2042

 
82.2

 
82.2

 
87.5

 
0.03
%
^Delicias de Minas Restaurant, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/22/2027

 
203.0

 
203.0

 
199.5

 
0.07
%
^The Holder Grooup LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/22/2027

 
7.4

 
7.4

 
6.4

 
%

F-129
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^L&V Auto Sales, Inc.
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
8/21/2027

 
17.7

 
17.7

 
18.1

 
0.01
%
^M.E. Interiors LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/21/2027

 
16.2

 
16.2

 
14.1

 
0.01
%
^Damiano Global Corp
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/21/2027

 
22.1

 
22.1

 
20.9

 
0.01
%
^Tier1Solutions, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/18/2027

 
18.4

 
18.4

 
16.6

 
0.01
%
^Tony Herring & Associates, Inc
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
8/17/2027

 
7.4

 
7.4

 
6.4

 
%
^Chester's World Enterprise LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/16/2027

 
22.1

 
22.1

 
20.1

 
0.01
%
^D'Amato & Sons Construction, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/11/2027

 
8.1

 
8.1

 
7.4

 
%
^HTP LLC dba Hot Tomatoes Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/11/2027

 
11.1

 
11.1

 
10.4

 
%
^Roundhay Partners LLC and Roundhay Farming LLC
 
Crop Production
 
Term Loan
 
Prime plus 2.75%
 
8/8/2042

 
909.1

 
909.1

 
837.7

 
0.30
%
^Splashlight LLC, Splashlight Photographic and Digital Studios, LLC
 
Management of Companies and Enterprises
 
Term Loan
 
Prime plus 2.75%
 
8/7/2027

 
491.2

 
491.2

 
442.3

 
0.16
%
^L & J Corporate Services Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/4/2027

 
7.3

 
7.3

 
6.4

 
%
^Furniture Masters Limited Liability Company
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/3/2027

 
8.8

 
8.8

 
7.7

 
%
^HMG Strategy LLC,
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/2/2027

 
49.1

 
49.1

 
42.7

 
0.02
%
^Bowl Mor LLC dba Bowl Mor Lanes
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/31/2027

 
7.3

 
7.3

 
6.4

 
%
^Hope Health Care, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
7/31/2027

 
10.3

 
10.3

 
8.9

 
%
^Royal Blue Investments, Inc. and Cleland Pharmacy LLC
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
7/31/2042

 
52.7

 
52.7

 
55.1

 
0.02
%
^Raffi's Inc dba Atlantic Auto Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/31/2027

 
13.9

 
13.9

 
13.9

 
%
^Sharon G McMillen, MA Psychologist, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2027

 
18.2

 
18.2

 
15.8

 
0.01
%

F-130
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Work of Heart Inc.dba Little Nest Portraits
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2027

 
50.0

 
50.0

 
43.7

 
0.02
%
^HQTRONIC LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/27/2027

 
22.0

 
22.0

 
19.1

 
0.01
%
^Oberon IT, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/26/2027

 
213.6

 
213.6

 
196.7

 
0.07
%
^Gilles Peress Studio LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/25/2027

 
61.0

 
61.0

 
53.0

 
0.02
%
^Ocean Trans LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/21/2027

 
36.6

 
36.6

 
31.8

 
0.01
%
^Obok LLC
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/21/2027

 
11.7

 
11.7

 
11.0

 
%
^Lil Tots' Learning Center LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/21/2042

 
47.3

 
47.3

 
47.6

 
0.02
%
^Nova Solutions, Inc.
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/19/2027

 
24.4

 
24.4

 
24.0

 
0.01
%
^Webb Eye Associates, PA
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/19/2027

 
72.4

 
72.4

 
69.2

 
0.02
%
^Matrix Z LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 3.75%
 
7/19/2027

 
7.3

 
7.3

 
7.6

 
%
^Aitheras Aviation Group, LLC, Aitheras Aviation Group, LLC
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/18/2027

 
805.2

 
805.2

 
704.2

 
0.25
%
^Wildflour Bakery & Cafe, LLC
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/17/2027

 
22.0

 
22.0

 
22.5

 
0.01
%
^Florida Home and Kitchen LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/14/2027

 
11.7

 
11.7

 
10.2

 
%
^Koep Companies dba Pipestone True value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/14/2042

 
324.9

 
324.9

 
320.7

 
0.12
%
^Rocks Auto Exchange LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/13/2027

 
14.6

 
14.6

 
12.7

 
%
^McCord Holdings, Inc. dba Fast Signs 176101
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/7/2027

 
18.3

 
18.3

 
16.3

 
0.01
%
^Thrifty Market Inc dba Thrifty Foods
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/6/2027

 
100.1

 
100.1

 
91.1

 
0.03
%
^New Chicago Wholesale Bakery Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
14.6

 
14.6

 
13.9

 
%
^Safeguard Construction Company, Inc.
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
74.0

 
74.0

 
63.5

 
0.02
%

F-131
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^The Country House Restaurant, LLC and Pelton Real Estate, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2042

 
49.7

 
49.7

 
51.5

 
0.02
%
^Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
74.0

 
74.0

 
75.3

 
0.03
%
^J. T. O'Neill Company, L.L.C
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
14.6

 
14.6

 
12.5

 
%
^Hamilton & Associates Real Estate and Investments Firm LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
6/30/2042

 
53.7

 
53.7

 
54.5

 
0.02
%
^BQRS, Inc. DBA Gresham Meineke Car Care Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
60.7

 
60.7

 
53.2

 
0.02
%
^JWH Designs, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
103.1

 
103.1

 
88.5

 
0.03
%
^Veola's Day Spa and Wellness Center Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
8.9

 
8.9

 
8.0

 
%
^J&M Civil Construction Services LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
97.2

 
97.2

 
83.4

 
0.03
%
^Best Bees Company
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
21.8

 
21.8

 
18.7

 
0.01
%
^Greensboro Plastic Surgical Associates, PA
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2042

 
574.7

 
574.7

 
572.1

 
0.21
%
^Ocean Trans LLC and Dehal Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
584.7

 
584.7

 
502.0

 
0.18
%
^HG Ventures, Inc. dba Diamond Head Trucking
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/29/2030

 
988.2

 
988.2

 
857.9

 
0.31
%
^Malhame & Company Publishers & Importers Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
87.5

 
87.5

 
75.2

 
0.03
%
^Intellixion LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
3.6

 
3.6

 
3.1

 
%
^Steigelbauer Associates Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
299.9

 
299.9

 
305.3

 
0.11
%
^Miguel Fernando Borda PA dba BGR Dental
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
49.4

 
49.4

 
44.2

 
0.02
%
^Oakhill Farms, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2030

 
98.0

 
98.0

 
100.2

 
0.04
%
^ElKareh Brothers Investment, LLC, Best Choice Meats Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
435.5

 
435.5

 
443.3

 
0.16
%
^Foxhop Fitness, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/28/2027

 
90.3

 
90.3

 
78.4

 
0.03
%

F-132
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Akal Express Inc. dba Truck Trailer Service Stop
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/28/2042

 
59.6

 
59.6

 
62.0

 
0.02
%
^Old Dominion Transportation Group, Inc.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/28/2027

 
1,099.8

 
1,099.8

 
966.4

 
0.35
%
^Citibin, Inc.
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/27/2027

 
121.3

 
121.3

 
104.2

 
0.04
%
^Auxiliary Systems Inc.,Sharrick Company, LLC & KMN, LLC
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/27/2030

 
240.3

 
240.3

 
239.6

 
0.09
%
^WB Cleaners Inc. DBA $2.75 Cleaners
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/27/2027

 
21.8

 
21.8

 
21.5

 
0.01
%
^Ains Holding Company, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/26/2027

 
1,141.1

 
1,141.1

 
1,003.3

 
0.36
%
^Four Seasons Laser Center Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2042

 
216.3

 
216.3

 
216.7

 
0.08
%
^Rustic LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2042

 
18.6

 
18.6

 
16.8

 
0.01
%
^Vella Construction Enterprises, Inc. dba Vella Construction
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
6/23/2027

 
21.8

 
21.8

 
18.7

 
0.01
%
^Northern Industries, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/23/2042

 
57.4

 
57.4

 
60.8

 
0.02
%
^Birches Group, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2027

 
48.5

 
48.5

 
41.7

 
0.01
%
^Tarver-Henley Inc. and Tar-Hen LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/21/2042

 
317.9

 
317.9

 
316.7

 
0.11
%
^704 Meat Center Inc. dba El Mercado and La Plaza Mercado
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/20/2042

 
173.9

 
173.9

 
180.6

 
0.06
%
^Sanabi Investment, LLC dba Oscar's Moving and Storage
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/20/2027

 
120.4

 
120.4

 
109.1

 
0.04
%
^Scarlet Spartan Inc.dba FastSigns of Brighton
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2027

 
54.0

 
54.0

 
47.6

 
0.02
%
^Don G. Timpton DDS & Associates PA and Indsaad Properties,LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/16/2042

 
397.4

 
397.4

 
383.2

 
0.14
%
^JAM Media Solutions, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2027

 
60.7

 
60.7

 
52.1

 
0.02
%
^All Regional Recyclers of Wood LLC dba ARROW,Superior Carting, LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2042

 
312.0

 
312.0

 
309.3

 
0.11
%
^Tele Tax Express Inc., El Rancho Paiso, LLC and Nestor Romero
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042

 
91.9

 
91.9

 
95.0

 
0.03
%

F-133
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Susan Hughes dba Aloha Junction B and B
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042

 
61.6

 
61.6

 
65.4

 
0.02
%
^ESA 365 Corp and Lucathor Realty LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042

 
22.4

 
22.4

 
22.7

 
0.01
%
^Hull's Kitchen, LLC and HK Too, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042

 
95.8

 
95.8

 
101.0

 
0.04
%
^Yachting Solutions LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/12/2027

 
115.2

 
115.2

 
108.3

 
0.04
%
^Refoleen Inc dba Spice and Tea Exchange
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/8/2027

 
3.4

 
3.4

 
2.9

 
%
^Earth First Recycling, LLC and 191 Clark Road, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/5/2027

 
344.7

 
344.7

 
345.5

 
0.12
%
^Skydive California, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2027

 
53.4

 
53.4

 
54.3

 
0.02
%
^SCW, LLC dba Arthur Murray Dance Studio
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2042

 
145.0

 
145.0

 
145.7

 
0.05
%
^Speaker City, Inc.and Speaker Town, LLC dba Rollin Thunder
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/1/2042

 
45.4

 
45.4

 
46.4

 
0.02
%
^Impact Grounds Maintenance and Design, Inc. dba Impact Landscaping
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/31/2042

 
78.9

 
78.9

 
82.2

 
0.03
%
^Ricnet III, Inc. dba Edible Arrangements
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/31/2027

 
14.3

 
14.3

 
12.5

 
%
^Sage Oil LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/31/2027

 
21.7

 
21.7

 
18.9

 
0.01
%
^Funtime, LLC and Universal Entertainment Group LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/31/2027

 
63.9

 
63.9

 
55.8

 
0.02
%
^Haroon Baig,Inc.dba US1 Petrol
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/31/2042

 
261.9

 
261.9

 
277.8

 
0.10
%
^Chet Lemon Enterprises LLC dba All American Sports
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/26/2042

 
786.2

 
786.2

 
833.9

 
0.30
%
Swantown Inn & Spa LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/26/2042

 
81.9

 
81.9

 
86.9

 
0.03
%
^Eagle Wood Works LLC
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/26/2027

 
11.6

 
11.6

 
10.6

 
%
^Hurricane Group, Inc.
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
5/26/2027

 
72.3

 
72.3

 
62.1

 
0.02
%
^Mitchell Auto Repair, LLC and and C&M Mitchell, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/26/2042

 
192.7

 
192.7

 
197.9

 
0.07
%
^Demand Printing Solutions Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027

 
205.7

 
205.7

 
193.9

 
0.07
%

F-134
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Beyond Waves A Unique Salon LLC and Lori Ann Carlson
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027

 
14.5

 
14.5

 
12.6

 
%
^Jung Design Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027

 
8.7

 
8.7

 
7.5

 
%
^Abdul Naushad MD PC dba Advanced Pain Centers
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2042

 
390.6

 
390.6

 
403.4

 
0.14
%
^Locavore LLC dba Paloma Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027

 
48.2

 
48.2

 
43.0

 
0.02
%
^Shaffer Automotive Repair, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/24/2030

 
133.5

 
133.5

 
125.0

 
0.04
%
^Juliador Resources LLC DBA Cue Hair Salon and Skin Care
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/24/2027

 
21.9

 
21.9

 
18.8

 
0.01
%
^Innovim, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/24/2027

 
325.4

 
325.4

 
279.4

 
0.10
%
^Southeast Recycling, LLC and Southeast Land Holdings LLC dba 67 Motor
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/23/2042

 
179.9

 
179.9

 
189.1

 
0.07
%
^Gill Express Inc. and Gill Express 2 LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/23/2042

 
336.1

 
336.1

 
333.7

 
0.12
%
^Prestige Construction of Florida, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/23/2042

 
333.7

 
333.7

 
326.0

 
0.12
%
^Enfield Tractor & Equipment Co
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027

 
285.9

 
285.9

 
274.2

 
0.10
%
^PS Camping, Inc. dba Prospectors RV Resort
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/19/2042

 
255.7

 
255.7

 
269.8

 
0.10
%
^GEM2K, LLC dba Precision Precast Group
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027

 
156.7

 
156.7

 
140.4

 
0.05
%
^Hayden Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027

 
253.2

 
253.2

 
233.5

 
0.08
%
^Tres K Deli,Grocery,Fruit and Meat Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027

 
8.0

 
8.0

 
7.4

 
%
^ Iron Men Home Repair, Inc. and Ironmen House Lifting Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/19/2042

 
577.9

 
577.9

 
585.9

 
0.21
%
^J Harris Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027

 
18.8

 
18.8

 
17.9

 
0.01
%
^New Image Building Services, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2027

 
145.4

 
145.4

 
129.7

 
0.05
%
^Bay Car Wash LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2042

 
119.8

 
119.8

 
121.8

 
0.04
%

F-135
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Waterford Plumbing Co, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/18/2027

 
48.2

 
48.2

 
42.2

 
0.02
%
^Mr. B's Bicycles & Mopeds, Inc.
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
5/18/2042

 
145.6

 
145.6

 
146.8

 
0.05
%
^Computech Computers Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/17/2027

 
48.2

 
48.2

 
41.4

 
0.01
%
^Arco Electrical Contractors Inc. dba Arco Construction Group
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/16/2027

 
347.9

 
347.9

 
319.7

 
0.11
%
^Batter & Company,LLC dba Batter Co. Dessert Collection
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/16/2027

 
51.8

 
51.8

 
45.5

 
0.02
%
^5 Stars Learning Center Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/16/2042

 
61.3

 
61.3

 
61.9

 
0.02
%
^Band Sawn Lumber,LLC and Nathan Ryan Adams
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/15/2042

 
112.8

 
112.8

 
111.6

 
0.04
%
^Keys Armored Express, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/12/2027

 
38.6

 
38.6

 
34.6

 
0.01
%
^Sanderson Distribution Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/12/2027

 
10.1

 
10.1

 
8.7

 
%
^SG Linke LLC
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
5/12/2027

 
106.3

 
106.3

 
104.7

 
0.04
%
^B G F Bobby Q's Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/11/2027

 
7.2

 
7.2

 
7.1

 
%
^Estelle Finkel Educational Associates,LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/11/2027

 
115.1

 
115.1

 
98.8

 
0.04
%
^Labmates,LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
5/10/2027

 
96.4

 
96.4

 
92.3

 
0.03
%
^NHS, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/9/2027

 
85.3

 
85.3

 
76.7

 
0.03
%
^NHS, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/9/2042

 
21.7

 
21.7

 
20.4

 
0.01
%
^Innovation Transport, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/9/2027

 
75.3

 
75.3

 
71.8

 
0.03
%
^1872 Rosecrans, LLC dba Goodbar
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/9/2027

 
61.5

 
61.5

 
53.2

 
0.02
%
^Arclay, LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/5/2030

 
142.6

 
142.6

 
131.4

 
0.05
%
^Benchmark Building, Inc.
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/5/2027

 
21.7

 
21.7

 
18.6

 
0.01
%

F-136
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Cable Management LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
5/3/2027

 
57.5

 
57.5

 
54.0

 
0.02
%
^Fine Arts Center of Easley, Inc. dba Midtown Music
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
5/2/2042

 
115.7

 
115.7

 
122.8

 
0.04
%
^Zahmel Restaurant Suppliers Corp dba Cash & Carry; Zahners Hardware
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/28/2027

 
85.0

 
85.0

 
74.0

 
0.03
%
^Love and Glory Learning Center, Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/28/2042

 
77.3

 
77.3

 
77.1

 
0.03
%
^Georgia Productions Services LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
4/28/2027

 
87.4

 
87.4

 
80.3

 
0.03
%
^JMA Inc. dba Primecut and Mezzo; Primecut at Marquee
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/27/2042

 
220.4

 
220.4

 
233.8

 
0.08
%
Sneads Ferry Foods, Inc. dba DQ Grill & Chill
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/27/2042

 
617.7

 
617.7

 
614.8

 
0.22
%
^Asheville's Fun Depot, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/26/2027

 
83.9

 
83.9

 
85.4

 
0.03
%
^Carl Joseph Johnston dba Viking Transport
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/26/2027

 
31.2

 
31.2

 
29.6

 
0.01
%
^Resident Research, LLC
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
4/24/2027

 
84.6

 
84.6

 
72.6

 
0.03
%
^Getting Even LLC dba The Zoo Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/21/2027

 
7.2

 
7.2

 
6.4

 
%
^Ralph's Hair Salon, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/21/2042

 
49.5

 
49.5

 
50.6

 
0.02
%
^M.E. Interiors LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/20/2027

 
133.3

 
133.3

 
114.5

 
0.04
%
^MJ and M Home Improvements LLC DBA House Doctors
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2027

 
19.7

 
19.7

 
17.2

 
0.01
%
^Condron Brothers LLC DBA Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/19/2027

 
114.6

 
114.6

 
103.5

 
0.04
%
^Affordable Auto Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/17/2027

 
12.2

 
12.2

 
11.3

 
%
^Carpeteria (Markarian) Co.
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
4/13/2027

 
127.3

 
127.3

 
126.6

 
0.05
%
^Bloomer Machine & Fab, Inc and Dale Stertz Properties
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/13/2042

 
203.6

 
203.6

 
210.9

 
0.08
%

F-137
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Butternuts Beer and Ale LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/12/2027

 
70.7

 
70.7

 
71.9

 
0.03
%
^Citizens Lanes, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042

 
614.9

 
614.9

 
651.8

 
0.23
%
^The Altitude Group, LLC and Core Home Security, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027

 
47.7

 
47.7

 
40.9

 
0.01
%
^Golden Hen Inc. dba Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027

 
61.8

 
61.8

 
53.7

 
0.02
%
^Shelter Harbor Inn, Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042

 
205.8

 
205.8

 
218.2

 
0.08
%
^Landmark Ventures USA, Inc.
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027

 
178.8

 
178.8

 
153.4

 
0.06
%
^MIT LLC
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042

 
86.8

 
86.8

 
92.0

 
0.03
%
^Applied Integrated Technologies, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027

 
119.3

 
119.3

 
102.3

 
0.04
%
^Bear Trail Lodge LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042

 
548.0

 
548.0

 
574.2

 
0.21
%
^KWG Industries LLC dba Peterson & Marsh Metal Industries
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2027

 
28.6

 
28.6

 
28.1

 
0.01
%
^Sea Smoke Barbeque, Corp and Danwen LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/30/2042

 
233.4

 
233.4

 
236.7

 
0.09
%
^Signature Rooms, Inc dba Gallery Furniture
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/30/2042

 
491.7

 
491.7

 
517.6

 
0.19
%
^Schafer Fisheries Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2042

 
247.1

 
247.1

 
261.9

 
0.09
%
^Discount Price, LLC dba Robert's Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/29/2042

 
204.6

 
204.6

 
209.3

 
0.08
%
^Douglas K. Soderblom . dba Loma Linda Optometry
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2027

 
95.4

 
95.4

 
86.2

 
0.03
%
^First Sail Group Inc. and Omen Board Industires LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2027

 
19.1

 
19.1

 
17.6

 
0.01
%
^Gauri Hospitality Group LLC dba Microtel Inns & Suites by Wyndham
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/29/2042

 
1,047.6

 
1,047.6

 
1,102.0

 
0.40
%
^H and H Hotshot Services, Inc. dba AA Hotshot & Logistics
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2030

 
94.5

 
94.5

 
82.0

 
0.03
%

F-138
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^American Pharmaceutical Innovation Company, LLC
 
Chemical Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2027

 
28.6

 
28.6

 
24.6

 
0.01
%
^Heil & Hornik LLC dba Elysium Tennis
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/27/2042

 
921.7

 
921.7

 
926.9

 
0.33
%
Pecos Entertainment LLC dba State Theater and Pecos Inn LLC
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
3/27/2042

 
410.9

 
410.9

 
435.5

 
0.16
%
^Ericon Inc. dba Quik Pik
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/24/2027

 
59.6

 
59.6

 
57.6

 
0.02
%
^Robert Dixon PA dba Law Offices of Robert Dixon
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/24/2042

 
422.8

 
422.8

 
445.2

 
0.16
%
^Denton Bio Fuels LLC and American Bio Source LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2027

 
56.5

 
56.5

 
51.6

 
0.02
%
^Color Graphic Press, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/23/2027

 
114.4

 
114.4

 
116.4

 
0.04
%
JBK Truck Trailer and Bus Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/23/2042

 
85.3

 
85.3

 
86.0

 
0.03
%
^Executive Fitness & Nutrition Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/23/2027

 
19.3

 
19.3

 
19.0

 
0.01
%
^Baton Rouge Cargo Services Inc. and 6507 Westport, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/22/2042

 
637.8

 
637.8

 
659.9

 
0.24
%
^Vehicle Safety supply LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/21/2027

 
21.5

 
21.5

 
18.4

 
0.01
%
^J Sivilis LLC dba Pet Wants
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/17/2027

 
11.7

 
11.7

 
10.4

 
%
^The Purple Cow House of Pancake Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/16/2042

 
159.9

 
159.9

 
169.5

 
0.06
%
^Reservoir International LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/16/2027

 
95.4

 
95.4

 
88.7

 
0.03
%
^Texcor, Inc.dba Texas Corral,Texas Coral Restaurants II, Inc. T.C. of
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/16/2027

 
287.0

 
287.0

 
291.9

 
0.10
%
Alive Design, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/13/2027

 
22.0

 
22.0

 
18.8

 
0.01
%
^1MTX LLC and Sunrise Transportation and Logistics, LLC and Mustafa M
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/13/2027

 
671.0

 
671.0

 
575.5

 
0.21
%
^Dwayne Bernard Tate
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/10/2027

 
10.0

 
10.0

 
9.2

 
%
^Elegant Occasions, LLC dba E Productions
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/10/2042

 
584.4

 
584.4

 
590.8

 
0.21
%

F-139
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Anthony LLC dba Star of Woodward Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/9/2042

 
114.2

 
114.2

 
121.1

 
0.04
%
^E & P Holdings 1 LLC and Evans & Paul Unlimited Corp.
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/9/2027

 
119.2

 
119.2

 
104.7

 
0.04
%
^Allegro Assisted Living Of Texas
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
3/6/2027

 
91.6

 
91.6

 
93.1

 
0.03
%
^Robbie E. Bakery and Cafe LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/3/2027

 
59.6

 
59.6

 
51.1

 
0.02
%
^Podium Auto Sales Inc and RRS Property, LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/3/2042

 
90.0

 
90.0

 
90.3

 
0.03
%
^SSI Refrigerated Express Inc. and Robert M Stallone dba SSI Express
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/28/2027

 
223.2

 
223.2

 
191.4

 
0.07
%
^Weeping Willow Kennels, Inc and Aileen N Black
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2042

 
138.7

 
138.7

 
142.2

 
0.05
%
^Getting Even LLC dba The Zoo Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2027

 
91.2

 
91.2

 
81.7

 
0.03
%
^Total Document Solutions Inc and,TDS Services, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/27/2030

 
301.5

 
301.5

 
278.2

 
0.10
%
^Teracore Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2027

 
155.1

 
155.1

 
133.0

 
0.05
%
^John Finn Associates LLC, Greenslate LLC, Finn Technology, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2027

 
639.5

 
639.5

 
616.1

 
0.22
%
^McNally Enterprises Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2027

 
61.6

 
61.6

 
55.1

 
0.02
%
^B & J Bicycle Shop Inc.
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
2/24/2027

 
14.2

 
14.2

 
14.5

 
0.01
%
^TMJ Pizza Mesa LLC dba Rosati's Pizza Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/24/2027

 
101.8

 
101.8

 
95.2

 
0.03
%
^3W Enterprises LLC
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
2/24/2042

 
80.9

 
80.9

 
81.9

 
0.03
%
^Victorian Restaurant and Tavern, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/22/2042

 
106.4

 
106.4

 
105.3

 
0.04
%
^DER Services, LLC dba A.K.A. Sports
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
2/17/2042

 
39.7

 
39.7

 
42.0

 
0.02
%
^Bike Slug, LLC, Bike Slug Holdings Inc. and Seven Rivers Group ,LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
2/17/2027

 
18.5

 
18.5

 
15.8

 
0.01
%
^Ameritube, LLC and Ravone Properties, LLC
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/14/2042

 
183.3

 
183.3

 
194.3

 
0.07
%

F-140
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^R&S Barnes Enterprises, Inc. dba Massage Envy Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/10/2027

 
88.8

 
88.8

 
77.2

 
0.03
%
^Baton Rouge Cargo Services Inc. and 2808 Court Street, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/10/2042

 
245.1

 
245.1

 
253.7

 
0.09
%
^Sushiya Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/10/2027

 
17.8

 
17.8

 
15.8

 
0.01
%
^Select Propane & Fuel Inc. and Select Fuel & Convenience LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/10/2030

 
1,208.1

 
1,208.1

 
1,114.5

 
0.40
%
^Maximo Canot dba Wash and Dry Laundrymat
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/10/2042

 
136.3

 
136.3

 
141.5

 
0.05
%
^Marvic Enterprises Inc dba Jordan's Liquor
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/10/2042

 
216.9

 
216.9

 
223.0

 
0.08
%
^Harrison Logging Company LLC
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
2/9/2027

 
100.7

 
100.7

 
91.5

 
0.03
%
^8 Minute Oil Change Auto Repair & Tire Center and Jumir L.L.C.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
2/7/2042

 
324.7

 
324.7

 
321.8

 
0.12
%
^Christopher Borgia
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/6/2027

 
12.2

 
12.2

 
10.7

 
%
^Splashlight LLC, Splashlight Photographic & Digital Studios LLC
 
Management of Companies and Enterprises
 
Term Loan
 
Prime plus 2.75%
 
2/2/2027

 
710.7

 
710.7

 
633.5

 
0.23
%
^DBMS Consulting, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/1/2042

 
183.2

 
183.2

 
181.7

 
0.07
%
^Brandco, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/31/2027

 
41.2

 
41.2

 
35.3

 
0.01
%
^Chidlren's House Learning, Inc and Tarps Investment Group
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2042

 
318.3

 
318.3

 
321.5

 
0.12
%
AP6 LLC and Amishp LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2042

 
107.1

 
107.1

 
113.5

 
0.04
%
^Fave Realty, Inc.
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
1/30/2042

 
53.9

 
53.9

 
55.1

 
0.02
%
^ZMKNY Tires Inc dba Houston International Tires
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
1/27/2042

 
106.4

 
106.4

 
112.8

 
0.04
%
House of Bread & Coffee Corp dba Casa Do Pao
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/27/2042

 
134.6

 
134.6

 
132.0

 
0.05
%
^SRC Publishing LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/27/2027

 
21.2

 
21.2

 
18.2

 
0.01
%

F-141
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Return to Excellence Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
1/27/2027

 
16.7

 
16.7

 
17.0

 
0.01
%
^Sideways Sports Lounge and Jonathan E. McGrew and Patricia C. McGrew
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/23/2027

 
17.0

 
17.0

 
14.5

 
0.01
%
^Fox Valley Rentals & Investments LLC and Brian M Tomaszewski
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/20/2042

 
42.0

 
42.0

 
42.2

 
0.02
%
^Rhone Wolf Vineyard LLC, Goldline Brands Inc. and Myka Cellars, Inc.
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/19/2030

 
240.5

 
240.5

 
223.1

 
0.08
%
^Jolibe LLC and Jolibe Atelier LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/18/2027

 
9.9

 
9.9

 
8.8

 
%
^Eickmann Management Group LLC dba Jimmy Johns of Dundee
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/17/2027

 
93.0

 
93.0

 
91.7

 
0.03
%
^Ramjay Inc.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/13/2027

 
412.2

 
412.2

 
375.7

 
0.13
%
^Fullbro Trust dba Menemsha Blues
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
1/13/2027

 
21.2

 
21.2

 
21.6

 
0.01
%
^Echelon Enterprises, Inc
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
1/10/2027

 
47.1

 
47.1

 
47.9

 
0.02
%
^Fort Smith Wings Inc. dba Wing Stop
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/28/2026

 
18.2

 
18.2

 
16.4

 
0.01
%
^Sand Hill Associates, Ltd. dba Charlie O's Tavern on the Point
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/27/2041

 
417.1

 
417.1

 
415.6

 
0.15
%
^Joshua L. Baker
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
12/23/2026

 
14.7

 
14.7

 
12.6

 
%
^Jacliff Investments Inc. dba International health Technologies
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
12/23/2026

 
116.9

 
116.9

 
100.1

 
0.04
%
^New Image Building Services, Inc.dba The Maids Servicing Oakland
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2026

 
40.9

 
40.9

 
36.5

 
0.01
%
^Chestnut Street Associates, LLC and Metropolitan Solutions, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/19/2041

 
271.4

 
271.4

 
263.1

 
0.09
%
^Means Enterprises LLC dba FastFrame Frisco
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/16/2026

 
21.0

 
21.0

 
18.3

 
0.01
%
^Soon Im. Chin dba Stan C-Store
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
209.7

 
209.7

 
218.7

 
0.08
%
^Sempco, Inc.
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
41.5

 
41.5

 
43.9

 
0.02
%
^Allied Welding Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
741.6

 
741.6

 
735.2

 
0.26
%

F-142
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Ericon, Inc. dba Quik Pik
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
328.5

 
328.5

 
330.1

 
0.12
%
^White Hawk Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/15/2026

 
1,028.4

 
1,028.4

 
881.1

 
0.32
%
^Elita 7, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
703.2

 
703.2

 
722.6

 
0.26
%
^New Chicago Wholesale Bakery, Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
446.9

 
446.9

 
445.0

 
0.16
%
^Techni-Pro Institute LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/15/2026

 
177.6

 
177.6

 
157.1

 
0.06
%
^Trison Enterprises Inc.dba Lee's Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041

 
402.2

 
402.2

 
409.8

 
0.15
%
^Cardinal Homes Inc. and Bret A Berneche
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041

 
119.7

 
119.7

 
126.2

 
0.05
%
^HMG Strategy, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/14/2026

 
46.7

 
46.7

 
40.1

 
0.01
%
^D and E Hardware Co. and D and E Pump Sales and Service
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041

 
521.7

 
521.7

 
523.0

 
0.19
%
^Cardinal Homes Inc,.Alouette Holdings Inc.
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2026

 
996.8

 
996.8

 
1,010.8

 
0.36
%
^AGG Management Team LLC dba Chevron
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041

 
283.8

 
283.8

 
300.6

 
0.11
%
^Wayfarer Bicycle LLC
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/13/2041

 
91.3

 
91.3

 
89.6

 
0.03
%
^Success Advertising Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2041

 
460.4

 
460.4

 
480.9

 
0.17
%
^Roast Beef Levittown LLC dba Arby's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/13/2026

 
439.4

 
439.4

 
446.5

 
0.16
%
^Queen Express LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/13/2041

 
185.1

 
185.1

 
193.5

 
0.07
%
^Mack Team Enterprises Inc.dba The UPS Store #6815
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
12/9/2026

 
19.1

 
19.1

 
17.2

 
0.01
%
^Recycling Revolution,LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/9/2041

 
91.0

 
91.0

 
91.2

 
0.03
%
^Myndshft Technologies LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/9/2026

 
724.6

 
724.6

 
648.9

 
0.23
%
^New Life Hospital LLC
 
Hospitals
 
Term Loan
 
Prime plus 2.75%
 
12/8/2041

 
1,184.9

 
1,184.9

 
1,255.4

 
0.45
%

F-143
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Imagine By Carleen Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2041

 
51.8

 
51.8

 
52.4

 
0.02
%
^Hanson's Greeks LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2026

 
10.5

 
10.5

 
10.7

 
%
^Yachting Solutions LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/7/2029

 
68.1

 
68.1

 
64.7

 
0.02
%
^T and B Boots Inc dba Takken's Shoes
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/7/2026

 
95.2

 
95.2

 
89.5

 
0.03
%
^Lan Doctors, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/7/2026

 
222.5

 
222.5

 
219.7

 
0.08
%
^Lilo Holdings LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/5/2026

 
14.9

 
14.9

 
13.5

 
%
^The Lake Shore Hospitality Inc dba Dowagiac Baymont Inn & Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2041

 
348.5

 
348.5

 
362.4

 
0.13
%
^Ericon, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/1/2041

 
717.9

 
717.9

 
725.3

 
0.26
%
^Noso Development LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/1/2026

 
70.1

 
70.1

 
60.1

 
0.02
%
^Quick Ship, LLC
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
9.7

 
9.7

 
8.4

 
%
^Pebble Wood Lane, LLC and Good Sam's Assisted Living Residence, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
11/30/2041

 
66.6

 
66.6

 
70.5

 
0.03
%
^Sharaz Shah DBA Thomas Jewelers
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
7.5

 
7.5

 
6.4

 
%
^Choe Trading Group, Inc.dba Rapid Printers of Monterey
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
20.9

 
20.9

 
20.7

 
0.01
%
^Studio Find It Georgia, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
7.0

 
7.0

 
6.1

 
%
^Imaginarium Foods LLC,
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2042

 
369.8

 
369.8

 
378.7

 
0.14
%
^RD Management, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
198.5

 
198.5

 
172.3

 
0.06
%
^B4 Fitness LLC dba The Zoo Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
20.9

 
20.9

 
18.7

 
0.01
%
^Usman Jalil, LLC dba Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/29/2041

 
229.9

 
229.9

 
224.9

 
0.08
%
^Honor Mansion, Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/29/2026

 
81.2

 
81.2

 
82.6

 
0.03
%

F-144
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Access Staffing, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/29/2026

 
1,044.6

 
1,044.6

 
895.0

 
0.32
%
^CRK Mens, LLC dba Spiff for Men
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026

 
99.2

 
99.2

 
86.8

 
0.03
%
^WPN Recycling Company LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026

 
20.9

 
20.9

 
21.2

 
0.01
%
^Hafa Adai Signs and Graphics LLC dba Fastsigns of Auburn -#281901
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026

 
55.7

 
55.7

 
48.4

 
0.02
%
^Merchant Coterie, Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026

 
116.1

 
116.1

 
99.4

 
0.04
%
^6E Technologies LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/22/2026

 
159.9

 
159.9

 
148.2

 
0.05
%
^Rognes Corp dba RTS
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
11/22/2026

 
360.0

 
360.0

 
331.0

 
0.12
%
^Bouquet Restaurant LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/22/2041

 
123.2

 
123.2

 
125.2

 
0.04
%
^J.B.K Truck Trailer and Bus Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/22/2041

 
428.7

 
428.7

 
430.9

 
0.15
%
^Broms Asset Management LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/22/2026

 
116.1

 
116.1

 
99.4

 
0.04
%
^Skaggs RV Outlet LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/21/2026

 
92.9

 
92.9

 
94.4

 
0.03
%
^Catherine Christine Morin dba Purr-Fect Pets
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/17/2026

 
17.4

 
17.4

 
14.9

 
0.01
%
^Stratmar Systems Inc dba Stratmar Retail Services
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/16/2026

 
63.6

 
63.6

 
64.6

 
0.02
%
^Hoosier Health Plus, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/15/2026

 
116.1

 
116.1

 
109.9

 
0.04
%
^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/10/2041

 
439.5

 
439.5

 
453.7

 
0.16
%
^Hackensack Steel Corporation and Luzerne Ironworks Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026

 
224.7

 
224.7

 
228.4

 
0.08
%
^Panther Ironworks and Rigging Solutions LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026

 
140.4

 
140.4

 
129.5

 
0.05
%

F-145
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026

 
175.3

 
175.3

 
174.7

 
0.06
%
^MIK LLC dba Firehouse Subs
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026

 
189.3

 
189.3

 
164.5

 
0.06
%
^Rich's Food Stores LLC dba Hwy 55 of Wallace
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026

 
40.6

 
40.6

 
38.1

 
0.01
%
^Bovill Creative,LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
11/9/2041

 
277.0

 
277.0

 
293.5

 
0.11
%
^Dyer Properties, LLC and Bayview Pharmacy, Inc.
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
11/9/2041

 
237.0

 
237.0

 
236.0

 
0.08
%
^Big Apple Entertainment Partners LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026

 
162.5

 
162.5

 
139.2

 
0.05
%
^Surgarloaf Concepts LLC dba Fat Biscuit
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/8/2026

 
162.1

 
162.1

 
164.7

 
0.06
%
^Fine Line Interiors, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/4/2041

 
80.6

 
80.6

 
85.4

 
0.03
%
^131 Miles LLC and Ohm Shubh Laxmi, LLC. dba Mr Hero
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/3/2041

 
124.6

 
124.6

 
128.4

 
0.05
%
^Veracruz Shabo, LLC, Waterfalls Quick Lube LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/1/2041

 
117.9

 
117.9

 
121.3

 
0.04
%
^Glocecol LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/1/2026

 
69.6

 
69.6

 
70.7

 
0.03
%
^Moolchan Enterprises LLC dba Staying Green
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2026

 
16.7

 
16.7

 
15.9

 
0.01
%
^Bloomquist Communications Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2026

 
55.3

 
55.3

 
47.4

 
0.02
%
^Middlesex Auto Sales Corp
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/31/2041

 
123.1

 
123.1

 
127.0

 
0.05
%
^Woodstock Enterprises Corp dba True Scent Candle Co
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/31/2041

 
87.5

 
87.5

 
85.9

 
0.03
%
^FibAire Communications, LLC
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
10/27/2026

 
99.7

 
99.7

 
92.1

 
0.03
%
^Elite Structures Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/27/2029

 
215.7

 
215.7

 
211.5

 
0.08
%
^Bonita Stone LLC and Castone Creations Inc
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/25/2041

 
260.2

 
260.2

 
261.2

 
0.09
%
^Empire Processor Services Inc. and Verrazano Wholesale Dist., Inc.
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
10/25/2026

 
121.0

 
121.0

 
123.0

 
0.04
%

F-146
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Blakeslee Arpaia Chapman Inc and Chapman Construction Services LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
10/24/2026

 
391.9

 
391.9

 
393.8

 
0.14
%
^Eco Vehicle Systems LLC
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/21/2026

 
881.5

 
881.5

 
889.6

 
0.32
%
^Worldwide Estate, Inc. dba Washington Heights Manor
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
10/21/2041

 
221.1

 
221.1

 
234.3

 
0.08
%
^Gold Wind Logistics LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/20/2041

 
173.3

 
173.3

 
183.6

 
0.07
%
^Speaker City, Inc. dba Rollin Thunder
 
Electronics and Appliance Stores
 
Term Loan
 
Prime plus 2.75%
 
10/14/2041

 
123.1

 
123.1

 
126.4

 
0.05
%
^Maine Service Corp
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/13/2026

 
190.4

 
190.4

 
179.6

 
0.06
%
^Justin Partlow
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
10/13/2026

 
18.0

 
18.0

 
15.4

 
0.01
%
^Reliable Recovery Services LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/7/2026

 
103.7

 
103.7

 
95.0

 
0.03
%
^Ailky Corporation
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/3/2026

 
230.5

 
230.5

 
203.1

 
0.07
%
^Wyspen Corporation dba Charlestown Ace
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/3/2026

 
33.2

 
33.2

 
28.4

 
0.01
%
^MegaPhase, LLC
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2026

 
137.1

 
137.1

 
133.3

 
0.05
%
^Seaway LLC and Reklaw LLC dba Allure Lounge
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2041

 
134.8

 
134.8

 
142.8

 
0.05
%
^JJA Transportation Management Inc.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2026

 
48.0

 
48.0

 
41.1

 
0.01
%
^Adelwerth Bus Corp.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2041

 
238.3

 
238.3

 
238.1

 
0.09
%
^Adelwerth Bus Corporation, Transportation Leasing Corp.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029

 
615.8

 
615.8

 
597.2

 
0.21
%
^Vision Automotive LLC dba Vision Chrysler Jeep Dodge Ram of Defiance
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2029

 
631.7

 
631.7

 
595.7

 
0.21
%
^Thunderdome Racing Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/29/2026

 
17.4

 
17.4

 
17.4

 
0.01
%
^Graphics,Type and Color Enterprises Inc dba Clubflyers.com and GTC Med
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
9/28/2041

 
833.4

 
833.4

 
882.5

 
0.32
%

F-147
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Beadon Inc
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/28/2026

 
20.6

 
20.6

 
20.7

 
0.01
%
^CNC Precision Machine, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/28/2041

 
1,235.9

 
1,235.9

 
1,246.2

 
0.45
%
^CD Game Exchange Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/28/2026

 
20.6

 
20.6

 
17.6

 
0.01
%
^Kyle M Walker DDS, PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026

 
204.7

 
204.7

 
180.9

 
0.06
%
^Reynolds Fence & Guardrail Inc.
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026

 
575.4

 
575.4

 
552.7

 
0.20
%
^Luv 2 Play Nor Cal, LLC dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026

 
48.0

 
48.0

 
43.1

 
0.02
%
^Luna Nueva LLC dba Bio Builders
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026

 
13.7

 
13.7

 
12.1

 
%
^Sarah S Olelewe MD Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2041

 
287.3

 
287.3

 
290.7

 
0.10
%
^TPFC,LLC dbaThe Picture Frame Company
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/26/2041

 
57.6

 
57.6

 
58.4

 
0.02
%
^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
9/26/2026

 
8.2

 
8.2

 
8.2

 
%
^PeopleBest Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2026

 
13.7

 
13.7

 
11.7

 
%
^Mr. Mulch, Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/23/2041

 
397.8

 
397.8

 
377.1

 
0.14
%
^B4 Fitness LLC dba The Zoo Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/23/2026

 
80.0

 
80.0

 
71.6

 
0.03
%
^InformationTelevision Network Inc
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
9/22/2041

 
823.0

 
823.0

 
862.9

 
0.31
%
^GRA Financial Services Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/22/2026

 
11.0

 
11.0

 
9.4

 
%
^Cuppiecakes LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/21/2041

 
22.1

 
22.1

 
22.3

 
0.01
%
^Wrecking Crew Media LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/21/2026

 
45.7

 
45.7

 
39.1

 
0.01
%
^Benoit's Towing and Recovery LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/20/2026

 
11.0

 
11.0

 
9.5

 
%

F-148
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Consulting Solutions Inc. and Mark Luciani
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2026

 
20.6

 
20.6

 
19.5

 
0.01
%
^Brittany Burns LLC dba Dreams Come True
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/19/2026

 
12.0

 
12.0

 
12.2

 
%
^Eyncon LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/16/2041

 
49.0

 
49.0

 
50.1

 
0.02
%
^The Merrin Group LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2026

 
159.9

 
159.9

 
154.8

 
0.06
%
^Rich's Food Stores LLC dba Hwy 55 of Wallace
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/14/2026

 
133.1

 
133.1

 
124.9

 
0.04
%
^Atlantic Alarm Systems and Services LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/14/2026

 
14.1

 
14.1

 
12.5

 
%
^Metropet Dog Center, Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2041

 
107.1

 
107.1

 
109.8

 
0.04
%
^Marquis Cattle Company
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
9/13/2026

 
46.1

 
46.1

 
46.9

 
0.02
%
^Bingham Enterprises, Inc and Full Belli Deli and Sausage Company
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/12/2041

 
80.9

 
80.9

 
79.9

 
0.03
%
^Artisan Infrastructure Holdings, LLC
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
9/7/2026

 
114.2

 
114.2

 
97.8

 
0.04
%
^SRA Mechanicial Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/6/2041

 
42.9

 
42.9

 
45.3

 
0.02
%
^Sandia Enterprises Inc dba Massage Envy Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/6/2026

 
57.1

 
57.1

 
48.9

 
0.02
%
^Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2026

 
113.8

 
113.8

 
100.1

 
0.04
%
^Suncrest Stone Products LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/29/2026

 
543.4

 
543.4

 
489.2

 
0.18
%
^Suncrest Stone Products LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/29/2041

 
638.7

 
638.7

 
601.1

 
0.22
%
^Clark Realty LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
8/29/2041

 
232.5

 
232.5

 
225.9

 
0.08
%
^Raem Corporation dba Dryclean Express
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/29/2041

 
71.0

 
71.0

 
74.3

 
0.03
%
^Warren Dale Warrington dba Custom Paint and Body
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/26/2041

 
99.1

 
99.1

 
102.2

 
0.04
%
^TAGR Inc dba Miami Grill 137and John Nakis
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/26/2026

 
96.9

 
96.9

 
85.3

 
0.03
%
^Albert Basse Associates Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
56.7

 
56.7

 
57.6

 
0.02
%

F-149
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Avery Management Inc. dba Whetstone Upholstery
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
9.7

 
9.7

 
8.3

 
%
^Dean Technology Inc
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/25/2041

 
379.0

 
379.0

 
398.7

 
0.14
%
^Rosmel Pools Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
20.4

 
20.4

 
17.9

 
0.01
%
^Tabadesa Associates Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
20.4

 
20.4

 
17.5

 
0.01
%
^TR Companies LLC dba True Value Rental and Liberty Rental 4 U
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
81.7

 
81.7

 
69.9

 
0.03
%
^Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2041

 
492.0

 
492.0

 
517.3

 
0.19
%
^Luv 2 Play Temecula, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/15/2026

 
54.4

 
54.4

 
46.6

 
0.02
%
^Bear Creek Entertainment LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
8/12/2041

 
402.0

 
402.0

 
400.8

 
0.14
%
^2 Cool Beans LLC dba Menchies's Frozen Yogurt
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/11/2026

 
74.9

 
74.9

 
64.1

 
0.02
%
^Grayson O Company
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/10/2041

 
611.9

 
611.9

 
643.6

 
0.23
%
^Charal Investments LLC dba Orange Theory Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/10/2026

 
79.4

 
79.4

 
68.0

 
0.02
%
^Paul Belanger dba Paul Belanger Landscaping
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/9/2026

 
13.6

 
13.6

 
11.6

 
%
^Nicolette Reiser dba Comfort & Balance
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041

 
73.3

 
73.3

 
75.5

 
0.03
%
^The Hungry Rhino LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041

 
74.5

 
74.5

 
75.3

 
0.03
%
^USA General Investment LLC dba Braniff Paint and Body Shop
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2026

 
20.3

 
20.3

 
18.0

 
0.01
%
^303 Tower Drive LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041

 
391.2

 
391.2

 
405.7

 
0.15
%
^Little Tree Huggers Child Care LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041

 
136.8

 
136.8

 
144.8

 
0.05
%
^Big Apple Entertainment Partners LLC dba Ripley's Believe It or Not
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/28/2026

 
270.3

 
270.3

 
231.3

 
0.08
%
^676 Club LP dba The Green Door Tavern/The Drifter
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041

 
654.9

 
654.9

 
685.0

 
0.25
%

F-150
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^KJCKD Inc dba Camelot Print & Copy Centers/Copy A Second
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041

 
573.8

 
573.8

 
581.8

 
0.21
%
^MacIver Corporation dba Division Camera
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2026

 
1,133.9

 
1,133.9

 
1,077.0

 
0.39
%
^Apple Tree NC Inc dba Williams Farm & Garden Center
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041

 
329.4

 
329.4

 
329.3

 
0.12
%
^Intrepid Trinity LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041

 
61.1

 
61.1

 
62.7

 
0.02
%
^Kidtastic LLC dba The Little Gym of Audubon
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026

 
51.1

 
51.1

 
43.7

 
0.02
%
^GF Libations Inc dba Minuteman Press
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
7/27/2041

 
38.6

 
38.6

 
34.8

 
0.01
%
^EPEC Juice LLC dba Jamba Juice
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026

 
75.2

 
75.2

 
64.4

 
0.02
%
^Pinco Pizza LLC dba Jet's Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026

 
66.6

 
66.6

 
66.3

 
0.02
%
^JAG Unit 1, LLC dba Arooga's Grille House and Sports Bar
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026

 
112.6

 
112.6

 
96.4

 
0.03
%
^Peckett's Inc
 
Crop Production
 
Term Loan
 
Prime plus 2.75%
 
7/27/2041

 
219.6

 
219.6

 
232.5

 
0.08
%
^The Grasso Companies, LLC and Grasso Pavement Maintenance, LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
7/26/2026

 
81.9

 
81.9

 
75.3

 
0.03
%
^My Sainath Inc dba Motel 6
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
7/22/2041

 
298.5

 
298.5

 
310.3

 
0.11
%
^Robert G Larson State Farm Insurance
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/22/2026

 
20.3

 
20.3

 
17.3

 
0.01
%
^J and D Resources LLC dba Aqua Science
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2026

 
117.6

 
117.6

 
101.8

 
0.04
%
^Robert P Daniels dba Ginger and Friend's Peppermint Village Gift Shop
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/18/2026

 
14.2

 
14.2

 
12.1

 
%
^Franklin Firm LLC dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/15/2041

 
169.9

 
169.9

 
172.5

 
0.06
%
^Billingsworks LLC dba Spoon Shine Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2026

 
8.7

 
8.7

 
8.8

 
%
^Takeuchi Commercial Cleaning Services, LLC dba We Clean San Diego
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/13/2026

 
41.7

 
41.7

 
35.7

 
0.01
%
^Jacob Rugs LLC dba Rugs Outlet
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
7/13/2026

 
59.1

 
59.1

 
60.0

 
0.02
%

F-151
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^RM Hawkins LLC dba Pure Water Tech West
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/7/2026

 
45.1

 
45.1

 
43.5

 
0.02
%
^Dino Smiles Children's Cosmetic Dentistry
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/7/2026

 
12.8

 
12.8

 
11.3

 
%
^Nevey's LLC dba Stark Food III
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2041

 
287.9

 
287.9

 
304.5

 
0.11
%
^Soregard Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/30/2041

 
272.0

 
272.0

 
272.3

 
0.10
%
^Martin Inventory Management LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026

 
94.6

 
94.6

 
96.6

 
0.03
%
^P L H Pharmaco Inc dba Farmacia San Jose
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026

 
155.7

 
155.7

 
157.2

 
0.06
%
^Hartford Cardiology Group LLC and Ideal Nutrition of Connecticut LLC
 
Ambulatory Health Care Services
 
Term Loan
 
6.25%
 
6/30/2026

 
474.6

 
474.6

 
432.7

 
0.16
%
^Desert Tacos LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026

 
90.7

 
90.7

 
88.1

 
0.03
%
^VMA Technologies LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026

 
20.2

 
20.2

 
18.2

 
0.01
%
^Corning Lumber Company Inc and Frank R Close and Son Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/30/2029

 
181.2

 
181.2

 
187.1

 
0.07
%
^Castone Creations Inc
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2026

 
78.2

 
78.2

 
72.9

 
0.03
%
^WGI, LLC dba Williams Grant Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/29/2041

 
128.1

 
128.1

 
132.8

 
0.05
%
^Ninsa LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2041

 
109.8

 
109.8

 
117.4

 
0.04
%
^KWG Industries, LLC dba Peterson & Marsh Metal Industries
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2041

 
297.7

 
297.7

 
312.2

 
0.11
%
^O.D.S. Inc dba Four Seasons Health & Racquet and Step 'N' Motion, Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/29/2026

 
125.2

 
125.2

 
115.2

 
0.04
%
^E & P Holdings 1 LLC and Evans & Paul LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2026

 
111.9

 
111.9

 
103.5

 
0.04
%
^MaidPro Marin dba MaidPro
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2026

 
15.7

 
15.7

 
14.1

 
0.01
%
^Edge Pest Control LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/27/2026

 
670.7

 
670.7

 
604.2

 
0.22
%
^All Printing Solutions, Inc. dba Pryntcomm
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
6/27/2041

 
533.1

 
533.1

 
536.5

 
0.19
%

F-152
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Jumbomarkets Inc dba Rines Jumbomarkets
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/24/2026

 
44.7

 
44.7

 
40.3

 
0.01
%
^El Basha Inc dba RPM West San Fernando Valley
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
6/24/2026

 
16.7

 
16.7

 
15.1

 
0.01
%
^Island Time Investments, LLC dba Swantown Inn Bed & Breakfast
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/24/2041

 
98.8

 
98.8

 
105.7

 
0.04
%
^Yellow Cab Company of Kissimmee Inc
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/24/2041

 
55.5

 
55.5

 
55.6

 
0.02
%
^Shooting Sports Academy LLC and Jetaa LLC dba Shooting Sports Academy
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041

 
486.3

 
486.3

 
494.3

 
0.18
%
^Long Island Comedy LLC dba Governors and New York Comedy, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041

 
183.0

 
183.0

 
190.1

 
0.07
%
^Visual Advantage LLC dba Signs Now Perryberg
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041

 
89.1

 
89.1

 
91.7

 
0.03
%
^SNS of Central Alabama, LLC dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/21/2026

 
51.4

 
51.4

 
48.7

 
0.02
%
^Evergreen Investment & Property Management LLC ,Universal Kidney Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/20/2041

 
1,223.2

 
1,223.2

 
1,292.8

 
0.46
%
^Italian Heritage Tile and Stone Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/20/2026

 
55.9

 
55.9

 
50.3

 
0.02
%
^Bagelicious, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/17/2026

 
48.8

 
48.8

 
44.2

 
0.02
%
^T and B Boots Inc dba Takken's Shoes
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
6/17/2026

 
204.5

 
204.5

 
208.9

 
0.08
%
^NKJ Lusby Donuts LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026

 
20.1

 
20.1

 
18.1

 
0.01
%
^Winegirl Wines LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026

 
10.1

 
10.1

 
10.3

 
%
^Blue Eagle Transport Inc, Greeneagle Transport Inc and Golden Eagle Transport
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026

 
506.1

 
506.1

 
455.9

 
0.16
%
^Jai-Alexia Consulting, Inc.
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
6/15/2026

 
10.6

 
10.6

 
9.5

 
%
^Pumpkin Patch Child Care of Southington, LLC and Giuseppe Pugliares
 
Social Assistance
 
Term Loan
 
Prime plus 2%
 
6/15/2041

 
501.5

 
501.5

 
497.8

 
0.18
%
^Strag Industries LLC dba Meineke Car Care Center 841
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/15/2026

 
13.4

 
13.4

 
12.9

 
%
^Luv 2 Play AZ LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/10/2026

 
55.9

 
55.9

 
55.9

 
0.02
%

F-153
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Refoleen Inc dba Spice and Tea Exchange
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/10/2026

 
77.4

 
77.4

 
69.8

 
0.03
%
^VBGB Uptown, LLC dba VBGB Beer Hall & Garden
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/8/2026

 
75.1

 
75.1

 
67.7

 
0.02
%
^ScimTech Industries Inc dba Archer Aerospace
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/6/2026

 
10.7

 
10.7

 
9.7

 
%
^Larry H. Patterson and Rainbow Movers, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/6/2026

 
20.1

 
20.1

 
18.2

 
0.01
%
^Solvit Inc and Solvit North Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/3/2026

 
226.2

 
226.2

 
211.8

 
0.08
%
^AP5 LLC dba Krauser's Food Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/2/2041

 
236.8

 
236.8

 
246.4

 
0.09
%
^ATI Jet Inc
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/31/2026

 
460.4

 
460.4

 
430.3

 
0.15
%
^Farmer Boy Diner Inc dba Farmer Boy Diner & Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/31/2026

 
44.4

 
44.4

 
45.3

 
0.02
%
^Angelo Faia dba AVF Construction
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/27/2041

 
97.1

 
97.1

 
100.5

 
0.04
%
^Premier Athletic Center of Ohio, Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/27/2026

 
77.7

 
77.7

 
79.3

 
0.03
%
^Jack Frost Firewood Inc. and David Dubinsky
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/26/2041

 
201.0

 
201.0

 
207.0

 
0.07
%
^Mersada Holdings LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
5/26/2026

 
299.6

 
299.6

 
305.9

 
0.11
%
^Southwest Division Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
5/26/2026

 
7.3

 
7.3

 
6.9

 
%
^PennyLion LLC dba Creamistry
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/25/2026

 
72.8

 
72.8

 
67.1

 
0.02
%
^International Kitchen Supply LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/25/2026

 
165.8

 
165.8

 
155.9

 
0.06
%
^Groth Lumber Co. Inc. dba True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/25/2026

 
20.0

 
20.0

 
20.4

 
0.01
%
^Powerspec Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/24/2026

 
77.7

 
77.7

 
70.0

 
0.03
%
^Island Life Graphics Inc dba FASTSIGNS #576
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/24/2026

 
20.0

 
20.0

 
18.2

 
0.01
%
^Horseshoe Barbecue, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/23/2029

 
12.4

 
12.4

 
12.8

 
%

F-154
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Elderfriend Inc dba Granny Nannies dba GN Live Scan
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026

 
11.3

 
11.3

 
10.2

 
%
^National Air Cargo Holdings Inc
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026

 
1,109.5

 
1,109.5

 
1,118.9

 
0.40
%
^Pro Auto Repair LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026

 
6.6

 
6.6

 
6.6

 
%
^HBA LLC dba Palmetto Twist-Vista
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2026

 
17.2

 
17.2

 
15.9

 
0.01
%
^J&A Laundromat Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2026

 
59.9

 
59.9

 
55.1

 
0.02
%
^Dedicated Incorporated
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2041

 
45.3

 
45.3

 
47.3

 
0.02
%
^J Harris Trucking, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/13/2026

 
38.3

 
38.3

 
36.3

 
0.01
%
^FJN Catering Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/13/2041

 
256.2

 
256.2

 
272.6

 
0.10
%
^LED Lighting Enterprises LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/13/2026

 
20.0

 
20.0

 
18.4

 
0.01
%
^Studio Find It Georgia Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/13/2026

 
20.0

 
20.0

 
18.5

 
0.01
%
^Pumpkin Patch Inc and Christine Feliciano and Antonio Feliciano
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/12/2041

 
129.1

 
129.1

 
133.4

 
0.05
%
^The Delon Group LLC dba I Love Juice Bar
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/12/2026

 
19.3

 
19.3

 
17.4

 
0.01
%
^Sabir Inc. dba Bear Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/11/2041

 
120.8

 
120.8

 
127.3

 
0.05
%
^Gator D'Lites LLC dba D'Lites Emporium
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/5/2026

 
20.0

 
20.0

 
18.0

 
0.01
%
^Warner Home Comfort, LLC dba Smith Piping
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041

 
80.3

 
80.3

 
83.0

 
0.03
%
^Keller, Fishback & Jackson LLP
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
115.0

 
115.0

 
117.5

 
0.04
%
^Marc S. Rosenberg P.C. dba Mammuth and Rosenberg
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
19.8

 
19.8

 
17.9

 
0.01
%
^Euro Car Miami LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
55.1

 
55.1

 
56.2

 
0.02
%
^Hard Exercise Works Winter Park LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
35.9

 
35.9

 
32.3

 
0.01
%

F-155
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^La Nopalera Mexicano 2, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
79.5

 
79.5

 
81.2

 
0.03
%
^Loriet LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
6.6

 
6.6

 
6.0

 
%
^May-Craft Fiberglass Products Inc
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041

 
240.8

 
240.8

 
257.5

 
0.09
%
^Alpha Omega Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041

 
171.0

 
171.0

 
182.9

 
0.07
%
^Scoler LLC dba Gold's Gym
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
231.2

 
231.2

 
216.3

 
0.08
%
^Empowerschool LLC and Empower Autism Academy, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041

 
147.8

 
147.8

 
158.0

 
0.06
%
^Inner Beauty Salon and Suite LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041

 
63.2

 
63.2

 
67.2

 
0.02
%
^Atlantic Restaurant Associates LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041

 
255.4

 
255.4

 
269.4

 
0.10
%
^Costume World Inc
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041

 
1,219.4

 
1,219.4

 
1,304.0

 
0.47
%
^Pecos Inn LLC dba Econo Lodge
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041

 
657.0

 
657.0

 
692.9

 
0.25
%
^Shepherd Appraisal Services LLC dba Property Damage Appraisers of Oklahoma
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
4/28/2026

 
7.9

 
7.9

 
7.1

 
%
^Knowledge First Inc dba Magic Years of Learning
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/27/2026

 
70.6

 
70.6

 
69.1

 
0.02
%
^Green Country Filter Manufacturing LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/27/2026

 
75.4

 
75.4

 
69.4

 
0.02
%
^Accent Comfort Services, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/26/2026

 
79.3

 
79.3

 
71.4

 
0.03
%
^Homecare Casa Rhoda 123 Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2%
 
4/26/2041

 
654.6

 
654.6

 
656.7

 
0.24
%
^Automotive Core Recycling, LLC and 828 Old Colony Road, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/22/2041

 
243.2

 
243.2

 
244.5

 
0.09
%
^McIntosh Trail Management Services Organization Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/22/2041

 
414.1

 
414.1

 
442.8

 
0.16
%
^Jande Graphics LLC dba FastSigns #103201
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/21/2026

 
49.3

 
49.3

 
44.4

 
0.02
%
^AAA Mill Direct, Inc. dba Carpet Mill Outlets
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
4/21/2026

 
6.9

 
6.9

 
7.1

 
%

F-156
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Miguel Fernando Borda, P.A. dba BGR Dental
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/15/2026

 
19.8

 
19.8

 
18.3

 
0.01
%
^Sushiya Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/12/2026

 
77.1

 
77.1

 
71.7

 
0.03
%
^Sierra Foothill Cremation & Funeral Service, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/7/2026

 
46.7

 
46.7

 
42.1

 
0.02
%
^Waterfalls Quick Lube LLC and Veracruz Shabo LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/6/2041

 
268.2

 
268.2

 
281.0

 
0.10
%
^KNS Early Learning Academy LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/6/2041

 
49.7

 
49.7

 
51.1

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

 
19.7

 
19.7

 
17.7

 
0.01
%
^Men of Steel Enterprises LLC and Vogelbacher Properties LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
382.2

 
382.2

 
379.9

 
0.14
%
^Gill Express Inc and Blue Speed LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
503.2

 
503.2

 
521.2

 
0.19
%
^Dana A. Farley dba Independent Cabinets
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
65.6

 
65.6

 
70.1

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

 
55.1

 
55.1

 
58.9

 
0.02
%
^Duke's Cleaners Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026

 
41.1

 
41.1

 
39.5

 
0.01
%
^Farhad Brothers LLC dba Lulu's Pizzeria & Family Restaurant and Marvin
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026

 
54.8

 
54.8

 
49.3

 
0.02
%
^Cameo Carter, MD A Professional Corporation dba The Garden Pediatric Group
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026

 
65.6

 
65.6

 
59.0

 
0.02
%
^Gordon Rogers and Heidi Rogers dba Stone House Motor Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
19.9

 
19.9

 
20.3

 
0.01
%
^NOSO Development, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
163.9

 
163.9

 
147.5

 
0.05
%
^Wyldewood Cellars, Inc.
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2041

 
969.9

 
969.9

 
977.8

 
0.35
%
^Tom Sawyer Country Restaurant LLC and AM 3208 LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/30/2041

 
250.5

 
250.5

 
264.9

 
0.10
%
^MTS Car Service LLC
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
9.2

 
9.2

 
8.3

 
%
^Beale Street Blues Company-West Palm Beach, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
82.0

 
82.0

 
75.4

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

 
17.4

 
17.4

 
16.6

 
0.01
%

F-157
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Vinmar Inc. dba Locanda Portofino
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026

 
71.0

 
71.0

 
63.9

 
0.02
%
^Lust for Life Footwear, LLC
 
Leather and Allied Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026

 
327.8

 
327.8

 
295.0

 
0.11
%
^Atlantis of Daytona LLC and Pierre Mamane and Eva Mamane
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2%
 
3/29/2041

 
491.7

 
491.7

 
499.9

 
0.18
%
^Marathon Engineering Corporation
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2041

 
43.7

 
43.7

 
45.9

 
0.02
%
^PHCDC1 LLC dba Quarter + Glory and Public House Collective, Corp.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/28/2026

 
43.8

 
43.8

 
41.3

 
0.01
%
^ReNew Interior Surface Cleaning LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/28/2026

 
10.8

 
10.8

 
10.9

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

 
49.2

 
49.2

 
44.3

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

 
19.9

 
19.9

 
18.3

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

 
109.3

 
109.3

 
103.4

 
0.04
%
^ActKnowledge, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/24/2026

 
109.3

 
109.3

 
111.5

 
0.04
%
^International Construction Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041

 
48.6

 
48.6

 
50.1

 
0.02
%
^Lowgap Grocery & Grill LLC
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041

 
162.7

 
162.7

 
173.9

 
0.06
%
^Flooring Liquidators Inc and Premier Flooring Yonkers Inc and Flooring
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/24/2026

 
43.7

 
43.7

 
44.0

 
0.02
%
^Acton Hardware LLC and Mark Allgood & Jamie Allgood
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041

 
484.7

 
484.7

 
491.8

 
0.18
%
^Magnation Corporation and Misha Family Trust
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/22/2041

 
98.6

 
98.6

 
105.4

 
0.04
%
^growth.period LLC and Potomac Recruiting LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026

 
136.6

 
136.6

 
122.9

 
0.04
%
^Precious Care LLC and Precious Care Management LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026

 
488.0

 
488.0

 
441.6

 
0.16
%
^Media Capital Partners, Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026

 
19.7

 
19.7

 
17.7

 
0.01
%

F-158
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Taylors Zinn Enterprises Inc dba Eons Auto Care Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/18/2041

 
78.4

 
78.4

 
83.2

 
0.03
%
^ERT Group Inc and Curt's Tools Inspection Inc
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
3/18/2041

 
1,229.8

 
1,229.8

 
1,269.0

 
0.46
%
^Kekoa Enterprises Inc dba Signarama Sandy
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2026

 
43.3

 
43.3

 
38.9

 
0.01
%
^Mariam Diner Inc dba Country Kitchen Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/18/2026

 
45.9

 
45.9

 
41.3

 
0.01
%
^Brian T Rice dba BD Logging
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
3/17/2026

 
13.8

 
13.8

 
13.0

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

 
19.0

 
19.0

 
18.7

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

 
918.7

 
918.7

 
864.7

 
0.31
%
^K Soles Corp dba Max Collections
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026

 
19.7

 
19.7

 
17.7

 
0.01
%
^LAN Doctors Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026

 
48.1

 
48.1

 
49.1

 
0.02
%
^R & D Enterprises Inc dba My Pool Man
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/15/2026

 
43.7

 
43.7

 
39.3

 
0.01
%
^Mustafa Inc and Raouf Properties LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/14/2041

 
73.0

 
73.0

 
77.2

 
0.03
%
^HEWZ, LLC dba Hard Exercise Works
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/14/2026

 
19.6

 
19.6

 
17.7

 
0.01
%
^Country Paint and Hardware Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
76.4

 
76.4

 
70.0

 
0.03
%
^Wilban LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
94.2

 
94.2

 
92.6

 
0.03
%
^Dupre Capital LLC dba Fastsigns
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
51.1

 
51.1

 
45.9

 
0.02
%
^Magill Truck Line LLC and Jeff J. Ralls
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/11/2029

 
193.4

 
193.4

 
183.9

 
0.07
%
^ABCs & 123s Infant and Child Care Center LP
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
9.8

 
9.8

 
8.8

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

 
131.1

 
131.1

 
120.2

 
0.04
%
^State Painting & Decorating Co., Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/10/2026

 
90.7

 
90.7

 
81.6

 
0.03
%

F-159
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^B.P.T.M. of NV LLC and Agentis Bros., LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/9/2041

 
510.0

 
510.0

 
529.5

 
0.19
%
^Step Up Academy of the Arts LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/9/2026

 
7.0

 
7.0

 
6.3

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

 
10.8

 
10.8

 
10.7

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

 
19.7

 
19.7

 
18.7

 
0.01
%
^Swerve Salon LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/8/2026

 
69.1

 
69.1

 
62.1

 
0.02
%
^J & W Hardwood Flooring Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/7/2026

 
6.6

 
6.6

 
5.9

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

 
106.1

 
106.1

 
113.4

 
0.04
%
^Hueston and Company CPA LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/4/2026

 
7.1

 
7.1

 
6.5

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

 
45.0

 
45.0

 
45.2

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

 
83.3

 
83.3

 
76.3

 
0.03
%
^Living Essentials HVAC Corp
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
13.0

 
13.0

 
11.8

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

 
9.8

 
9.8

 
9.9

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

 
16.3

 
16.3

 
15.3

 
0.01
%
^Drug Detection Laboratories, Inc. and Minh Tran
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
17.2

 
17.2

 
15.7

 
0.01
%
^Doxa Deo Inc dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
95.1

 
95.1

 
88.0

 
0.03
%
^The River Beas, LLC dba Subway and Punam Singh
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2041

 
131.7

 
131.7

 
139.6

 
0.05
%
^Blackstones Hairdressing LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/23/2026

 
45.4

 
45.4

 
41.2

 
0.01
%
^Aaradhya LLC dba Market Square Laundry
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/23/2026

 
69.4

 
69.4

 
62.5

 
0.02
%
^R-No-Landscaping LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/19/2026

 
7.2

 
7.2

 
6.6

 
%

F-160
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^BER Enterprise 332 Inc dba Edible Arrangements
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/19/2026

 
19.5

 
19.5

 
17.7

 
0.01
%
^R & K Contracting Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/18/2026

 
13.7

 
13.7

 
13.8

 
%
^Pacific Coast Medical Group LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/17/2026

 
212.5

 
212.5

 
216.8

 
0.08
%
^B for Blonde, LLC dba Blo Blow Dry Bar
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2026

 
54.4

 
54.4

 
49.1

 
0.02
%
^Gilmore Heights Dental Holdings, LTD and Chas Rob LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2029

 
282.2

 
282.2

 
271.5

 
0.10
%
^Ei3 Corporation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2026

 
283.5

 
283.5

 
289.3

 
0.10
%
^Jersey Shore Marina & Boat Sales, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/12/2041

 
607.0

 
607.0

 
648.7

 
0.23
%
^Base USA, Inc.
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
2/2/2026

 
43.4

 
43.4

 
44.3

 
0.02
%
^Zouk Ltd dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/29/2026

 
19.4

 
19.4

 
19.8

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

 
9.7

 
9.7

 
9.7

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

 
53.8

 
53.8

 
54.3

 
0.02
%
^SuzyQue's LLC dba SuzyQue's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026

 
19.4

 
19.4

 
19.8

 
0.01
%
^New Image Building Services, Inc. dba The Maids serving Oakland
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2026

 
71.6

 
71.6

 
67.0

 
0.02
%
^Gendron Funeral and Cremation Services, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/11/2041

 
107.5

 
107.5

 
114.9

 
0.04
%
^Dolarian Realty LLC and OV's Restaurant Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/5/2041

 
65.7

 
65.7

 
70.2

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

 
96.1

 
96.1

 
89.1

 
0.03
%
^MCF Forte LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/29/2025

 
16.0

 
16.0

 
14.5

 
0.01
%
^Panditos LLC dba White Lotus Home
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/28/2025

 
13.6

 
13.6

 
12.2

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

 
1,067.6

 
1,067.6

 
962.6

 
0.35
%

F-161
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^V2 Tango LLC dba Palette 22
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/23/2025

 
213.5

 
213.5

 
197.0

 
0.07
%
^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/23/2040

 
99.0

 
99.0

 
103.4

 
0.04
%
^800 on the Trax LLC and Matrix Z LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2040

 
233.0

 
233.0

 
242.0

 
0.09
%
^Joyce Outdoor Advertising Chicago LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2040

 
291.8

 
291.8

 
301.7

 
0.11
%
^The LAX Shop Inc
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/22/2025

 
83.5

 
83.5

 
85.1

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

 
792.9

 
792.9

 
817.1

 
0.29
%
^Hattingh Incorporated dba Prosthetic Care Facility
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2025

 
15.4

 
15.4

 
14.4

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

 
990.3

 
990.3

 
1,057.7

 
0.38
%
^Trip Consultants U.S.A. Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
149.5

 
149.5

 
134.4

 
0.05
%
^Jay Kevin Gremillion dba Dino Smiles Children's Cosmetic Dentistry
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
64.0

 
64.0

 
58.9

 
0.02
%
^Capital Scrap Metal LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
29.7

 
29.7

 
27.1

 
0.01
%
^Labmates LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040

 
157.0

 
157.0

 
167.7

 
0.06
%
^Abbondanza Market LLC dba Hampton Falls Village Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
57.4

 
57.4

 
53.0

 
0.02
%
^Accent Tag and Label Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040

 
640.6

 
640.6

 
667.4

 
0.24
%
^Mustafa Inc dba Adiba Grocery
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025

 
88.7

 
88.7

 
90.4

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

 
9.2

 
9.2

 
8.3

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

 
758.9

 
758.9

 
767.4

 
0.28
%
^Moments to Remember USA LLC dba Retain Loyalty
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
64.1

 
64.1

 
62.4

 
0.02
%

F-162
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^JAG Unit 1, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
213.5

 
213.5

 
192.0

 
0.07
%
^Abitino's JFK LLC dba Abitino's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2022

 
98.1

 
98.1

 
91.4

 
0.03
%
^Swalm Sreet LLC and New York Home Health Care Equipment LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2040

 
363.7

 
363.7

 
384.7

 
0.14
%
^SDA Holdings LLC and Les Cheveux Salon Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/15/2040

 
417.7

 
417.7

 
429.7

 
0.15
%
^Evans & Paul LLC and E&P Holdings I LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2025

 
106.8

 
106.8

 
98.6

 
0.04
%
^Basista Family Limited Partnership and UPE, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/14/2040

 
330.9

 
330.9

 
343.6

 
0.12
%
^DC Enterprises Ltd. dba Lakeview True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2025

 
19.2

 
19.2

 
19.0

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

 
13.6

 
13.6

 
13.6

 
%
^AGR Foodmart Inc dba Nashua Road Mobil
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/11/2025

 
19.2

 
19.2

 
18.9

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

 
44.7

 
44.7

 
47.7

 
0.02
%
^Cares, Inc dba Dumpling Grounds Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/10/2025

 
6.4

 
6.4

 
6.5

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

 
85.4

 
85.4

 
79.1

 
0.03
%
^Sushiya, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/8/2025

 
92.9

 
92.9

 
86.3

 
0.03
%
^My Jewels, LLC dba The UPS Store #6712
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/7/2025

 
30.2

 
30.2

 
27.2

 
0.01
%
^Blue Ox Trucking Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/4/2025

 
2.5

 
2.5

 
2.5

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

 
118.4

 
118.4

 
126.4

 
0.05
%
^LC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040

 
486.4

 
486.4

 
510.5

 
0.18
%
^American Campgrounds LLC dba Whit's End Campground
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040

 
283.1

 
283.1

 
297.6

 
0.11
%
^Tariq, LLC dba 76 Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/2/2040

 
362.3

 
362.3

 
380.7

 
0.14
%
^401 JJS, Corp and G. Randazzo's Trattoria Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/1/2040

 
51.3

 
51.3

 
53.2

 
0.02
%

F-163
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Delta Aggregate, LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
90.7

 
90.7

 
92.5

 
0.03
%
^Hurshell Leon Dutton dba High Jump Party Rentals
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
14.8

 
14.8

 
15.1

 
0.01
%
^Japp Business Inc dba Pick and Eat and Japp Drink Corp.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
106.1

 
106.1

 
99.5

 
0.04
%
^Smokeyard Inc dba Smokeyard BBQ and Chop Shop
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
105.9

 
105.9

 
97.0

 
0.03
%
^DWeb Studio, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025

 
9.5

 
9.5

 
8.6

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

 
61.2

 
61.2

 
55.1

 
0.02
%
^Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/23/2040

 
738.3

 
738.3

 
784.0

 
0.28
%
^Play and Learn Child Care and School Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/23/2025

 
9.4

 
9.4

 
9.6

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

 
76.4

 
76.4

 
69.8

 
0.03
%
^Haven Hospitality Group Inc. dba Haven Gastropub
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/20/2025

 
112.2

 
112.2

 
102.5

 
0.04
%
^CNYP 717 Irondequoit LLC and CNYP 2002 Ontario LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/20/2040

 
236.8

 
236.8

 
236.1

 
0.08
%
^S.B.B. Enterprises Inc dba Williamston Hardware
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/19/2040

 
104.7

 
104.7

 
104.6

 
0.04
%
^Key Pix Productions Inc. dba Air Bud Entertainment
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
11/18/2040

 
608.0

 
608.0

 
649.4

 
0.23
%
^E.S.F.P. LLC dba Volusia Van and Storage
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/11/2025

 
75.4

 
75.4

 
69.2

 
0.02
%
^Green Life Lawnscapes LLC dba Green Life Lawn Care
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/6/2025

 
110.3

 
110.3

 
110.9

 
0.04
%
^Jumbomarkets Inc dba Rines Jumbomarkets
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/4/2025

 
259.4

 
259.4

 
260.5

 
0.09
%
^Bisson Transportation Inc dba I & R Associates and Document Security
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/30/2025

 
18.9

 
18.9

 
18.5

 
0.01
%
^L.M. Jury Enterprises, Inc dba Midwest Monograms
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
10/28/2025

 
65.7

 
65.7

 
60.0

 
0.02
%
^Top Cat Ready Mix, LLC, Ples Investments LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/28/2025

 
597.3

 
597.3

 
554.1

 
0.20
%

F-164
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Windsor Direct Distribution LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/26/2025

 
12.0

 
12.0

 
10.8

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

 
33.6

 
33.6

 
30.2

 
0.01
%
^Tannehill Enterprises Inc dba Hobbytown USA Folsom
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
10/14/2025

 
73.4

 
73.4

 
66.0

 
0.02
%
^ADMO Inc dba Mid States Equipment
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/8/2025

 
18.9

 
18.9

 
17.4

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

 
668.0

 
668.0

 
634.2

 
0.23
%
^SCJEN Management Inc dba Bowl of Heaven
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
60.0

 
60.0

 
53.9

 
0.02
%
^Naeem Khan LTD
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
104.1

 
104.1

 
93.5

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

 
58.8

 
58.8

 
59.1

 
0.02
%
^Bat Bridge Investments Inc dba Kalologie 360 Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
72.7

 
72.7

 
65.3

 
0.02
%
^Binky's Vapes LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
18.7

 
18.7

 
16.8

 
0.01
%
^Barub Realty LLC and Barub LLC dba Woodlawn Cabinets
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/30/2040

 
137.5

 
137.5

 
146.6

 
0.05
%
^R.H. Hummer Jr., Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
324.3

 
324.3

 
321.5

 
0.12
%
^Greensward of Marco Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040

 
84.1

 
84.1

 
87.0

 
0.03
%
^RIM Investments LLC and RIM Architects LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040

 
383.5

 
383.5

 
395.2

 
0.14
%
^The Grasso Companies LLC and Grasso Pavement Maintenance LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/28/2025

 
428.0

 
428.0

 
435.8

 
0.16
%
^Sandlot Ventures LLC and Sandbox Ventures LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
426.0

 
426.0

 
434.1

 
0.16
%
^Yachting Solutions LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
925.2

 
925.2

 
941.5

 
0.34
%
^Prestigious LifeCare for Seniors LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025

 
8.2

 
8.2

 
7.9

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

 
13.0

 
13.0

 
13.8

 
%

F-165
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(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

 
600.8

 
600.8

 
625.4

 
0.22
%
^Hagerstown Muffler, Inc. and JMS Muffler, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/24/2040

 
314.8

 
314.8

 
336.0

 
0.12
%
^J.R. Wheeler Corporation dba Structurz Exhibits and Graphics
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/24/2025

 
17.5

 
17.5

 
17.9

 
0.01
%
^Rutledge Enterprises Inc dba BLC Property Management
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/23/2040

 
59.6

 
59.6

 
62.1

 
0.02
%
^Finish Strong Inc dba FASTSIGNS St Peters
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025

 
41.7

 
41.7

 
37.4

 
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

 
127.1

 
127.1

 
114.1

 
0.04
%
^Nova Solutions Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/22/2040

 
307.6

 
307.6

 
320.5

 
0.12
%
^Pine Belt Wood Products LLC
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
9/22/2040

 
157.4

 
157.4

 
154.5

 
0.06
%
^Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025

 
41.6

 
41.6

 
39.1

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

 
556.8

 
556.8

 
500.0

 
0.18
%
^Vanderhoof LLC dba Soxfords
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/18/2025

 
13.2

 
13.2

 
11.9

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

 
6.9

 
6.9

 
6.2

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

 
104.2

 
104.2

 
93.5

 
0.03
%
^Import Car Connection Inc dba Car Connection
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/16/2040

 
391.7

 
391.7

 
415.0

 
0.15
%
^FirstVitals Health and Wellness Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/15/2025

 
125.0

 
125.0

 
112.2

 
0.04
%
^Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2025

 
53.7

 
53.7

 
54.5

 
0.02
%
^Veliu LLC dba FASTSIGNS #15901
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/10/2025

 
42.2

 
42.2

 
38.8

 
0.01
%
^B and A Friction Materials Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/9/2025

 
82.6

 
82.6

 
74.2

 
0.03
%
^Gardner's Wharf Holdings LLC and Gardner's Wharf Seafood Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/8/2040

 
134.6

 
134.6

 
143.6

 
0.05
%

F-166
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^AIG Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/4/2040

 
349.7

 
349.7

 
352.6

 
0.13
%
^Empower Autism Academy
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/4/2040

 
658.5

 
658.5

 
702.8

 
0.25
%
^Higher Grounds Community Coffeehouse, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/2/2025

 
6.9

 
6.9

 
6.4

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

 
18.4

 
18.4

 
16.5

 
0.01
%
^The Camera House Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2025

 
1,041.2

 
1,041.2

 
998.9

 
0.36
%
^LAN Doctors Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
67.1

 
67.1

 
64.0

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

 
12.5

 
12.5

 
11.3

 
%
^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

 
91.1

 
91.1

 
95.9

 
0.03
%
^Zephyr Seven Series LLC dba 18/8 Fine Men's Salon
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
69.6

 
69.6

 
63.7

 
0.02
%
^B and J Catering Inc dba Culinary Solutions
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/27/2040

 
532.9

 
532.9

 
544.2

 
0.20
%
^3000 CSI Property LLC and Consulting Solutions Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/20/2040

 
132.3

 
132.3

 
139.9

 
0.05
%
^God Be Glorified Inc dba GBG Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/20/2025

 
43.8

 
43.8

 
39.3

 
0.01
%
^GDP Gourmet LLC dba Joe and John's Pizza Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/19/2040

 
139.1

 
139.1

 
144.2

 
0.05
%
^Gold Jet Corp.
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
8/14/2025

 
59.5

 
59.5

 
56.7

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

 
70.0

 
70.0

 
63.6

 
0.02
%
^LP Industries Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/29/2025

 
102.4

 
102.4

 
100.0

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

 
53.8

 
53.8

 
50.7

 
0.02
%
^Beale Street Blues Company-West Palm Beach LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/24/2025

 
54.3

 
54.3

 
50.3

 
0.02
%
^Forever & Always of Naples Inc dba Island Animal Hospital
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/24/2025

 
80.9

 
80.9

 
77.7

 
0.03
%

F-167
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Smart Artists Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/23/2025

 
18.4

 
18.4

 
16.6

 
0.01
%
^Free Ion Advisors LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/21/2025

 
52.6

 
52.6

 
47.3

 
0.02
%
^Murrayville Donuts, Inc dba Dunkin' Donuts
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/15/2040

 
333.8

 
333.8

 
340.8

 
0.12
%
^Union 2 LLC dba The Standard
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/10/2025

 
80.3

 
80.3

 
77.3

 
0.03
%
^Thrifty Market, Inc. dba Thrifty Foods
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2030

 
234.9

 
234.9

 
238.7

 
0.09
%
^Danny V, LLC dba Hugo's Taproom
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
44.3

 
44.3

 
47.1

 
0.02
%
^Anglin Cultured Stone Products LLC dba Anglin Construction
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
228.8

 
228.8

 
227.8

 
0.08
%
^Jonathan E Nichols and Nichols Fire and Security LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
60.9

 
60.9

 
62.1

 
0.02
%
^BJ's Tavern LLC and BJ's Cabana Bar Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
203.2

 
203.2

 
219.3

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

 
12.9

 
12.9

 
12.7

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

 
261.7

 
261.7

 
267.9

 
0.10
%
^Advanced Skincare Medcenter Inc dba Advanced Skincare Surgery
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
274.0

 
274.0

 
270.3

 
0.10
%
^CEM Autobody LLC dba Dawn's Autobody
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040

 
129.6

 
129.6

 
139.0

 
0.05
%
^TJU-DGT Inc dba The Lorenz Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/26/2029

 
18.2

 
18.2

 
19.1

 
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

 
363.4

 
363.4

 
391.2

 
0.14
%
^SofRep, Inc dba Force 12 Media
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025

 
53.8

 
53.8

 
52.7

 
0.02
%
^E & G Enterprises LLC dba Comfort Keepers
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025

 
18.3

 
18.3

 
17.9

 
0.01
%
^Ohs Auto Body, Inc. dba Ohs Body Shop
 
Repair and Maintenance
 
Term Loan
 
7.465%
 
6/25/2040

 
1,167.1

 
1,167.1

 
1,251.2

 
0.45
%
^Wolf Enviro Interests, LLC and Enviromax Services Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2040

 
236.2

 
236.2

 
250.2

 
0.09
%
^Evinger PA One, Inc. dba Postal Annex, Falcon
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025

 
18.3

 
18.3

 
18.3

 
0.01
%

F-168
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Richards Plumbing and Heating Co., Inc. dba Richards Mechanical
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/23/2040

 
527.6

 
527.6

 
575.2

 
0.21
%
^RJI Services, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2025

 
18.1

 
18.1

 
17.7

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

 
43.1

 
43.1

 
44.4

 
0.02
%
^PM Cassidy Enterprises, Inc. dba Junk King
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
12.1

 
12.1

 
11.9

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

 
448.4

 
448.4

 
450.6

 
0.16
%
^Inverted Healthcare Staffing of Florida LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025

 
49.7

 
49.7

 
48.8

 
0.02
%
^Flooring Liquidators Inc and Flooring Liquidators of Mt Kisco LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/17/2025

 
378.7

 
378.7

 
389.6

 
0.14
%
^AM PM Properties, LLC and AM PM Willington, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/17/2040

 
83.0

 
83.0

 
90.2

 
0.03
%
^Nelson Sargsyan dba HDA Trucking
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025

 
105.9

 
105.9

 
103.8

 
0.04
%
^Bizzare Foods Inc dba Trooper Foods
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/12/2025

 
95.6

 
95.6

 
93.8

 
0.03
%
^Mirage Plastering Inc and Mpire LLC and Mpire II LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040

 
132.7

 
132.7

 
139.0

 
0.05
%
^Anturio Marketing Inc dba Logic Consulting
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040

 
277.6

 
277.6

 
302.6

 
0.11
%
^Eldredge Tavern LLC dba Gonyea's Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/8/2040

 
53.8

 
53.8

 
58.6

 
0.02
%
^Nicor LLC dba Fibrenew Sacramento
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/5/2022

 
9.7

 
9.7

 
9.4

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

 
12.7

 
12.7

 
12.5

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

 
50.3

 
50.3

 
49.8

 
0.02
%
^Video Vault & Tanning LLC and Mosaic Salon LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/4/2040

 
86.6

 
86.6

 
94.4

 
0.03
%
^Medworxs LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/3/2025

 
101.5

 
101.5

 
99.8

 
0.04
%
^XCESSIVE THROTTLE, INC dba Jake's Roadhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2025

 
6.7

 
6.7

 
6.5

 
%

F-169
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Villela CPA PL
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/27/2025

 
7.2

 
7.2

 
7.2

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

 
11.4

 
11.4

 
11.8

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

 
166.2

 
166.2

 
180.0

 
0.06
%
^Pen Tex Inc dba The UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/20/2025

 
17.7

 
17.7

 
17.4

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

 
579.6

 
579.6

 
573.0

 
0.21
%
^15 McArdle LLC and No Other Impressions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/15/2040

 
245.5

 
245.5

 
261.7

 
0.09
%
^Guard Dogs MFS LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/8/2025

 
52.3

 
52.3

 
51.5

 
0.02
%
^George S Cochran DDS Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/7/2025

 
105.1

 
105.1

 
103.1

 
0.04
%
^South Park Properties LLC and Midlothian Hardware LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/6/2040

 
161.7

 
161.7

 
176.2

 
0.06
%
^Matthew Taylor and Landon Farm LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/4/2040

 
96.1

 
96.1

 
101.0

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

 
77.3

 
77.3

 
84.3

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

 
12.0

 
12.0

 
11.7

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

 
17.2

 
17.2

 
17.1

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

 
17.0

 
17.0

 
16.7

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

 
17.9

 
17.9

 
17.6

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

 
35.4

 
35.4

 
34.7

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

 
70.1

 
70.1

 
75.4

 
0.03
%
^Advance Case Parts RE Holdings LLC and Advance Case Parts Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040

 
707.0

 
707.0

 
751.1

 
0.27
%

F-170
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^T and B Boots Inc dba Takken's Shoes
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
130.3

 
130.3

 
134.3

 
0.05
%
^Havana Central NJ1, LLC dba Havana Central
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
218.9

 
218.9

 
225.2

 
0.08
%
^Mid-South Lumber Co. of Northwest Florida, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040

 
407.8

 
407.8

 
432.3

 
0.16
%
^Copper Beech Financial Group LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025

 
98.8

 
98.8

 
99.4

 
0.04
%
^Delta Aggregate LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025

 
78.9

 
78.9

 
81.3

 
0.03
%
^Sunset Marine Resort LLC and GoXpeditions LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
287.0

 
287.0

 
312.7

 
0.11
%
^Foresite Realty Partners LLC and Foresite Real Estate Holdings LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
979.0

 
979.0

 
958.7

 
0.34
%
^Shellhorn and Hill Inc dba Total Fleet Service
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
985.7

 
985.7

 
1,044.9

 
0.38
%
^Shorr Enterprises Inc dba New Design Furniture Manufacturers
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
84.3

 
84.3

 
85.2

 
0.03
%
^Geo Los Angeles LLC dba Geo Film Group
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2025

 
102.8

 
102.8

 
103.7

 
0.04
%
^Joyce Outdoor Advertising NJ LLC and Joyce Outdoor Advertising LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2040

 
51.4

 
51.4

 
55.8

 
0.02
%
^Zero-In Media Inc
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2025

 
17.8

 
17.8

 
17.4

 
0.01
%
^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

 
770.5

 
770.5

 
838.3

 
0.30
%
^Loriet LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/24/2025

 
9.5

 
9.5

 
9.3

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

 
107.0

 
107.0

 
116.5

 
0.04
%
^Jaymie Hazard dba Indigo Hair Studio and Day Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040

 
41.1

 
41.1

 
44.1

 
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

 
81.3

 
81.3

 
88.5

 
0.03
%
^MMS Realty, LLC and Molecular MS Diagnostics LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2040

 
152.9

 
152.9

 
163.7

 
0.06
%
^Royal Crest Motors LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040

 
86.8

 
86.8

 
93.4

 
0.03
%

F-171
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^BND Sebastian Limited Liability Company and Sebastian Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040

 
164.1

 
164.1

 
177.5

 
0.06
%
^Douglas Printy Motorsports, Inc. dba Blackburn Trike
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/9/2040

 
182.4

 
182.4

 
195.3

 
0.07
%
^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

 
8.9

 
8.9

 
9.2

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

 
49.5

 
49.5

 
48.7

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

 
1,192.7

 
1,192.7

 
1,299.2

 
0.47
%
^Pace Motor Lines, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/26/2025

 
51.7

 
51.7

 
53.3

 
0.02
%
^Nelson Financial Services LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/24/2025

 
9.8

 
9.8

 
9.5

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

 
58.9

 
58.9

 
63.0

 
0.02
%
^Triangle Trash LLC dba Bin There Dump That
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
2/18/2025

 
58.2

 
58.2

 
58.4

 
0.02
%
^Silva Realty Holdings, LLC and MF-Silva Enterprises, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/11/2040

 
163.0

 
163.0

 
174.3

 
0.06
%
^740 Barry Street Realty LLC and Wild Edibles Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/10/2040

 
467.6

 
467.6

 
509.4

 
0.18
%
^Kostekos Inc dba New York Style Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/6/2040

 
63.0

 
63.0

 
67.7

 
0.02
%
^DuCharme Realty LLC and DuCharme Enterprises LLC
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/2/2040

 
213.8

 
213.8

 
227.8

 
0.08
%
^Dean 1021 LLC dba Pure Pita
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/29/2025

 
63.4

 
63.4

 
62.5

 
0.02
%
^Limameno LLC dba Sal's Italian Ristorante
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/23/2025

 
64.6

 
64.6

 
63.9

 
0.02
%
^Palmabak Inc dba Mami Nora's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/22/2025

 
12.4

 
12.4

 
12.8

 
%
^Jung Design Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/20/2022

 
5.4

 
5.4

 
5.2

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

 
126.0

 
126.0

 
136.8

 
0.05
%
^Bear Creek Entertainment, LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
85.4

 
85.4

 
87.9

 
0.03
%

F-172
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Evans and Paul LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
172.0

 
172.0

 
176.2

 
0.06
%
^FHJE Ventures LLC and Eisenreich II Inc dba Breakneck Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/30/2039

 
233.6

 
233.6

 
248.2

 
0.09
%
^First Prevention and Dialysis Center, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
221.9

 
221.9

 
225.7

 
0.08
%
^Bowlerama Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2039

 
1,139.4

 
1,139.4

 
1,240.2

 
0.45
%
^401 JJS Corporation and G. Randazzo Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
452.7

 
452.7

 
489.7

 
0.18
%
^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

 
501.7

 
501.7

 
531.9

 
0.19
%
^Thermoplastic Services Inc and Paragon Plastic Sheet, Inc
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
473.1

 
473.1

 
514.9

 
0.18
%
^Atlantis of Daytona LLC and Ocean Club Sportswear Inc
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
194.1

 
194.1

 
211.3

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

 
144.2

 
144.2

 
143.5

 
0.05
%
^MM and M Management Inc dba Pizza Artista
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/19/2025

 
36.7

 
36.7

 
36.2

 
0.01
%
^B.S. Ventures LLC dba Dink's Market
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/19/2039

 
50.9

 
50.9

 
55.4

 
0.02
%
^The Jewelers Inc. dba The Jewelers of Las Vegas
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/19/2024

 
961.0

 
961.0

 
943.3

 
0.34
%
^Will Zac Management LLC dba Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
12/19/2024

 
130.7

 
121.7

 
134.5

 
0.05
%
^B & W Towing, LLC and Boychucks Fuel LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/17/2039

 
155.5

 
155.5

 
166.1

 
0.06
%
^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

 
307.5

 
307.5

 
306.9

 
0.11
%
^Kemmer LLC and Apples Tree Top Liquors LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/4/2039

 
130.9

 
130.9

 
139.3

 
0.05
%
^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

 
42.0

 
42.0

 
41.8

 
0.02
%
^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

 
141.5

 
141.5

 
151.5

 
0.05
%
^DeRidder Chiropractic LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
10.1

 
10.1

 
10.3

 
%

F-173
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(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%
 
11/25/2024

 
167.5

 
167.5

 
164.7

 
0.06
%
^Legacy Estate Planning Inc dba American Casket Enterprises
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024

 
32.0

 
32.0

 
31.3

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

 
578.9

 
578.9

 
570.4

 
0.20
%
^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

 
113.3

 
113.3

 
122.5

 
0.04
%
^MLM Enterprises LLC and Demand Printing Solutions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/18/2024

 
53.7

 
53.7

 
54.4

 
0.02
%
^JEJE Realty LLC and La Familia Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/10/2039

 
171.2

 
171.2

 
184.3

 
0.07
%
^Joey O's LLC and Jennifer Olszewski
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/7/2024

 
0.7

 
0.7

 
0.7

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

 
451.5

 
451.5

 
487.6

 
0.18
%
^Golden Transaction Corporation dba Bleh Sunoco
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/30/2039

 
147.7

 
147.7

 
160.1

 
0.06
%
^Seelan Inc dba Candleridge Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/27/2039

 
85.3

 
85.3

 
91.4

 
0.03
%
^Navdeep B Martins and Busy Bubbles LLC dba Wishy Washy
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/24/2039

 
84.0

 
84.0

 
89.4

 
0.03
%
^One Hour Jewelry Repair Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/14/2024

 
15.5

 
15.5

 
15.2

 
0.01
%
^DNT Storage and Properties LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
10/10/2039

 
95.9

 
95.9

 
104.0

 
0.04
%
^Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/10/2024

 
141.3

 
141.3

 
140.5

 
0.05
%
^Return to Excellence, Inc. dba The Waynesville Inn Golf & Spa
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/10/2039

 
1,192.8

 
1,192.8

 
1,298.3

 
0.47
%
^Smith Spinal Care Center P.C. and James C. Smith
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2039

 
56.6

 
56.6

 
61.0

 
0.02
%
^Doctors Express Management of Central Texas LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2024

 
70.0

 
70.0

 
71.6

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

 
116.8

 
116.8

 
126.5

 
0.05
%
^Sumad LLC dba BrightStar Care of Encinitas
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/2/2024

 
40.1

 
40.1

 
41.2

 
0.01
%

F-174
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Roccos LLC and Sullo Pantalone Inc dba Rocco's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2039

 
240.6

 
240.6

 
256.9

 
0.09
%
^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

 
94.1

 
94.1

 
102.2

 
0.04
%
^Orange County Insurance Brokerage Inc dba Beaty Insurance Agency
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/29/2039

 
306.9

 
306.9

 
333.8

 
0.12
%
^The Woods at Bear Creek LLC and Bear Creek Entertainment LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2039

 
489.6

 
489.6

 
532.5

 
0.19
%
^Gordon E Rogers dba Stonehouse Motor Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
54.1

 
54.1

 
58.8

 
0.02
%
^Auto Shine Carwash Inc and AKM R. Hossain and Jessica F. Masud
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/26/2024

 
16.8

 
16.8

 
16.6

 
0.01
%
^Keys Phase One LLC dba The Grand Guesthouse
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
696.2

 
696.2

 
752.3

 
0.27
%
^6 Price Avenue, LLC and Pauley Tree & Lawn Care, Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/24/2039

 
432.6

 
432.6

 
456.4

 
0.16
%
^North Columbia LLC and Loop Liquor and Convenience Store LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/24/2039

 
150.0

 
150.0

 
162.0

 
0.06
%
^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

 
23.4

 
23.4

 
22.9

 
0.01
%
^Ryan Crick and Pamela J. Crick and Crick Enterprises Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2039

 
136.9

 
136.9

 
148.9

 
0.05
%
^Modern Leather Goods Repair Shop Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2024

 
43.4

 
43.4

 
42.4

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

 
402.5

 
402.5

 
434.3

 
0.16
%
^Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/15/2024

 
204.5

 
204.5

 
204.1

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

 
1,176.2

 
1,176.2

 
1,270.9

 
0.46
%
^Indy East Smiles Youth Dentistry LLC dba Prime Smile East
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2024

 
470.6

 
470.6

 
460.7

 
0.17
%
^B&P Diners LLC dba Engine House Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/10/2024

 
59.7

 
59.7

 
58.4

 
0.02
%
^Feel The World Inc dba Xero Shoes and Invisible Shoes
 
Leather and Allied Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/5/2024

 
38.8

 
38.8

 
38.2

 
0.01
%
^Delta Aggregate LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
8/28/2039

 
859.0

 
859.0

 
934.3

 
0.34
%
^Lamjam LLC, Goldsmith Lambros Inc
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024

 
100.0

 
100.0

 
102.8

 
0.04
%

F-175
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Orange County Cleaning Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024

 
23.5

 
23.5

 
22.9

 
0.01
%
^Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/26/2024

 
89.3

 
89.3

 
89.7

 
0.03
%
^Atlas Auto Body Inc dba Atlas Auto Sales
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/22/2039

 
48.4

 
48.4

 
51.9

 
0.02
%
^Katie Senior Care LLC dba Home Instead Senior Care
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2024

 
91.9

 
91.9

 
89.8

 
0.03
%
^Alpha Preparatory Academy LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
136.9

 
136.9

 
148.9

 
0.05
%
^S&P Holdings of Daytona LLC, S&P Corporation of Daytona Beach
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
384.5

 
384.5

 
418.2

 
0.15
%
^Hamer Road Auto Salvage, LLC and Scott T. Cook and Nikki J. Cook
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6%
 
8/8/2039

 
177.0

 
177.0

 
192.5

 
0.07
%
^Almost Home Property LLC and Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/7/2039

 
677.8

 
677.8

 
734.8

 
0.26
%
^AGV Enterprises LLC dba Jet's Pizza #42
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
40.1

 
40.1

 
39.5

 
0.01
%
^iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
288.2

 
288.2

 
289.1

 
0.10
%
^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

 
20.4

 
20.4

 
22.1

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

 
140.6

 
140.6

 
152.9

 
0.05
%
^Miss Cranston Diner II, LLC and Miss Cranston II Realty LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/17/2039

 
95.8

 
95.8

 
103.2

 
0.04
%
^AMG Holding, LLC and Stetson Automotive, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
194.6

 
194.6

 
213.9

 
0.08
%
^Highway Striping Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
38.5

 
38.5

 
39.3

 
0.01
%
^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
72.3

 
72.3

 
74.8

 
0.03
%
^Honeyspot Investors LLP and Pace Motor Lines Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
820.1

 
820.1

 
901.2

 
0.32
%
^iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
590.9

 
590.9

 
643.1

 
0.23
%
^FHJE Ventures LLC and Eisenreich II Inc. dba Breakneck Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/27/2039

 
301.1

 
301.1

 
329.8

 
0.12
%
^Zinger Hardware and General Merchant Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/26/2024

 
45.0

 
45.0

 
46.5

 
0.02
%

F-176
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^JPM Investments LLC and Carolina Family Foot Care P.A.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2039

 
132.6

 
132.6

 
145.4

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

 
449.3

 
449.3

 
492.3

 
0.18
%
^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

 
218.4

 
218.4

 
239.2

 
0.09
%
^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

 
251.4

 
251.4

 
259.9

 
0.09
%
^Nirvi Enterprises LLC dba Howard Johnson / Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/17/2039

 
861.0

 
861.0

 
946.2

 
0.34
%
^Global Educational Delivery Services LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/16/2024

 
43.9

 
43.9

 
45.4

 
0.02
%
^Rainbow Dry Cleaners
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/13/2024

 
90.5

 
90.5

 
92.5

 
0.03
%
^NVR Corporation dba Discount Food Mart
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/11/2039

 
61.7

 
61.7

 
67.8

 
0.02
%
^Sico & Walsh Insurance Agency Inc and The AMS Trust
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/6/2039

 
87.8

 
87.8

 
96.5

 
0.03
%
^Sujata Inc dba Stop N Save Food Mart and Dhruvesh Patel
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/3/2024

 
16.3

 
16.3

 
16.6

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

 
51.9

 
51.9

 
56.8

 
0.02
%
^CJR LLC, and PowerWash Plus, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024

 
37.9

 
37.9

 
39.1

 
0.01
%
^Pocono Coated Products, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024

 
16.1

 
16.1

 
16.6

 
0.01
%
^Wilton Dental Care P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024

 
93.7

 
93.7

 
95.3

 
0.03
%
^EGM Food Services Inc dba Gold Star Chili
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024

 
13.8

 
13.8

 
14.1

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

 
43.0

 
43.0

 
43.7

 
0.02
%
^Hae M. and Jin S. Park dba Buford Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/15/2039

 
154.8

 
154.8

 
169.1

 
0.06
%
^The River Beas LLC and Punam Singh
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/8/2039

 
84.6

 
84.6

 
92.7

 
0.03
%
^AS Boyals LLC dba Towne Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/29/2039

 
101.5

 
101.5

 
111.5

 
0.04
%

F-177
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Gerami Realty, LC, Sherrill Universal City Corral, LP
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/23/2027

 
62.9

 
62.9

 
65.9

 
0.02
%
^Complete Body & Paint, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/23/2039

 
19.5

 
19.5

 
21.4

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

 
96.8

 
96.8

 
106.4

 
0.04
%
^Wilshire Media Systems Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/17/2024

 
132.1

 
132.1

 
134.7

 
0.05
%
^1899 Tavern & Tap LLC and Ale House Tavern & Tap LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/9/2039

 
127.2

 
127.2

 
139.6

 
0.05
%
^Dantanna's Tavern LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
117.7

 
117.7

 
120.4

 
0.04
%
^Little People's Village II LLC and Iliopoulos Realty LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
86.2

 
86.2

 
94.0

 
0.03
%
^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

 
417.7

 
417.7

 
457.7

 
0.16
%
^Little People's Village II LLC and Iliopoulos Realty LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
95.1

 
95.1

 
103.7

 
0.04
%
^Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/31/2024

 
522.7

 
522.7

 
537.3

 
0.19
%
^Kemmer, LLC and Pitts Package Store, Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
109.5

 
109.5

 
118.9

 
0.04
%
^Lake Area Autosound LLC and Ryan H. Whittington
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2039

 
118.0

 
118.0

 
129.2

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

 
402.7

 
402.7

 
440.9

 
0.16
%
^Knowledge First Inc dba Magic Years of Learning and Kimberly Knox
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/21/2039

 
135.1

 
135.1

 
147.5

 
0.05
%
^636 South Center Holdings, LLC and New Mansfield Brass and Aluminum Co
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039

 
72.6

 
72.6

 
79.7

 
0.03
%
^Cormac Enterprises and Wyoming Valley Beverage Incorporated
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039

 
103.2

 
103.2

 
113.3

 
0.04
%
^Kinisi, Inc. dba The River North UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2024

 
20.3

 
20.3

 
21.0

 
0.01
%
^SE Properties 39 Old Route 146, LLC, SmartEarly Clifton Park LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/14/2039

 
380.7

 
380.7

 
418.0

 
0.15
%
^Tortilla King Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2039

 
202.6

 
202.6

 
220.8

 
0.08
%
^Tortilla King, Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2029

 
875.7

 
875.7

 
919.0

 
0.33
%

F-178
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Bowl Mor, LLC dba Bowl Mor Lanes / Spare Lounge, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/13/2039

 
207.9

 
207.9

 
228.3

 
0.08
%
^Avayaan2 LLC dba Island Cove
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/7/2039

 
146.5

 
146.5

 
160.4

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

 
387.8

 
387.8

 
423.9

 
0.15
%
^Summit Beverage Group LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024

 
243.3

 
243.3

 
249.9

 
0.09
%
^Faith Memorial Chapel LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039

 
199.2

 
199.2

 
217.5

 
0.08
%
^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

 
196.0

 
196.0

 
214.0

 
0.08
%
^Choe Trade Group Inc dba Rapid Printers of Monterey
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024

 
110.5

 
110.5

 
114.1

 
0.04
%
^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

 
131.9

 
131.9

 
144.8

 
0.05
%
^JWB Industries, Inc. dba Carteret Die Casting
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/11/2024

 
194.3

 
194.3

 
198.0

 
0.07
%
^Awesome Pets II Inc dba Mellisa's Pet Depot
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
2/7/2024

 
58.4

 
58.4

 
59.6

 
0.02
%
^986 Dixwell Avenue Holding Company, LLC and Mughali Foods, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/7/2039

 
92.4

 
92.4

 
101.2

 
0.04
%
^Sarah Sibadan dba Sibadan Agency
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/27/2039

 
119.9

 
119.9

 
131.5

 
0.05
%
^JDR Industries Inc dba CST-The Composites Store, JetCat USA
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
1/21/2024

 
96.2

 
96.2

 
98.5

 
0.04
%
^Icore Enterprises Inc dba Air Flow Filters Inc
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/15/2024

 
14.9

 
14.9

 
15.4

 
0.01
%
^Carl R. Bieber, Inc. dba Bieber Tourways/Bieber Transportation
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2027

 
575.7

 
575.7

 
604.3

 
0.22
%
^Nutmeg North Associates LLC (OC) Steeltech Building Products Inc
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/31/2038

 
848.7

 
848.7

 
925.6

 
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

 
299.3

 
299.3

 
326.2

 
0.12
%
^KK International Trading Corporation
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/23/2028

 
155.7

 
155.7

 
163.9

 
0.06
%
^Mosley Auto Group LLC dba America's Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038

 
204.9

 
204.9

 
224.5

 
0.08
%

F-179
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Kurtis Sniezek dba Wolfe's Foreign Auto
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038

 
82.2

 
82.2

 
90.2

 
0.03
%
^PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/19/2038

 
513.5

 
513.5

 
560.6

 
0.20
%
^TAK Properties LLC and Kinderland Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/18/2038

 
375.1

 
375.1

 
409.8

 
0.15
%
^TOL LLC dba Wild Birds Unlimited
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/13/2023

 
12.6

 
12.6

 
12.9

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

 
387.3

 
387.3

 
424.9

 
0.15
%
^DKB Transport Corp
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2038

 
128.3

 
128.3

 
140.8

 
0.05
%
^Firm Foundations Inc David S Gaitan Jr and Christopher K Daigle
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/3/2038

 
96.4

 
96.4

 
104.8

 
0.04
%
^Spectrum Development LLC and Solvit Inc & Solvit North, Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/2/2023

 
267.3

 
267.3

 
273.5

 
0.10
%
^BVIP Limousine Service LTD
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/27/2038

 
70.6

 
70.6

 
77.3

 
0.03
%
^Eco-Green Reprocessing LLC and Denali Medical Concepts, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/27/2023

 
45.1

 
45.1

 
45.8

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

 
83.5

 
83.5

 
84.3

 
0.03
%
^AcuCall LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2023

 
10.4

 
10.4

 
10.5

 
%
^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

 
30.8

 
30.8

 
31.3

 
0.01
%
^Yousef Khatib dba Y&M Enterprises
 
Wholesale Electronic Markets and Agents and Brokers
 
Term Loan
 
Prime plus 2.75%
 
11/15/2023

 
50.3

 
50.3

 
51.2

 
0.02
%
^Howell Gun Works LLC
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
11/14/2023

 
3.8

 
3.8

 
3.8

 
%
^Polpo Realty, LLC, Polpo Restaurant, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/6/2038

 
57.5

 
57.5

 
63.1

 
0.02
%
^Twinsburg Hospitality Group LLC dba Comfort Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
874.3

 
874.3

 
954.3

 
0.34
%
^Mid-Land Sheet Metal Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
126.9

 
126.9

 
138.9

 
0.05
%

F-180
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(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

 
549.6

 
549.6

 
598.2

 
0.21
%
^Janice B. McShan and The Metropolitan Day School, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/31/2023

 
29.1

 
29.1

 
30.0

 
0.01
%
^1 North Restaurant Corp dba 1 North Steakhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
195.8

 
195.8

 
214.5

 
0.08
%
^New Image Building Services Inc. dba New Image Repair Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/29/2023

 
219.5

 
219.5

 
223.8

 
0.08
%
^Greenbrier Technical Services, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/24/2023

 
145.0

 
145.0

 
149.5

 
0.05
%
^Clairvoyant Realty Corp. and Napoli Marble & Granite Design, Ltd
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/24/2038

 
226.8

 
226.8

 
247.3

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

 
58.0

 
58.0

 
59.1

 
0.02
%
^First Steps Real Estate Company, LLC and First Steps Preschool
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
89.7

 
89.7

 
97.6

 
0.04
%
^Lenoir Business Partners LLC, LP Industries, Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
271.6

 
271.6

 
297.2

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

 
110.6

 
110.6

 
121.2

 
0.04
%
^Discount Wheel and Tire
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
205.6

 
205.6

 
224.3

 
0.08
%
^Cencon Properties LLC and Central Connecticut Warehousing Company, Inc
 
Warehousing and Storage
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
317.0

 
317.0

 
347.5

 
0.12
%
^Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038

 
307.8

 
307.8

 
336.3

 
0.12
%
^Gabrielle Realty, LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038

 
696.0

 
696.0

 
759.1

 
0.27
%
^Anthony C Dinoto and Susan S P Dinoto and Anthony C Dinoto Funeral Home
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
91.9

 
91.9

 
100.7

 
0.04
%
^Eastside Soccer Dome, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
426.0

 
426.0

 
467.0

 
0.17
%
^HJ & Edward Enterprises, LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2023

 
177.5

 
177.5

 
182.3

 
0.07
%
^Southeast Chicago Soccer, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
47.1

 
47.1

 
51.6

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

 
83.0

 
83.0

 
90.4

 
0.03
%

F-181
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Diamond Memorials Incorporated
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2023

 
8.1

 
8.1

 
8.2

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

 
30.5

 
30.5

 
31.0

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

 
246.9

 
246.9

 
269.8

 
0.10
%
^Westville Seafood LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2038

 
103.2

 
103.2

 
112.6

 
0.04
%
^Maynard Enterprises Inc dba Fastsigns of Texarkana
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/18/2023

 
10.6

 
10.6

 
10.8

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

 
108.7

 
108.7

 
110.6

 
0.04
%
^Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/12/2028

 
44.2

 
44.2

 
46.3

 
0.02
%
^The Berlerro Group, LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/12/2023

 
285.1

 
285.1

 
289.9

 
0.10
%
^Prospect Kids Academy Inc
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038

 
114.2

 
114.2

 
124.8

 
0.04
%
^Alma J. and William R. Walton and Almas Child Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038

 
36.3

 
36.3

 
39.8

 
0.01
%
^B for Brunette dba Blo
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/10/2023

 
35.4

 
35.4

 
35.9

 
0.01
%
^Schmaltz Holdings, LLC and Schmaltz Operations, LLC dba Companio
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/4/2038

 
204.7

 
204.7

 
223.3

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

 
84.3

 
84.3

 
86.8

 
0.03
%
^IlOKA Inc dba Microtech Tel and NewCloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
445.0

 
445.0

 
454.0

 
0.16
%
^ACI Northwest Inc.
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
396.6

 
396.6

 
408.4

 
0.15
%
^Gulfport Academy Child Care and Learning Center, Inc. and Jennifer Sis
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
28.0

 
28.0

 
28.8

 
0.01
%
^Ramard Inc and Advanced Health Sciences Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/28/2023

 
121.4

 
121.4

 
122.8

 
0.04
%
^RM Hawkins LLC dba Pure Water Tech West and Robert M Hawkins
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/26/2023

 
52.4

 
52.4

 
54.0

 
0.02
%
^JSIL LLC dba Blackstones Hairdressing
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/16/2023

 
12.5

 
12.5

 
12.7

 
%

F-182
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Island Nautical Enterprises, Inc. and Ingwall Holdings, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/14/2038

 
317.9

 
317.9

 
346.2

 
0.12
%
^Caribbean Concepts, Inc. dba Quick Bleach
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/12/2023

 
14.6

 
14.6

 
14.8

 
0.01
%
^Majestic Contracting Services, Inc. dba Majestic Electric and Majestic
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/26/2038

 
173.9

 
173.9

 
189.5

 
0.07
%
^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

 
7.6

 
7.6

 
7.8

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

 
85.2

 
85.2

 
93.3

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

 
2.2

 
2.2

 
2.4

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

 
56.1

 
56.1

 
57.8

 
0.02
%
^Morning Star Trucking LLC and Morning Star Equipment and Leasing LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/17/2023

 
34.4

 
34.4

 
34.8

 
0.01
%
^Maxiflex LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2023

 
28.6

 
28.6

 
29.5

 
0.01
%
^GIA Realty LLC and VRAJ GIA LLC dba Lakeview Laundromat
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2038

 
89.1

 
89.1

 
98.1

 
0.04
%
^JRA Holdings LLC, Jasper County Cleaners Inc dba Superior Cleaner
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2038

 
109.0

 
109.0

 
120.1

 
0.04
%
^2161 Highway 6 Trail, LLC, R. H. Hummer JR., Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2026

 
665.4

 
665.4

 
697.0

 
0.25
%
^Blakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial Services
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/18/2028

 
693.9

 
693.9

 
733.7

 
0.26
%
^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

 
217.1

 
217.1

 
222.8

 
0.08
%
^Elite Structures Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/12/2038

 
830.6

 
830.6

 
915.1

 
0.33
%
^Willowbrook Properties LLC, Grove Gardens Landscaping Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038

 
170.1

 
170.1

 
187.3

 
0.07
%
^(EPC) Absolute Desire LLC and Mark H. Szierer, Sophisticated Smile
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038

 
172.3

 
172.3

 
189.4

 
0.07
%
^RXSB, Inc dba Medicine Shoppe
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
5/30/2023

 
116.1

 
116.1

 
119.1

 
0.04
%
^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

 
39.3

 
39.3

 
40.5

 
0.01
%

F-183
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Ryan D. Thornton and Thornton & Associates LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
5/24/2023

 
30.7

 
30.7

 
31.5

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

 
500.9

 
500.9

 
550.9

 
0.20
%
^Peanut Butter & Co., Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/30/2023

 
61.2

 
61.2

 
62.8

 
0.02
%
^Brothers International Desserts
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/26/2023

 
141.6

 
141.6

 
145.8

 
0.05
%
^Kidrose, LLC dba Kidville Riverdale
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/22/2023

 
49.0

 
49.0

 
50.4

 
0.02
%
^1258 Hartford TPKE, LLC and Phelps and Sons, Inc
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
113.1

 
113.1

 
124.2

 
0.04
%
^Capital Scrap Metal, LLC and Powerline Investment, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
432.5

 
432.5

 
476.1

 
0.17
%
^MRM Supermarkets Inc dba Constantins Breads; Dallas Gourmet Breads
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
305.5

 
305.5

 
335.3

 
0.12
%
^Xela Pack, Inc. and Aliseo and Catherine Gentile
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2028

 
211.9

 
211.9

 
223.8

 
0.08
%
^A & M Commerce, Inc. dba Cranberry Sunoco
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/27/2038

 
299.6

 
299.6

 
329.5

 
0.12
%
^American Diagnostic Imaging, Inc. dba St. Joseph Imaging Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2038

 
487.8

 
487.8

 
536.0

 
0.19
%
^Michael A.and HeatherR. Welsch dba Art & FrameEtc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/22/2038

 
61.3

 
61.3

 
67.4

 
0.02
%
^M & H Pine Straw Inc and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023

 
198.8

 
198.8

 
204.6

 
0.07
%
^Truth Technologies Inc dba Truth Technologies Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023

 
48.3

 
48.3

 
49.5

 
0.02
%
^J. Kinderman & Sons Inc., dba BriteStar Inc.
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/20/2023

 
112.1

 
112.1

 
115.5

 
0.04
%
^Stellar Environmental LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2023

 
34.2

 
34.2

 
35.2

 
0.01
%
^Sound Manufacturing, Inc. and Monster Power Equipment Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/15/2023

 
316.1

 
316.1

 
325.1

 
0.12
%
^Golden Gate Lodging LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2038

 
104.4

 
104.4

 
114.8

 
0.04
%
^River Club Golf Course Inc dba The River Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2038

 
432.8

 
432.8

 
475.8

 
0.17
%

F-184
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(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

 
62.7

 
62.7

 
64.3

 
0.02
%
^Osceola River Mill, LLC, Ironman Machine, Inc.
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/20/2038

 
78.1

 
78.1

 
85.9

 
0.03
%
^Java Warung, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/19/2038

 
46.3

 
46.3

 
50.9

 
0.02
%
^Retain Loyalty LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/15/2038

 
96.2

 
96.2

 
105.9

 
0.04
%
^Outcome Driven Innovation, Inc. dba ODI
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/12/2023

 
50.2

 
50.2

 
51.5

 
0.02
%
^Knits R Us, Inc. dba NYC Sports / Mingle
 
Textile Mills
 
Term Loan
 
Prime plus 2.75%
 
2/11/2038

 
113.4

 
113.4

 
124.8

 
0.04
%
^North Country Transport, LLC
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/6/2023

 
9.0

 
9.0

 
9.3

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

 
233.4

 
233.4

 
256.5

 
0.09
%
^Sherill Universal City dba Golden Corral
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2038

 
399.7

 
399.7

 
439.3

 
0.16
%
^Macho LLC, Madelaine Chocolate Novelties Inc
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/31/2037

 
453.3

 
453.3

 
498.5

 
0.18
%
^Elegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2022

 
56.9

 
56.9

 
58.3

 
0.02
%
^Babie Bunnie Enterprises Inc dba Triangle Mothercare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2027

 
32.2

 
32.2

 
33.8

 
0.01
%
^John Duffy Fuel Co., Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/28/2022

 
300.0

 
300.0

 
308.6

 
0.11
%
^Polpo Realty LLC & Polpo Restaurant LLC dba Polpo Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/27/2037

 
467.1

 
467.1

 
513.6

 
0.18
%
^Martin L Hopp, MD PHD A Medical Corp dba Tower ENT
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2022

 
38.5

 
38.5

 
39.5

 
0.01
%
^Ezzo Properties, LLC and Great Lakes Cleaning, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2027

 
298.5

 
298.5

 
313.7

 
0.11
%
^Pioneer Window Holdings, Inc and Subsidiaries dba Pioneer Windows
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/20/2022

 
130.7

 
130.7

 
134.1

 
0.05
%
^Cheryle A Baptiste and Cheryle Baptiste DDS PLLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2037

 
259.0

 
259.0

 
284.7

 
0.10
%
^Daniel Gordon and Erin Gordon and Silver Lining Stables CT, LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
11/28/2037

 
204.2

 
204.2

 
224.5

 
0.08
%
^D&L Rescources, Inc. dba The UPS Store
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/27/2022

 
5.6

 
5.6

 
5.7

 
%

F-185
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Richmond Hill Mini Market, LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/27/2037

 
166.8

 
166.8

 
183.3

 
0.07
%
^DRV Enterprise, Inc. dba Cici's Pizza # 339
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/26/2022

 
34.8

 
34.8

 
35.8

 
0.01
%
^U & A Food and Fuel, Inc. dba Express Gas & Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/21/2037

 
86.6

 
86.6

 
95.3

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

 
157.5

 
157.5

 
161.6

 
0.06
%
^R & J Petroleum LLC, Manar USA, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/20/2037

 
162.0

 
162.0

 
178.0

 
0.06
%
^St Judes Physical Therapy P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2022

 
12.1

 
12.1

 
12.5

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

 
12.8

 
12.8

 
13.1

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

 
239.2

 
239.2

 
262.3

 
0.09
%
^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

 
104.5

 
104.5

 
106.9

 
0.04
%
^LA Diner Inc dba Loukas L A Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/28/2037

 
617.8

 
617.8

 
678.8

 
0.24
%
^University Park Retreat, LLC dba Massage Heights
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2022

 
42.4

 
42.4

 
43.6

 
0.02
%
^Forno Italiano Di Nonna Randazzo, LLC dba Nonna Randazzo's Bakery
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/26/2037

 
165.9

 
165.9

 
182.0

 
0.07
%
^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

 
226.0

 
226.0

 
247.9

 
0.09
%
^O'Rourkes Diner LLC dba O'Rourke's Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2037

 
58.7

 
58.7

 
64.3

 
0.02
%
^AJK Enterprise LLC dba AJK Enterprise LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/27/2022

 
9.0

 
9.0

 
9.3

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

 
255.4

 
255.4

 
279.8

 
0.10
%
^Suncoast Aluminum Furniture, Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/17/2037

 
322.0

 
322.0

 
353.8

 
0.13
%
^Hofgard & Co., Inc. dba HofgardBenefits
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022

 
57.1

 
57.1

 
58.7

 
0.02
%
^Georgia Safe Sidewalks LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022

 
8.0

 
8.0

 
8.2

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

 
256.5

 
256.5

 
282.2

 
0.10
%

F-186
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^WPI, LLC
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2024

 
82.4

 
82.4

 
85.4

 
0.03
%
^Havana Central (NY) 5, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/29/2022

 
736.2

 
736.2

 
756.2

 
0.27
%
^Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/27/2037

 
62.0

 
62.0

 
68.2

 
0.02
%
^KIND-ER-ZZ Inc dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2022

 
26.4

 
26.4

 
27.1

 
0.01
%
^Graphish Studio, Inc. and Scott Fishoff
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/14/2022

 
10.7

 
10.7

 
11.0

 
%
^ALF, LLC, Mulit-Service Eagle Tires
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/31/2037

 
55.9

 
55.9

 
61.5

 
0.02
%
^Craig R Freehauf dba Lincoln Theatre
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
5/31/2022

 
16.0

 
16.0

 
16.5

 
0.01
%
^Christou Real Estate Holdings LLC dba Tops American Grill
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/17/2037

 
251.6

 
251.6

 
277.0

 
0.10
%
^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

 
11.8

 
11.8

 
12.1

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

 
550.0

 
550.0

 
604.8

 
0.22
%
^Bisson Moving & Storage Company Bisson Transportation Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/7/2022

 
319.5

 
319.5

 
328.2

 
0.12
%
^Fair Deal Food Mart Inc dba Neighbors Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/3/2037

 
338.2

 
338.2

 
372.3

 
0.13
%
^Tanner Optical, Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/27/2022

 
4.2

 
4.2

 
4.3

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

 
288.3

 
288.3

 
296.0

 
0.11
%
^Indoor Playgrounds Limited Liability Company dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/5/2022

 
5.1

 
5.1

 
5.2

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

 
95.2

 
95.2

 
97.4

 
0.03
%
^Brandywine Picnic Park, Inc. and B.Ross Capps & Linda Capps
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/30/2031

 
187.0

 
187.0

 
200.7

 
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

 
669.6

 
669.6

 
736.4

 
0.26
%
^DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
3/23/2037

 
2,623.4

 
2,623.4

 
2,885.4

 
1.04
%

F-187
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6.25%
 
3/23/2022

 
734.2

 
734.2

 
753.2

 
0.27
%
^Manuel P. Barrera and Accura Electrical Contractor, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028

 
77.5

 
77.5

 
81.8

 
0.03
%
^Shweiki Media, Inc. dba Study Breaks Magazine
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/22/2027

 
852.3

 
852.3

 
896.6

 
0.32
%
^ATI Jet, Inc.
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/28/2026

 
596.3

 
596.3

 
626.7

 
0.23
%
^J. Kinderman & Sons, Inc. dba Brite Star Manufacturing Company
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/22/2036

 
440.1

 
440.1

 
483.6

 
0.17
%
^K's Salon, LLC dba K's Salon
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2021

 
35.5

 
35.5

 
36.3

 
0.01
%
^15 Frederick Place LLC & Pioneer Windows Holdings Inc & Subs
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/16/2021

 
118.7

 
118.7

 
121.5

 
0.04
%
^M & H Pinestraw, Inc. and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/15/2021

 
135.5

 
135.5

 
138.7

 
0.05
%
^Taylor Transport, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/8/2021

 
148.7

 
148.7

 
152.3

 
0.05
%
^MRM Supermarkets, Inc. dba Constantin's Breads
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/10/2021

 
65.0

 
65.0

 
66.5

 
0.02
%
^K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
10/26/2021

 
27.6

 
27.6

 
28.2

 
0.01
%
^28 Cornelia Street Properties, LLC and Zouk, Ltd.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/25/2021

 
10.4

 
10.4

 
10.6

 
%
^39581 Garfield, LLC and Tri County Neurological Associates, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
72.3

 
72.3

 
79.3

 
0.03
%
^Robert E. Caves, Sr. and American Plank dba Caves Enterprises
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2021

 
137.7

 
137.7

 
140.8

 
0.05
%
^39581 Garfield, LLC and Tricounty Neurological Associates, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
24.6

 
24.6

 
27.0

 
0.01
%
^PTK, Incorporated dba Night N Day 24 HR Convenience Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
119.7

 
119.7

 
131.4

 
0.05
%
^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

 
479.9

 
479.9

 
489.7

 
0.18
%
^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

 
28.5

 
28.5

 
29.1

 
0.01
%

F-188
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Bryan Bantry Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/8/2021

 
38.0

 
38.0

 
38.8

 
0.01
%
^Michael S. Decker & Janet Decker dba The Hen House Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2036

 
14.3

 
14.3

 
15.7

 
0.01
%
^Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/19/2021

 
79.1

 
79.1

 
80.8

 
0.03
%
^Trademark Equipment Company Inc and David A. Daniel
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/19/2036

 
116.0

 
116.0

 
127.3

 
0.05
%
^Valiev Ballet Academy, Inc
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
8/12/2036

 
36.8

 
36.8

 
40.4

 
0.01
%
^A & A Auto Care, LLC dba A & A Auto Care, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/12/2036

 
88.0

 
88.0

 
96.6

 
0.03
%
^LaHoBa, LLC d/b/a Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/3/2036

 
66.8

 
66.8

 
73.4

 
0.03
%
^MTV Bowl, Inc. dba Legend Lanes
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2036

 
217.9

 
217.9

 
239.5

 
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

 
38.8

 
38.8

 
42.7

 
0.02
%
^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/29/2036

 
303.8

 
303.8

 
333.9

 
0.12
%
^Pierce Developments, Inc. dba Southside Granite
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/13/2036

 
221.2

 
221.2

 
243.0

 
0.09
%
^Major Queens Body & Fender Corp
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/10/2021

 
12.2

 
12.2

 
12.5

 
%
^J&K Fitness, LLC dba Physiques Womens Fitness Center
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/8/2036

 
398.3

 
398.3

 
437.7

 
0.16
%
^Peanut Butter & Co., Inc. d/b/a Peanut Butter & Co.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/3/2021

 
26.9

 
26.9

 
27.5

 
0.01
%
^Demand Printing Solutions, Inc.and MLM Enterprises, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/27/2021

 
6.9

 
6.9

 
7.0

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

 
87.9

 
87.9

 
89.8

 
0.03
%
^Profile Performance, Inc. and Eidak Real Estate, L.L.C.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2036

 
109.6

 
109.6

 
120.5

 
0.04
%

F-189
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/18/2036

 
113.8

 
113.8

 
125.1

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

 
13.3

 
13.3

 
14.6

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

 
23.0

 
23.0

 
23.5

 
0.01
%
^Key Products I&II, Inc. dba Dunkin' Donuts/Baskin-Robbins
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/10/2021

 
61.5

 
61.5

 
62.8

 
0.02
%
^Stephen Frank, Patricia Frank and Suds Express LLC dba Frank Chiropra
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/25/2023

 
31.3

 
31.3

 
32.3

 
0.01
%
^SuzyQue’s LLC dba Suzy Que’s
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/11/2036

 
52.3

 
52.3

 
57.5

 
0.02
%
^Little People’s Village, LLC dba Little People’s Village
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2036

 
26.5

 
26.5

 
29.1

 
0.01
%
^Seagate Group Holdings, Inc. dba Seagate Logistics, Inc.
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/28/2036

 
96.7

 
96.7

 
106.2

 
0.04
%
^Patrageous Enterprises, LLC dba Incredibly Edible Delites of Laurel
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/29/2020

 
2.7

 
2.7

 
2.8

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

 
1,316.8

 
1,334.6

 
1,444.1

 
0.52
%
^Groundworks Unlimited LLC
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
12/17/2023

 
72.8

 
72.8

 
75.4

 
0.03
%
^Shree OM Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/17/2035

 
23.5

 
23.5

 
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

 
24.4

 
24.4

 
24.8

 
0.01
%
^Robert F. Schuler and Lori A. Schuler dba Bob’s Service Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/30/2035

 
28.8

 
28.8

 
31.6

 
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

 
126.3

 
126.3

 
138.5

 
0.05
%
^K9 Bytes, Inc & Epazz, Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
9/30/2020

 
6.4

 
6.4

 
6.5

 
%
^Elan Realty, LLC and Albert Basse Asociates, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
9/30/2035

 
192.6

 
192.6

 
211.1

 
0.08
%
^Success Express,Inc. dba Success Express
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2020

 
30.5

 
30.5

 
31.0

 
0.01
%
^Modern Manhattan, LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/20/2020

 
70.6

 
70.6

 
71.9

 
0.03
%
^Dirk's Trucking, L.L.C. dba Dirk's Trucking
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/17/2020

 
6.0

 
6.0

 
6.1

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

 
42.2

 
42.2

 
46.2

 
0.02
%

F-190
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Newsome Trucking Inc and Kevin Newsome
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035

 
206.1

 
206.1

 
225.8

 
0.08
%
^California College of Communications, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/2/2020

 
61.3

 
61.3

 
62.5

 
0.02
%
^DDLK Investments LLC dba Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020

 
1.6

 
1.6

 
1.6

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

 
13.2

 
13.2

 
13.4

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

 
15.9

 
15.9

 
16.2

 
0.01
%
^I-90 RV & Auto Supercenter
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/29/2035

 
62.7

 
62.7

 
68.6

 
0.02
%
^Zouk, Ltd. dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/25/2020

 
9.1

 
9.1

 
9.3

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

 
6.6

 
6.6

 
6.7

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

 
79.3

 
79.3

 
86.8

 
0.03
%
^B&B Fitness and Barbell, Inc. dba Elevations Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
6/22/2035

 
182.0

 
182.0

 
199.2

 
0.07
%
^M & H Pine Straw, Inc.and Harris Maloy
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
7/10/2020

 
28.2

 
28.2

 
28.7

 
0.01
%
^Excel RP, Inc./Kevin and Joann Foley
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/8/2028

 
35.7

 
35.7

 
37.9

 
0.01
%
ValleyStar, Inc. dba BrightStar HealthCare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020

 
1.9

 
1.9

 
1.9

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

 
2.4

 
2.4

 
2.4

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

 
11.5

 
11.5

 
11.7

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

 
57.0

 
57.0

 
58.0

 
0.02
%
^New Economic Methods LLC dba Rita's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2020

 
0.5

 
0.5

 
0.6

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

 
1.8

 
1.8

 
1.9

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

 
35.2

 
35.2

 
38.4

 
0.01
%

F-191
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(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

 
25.8

 
25.8

 
26.8

 
0.01
%
^David A. Nusblatt, D.M.D, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
2.3

 
2.3

 
2.3

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

 
13.4

 
13.4

 
13.5

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

 
48.0

 
48.0

 
52.5

 
0.02
%
^Demand Printing Solutions, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/12/2019

 
2.5

 
2.5

 
2.5

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

 
121.1

 
121.1

 
132.3

 
0.05
%
^Rover Repairs
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.5%
 
11/28/2029

 
51.4

 
35.9

 
54.2

 
0.02
%
^Supreme Screw Products
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/17/2019

 
51.5

 
51.5

 
52.1

 
0.02
%
^Gray Tree Service, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2018

 
6.4

 
6.4

 
6.5

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

 
1.7

 
1.7

 
1.8

 
%
^The Alba Financial Group, Inc.
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
6%
 
1/10/2019

 
9.6

 
9.6

 
9.7

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

 
0.6

 
0.6

 
0.6

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

 
41.1

 
41.1

 
41.4

 
0.01
%
^CBA D&A Pope, LLC dba Christian Brothers Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/14/2018

 
11.0

 
11.0

 
11.0

 
%
^Gilbert Chiropractic Clinic, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/7/2018

 
0.3

 
0.3

 
0.3

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

 
49.0

 
49.0

 
52.8

 
0.02
%
Bliss Coffee and Wine Bar, LLC
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
8/31/2019

 
68.1

 
68.1

 
68.9

 
0.02
%
^Zog Inc.
 
Other Information Services
 
Term Loan
 
6%
 
3/17/2018

 
48.2

 
48.2

 
48.4

 
0.02
%
^Saan M.Saelee dba Saelee's Delivery Service
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2018

 
0.3

 
0.3

 
0.3

 
%

F-192
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Integrity Sports Group, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
6%
 
3/6/2018

 
30.6

 
30.6

 
30.7

 
0.01
%
^Enewhere Custom Canvas, LLC
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
2/15/2018

 
0.5

 
0.5

 
0.5

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

 
2.2

 
2.2

 
2.2

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

 
36.4

 
36.4

 
39.5

 
0.01
%
^Seo's Paradise Cleaners, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2018

 
0.1

 
0.1

 
0.1

 
%
^Connect Litigation Technology, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2%
 
10/18/2025

 
25.2

 
17.6

 
25.7

 
0.01
%
^1911 East Main Street Holdings, Corp
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2032

 
11.9

 
11.9

 
12.8

 
%
^Water Works Laundromat, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.25%
 
9/7/2027

 
170.4

 
170.4

 
176.3

 
0.06
%
^Dave Kris, and MDK Ram Corp.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/5/2026

 
29.6

 
29.6

 
31.0

 
0.01
%
^Gill Express Inc. dba American Eagle Truck Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/5/2027

 
173.9

 
173.9

 
183.4

 
0.07
%
^Smooth Grounds, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
7.75%
 
12/31/2018

 
27.5

 
27.5

 
27.7

 
0.01
%
^Fran-Car Corporation dba Horizon Landscape Management
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/3/2028

 
65.4

 
65.4

 
69.3

 
0.02
%
^Head To Toe Personalized Pampering, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/27/2031

 
8.6

 
8.6

 
9.2

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

 
3.0

 
3.0

 
3.2

 
%
^Mogas Limited
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/31/2030

 
69.6

 
48.7

 
74.5

 
0.03
%
^Shree Om Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/2/2030

 
61.5

 
61.5

 
65.9

 
0.02
%
^Pedzik's Pets, LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
3/31/2030

 
8.5

 
8.5

 
9.1

 
%
^Nancy Carapelluci & A & M Seasonal Corner Inc.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/1/2025

 
13.1

 
13.1

 
13.7

 
%
^Patricia Hughes Jones, MD PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/13/2020

 
3.7

 
2.5

 
3.8

 
%

F-193
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Moonlight Multi Media Production, Inc.
 
Other Information Services
 
Term Loan
 
5.3%
 
2/1/2025

 
2.7

 
2.7

 
2.9

 
%
David M. Goens dba Superior Auto Paint & Body, Inc.
 
Repair and Maintenance
 
Term Loan
 
6%
 
8/26/2024

 
15.8

 
15.8

 
16.5

 
0.01
%
^McCallister Venture Group, LLC and Maw's Vittles, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/30/2029

 
10.9

 
10.9

 
11.6

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

 
8.3

 
8.3

 
8.6

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

 
65.2

 
65.2

 
66.9

 
0.02
%
^West Experience,Inc/West Mountain Equipment Rental,Inc/Ski West Lodge
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
6/5/2026

 
826.6

 
826.6

 
868.6

 
0.31
%
^Center-Mark Car Wash, Ltd
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/18/2024

 
24.8

 
24.8

 
25.8

 
0.01
%
^Shuttle Car Wash, Inc. dba Shuttle Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.25%
 
11/10/2028

 
16.0

 
16.0

 
16.6

 
0.01
%
^Min Hui Lin
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2028

 
16.4

 
16.4

 
17.3

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

 
40.2

 
40.2

 
42.3

 
0.02
%
^Auto Sales, Inc.
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6%
 
8/17/2023

 
6.8

 
6.8

 
7.0

 
%
^RAB Services, Inc. & Professional Floor Installations
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.5%
 
1/31/2023

 
6.0

 
6.0

 
6.2

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

 
7.9

 
7.9

 
8.1

 
%
^Ralph Werner dba Werner Transmission Inc
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/29/2021

 
1.9

 
1.9

 
2.0

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

 
29.6

 
29.6

 
30.7

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

 
3.4

 
3.4

 
3.5

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

 
27.4

 
27.4

 
28.0

 
0.01
%
^Track Side Collision & Tire, Inc.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025

 
4.4

 
4.4

 
4.6

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

 
10.7

 
10.7

 
10.9

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

 
24.8

 
24.8

 
25.4

 
0.01
%
^Maruti, Inc
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
11/25/2024

 
22.9

 
22.9

 
23.4

 
0.01
%
Willington Hills Equestrian Center LLC
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
10/19/2022

 
12.4

 
12.4

 
12.8

 
%

F-194
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^LABH, Inc., Ramada Ltd.
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/27/2024

 
36.7

 
36.7

 
37.6

 
0.01
%
^Randall D. & Patricia D. Casaburi dba Pat's Pizzazz
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/13/2023

 
6.1

 
6.1

 
6.3

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

 
17.4

 
17.4

 
17.8

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

 
26.4

 
26.4

 
27.1

 
0.01
%
^Stillwell Ave Prep School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/14/2023

 
5.5

 
5.5

 
5.7

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

 
11.8

 
11.8

 
11.9

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

 
3.2

 
3.2

 
3.3

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

 
38.8

 
38.8

 
39.6

 
0.01
%
^Bhailal Patel dba New Falls Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
3.1

 
3.1

 
3.2

 
%
^Pegasus Automotive, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/23/2022

 
9.4

 
9.4

 
9.7

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

 
10.8

 
10.8

 
11.2

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

 
7.0

 
7.0

 
7.1

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

 
5.0

 
5.0

 
5.1

 
%
Total Performing SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
264,318.4

 
$
264,282.0

 
$
266,467.1

 
95.74
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Performing SBA Unguaranteed Investments (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*^200 North 8th Street Associates LLC and Enchanted Acres Farm
 
Food Manufacturing
 
Term Loan
 
6.25%
 
5/4/2028

 
$
469.3

 
$
469.3

 
$
436.5

 
0.16
%
*^214 North Franklin, LLC and Winter Ventures, Inc.
 
Nonstore Retailers
 
Term Loan
 
6%
 
11/29/2037

 
81.7

 
81.7

 

 
%
*^Alejandro Rico dba Rico Motors and Golden West Motel and Alrima Co Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6.75%
 
11/25/2040

 
68.4

 
68.4

 
2.8

 
%
*^Al-Mustafa Enterprise, Inc. and Al-Mustafa Enterprise Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6.25%
 
9/18/2040

 
34.7

 
34.7

 

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

 
387.4

 
387.4

 
360.3

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

 
305.7

 
305.7

 

 
%

F-195
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*AWA Fabrication & Construction, L.L.C.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
4/30/2025

 
34.8

 
34.8

 

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

 
15.5

 
15.5

 
14.6

 
0.01
%
*Baker Sales, Inc. d/b/a Baker Sales, Inc.
 
Nonstore Retailers
 
Term Loan
 
6%
 
3/29/2036

 
177.4

 
177.4

 
95.5

 
0.03
%
*^Fieldstone Quick Stop LLC, Barber Investments LLC, Thadius M B
 
Gasoline Stations
 
Term Loan
 
6%
 
9/30/2038

 
407.3

 
407.3

 
2.6

 
%
*^Barber Investments LLC and Fieldstone Quickstop LLC and Maine Dollar
 
Gasoline Stations
 
Term Loan
 
6.25%
 
8/15/2039

 
146.3

 
146.3

 

 
%
*Bone Bar & Grill LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2042

 
73.4

 
73.4

 
64.2

 
0.02
%
*^Calhoun Satellite Communications Inc and Transmission Solutions Group
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
811.7

 
811.7

 
431.3

 
0.15
%
*Calhoun Satellite Communications, Inc.
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
12/2/2026

 
189.1

 
189.1

 
172.6

 
0.06
%
*^Chickamauga Properties, Inc., MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6.25%
 
12/22/2035

 
59.0

 
59.0

 
56.5

 
0.02
%
*^Chickamauga Properties, Inc. and MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6.25%
 
10/19/2022

 
43.5

 
43.5

 

 
%
*^CLU Amboy, LLC and Amboy Group, LLC dba Tommy Moloney's
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/27/2023

 
479.8

 
479.8

 
446.2

 
0.16
%
*^CM Lab Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026

 
166.1

 
166.1

 
154.5

 
0.06
%
*^Custom Software, Inc. a Colorado Corporation dba M-33 Access
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6.25%
 
6/17/2021

 
272.7

 
272.7

 
234.6

 
0.08
%
*^Custom Software, Inc. a Colorado Corporation dba M-33 Access
 
Broadcasting (except Internet)
 
Term Loan
 
6.25%
 
4/30/2022

 
94.3

 
94.3

 

 
%
*^D&G Capital LLC dba Miami Grill 277
 
Food Services and Drinking Places
 
Term Loan
 
6.5%
 
12/16/2025

 
81.2

 
81.2

 
55.5

 
0.02
%
*^Daniel S. Fitzpatrick dba Danny's Mobile Appearance Reconditioning Service
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/29/2018

 
0.3

 
0.3

 
0.3

 
%
*^Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
3/31/2035

 
126.0

 
126.0

 
118.9

 
0.04
%
*^Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
3/29/2023

 
64.8

 
64.8

 
61.1

 
0.02
%
*^Dill Street Bar and Grill Inc and WO Entertainment, Inc
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
9/27/2027

 
78.4

 
78.4

 

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

 
54.8

 
54.8

 
43.9

 
0.02
%

F-196
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*^E & I Holdings, LP & PA Farm Products, LLC
 
Food Manufacturing
 
Term Loan
 
6%
 
4/30/2030

 
4,923.2

 
5,047.3

 
2,529.6

 
0.91
%
*^ENI Inc, Event Networks Inc, ENI Worldwide LLC and Spot Shop Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6.75%
 
4/25/2024

 
273.8

 
273.8

 

 
%
*^ENI Inc. dba ENI Group, Inc
 
Other Information Services
 
Term Loan
 
6.75%
 
12/11/2025

 
32.8

 
32.8

 

 
%
*^Europlast Ltd
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
6%
 
9/26/2022

 
314.9

 
314.9

 
28.4

 
0.01
%
*^Europlast Ltd
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
6%
 
5/31/2023

 
73.4

 
73.4

 

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

 
12.2

 
12.2

 
9.4

 
%
*^EZ Towing, Inc.
 
Support Activities for Transportation
 
Term Loan
 
6%
 
1/31/2023

 
86.4

 
86.4

 
8.1

 
%
*^Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
6.25%
 
3/30/2022

 
233.5

 
233.5

 
11.2

 
%
*^Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
6.25%
 
4/25/2022

 
157.8

 
157.8

 

 
%
*^Gator Communications Group, LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
6.25%
 
3/27/2023

 
13.3

 
13.3

 

 
%
*^Gino Italian American Deli and Meat Market Inc
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/25/2041

 
530.2

 
530.2

 
493.2

 
0.18
%
*^Grand Manor Realty, Inc. & Kevin LaRoe
 
Real Estate
 
Term Loan
 
6%
 
2/20/2023

 
19.0

 
19.0

 
17.6

 
0.01
%
*Guzman Group, LLC
 
Rental and Leasing Services
 
Term Loan
 
6%
 
9/30/2019

 
181.3

 
181.3

 
173.3

 
0.06
%
*Harrelson Materials Management, Inc
 
Waste Management and Remediation Services
 
Term Loan
 
6%
 
6/24/2021

 
465.2

 
465.2

 
25.0

 
0.01
%
*^Hascher Gabelstapler Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/26/2024

 
107.7

 
107.7

 
100.2

 
0.04
%
*^Hemingway Custom Cabinetry LLC
 
Furniture and Related Product Manufacturing
 
Term Loan
 
6.5%
 
9/25/2025

 
198.6

 
198.6

 
62.5

 
0.02
%
*^Home Again Restaurant LLC
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
6/30/2040

 
58.8

 
58.8

 
47.5

 
0.02
%
*^J And G Group Services LLC and United Vending of Florida Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/28/2026

 
29.6

 
29.6

 
27.5

 
0.01
%
*^J Olson Enterprises LLC and Olson Trucking Direct, Inc.
 
Truck Transportation
 
Term Loan
 
6%
 
6/28/2025

 
628.4

 
628.4

 
76.7

 
0.03
%
*^J&M Concessions, Inc.dba A-1 Liquors
 
Food and Beverage Stores
 
Term Loan
 
6.25%
 
3/3/2039

 
130.6

 
130.6

 
61.7

 
0.02
%
*^J&M Concessions Inc dba A 1 Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
80.0

 
80.0

 
21.6

 
0.01
%

F-197
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*^Jacksonville Beauty Institute Inc. dba Beauty Institute's
 
Educational Services
 
Term Loan
 
7%
 
10/23/2025

 
43.7

 
43.7

 
40.6

 
0.01
%
*Jenny's Wunderland, Inc.
 
Social Assistance
 
Term Loan
 
6%
 
6/29/2036

 
98.8

 
98.8

 
10.6

 
%
*^Karykion, Corporation dba Karykion Corporation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
6/28/2022

 
144.8

 
144.8

 
134.7

 
0.05
%
*^Kantz LLC and Kantz Auto LLC dba Kantz's Hometown Auto
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6.25%
 
10/29/2039

 
11.1

 
11.1

 
10.3

 
%
*^Kids at Heart,LLC dba Monster Mini Golf
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6.75%
 
9/22/2026

 
21.6

 
21.6

 
10.4

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

 
10.3

 
10.3

 
5.5

 
%
*^Kup's Auto Spa Inc
 
Repair and Maintenance
 
Term Loan
 
6.25%
 
11/15/2038

 
366.8

 
366.8

 
341.2

 
0.12
%
*Kup’s Auto Spa, Inc.
 
Repair and Maintenance
 
Term Loan
 
6.25%
 
10/23/2025

 
54.7

 
54.7

 
50.9

 
0.02
%
*^Las Casuelas Del Este Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/29/2041

 
791.6

 
791.6

 
393.1

 
0.14
%
*^Las Torres Development LLC dba Houston Event Centers
 
Real Estate
 
Term Loan
 
6%
 
8/27/2028

 
875.4

 
906.0

 

 
%
*^LE & JS dba Laredo Mercado Y Carniceria
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/13/2026

 
18.5

 
18.5

 

 
%
*^Luv 2 Play Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/12/2026

 
60.8

 
60.8

 
57.4

 
0.02
%
*^M and C Renovations Inc
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/31/2024

 
12.8

 
12.8

 
10.0

 
%
*^Matchless Transportation LLC dba First Class Limo
 
Transit and Ground Passenger Transportation
 
Term Loan
 
6.25%
 
8/3/2022

 
125.3

 
125.3

 
110.0

 
0.04
%
*^Medeiros Holdings Inc dba Outdoor Lighting Perspectives of the Triad
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025

 
19.5

 
19.5

 
6.1

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

 
25.6

 
25.6

 

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

 
725.0

 
725.0

 
342.9

 
0.12
%
*^Morris Glass and Construction
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
3/7/2021

 
465.1

 
482.1

 
53.5

 
0.02
%
*Municipal Hydro Sevices Inc.
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2027

 
225.7

 
225.7

 
42.0

 
0.02
%
*New England Country Day School, Inc. and Thomas D. Walker
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/28/2042

 
362.6

 
362.6

 
293.2

 
0.11
%
*^New Paltz Dental Care, PLLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
6/19/2025

 
97.5

 
97.5

 
59.6

 
0.02
%
*^Colts V LLC and Nowatzke Service Center, Inc
 
Repair and Maintenance
 
Term Loan
 
6.75%
 
9/26/2039

 
577.6

 
577.6

 
545.1

 
0.20
%

F-198
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*^Nowatzke Service Center Inc dba Nowatzke Truck and Trailer
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/29/2026

 
96.9

 
96.9

 
91.5

 
0.03
%
*Paragon Fabricators Inc, Paragon Field Services, Inc and Paragon Global
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/28/2026

 
608.3

 
608.3

 
272.1

 
0.10
%
*^Paragon Global, LLC and Paragon Fabricators Inc and Paragon Field Services
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/28/2041

 
400.1

 
400.1

 
340.3

 
0.12
%
*^Planet Verte, LLC dba Audio Unlimited
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2020

 
16.4

 
16.4

 
15.7

 
0.01
%
*^Pooh's Corner Realty LLC and Pooh's Corner Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/23/2040

 
100.3

 
100.3

 
93.3

 
0.03
%
*Professional Systems, LLC and Professional Cleaning
 
Administrative and Support Services
 
Term Loan
 
6%
 
7/30/2020

 
131.8

 
131.8

 
1.8

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

 
136.9

 
136.9

 
127.3

 
0.05
%
*^RDT Enterprises, L.L.C.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/12/2025

 
19.5

 
19.5

 

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

 
119.0

 
119.0

 
110.7

 
0.04
%
*^Route 130 SCPI Holdings LLC, Route 130 SCPI Operations LLC
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
9/30/2039

 
536.4

 
536.4

 
320.1

 
0.12
%
*^Scoville Plumbing & Heating Inc and Thomas P. Scoville
 
Specialty Trade Contractors
 
Term Loan
 
6.75%
 
7/25/2022

 
32.1

 
32.1

 
30.3

 
0.01
%
*^Shivsakti, LLC dba Knights Inn
 
Accommodation
 
Term Loan
 
6.25%
 
12/20/2032

 
8.0

 
8.0

 

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

 
45.0

 
45.0

 
43.1

 
0.02
%
*^Sovereign Communications LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/7/2024

 
697.1

 
697.1

 
345.4

 
0.12
%
*^Square Deal Siding Company,LLC dba Square Deal Siding Company
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025

 
20.3

 
20.3

 
19.4

 
0.01
%
*^STK Ventures Inc dba JP Dock Service & Supply
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
5/9/2037

 
31.6

 
31.6

 

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

 
58.1

 
58.1

 

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

 
116.9

 
116.9

 
41.6

 
0.01
%
*Stormwise South Florida dba Stormwise Shutters
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
11/7/2036

 
111.2

 
111.2

 

 
%
*^Tim's Tire & Automotive Center, LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/16/2026

 
768.3

 
768.3

 
529.7

 
0.19
%
*^Thomas P. Scoville dba Scoville Plumbing & Heating, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
6.75%
 
11/16/2021

 
34.3

 
34.3

 
32.4

 
0.01
%

F-199
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*Transmission Solutions Group, Inc. and Calhoun Satellite Communications
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
12/2/2041

 
141.3

 
141.3

 
81.8

 
0.03
%
*^Winter Ventures Inc and 214 N Franklin LLC
 
Nonstore Retailers
 
Term Loan
 
6%
 
4/29/2024

 
56.6

 
56.6

 

 
%
*^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall
 
Nonstore Retailers
 
Term Loan
 
6%
 
12/23/2024

 
149.3

 
149.3

 

 
%
*^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall
 
Nonstore Retailers
 
Term Loan
 
6%
 
4/3/2029

 
134.5

 
134.5

 

 
%
*^Wired LLC and Moulison North Corporation
 
Specialty Trade Contractors
 
Term Loan
 
6.25%
 
6/30/2024

 
118.5

 
118.5

 
108.3

 
0.04
%
*^Wired LLC and Moulison North Corporation
 
Specialty Trade Contractors
 
Term Loan
 
6.25%
 
7/3/2024

 
138.3

 
138.3

 

 
%
Total Non-Performing Unguaranteed SBA Investments
 
 
 
 
 
 
 
 
 
$
23,236.1

 
$
23,407.8

 
$
11,567.3

 
4.16
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Unguaranteed SBA Investments
 
 
 
 
 
 
 
 
 
$
287,554.5

 
$
287,689.8

 
$
278,034.4

 
99.89
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performing SBA Guaranteed Investments (4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beale Street Blues Company Inc.dba Beatle Street Blues Company, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027

 
$
2,906.3

 
$
2,906.3

 
$
3,182.3

 
1.14
%
Blue Lagoon Resort, LLC dba Hill View Cottages
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/21/2042

 
566.3

 
566.3

 
644.5

 
0.23
%
Gorilla Warfare LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
127.5

 
127.5

 
141.1

 
0.05
%
Advance Case Parts Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
150.0

 
150.0

 
166.0

 
0.06
%
Anderson Farms Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
3,750.0

 
3,750.0

 
4,106.3

 
1.48
%
Muckamuck Trucks, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
78.2

 
78.2

 
86.5

 
0.03
%
TrialHawk Litigation Group LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
89.3

 
89.3

 
98.8

 
0.04
%
Salida Family Chiropractic-PPLC dba Salida Sport and Spine
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
68.0

 
68.0

 
75.2

 
0.03
%
Lab Partner, LLC and Beechtree Diagnostics, LLP and Cottonwood Diagnostics
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
2,334.8

 
2,334.8

 
2,568.2

 
0.92
%
Medical Plaza of Boro Park PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
187.5

 
187.5

 
207.5

 
0.07
%
Dudeck Enterprise LLC dba Detail Garage Las Vegas
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
91.0

 
91.0

 
100.6

 
0.04
%

F-200
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Jacliff Investments Inc dba International Heal
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
150.0

 
150.0

 
166.0

 
0.06
%
O'Rourke's Diner, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027

 
21.3

 
21.3

 
23.5

 
0.01
%
Anglin Cultured Stone Products LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/27/2042

 
1,931.3

 
1,931.3

 
2,193.2

 
0.79
%
Farec, Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/29/2042

 
843.6

 
843.6

 
959.6

 
0.34
%
Best Choice Meats, Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/29/2027

 
585.0

 
585.0

 
647.3

 
0.23
%
Social Link LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/29/2027

 
63.8

 
63.8

 
70.5

 
0.03
%
Morrocco Method, Inc
 
Chemical Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/27/2042

 
2,583.8

 
2,583.8

 
2,927.7

 
1.05
%
JBK Truck Trailer and Bus Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/23/2042

 
255.9

 
255.9

 
290.3

 
0.10
%
Pecos Entertainment LLC dba State Theater and Pecos Inn LLC
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
3/27/2042

 
1,232.6

 
1,232.6

 
1,393.6

 
0.50
%
Swantown Inn & Spa LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/26/2042

 
245.7

 
245.7

 
278.8

 
0.10
%
House of Bread & Coffee Corp dba Casa Do Pao
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/27/2042

 
403.8

 
403.8

 
457.8

 
0.16
%
CR Park Incorporated dba Define Body and Mind
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
142.7

 
142.7

 
157.9

 
0.06
%
AP6 LLC and Amishp LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2042

 
321.2

 
321.2

 
364.2

 
0.13
%
Pro Anderson, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/11/2027

 
57.9

 
57.9

 
64.1

 
0.02
%
Looky Enterprises, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/18/2027

 
51.7

 
51.7

 
57.2

 
0.02
%
Berza TLG,LLC dba The Little Gym of Lake Charles
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/31/2027

 
73.0

 
73.0

 
73.0

 
0.03
%
Paramount Dance Studios Inc. and Homestead Dance Supply
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/14/2043

 
647.9

 
647.9

 
737.0

 
0.26
%
Murf & Sons LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/16/2027

 
180.3

 
180.3

 
199.5

 
0.07
%
Beacon Brewing LLC and C' Sons, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/27/2042

 
151.1

 
151.1

 
172.0

 
0.06
%

F-201
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Amped Coffee Company LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/28/2027

 
11.3

 
11.3

 
12.4

 
%
Utara LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/1/2027

 
36.3

 
36.3

 
40.2

 
0.01
%
Oil Palace, Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/4/2042

 
2,455.2

 
2,455.2

 
2,774.4

 
1.00
%
DHD Enterprise LLC dba Edible Arrangements #1699
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/21/2027

 
47.4

 
47.4

 
52.5

 
0.02
%
Total Performing SBA Guaranteed Investments
 
 
 
 
 
 
 
 
 
$
22,841.3

 
$
22,841.3

 
$
25,489.6

 
9.16
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed and Guaranteed Investments
 
 
 
 
 
 
 
 
 
$
310,395.8

 
$
310,531.1

 
$
303,524.0

 
109.05
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Controlled Investments (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*Advanced Cyber Security Systems, LLC (6), (19)
 
Data processing, hosting and related services.
 
50% Membership Interest
 
%
 

 
$

 
$

 
$

 
%
 
 
 
 
Term Loan
 
3
%
 
December 2014

 
381.0

 
381.0

 

 
%
*Automated Merchant Services, Inc. (7), (19)
 
Data processing, hosting and related services.
 
100% Common Stock
 
%
 

 

 

 

 
%
CDS Business Services, Inc. (8)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
%
 

 

 
4,428.0

 
8,000.0

 
2.87
%
 
 
 
 
Line of Credit
 
Prime plus 2.5%

 
August 2018

 
6,396.0

 
6,396.0

 
6,396.0

 
2.30
%
*Newtek Technology Solutions, Inc. (11)
 
Data processing, hosting and related services.
 
100% Common Stock
 
%
 

 

 
8,384.0

 
12,400.0

 
4.46
%
*Fortress Data Management, LLC (19)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
%
 

 

 

 

 
%
*Newtek Insurance Agency, LLC (13), (19)
 
Insurance Carriers and Related Activities
 
100% Membership Interest
 
%
 

 

 

 
2,500.0

 
0.90
%
*PMTWorks Payroll, LLC (9)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
%
 

 

 
725.1

 

 
%
 
 
 
 
Term Loan
 
10%-12%

 
Various maturities through July 2019

 
2,685.0

 
2,685.0

 

 
%
Secure CyberGateway Services, LLC (10), (19)
 
Data processing, hosting and related services.
 
66.7% Membership Interest
 
%
 

 

 

 

 
%

F-202
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2017
(In Thousands)
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Small Business Lending, LLC (12), (19)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 
%
 

 

 

 
2,500.0

 
0.90
%
Summit Systems and Designs, LLC (14), (19)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
%
 

 

 

 

 
%
*ADR Partners, LLC dba banc-serv Partners, LLC (12)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 
%
 

 

 
5,290.3

 
3,430.0

 
1.23
%
Premier Payments LLC (11)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
%
 

 

 
16,438.0

 
23,000.0

 
8.26
%
International Professional Marketing, Inc. (17)
 
Professional, Scientific, and Technical Services
 
100% Common Stock
 
%
 

 

 
4,000.0

 
4,000.0

 
1.44
%
 
 
 
 
Line of Credit
 
Prime plus 0.5%

 
April 2018

 
450.0

 
450.0

 
450.0

 
0.16
%
SIDCO, LLC (17)
 
Professional, Scientific, and Technical Services
 
100% Membership Interest
 
%
 

 

 
7,119.7

 
7,119.7

 
2.56
%
 
 
 
 
Line of Credit
 
Prime plus 0.5%

 
July 2019

 
550.0

 
550.0

 
550.0

 
0.20
%
Universal Processing Services of Wisconsin, LLC (11) (19)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
%
 

 

 

 
80,000.0

 
28.74
%
United Capital Source, LLC (18)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 

 

 

 
2,450.0

 
2,450.0

 
0.88
%
Titanium Asset Management, LLC (15)
 
Administrative and Support Services
 
Term Loan
 
3
%
 
July 2017

 
193.9

 
193.9

 

 
%
 
 
 
 
100% Membership Interest
 
%
 

 

 

 

 
%
Excel WebSolutions, LLC (16)
 
Data processing, hosting and related services.
 
Term Loan
 
10
%
 
September 2018

 
406.6

 
406.6

 
359.9

 
0.13
%
 
 
 
 
50% Membership Interest
 
%
 

 

 

 

 
%
Total Controlled Investments
 
 
 
 
 
 
 
 
 
$
11,062.5

 
$
59,897.6

 
$
153,155.6

 
55.03
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments in Money Market Funds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Select Treasury Institutional Fund - 0.84% yield
 
 
 
 
 
 
 
 
 
$
9.2

 
$
9.2

 
$
9.2

 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Investments
 
 
 
 
 
 
 
 
 
$
321,467.5

 
$
370,437.9

 
$
456,688.8

 
164.08
%

F-203
See accompanying notes to these consolidated financial statements




^ Denotes investment that has been pledged as collateral under the Securitization Trusts.
* 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 4.25% as of December 31, 2017.
(3) Newtek values non-performing SBA 7(a) loans using a discounted cash flow analysis of the underlying collateral which supports the loan. Net recovery of collateral, (fair value less cost to liquidate) is applied to the discounted cash flow analysis based upon a time to liquidate estimate. Modified loans are valued based upon current payment streams and are re-amortized at the end of the modification period.
(4) Newtek values guaranteed performing SBA 7(a) loans using the secondary SBA 7(a) market as a reference point. Newtek routinely sells performing SBA 7(a) loans into this secondary market. Guaranteed portions of SBA 7(a) loans partially funded as of the valuation date are valued using level two inputs as disclosed in Note 3.
(5) Controlled Investments are disclosed above as equity investments (except as otherwise noted) in those companies that are “Controlled Investments” of the Company as defined in the Investment Company Act of 1940. A company is deemed to be a “Controlled Investment” of Newtek Business Services Corp. if Newtek Business Services Corp. or its subsidiaries owns more than 25% of the voting securities of such company. See Note 5 in the accompanying notes to the consolidated financial statements for transactions during the year ended December 31, 2017 with affiliates the Company is deemed to control.
(6) 50% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), 50% owned by non-affiliate. The term loan is past its original maturity date and currently in default. As such, the fair value of the investment is zero.
(7) 96.11% owned by Wilshire Partners, LLC (a subsidiary of Newtek Business Services Corp.), 3.89% owned by Newtek Business Services Corp.
(8) 50.15% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.) and 49.85% owned by Wilshire Holdings 1, Inc. (a subsidiary of Newtek Business Services Corp.).
(9) 25% owned by The Whitestone Group, LLC, (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.), 65% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), and 10% owned by Exponential business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.).
(10) 66.7% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.), 33.3% owned by non-affiliate.
(11) 100% owned by Newtek Business Services Holdco1., Inc. (a subsidiary of Newtek Business Services Corp.).
(12) 100% owned by Newtek LSP Holdco, LLC (a subsidiary of Wilshire Holdings I, Inc. and Newtek Business Services Holdco 5, Inc., both subsidiaries of Newtek Business Services Corp.).
(13) 100% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.).
(14) 100% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.).
(15) 50% owned by Exponential Business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.), 47.8% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.) and 2.2% owned by Wilshire New York Advisers II, LLC (a subsidiary of Newtek Business Services Corp.).
(16) 50% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.) and 50% owned by non-affiliate.
(17) 100% owned by Newtek Business Services Holdco 2, Inc. (a subsidiary of Newtek Business Services Corp.). During the year ended December 31, 2018, a portion of IPM’s business was spun off into a new wholly-owned controlled portfolio company, SIDCO. As a result, the underlying IPM business has not changed. The Company determined the cost basis of its investments in IPM and SIDCO to be $4,000,000 and $7,120,000, respectively. Refer to Note 4.
(18) 100% owned by Newtek Business Services Holdco 3, Inc. (a subsidiary of Newtek Business Services Corp.).
(19) 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.
(20) 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
(21) Under the Investment Company Act of 1940, as amended, the Company may not acquire any non-qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. At December 31, 2018, 4.8% of total assets are non-qualifying assets.

F-204
See accompanying notes to these consolidated financial statements



As of December 31, 2017, the federal tax cost of investments was $361,680,000 resulting in estimated gross unrealized gains and losses of $119,606,000 and $24,597,000, respectively.

F-205
See accompanying notes to these consolidated financial statements



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION:

Newtek Business Services Corp. is a Maryland corporation which was formed in August 2013 and is an internally managed, closed end, non-diversified investment company. The Company’s investment strategy is to maximize the investment portfolio’s return by generating current income from the debt investments the Company makes and generate dividend income from equity investments in controlled portfolio companies.

The Company has formed certain Taxable Subsidiaries, which are taxed as corporations for federal income tax purposes. These Taxable Subsidiaries allow the Company to hold equity securities of portfolio companies organized as pass-through entities while continuing to satisfy the requirements of a RIC under the Code.
The following wholly-owned subsidiaries are consolidated in the financial statements of the Company:
Newtek Small Business Finance, LLC
Newtek Asset Backed Securities, LLC
CCC Real Estate Holdings, LLC
The Whitestone Group, LLC
Wilshire Colorado Partners, LLC (1)
Wilshire DC Partners, LLC
Wilshire Holdings I, Inc.
Wilshire Louisiana BIDCO, LLC
Wilshire Louisiana Partners II, LLC
Wilshire Louisiana Partners III, LLC
Wilshire Louisiana Partners IV, LLC
Wilshire New York Advisers II, LLC
Wilshire New York Partners III, LLC
Wilshire New York Partners IV, LLC (2)
Wilshire New York Partners V, LLC (2)
Wilshire Partners, LLC
Exponential Business Development Co., Inc.
Newtek Commercial Lending, Inc.
Newtek LSP Holdco, LLC
NBSH Holdings, LLC
Newtek Business Services Holdco 1, Inc.
Newtek Business Services Holdco 2, Inc.
Newtek Business Services Holdco 3, Inc.
Newtek Business Services Holdco 4, Inc.
Newtek Business Services Holdco 5, Inc. (formerly Banc-Serv Acquisition, Inc.)
Newtek Business Services Holdco 6, Inc.
(1) Entity was merged into The Whitestone Group, LLC in December 2018.
(2) Entity was merged into The Whitestone Group, LLC in December 2017.

The consolidated financial statements of the Company have been prepared in accordance with GAAP and pursuant to the requirements for reporting on Form 10-K and Article 6 or 10 of Regulation S-X. In the opinion of management, the consolidated financial statements reflect all adjustments and reclassifications that are necessary for the fair presentation of

F-206




financial results as of and for the periods presented. All intercompany balances and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation.

Except as otherwise noted, all financial information included in the tables in the following footnotes is stated in thousands, except per share data.
NOTE 2—SIGNIFICANT ACCOUNTING POLICIES:
Fair Value

The Company applies fair value accounting to certain of its financial instruments in accordance with ASC Topic 820 — Fair Value Measurement (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date. 

The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new, whether the product is traded on an active exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for financial instruments classified as Level 3. 

Any changes to the valuation methodology are reviewed by management and the Board to confirm that the changes are appropriate. As markets change, new products develop and the pricing for products becomes more or less transparent, the Company will continue to refine its valuation methodologies. See further description of fair value methodology in Note 3.
Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. 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 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 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.

As of July 1, 2016, the Company determined that Exponential, previously a controlled portfolio company, met the criteria for consolidation under ASC Topic 946. This determination was based on Exponential's purchase of membership interests in two controlled portfolio companies during the year ended December 31, 2016.

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.


F-207




Distributions

Dividends and distributions to the Company’s common stockholders are recorded on the declaration date. The timing and amount to be paid out as a dividend or distribution is determined by the Company’s Board each quarter and is generally based upon the annual taxable earnings estimated by management.
 
Cash

The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Invested cash is held 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. As of December 31, 2018, cash deposits in excess of insured amounts totaled $19,162,000. The Company has not experienced any losses with respect to cash balances in excess of insured amounts and management does not believe there was a significant concentration of risk with respect to cash balances as of December 31, 2018.
Restricted Cash

Restricted cash includes amounts due on SBA loan-related remittances to third parties and cash reserves associated with securitization transactions. As of December 31, 2018, total restricted cash was $29,034,000.

The following table provides a reconciliation of cash and restricted cash as of December 31, 201820172016 and 2015:

 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
Cash
$
2,316

 
$
2,464

 
$
2,051

 
$
4,308

Restricted cash
29,034

 
18,074

 
20,845

 
22,869

Cash and restricted cash
$
31,350

 
$
20,538

 
$
22,896

 
$
27,177


Broker Receivable

Broker receivable represents amounts due from third parties for loans which have been traded at period end but have not yet settled.
Income Taxes

Deferred tax assets and liabilities are computed based upon the differences between the financial statement and income tax basis of assets and liabilities using the enacted tax rates in effect for the year in which those temporary differences are expected to be realized or settled. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized.

The Company’s U.S. federal and state income tax returns prior to fiscal year 2015 are generally closed, and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings.

The Company has elected to be treated as a RIC under the Code beginning with the 2015 tax year and operates in a manner so as to continue to qualify for the tax treatment applicable to RICs. The RIC tax return includes Newtek Business Services Corp. and NSBF, a single member LLC disregarded for tax purposes. None of the Company’s other subsidiaries are included in the RIC tax return. The Company will evaluate and record any deferred tax assets and liabilities of the subsidiaries that are not included in the RIC tax return. In order to maintain its RIC tax treatment, among other things, the Company is 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 any income that is distributed to its stockholders as dividends.

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

F-208




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 years ended December 31, 2018, 2017 and 2016, no U.S. federal excise taxes were due.

The Company’s Taxable Subsidiaries accrue income taxes payable based on the applicable corporate rates on the net unrealized appreciation generated by the controlled investments held by the Taxable Subsidiaries. Such deferred tax liabilities amounted to $9,241,000 and $8,164,000 at December 31, 2018 and 2017, respectively, and are recorded as deferred tax liabilities on the consolidated statements of assets and liabilities. The change in deferred tax liabilities is included as a component of net unrealized appreciation (depreciation) on investments in the consolidated statements of operations.

Investment Income

Interest on debt investments is accrued and included in income based on contractual rates applied to principal amounts outstanding. Interest income is determined using a method that results in a level rate of return on principal amounts outstanding. When a loan becomes 90 days or more past due, or if we otherwise do not expect to receive interest and principal repayments, the loan is placed on non-accrual status and the recognition of interest income is discontinued. Interest payments received on loans that are on non-accrual status are treated as reductions of principal until the principal is repaid.

Dividend income is recognized on an accrual basis for preferred equity securities to the extent that such amounts are expected to be collected or realized. In determining the amount of dividend income to recognize, if any, from cash distributions on common equity securities, we will assess many factors including a portfolio company’s cumulative undistributed income and operating cash flow. Cash distributions from common equity securities received in excess of such undistributed amounts are recorded first as a reduction of our investment and then as a realized gain on investment.

The Company earns servicing income related to the guaranteed portions of SBA loan investments which it sells 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.

The Company earns a variety of fees from borrowers in the ordinary course of conducting its business, including packaging, legal, late payment and prepayment fees. All other income is recorded when earned. Other income is generally non-recurring in nature and earned as “one time” fees in connection with the origination of new debt investments with non-affiliates.

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 consolidated statements of operations.

Stock – Based Compensation

The Company accounts for its equity-based compensation plan using the fair value method, as prescribed by ASC Topic 718, Stock Compensation. Accordingly, for restricted stock awards, the Company measures the grant date fair value based upon the market price of the Company’s common stock on the date of the grant and amortizes this fair value to salaries and benefits ratably over the requisite service period or vesting term.

Recently Adopted Accounting Standards

In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force),” which requires that the statement of cash flow explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted this standard with respect to its statement of cash flows.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. ASU 2014-09 supersedes the revenue recognition requirements under ASC 605, “Revenue Recognition”, and most industry-specific guidance
throughout the Industry Topics of the ASC. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Under the new guidance, an entity is required to perform the

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following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new guidance will significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. Additionally, the guidance requires improved disclosures as to the nature, amount, timing and uncertainty of revenue that is recognized. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”, which clarified the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”, which clarified the implementation guidance regarding performance obligations and licensing arrangements. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606)—Narrow-Scope Improvements and Practical Expedients”, which clarified guidance on assessing collectability, presenting sales tax, measuring noncash consideration, and certain transition matters. In December 2016, the FASB issued ASU No. 2016-20, “Revenue from Contracts with Customers (Topic 606)—Technical Corrections and Improvements”, which provided disclosure relief, and clarified the scope and application of the new revenue standard and related cost guidance. The ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. The Company has evaluated the guidance under Topic 606 and has identified similar performance obligations under ASC 606 as compared with deliverables and separate units of account previously identified. The Company adopted this standard with respect to its revenue recognition. The Company evaluated each revenue stream and concluded that all were covered by the scope exceptions as detailed in Topic 606. As a result, the Company determined that the timing of its revenue recognition will remain the same.

New Accounting Standards

 In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820)”, which is intended to improve fair value and defined benefit disclosure requirements by removing disclosures that are not cost-beneficial, clarifying disclosures' specific requirements, and adding relevant disclosure requirements. The ASU is effective for annual reporting periods beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration of greater than one year. The ASU is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those periods. Early adoption is permitted. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements”, which now allows entities the option of recognizing the cumulative effect of applying the new standard as an adjustment to the opening balance of retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. The Company has completed its review of the new guidance and estimates that approximately $8,900,000 and $10,900,000 would be recognized as total right-of-use assets and total lease liabilities, respectively. After the reversal of previously recorded deferred rent and lease incentive liabilities, the Company estimates the net impact to the Company’s net assets to be an increase of approximately $119,000.

Segments

The Company has determined that it has a single reporting segment and operating unit structure. The Company issues debt and makes equity investments in portfolio companies in various industries. The Company separately evaluates the performance of each of its lending and investment relationships. However, because each of these debt and equity investment relationships have similar business and economic characteristics, they have been aggregated into a single lending and investment segment.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation.
NOTE 3—FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, management uses various valuation approaches, all of which have been approved by the Company’s Board. In accordance with GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of

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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 or a liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company assesses the levels of assets and liabilities at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfers. There were no transfers among Level 1, 2 and 3 of the fair value hierarchy for assets and liabilities during the years ended December 31, 2018 or 2017. The following section describes the valuation techniques used by the Company to measure different assets and liabilities at fair value and includes the level within the fair value hierarchy in which the assets and liabilities are categorized.

Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. Level 3 investments are valued at fair value as determined in good faith by the Board, based on input of management, the audit committee and independent valuation firms that have been engaged at the direction of the Board to assist in the valuation of certain portfolio investments without a readily available market quotation at least once during a trailing twelve-month period under a valuation policy and a consistently applied valuation process. 

When determining fair value of Level 3 debt and equity investments, the Company may take into account the following factors, where relevant: the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons to publicly traded securities, changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made and other relevant factors. The primary methods for determining enterprise value include a discounted cash flow analysis and a multiple analysis whereby appropriate multiples are applied to the portfolio company’s 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. 


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Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded. 

The Company’s investments are subject to market risk. Market risk is the potential for changes in 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 December 31, 2018 and 2017:

 
Fair Value Measurements at December 31, 2018
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Investments in money markets funds
$
9

 
$
9

 
$

 
$

SBA unguaranteed non-affiliate investments
349,402

 

 

 
349,402

SBA guaranteed non-affiliate investments
19,100

 

 
19,100

 

Controlled investments
171,585

 

 

 
171,585

Other real estate owned (1)
1,998

 

 
1,998

 

Non-control/affiliate investments
1,000

 

 

 
1,000

Servicing assets
21,360

 

 

 
21,360

Total assets
$
564,454

 
$
9

 
$
21,098

 
$
543,347

Liabilities
 
 
 
 
 
 
 
Contingent consideration liabilities (2)
$
1,733

 
$

 
$

 
$
1,733


(1) Included in Other Assets on the Consolidated Statements of Assets and Liabilities.

(2) Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Consolidated Statements of Assets and Liabilities.

For the year ended December 31, 2018, the change in unrealized appreciation (depreciation) included in the consolidated statement of operations attributable to Level 3 investments still held at December 31, 2018 includes $3,471,000 in unrealized depreciation on SBA unguaranteed non-affiliate investments, $4,048,000 in unrealized appreciation on controlled investments, and $5,685,000 in unrealized depreciation on servicing assets.
 
Fair Value Measurements at December 31, 2017
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Investments in money markets funds
$
9

 
$
9

 
$

 
$

SBA unguaranteed non-affiliate investments
278,034

 

 

 
278,034

SBA guaranteed non-affiliate investments
25,490

 

 
25,490

 

Controlled investments
153,156

 

 

 
153,156

Other real estate owned (1)
1,121

 

 
1,121

 

Servicing assets
19,359

 

 

 
19,359

Total assets
$
477,169

 
$
9

 
$
26,611

 
$
450,549

Liabilities
 
 
 
 
 
 
 
Contingent consideration liabilities (2)
$
913

 
$

 
$

 
$
913


(1) Included in Other Assets on the Consolidated Statements of Assets and Liabilities

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2) Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Consolidated Statements of Assets and Liabilities.

For the year ended December 31, 2017, the change in unrealized appreciation (depreciation) included in the consolidated statement of operations attributable to Level 3 investments still held at December 31, 2017 includes $1,342,000 in unrealized depreciation on SBA unguaranteed non-affiliate investments, $12,957,000 in unrealized appreciation on controlled investments and $3,394,000 in unrealized depreciation on servicing assets.

The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of December 31, 2018 and 2017. In addition to the techniques and inputs noted in the table below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The tables below are not intended to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements at December 31, 2018 and 2017.

 
 
 
 
 
 
 
 
 
 
Range
 
 
Fair Value as of December 31, 2018
 
Valuation Techniques
 
Unobservable Input
 
Weighted Average
 
Minimum
 
Maximum
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
SBA unguaranteed non-affiliate investments - performing loans
 
$
329,340

 
Discounted cash flow
 
Market yields
 
6.40%
 
6.40%
 
6.40%
SBA unguaranteed non-affiliate investments - non-performing loans
 
$
20,062

 
Discounted cash flow
 
Market yields
 
7.89%
 
7.89%
 
7.89%
Controlled equity investments (A)
 
$
157,810

 
Market comparable companies
 
EBITDA multiples (B)
 
8.83x
 
3.97x
 
10.00x
 
 
 
 
Market comparable companies
 
Revenue multiples (B)
 
1.05x
 
0.15x
 
2.73x
 
 
 
 
Discounted cash flow
 
Weighted average cost of capital (B)
 
13.46%
 
11.84%
 
40.00%
Controlled debt investments
 
$
13,775

 
Discounted cash flow
 
Market yields
 
6.34%
 
4.84%
 
10.00%
Non-control/affiliate investments
 
$
1,000

 
Liquidation value
 
Asset value
 
N/A
 
N/A
 
N/A
Servicing assets
 
$
21,360

 
Discounted cash flow
 
Market yields
 
14.24%
 
14.24%
 
14.24%
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration liabilities
 
$
1,733

 
Discounted cash flow
 
Projected EBITDA and probability of achievement
 
N/A
 
N/A
 
N/A

(A)  In determining the fair value of the Company’s controlled equity investments as of December 31, 2018, the proportion of the market comparable companies valuation technique and the discounted cash flow valuation technique were 43.8% and 56.2%, respectively, on a weighted average basis.

(B) The Company valued $138,085,000 of investments using an equal weighting of EBITDA and revenue multiples and none of its investments using only revenue multiples in the overall valuation approach which included the use of market comparable companies. The Company valued $19,725,000 of investments using only discounted cash flows.


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Range
 
 
Fair Value as of December 31, 2017
 
Valuation Techniques
 
Unobservable Input
 
Weighted Average
 
Minimum
 
Maximum
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
SBA unguaranteed non-affiliate investments - performing loans
 
$
266,467

 
Discounted cash flow
 
Market yields
 
5.60%
 
5.60%
 
5.60%
SBA unguaranteed non-affiliate investments - non-performing loans
 
$
11,567

 
Discounted cash flow
 
Market yields
 
5.84%
 
5.84%
 
5.84%
Controlled equity investments (A)
 
$
142,950

 
Market comparable companies
 
EBITDA multiples (B)
 
7.45x
 
3.54x
 
9.00x
 
 
 
 
Market comparable companies
 
Revenue multiples (B)
 
1.08x
 
0.21x
 
2.55x
 
 
 
 
Discounted cash flow
 
Weighted average cost of capital (B)
 
13.12%
 
11.40%
 
22.47%
 
 
$
2,450

 
Recent transaction
 
N/A
 
N/A
 
N/A
 
N/A
Controlled debt investments
 
$
7,396

 
Discounted cash flow
 
Market yields
 
6.70%
 
4.75%
 
7.00%
 
 
$
360

 
Liquidation value
 
Asset value
 
N/A
 
N/A
 
N/A
Servicing assets
 
$
19,359

 
Discounted cash flow
 
Market yields
 
13.06%
 
13.06%
 
13.06%
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration liabilities
 
$
913

 
Discounted cash flow
 
Projected EBITDA and probability of achievement
 
N/A
 
N/A
 
N/A

(A) In determining the fair value of the Company’s controlled investments as of December 31, 2017, the proportion of the market comparable companies valuation technique and the discounted cash flow valuation technique were 45.1% and 54.9%, respectively, on a weighted average basis.

(B) The Company valued $129,020,000 of investments using an equal weighting of EBITDA and revenue multiples in the overall valuation approach which included the use of market comparable companies. The Company valued $13,930,000 of investments using only discounted cash flows.

The following tables present the changes in investments, servicing assets and liabilities measured at fair value using Level 3 inputs for the years ended December 31, 2018 and 2017:

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December 31, 2018
 
SBA Unguaranteed Investments
 
Controlled Investments
 
Non-Control/Non-Affiliate Investments
 
Servicing Assets
 
Contingent Consideration Liabilities
Fair value, December 31, 2017
$
278,034

 
$
153,156

 
$

 
$
19,359

 
$
913

Net change in unrealized appreciation (depreciation)
3,471

 
4,048

 

 
(5,685
)
 

Realized (loss) gain
(2,738
)
 
52

 

 

 

SBA unguaranteed non-affiliate investments, funded
113,101

 

 

 

 

Foreclosed real estate acquired
(2,367
)
 

 

 

 

Purchase of investments

 
39,627

 
1,000

 

 

Purchase of loans from SBA
1,206

 

 

 

 

Sale of investment

 
(2,502
)
 

 

 

Record fair value of contingent consideration liabilities

 

 

 

 
1,350

Change in fair value of contingent consideration liabilities

 

 

 

 
(51
)
Payment of contingent consideration

 

 

 

 
(479
)
Net accretion of premium/discount
(18
)
 

 

 

 

Return of investment

 
(8,785
)
 

 

 

Principal payments received on debt investments
(41,287
)
 
(14,011
)
 

 

 

Additions to servicing assets

 

 

 
7,686

 

Fair value, December 31, 2018
$
349,402

 
$
171,585

 
$
1,000

 
$
21,360

 
$
1,733

 
December 31, 2017
 
SBA Unguaranteed Investments
 
Controlled Investments
 
Non-Control/Non-Affiliate Investments
 
Servicing Assets
 
Contingent Consideration Liabilities
Fair value, December 31, 2016
$
211,471

 
$
121,302

 
$
904

 
$
16,246

 
$

Net change in unrealized (depreciation) appreciation
(1,342
)
 
12,957

 

 
(3,394
)
 

Realized loss
(894
)
 
(300
)
 

 

 

SBA unguaranteed non-affiliate investments, funded
89,762

 

 

 

 

Foreclosed real estate acquired
(503
)
 

 

 

 

Purchase of investments

 
35,188

 
3,255

 

 

Transfer of Excel WebSolutions, LLC from Non-control/Non-affiliate to Controlled Investments

 
904

 
(904
)
 

 

Purchase of loan portfolio
175

 

 

 

 

Return of investment

 
(50
)
 

 

 

Net accretion of premium/discount
19

 

 
 
 
 
 

Purchase of loan from SBA
6,469

 

 

 

 

Record fair value of contingent consideration liabilities

 

 

 

 
1,368

Change in fair value of contingent consideration liabilities

 

 
 
 

 
(455
)
Principal payments received on debt investments
(27,123
)
 
(16,845
)
 
(3,255
)
 

 

Additions to servicing assets

 

 

 
6,507

 

Fair value, December 31, 2017
$
278,034

 
$
153,156

 
$

 
$
19,359

 
$
913


NOTE 4—INVESTMENTS:

Investments, all of which are with portfolio companies in the United States, consisted of the following at December 31, 2018 and 2017:


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December 31, 2018
 
December 31, 2017
 
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Money market funds
 
$
9

 
$
9

 
$
9

 
$
9

Non-affiliate debt investments
 
372,806

 
368,502

 
310,531

 
303,524

Non-control/affiliate equity investments
 
1,000

 
1,000

 

 

Controlled investments
 
 
 
 
 
 
 
 
Equity
 
57,085

 
157,810

 
48,835

 
145,400

Debt
 
17,194

 
13,775

 
11,063

 
7,756

Total investments
 
$
448,094

 
$
541,096

 
$
370,438

 
$
456,689


On December 31, 2018, Premier was merged into NMS. As a result, the fair value of NMS on the consolidated schedule of investments represents the cost basis and fair value of the combined entity.

In May 2018, the Company invested in 100% of the membership interests of a new wholly-owned, controlled portfolio company, Mobil Money. Mobil Money then acquired a portfolio of merchant processing accounts for taxi drivers. Total consideration for the investment was $3,000,000 and consisted of $200,000 in restricted shares of Newtek common stock, $1,450,000 in cash and $1,350,000 to be paid in cash in two equal installments in 2019 and 2020 contingent on the achievement of specific net residual income levels for 2018 and 2019 related to the acquired taxi cab merchant portfolio. As of December 31, 2018, the fair value of the contingent consideration liabilities was $1,269,000 and is included in Accounts Payable, Accrued Expenses and Other Liabilities on the consolidated statement of assets and liabilities.

On April 26, 2018, the Company sold 100% of its investment in the membership interests of UCS. Total cash received upon sale was $2,002,000, with an additional $500,000 received on May 3, 2018 for total cash proceeds of $2,502,000. The Company’s cost basis of the investment in UCS was $2,450,000. As a result of the sale, the Company recognized a realized gain of $52,000.

During 2018, the Company contributed $13,909,000 of capital to NBL, a wholly-owned controlled portfolio company established to originate loans under the SBA 504 program. NBL subsequently returned $8,464,000 of capital during 2018.
The following table shows the Company’s portfolio investments by industry at December 31, 2018 and 2017:


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December 31, 2018
 
December 31, 2017
Industry
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Data Processing, Hosting, and Related Services
 
$
38,964

 
$
134,559

 
$
29,152

 
$
115,875

Food Services and Drinking Places
 
37,919

 
38,293

 
31,929

 
31,822

Professional, Scientific, and Technical Services
 
36,575

 
37,116

 
31,471

 
31,241

Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
24,738

 
24,526

 
19,326

 
23,489

Amusement, Gambling, and Recreation Industries
 
21,030

 
22,300

 
21,408

 
22,284

Truck Transportation
 
23,040

 
21,145

 
20,115

 
19,005

Ambulatory Health Care Services
 
21,182

 
20,999

 
14,863

 
14,537

Repair and Maintenance
 
17,690

 
18,054

 
13,762

 
14,285

Specialty Trade Contractors
 
13,048

 
13,051

 
9,768

 
9,032

Fabricated Metal Product Manufacturing
 
12,608

 
12,793

 
8,281

 
8,424

Accommodation
 
11,994

 
11,742

 
9,602

 
10,253

Personal and Laundry Services
 
10,758

 
11,425

 
6,678

 
6,788

Merchant Wholesalers, Durable Goods
 
9,002

 
9,184

 
6,736

 
6,693

Social Assistance
 
8,424

 
9,006

 
7,393

 
7,549

Gasoline Stations
 
8,152

 
7,981

 
6,646

 
6,409

Building Material and Garden Equipment and Supplies Dealers
 
7,349

 
7,665

 
5,752

 
5,750

Rental and Leasing Services
 
7,959

 
7,539

 
5,590

 
5,056

Administrative and Support Services
 
8,003

 
7,265

 
5,909

 
5,371

Heavy and Civil Engineering Construction
 
7,553

 
7,210

 
4,922

 
4,487

Food Manufacturing
 
9,073

 
7,056

 
9,362

 
6,906

Transit and Ground Passenger Transportation
 
6,859

 
6,541

 
5,233

 
4,943

Food and Beverage Stores
 
5,795

 
6,100

 
5,143

 
5,114

Construction of Buildings
 
5,085

 
5,010

 
5,133

 
5,355

Motor Vehicle and Parts Dealers
 
4,816

 
4,915

 
4,879

 
4,904

Other
 
90,479

 
89,621

 
81,385

 
81,117

Total
 
$
448,095

 
$
541,096

 
$
370,438

 
$
456,689


NOTE 5—TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS:

Transactions with Affiliated Companies

An affiliated company is an entity in which the Company has an ownership of 5% or more of its voting securities. A controlled affiliate is an entity in which the Company owns more than 25% of its voting securities. Transactions related to our investments with controlled and non-controlled affiliated companies for the year ended December 31, 2018 were as follows:

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Portfolio Company
 
Fair value at December 31, 2017
 
Purchases (cost)
 
Principal received (cost)
 
Net realized gains/(losses)
 
Net unrealized gains/(losses)
 
Fair value at December 31, 2018
 
Interest and other income
 
Dividend income
Controlled Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newtek Merchant Solutions, LLC (1)
 
$
103,000

 
$

 
$

 
$

 
$
13,250

 
$
116,250

 
$

 
$
10,750

Mobil Money, LLC
 

 
3,300

 
(320
)
 

 

 
2,980

 

 
165

Newtek Technology Solutions, Inc.
 
12,400

 
6,800

 

 

 
(3,900
)
 
15,300

 
49

 

International Professional Marketing, Inc.
 
4,450

 
850

 
(500
)
 

 

 
4,800

 
19

 
125

SIDCO, LLC
 
7,670

 
175

 
(550
)
 

 

 
7,295

 
23

 
1,250

banc-serv Partners, LLC
 
3,430

 
1,509

 

 

 
(4,939
)
 

 

 

CDS Business Services, Inc.
 
14,396

 
12,318

 
(12,714
)
 

 
(3,000
)
 
11,000

 
632

 

Small Business Lending, LLC
 
2,500

 
250

 

 

 
550

 
3,300

 

 

Newtek Insurance Agency, LLC
 
2,500

 
135

 

 

 
(420
)
 
2,215

 

 

PMTWorks Payroll, LLC
 

 
381

 

 

 
(381
)
 

 

 

Titanium Asset Management LLC
 

 

 

 

 

 

 

 

Excel WebSolutions, LLC
 
360

 

 
(248
)
 

 
(112
)
 

 
17

 

United Capital Source, LLC
 
2,450

 

 
(2,502
)
 
52

 

 

 

 
275

Newtek Business Lending, LLC
 

 
13,909

 
(8,464
)
 

 
3,000

 
8,445

 

 

Total Controlled Investments
 
$
153,156

 
$
39,627

 
$
(25,298
)
 
$
52

 
$
4,048

 
$
171,585

 
$
740

 
$
12,565

Non-Control/Affiliate Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EMCAP Loan Holdings, LLC
 
$

 
$
1,000

 
$

 
$

 
$

 
$
1,000

 
$

 
$
65

Total Affiliate Investments
 
$
153,156

 
$
40,627

 
$
(25,298
)
 
$
52

 
$
4,048

 
$
172,585

 
$
740

 
$
12,630


(1) On December 31, 2018, Premier was merged into NMS. The above table reflects the combined fair values, unrealized appreciation and amount of dividends credited to income. During the year ended December 31, 2018, $13,250,000 of unrealized appreciation related to the investment in NMS. During the year ended December 31, 2018, $7,800,000 and $2,950,000 of dividend income was earned from NMS and Premier, respectively.

Related Party Transactions

Notes Payable - Related Parties

In June 2015, the Company entered into a Related Party RLOC. Maximum borrowings under the Related Party RLOC were $38,000,000.

In June 2017, the Related Party RLOC was amended to increase maximum borrowings to $50,000,000. The outstanding balance had an interest rate equal to LIBOR (with a floor of 0.50%) plus 6% or at a rate equal to the greater of the Prime Rate or 3.5% plus 5.0%. In November 2018, the Related Party RLOC was amended to reduce the interest rate to the lesser LIBOR plus 2.5% or the Prime Rate plus 1.5%.

At December 31, 2018, the Related Party RLOC interest rate was 4.84%. The Related Party RLOC has a maturity date of November 8, 2023. Outstanding borrowings at December 31, 2018 were $16,840,000. For the years ended December 31, 2018, 2017 and 2016, interest expense was $916,000, $780,000 and $260,000, respectively.


F-218




Expenses Incurred from Controlled Portfolio Companies

The Company incurs expenses from certain controlled portfolio companies including managed technology services from NTS, loan related processing and auditing expenses and referral fees from various related parties and payroll processing fees from NPS.
 
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Managed technology services
 
$
725

 
$
836

 
$
969

Loan related processing and auditing fees
 
41

 
127

 
36

Referral fees
 
104

 
167

 
23

Payroll processing fees
 
42

 
38

 
35

Total
 
$
912

 
$
1,168

 
$
1,063

Lake Success, New York Offices

The Company also sub-leases portions of its office space in Lake Success, New York to certain portfolio companies. Amounts charged for the years ended December 31, 2018, 2017 and 2016 were as follows:

Portfolio Company
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Newtek Merchant Solutions, LLC
$
166

 
$
147

 
$
32

Newtek Technology Solutions, Inc.
11

 

 

Small Business Lending, LLC
75

 
81

 
104

Newtek Insurance Agency, LLC
88

 
86

 
46

CDS Business Services, Inc.
57

 
63

 
80

Premier Payments LLC (1)
38

 
46

 
57

PMTWorks Payroll, LLC
32

 
46

 
30

Titanium Asset Management LLC

 
13

 
4

United Capital Source, LLC

 
7

 

Newtek Business Lending, LLC
2

 

 

Total
$
469

 
$
489

 
$
353

(1) Premier was merged into NMS on December 31, 2018.
Managerial Assistance Fees from Controlled Investments

The Company offers managerial assistance to all portfolio companies and currently provides managerial assistance to certain controlled portfolio companies. Amounts are charged based on estimates of time and effort spent by certain employees providing managerial services for certain controlled portfolio companies. Fees are recorded on a quarterly basis, are recurring in nature and are charged at an arm’s length basis. The table below summarizes amounts charged to each controlled portfolio company for the years ended December 31, 2018, 2017 and 2016, and are recorded as a credit to salaries and benefits in the consolidated statements of operations.



F-219




Portfolio Company
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Newtek Merchant Solutions, LLC
 
$
385

 
$
407

 
$
468

Newtek Technology Solutions, Inc.
 
508

 
543

 
654

PMTWorks Payroll, LLC
 
85

 
75

 
96

Newtek Insurance Agency, LLC
 
175

 
204

 
235

Summit Systems and Designs, LLC (1)
 

 
10

 
26

Secure CyberGateway Services, LLC (1)
 

 
2

 
1

banc-serv Partners, LLC
 
248

 
215

 
110

Premier Payments LLC (2)
 
172

 
163

 
192

CDS Business Services, Inc.
 
88

 
35

 

International Professional Marketing, Inc.
 
89

 
72

 

SIDCO, LLC
 
93

 
52

 

Mobil Money, LLC
 
67

 

 

Newtek Business Lending, LLC
 
12

 

 

Small Business Lending, LLC
 
366

 
364

 
525

Total
 
$
2,288

 
$
2,142

 
$
2,307


(1) Entity was dissolved in May 2018.
(2) Premier was merged into NMS on December 31, 2018.
Other Transactions with Related Parties
In September 2016, the Company entered into an advisory services agreement (the “AK Agreement”) with AK Capital, LLC (“AK Capital”). The Company’s Chief Executive Officer is a director of AK Capital. AK Capital provides consulting and advisory services to the Company in connection with the sale and/or securitization of participations in SBA guaranteed and unguaranteed SBA 7(a) loans. The AK Agreement contains total fees of $10,000, to be paid monthly over one year. During the years ended December 31, 2018, 2017 and 2016 the Company incurred $14,000, $7,000 and $3,000 in fees respectively, from AK Capital.

A member of the Company’s Board and audit committee chairman receives a pension from CohnReznick LLP and capital payouts from his partnership interests. CohnReznick LLP performs various tax services for the Company.

The nephew and brother of the Chief Executive Officer of the Company are employed by certain of the Company’s controlled portfolio companies and earn annual salaries in excess of and less than $125,000, respectively.

The spouse of the Chief Accounting Officer of the Company was the Controller of certain of the Company’s controlled portfolio companies through March 31, 2018 and was paid an annual salary in excess of $125,000.
As of December 31, 2018, the Company had $3,232,000 due from related parties and $4,000 due to related parties. At December 31, 2017, the Company had $2,255,000 due from related parties and no amounts due to related parties.

NOTE 6—SERVICING ASSETS:
Servicing assets are measured at fair value. The Company earns servicing fees from the guaranteed portions of SBA 7(a) loans it originates and sells.
The following table summarizes the fair value and valuation assumptions related to servicing assets at December 31, 2018 and 2017:

F-220




 
December 31, 2018
 
December 31, 2017
Fair Value
$
21,360

 
$
19,359

Discount factor (1)
14.24
%
 
13.06
%
Cumulative prepayment rate
26.00
%
 
20.00
%
Average cumulative default rate
20.00
%
 
20.00
%
(1) Determined based on risk spreads and observable secondary market transactions.
Servicing fee income earned for the years ended December 31, 2018, 2017 and 2016 was $8,552,000, $7,206,000 and $6,160,000, respectively.
NOTE 7—ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES:
The following table details the components of accounts payable, accrued expenses and other liabilities at December 31, 2018 and 2017:
 
December 31, 2018
 
December 31, 2017
Due to participants and SBA (1)
$
10,682

 
$
6,420

Accrued payroll and related expenses
3,635

 
3,401

Accrued interest
569

 
334

Deferred rent and other lease related liabilities
2,217

 
2,378

Loan processing, servicing and other loan related expenses
2,406

 
1,991

Contingent consideration liabilities
1,733

 
913

Other
3,779

 
1,429

Total accounts payable, accrued expenses and other liabilities
$
25,021

 
$
16,866

(1) Represents loan related remittances received by NSBF, and due to third parties.
NOTE 8—BORROWINGS:
At December 31, 2018 and 2017, the Company had borrowings comprised of the following:
 
 
December 31, 2018
 
December 31, 2017
Facility
 
Commitments
 
Borrowings Outstanding
 
Weighted Average Interest Rate
 
Commitments
 
Borrowings Outstanding
 
Weighted Average Interest Rate
Capital One line of credit - guaranteed (1)
 
$
100,000

 
$
34,700

 
4.75
%
 
$
100,000

 
$

 
%
Capital One line of credit - unguaranteed (1)
 

 

 
%
 

 

 
%
Notes due 2022
 
8,324

 
8,019

 
7.50
%
 
8,324

 
7,936

 
7.50
%
Notes due 2021
 

 

 
%
 
40,250

 
39,114

 
7.00
%
Notes due 2023
 
57,500

 
55,564

 
6.25
%
 

 

 
%
Notes payable - related parties
 
50,000

 
16,840

 
4.84
%
 
50,000

 
7,001

 
7.69
%
Notes payable - Securitization Trusts
 
220,137

 
216,507

 
4.66
%
 
165,432

 
162,201

 
4.10
%
Total
 
$
435,961

 
$
331,630

 
5.02
%
 
$
364,006

 
$
216,252

 
4.87
%

(1) Total combined commitments of the guaranteed and unguaranteed lines of credit are $100,000,000 at December 31, 2018 and 2017, respectively.

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Outstanding borrowings under the 2022 Notes, 2021 Notes, 2023 Notes and Notes payable - Securitization Trusts consisted of the following:

 
December 31, 2018
 
December 31, 2017
 
Notes Due 2022
 
Notes Due 2023
 
Notes Payable- Securitization Trusts
 
Notes Due 2022
 
Notes Due 2021
 
Notes Payable- Securitization Trusts
Principal
$
8,324

 
$
57,500

 
$
220,137

 
$
8,324

 
$
40,250

 
$
165,432

Unamortized deferred financing costs
(305
)
 
(1,936
)
 
(3,630
)
 
(388
)
 
(1,136
)
 
(3,231
)
Net carrying amount
$
8,019

 
$
55,564

 
$
216,507

 
$
7,936

 
$
39,114

 
$
162,201


As of December 31, 2018 and 2017, the carrying amount of the Company’s borrowings under the Capital One lines of credit, Notes payable - related parties and Notes payable - Securitization Trusts, approximates fair value due to their variable interest rates.
The fair values of the fixed rate 2022 Notes, 2021 Notes and 2023 Notes are based on the closing public share price on the date of measurement. These borrowings are not recorded at fair value on a recurring basis.

On December 31, 2018, the closing price of the 2022 Notes was $25.40 per note, or $8,457,000. On December 31, 2017, the closing price of the 2022 Notes was $26.51 or $8,827,000.

On December 31, 2018, the closing price of the 2023 Notes was $25.00 per note, or $57,500,000.

On December 31, 2017, the closing price of the 2021 Notes was $25.45 per note, or $40,975,000.

Total interest expense related to borrowings for the years ended December 31, 2018, 2017 and 2016, was $16,046,000, $11,377,000 and $8,385,000, respectively.
Capital One Facilities

In May 2017, NSBF amended its Capital One facility to increase the facility from $50,000,000 to $100,000,000 and reduce the interest rate. The facility was amended again in June 2018 and the portion of the facility, collateralized by the government guaranteed portion of SBA 7(a) loans, was reduced to Prime minus 0.75% (previously Prime minus 0.25%). The interest rate on the portion of the facility, collateralized by the non-guaranteed portion of SBA 7(a) loans, was reduced to Prime plus 0.25% (previously Prime plus 0.75%). The facility provides for a 55% advance rate on the non-guaranteed portions of the SBA 7(a) loans NSBF originates, and a 90% advance rate on the guaranteed portions of SBA 7(a) loans NSBF originates. In addition, the amendment extended the date on which the facility will convert to a term loan from May 16, 2017 to May 11, 2020 and extended the maturity date of the facility to May 11, 2022.

At December 31, 2018, there was $34,700,000 outstanding under the guaranteed line of credit. No amounts were outstanding under the unguaranteed line of credit. At December 31, 2018 NSBF was in full compliance with all applicable loan covenants.

For the years ended December 31, 2018, 2017 and 2016, interest expense including amortization of related deferred financing costs was $1,473,000, $1,188,000 and $1,260,000, respectively.

7.50% Notes Due 2022

In September 2015, the Company and the Trustee entered into the Base Indenture and the First Supplemental Indenture relating to the Company’s issuance, offer, and sale of $8,324,000, including the underwriter’s partial exercise of their over-allotment option, in aggregate principal amount of the 7.5% Notes due 2022. The 2022 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2022 Notes; (iii) effectively subordinated to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries. The 2022 Notes will mature on September 30, 2022 and may be redeemed in whole or in part at the Company’s option at any time or from time to time on or after September 23, 2018, at a redemption price of 100% of the outstanding principal amount thereof

F-222




plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption. Proceeds net of offering costs and expenses were $7,747,000.

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) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act, to comply with the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act, and to provide financial information to the holders of the 2022 Notes and the Trustee if the Company should no longer be subject to the reporting requirements under the Exchange Act. These covenants are subject to important limitations and exceptions that are described in the Base Indenture, as supplemented by the Third Supplemental Indenture. The Base Indenture provides for customary events of default and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding 2022 Notes may declare such 2022 Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period. At December 31, 2018, the Company was in compliance with all covenants related to the 2022 Notes.

At December 31, 2018 the 2022 Notes had an outstanding principal balance of $8,324,000. For the years ended December 31, 2018, 2017 and 2016, interest expense including amortization of related deferred financing costs was $707,000, $707,000 and $708,000, respectively.

6.25% Notes Due 2023

In February 2018, the Company and the Trustee entered into the Third Supplemental Indenture to the Base Indenture between the Company and the Trustee, relating to the Company’s issuance, offer and sale of $50,000,000 aggregate principal amount of 6.25% Notes due 2023. The Company granted an overallotment option of up to $7,500,000 in aggregate principal amount of the 2023 Notes. The sale of the Notes generated proceeds of approximately $47,901,000, net of underwriter's fees and expenses. In February 2018, the underwriters exercised their option to purchase $7,500,000 in aggregate principal amount of notes for an additional $7,275,000 in net proceeds. The 2023 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2023 Notes; (iii) effectively subordinated to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.
The 2023 Notes will mature on March 1, 2023 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 March 1, 2020, 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 2023 Notes bear interest at a rate of 6.25% per year payable quarterly on March 1, June 1, September 1, and December 1 of each year, commencing on June 1, 2018, and trade on the Nasdaq Global Market under the trading symbol “NEWTI.”

The Base Indenture, as supplemented by the Third 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) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act, to comply with (regardless of whether it is subject to) the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act and to provide financial information to the holders of the 2023 Notes and the Trustee if the Company should no longer be subject to the reporting requirements under the Exchange 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 provides for customary events of default and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding 2023 Notes may declare such 2023 Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period. At December 31, 2018, the Company was in compliance with all covenants related to the 2023 Notes.

At December 31, 2018 the 2023 Notes had an outstanding principal balance of $57,500,000. For the year ended December 31, 2018, interest expense including amortization of related deferred financing costs was $3,483,000. No interest expense was incurred during the years ended December 31, 2017 or 2016.
7.00% Notes Due 2021

In April 2016, the Company and the Trustee, entered into the Second Supplemental Indenture to the Base Indenture between the Company and the Trustee, relating to the Company’s issuance, offer and sale of $35,000,000 aggregate principal amount of

F-223




7.0% Notes due 2021. The Company granted an overallotment option of up to $5,250,000 in aggregate principal amount of the 2021 Notes. The sale of the Notes generated proceeds of approximately $33,750,000, net of underwriter’s fees and expenses. In May 2016, the underwriters exercised their option to purchase $5,250,000 in aggregate principal amount of notes for an additional $5,066,000 in net proceeds. The 2021 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2021 Notes; (iii) effectively subordinated to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.

On March 22, 2018, the Company redeemed all $40,250,000 in aggregate principal amount of the 2021 Notes at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon from December 31, 2017, through, but excluding, the Redemption Date. As a result of the redemption of the 2021 Notes, the Company recorded a $1,059,000 loss on extinguishment of debt during the year ended December 31, 2018, equivalent to the balance of unamortized deferred financing costs as of the Redemption Date.

For the years ended December 31, 2018, 2017 and 2016, interest expense including amortization of related deferred financing costs was $718,000, $3,164,000 and $2,181,000 respectively.

Notes Payable - Securitization Trusts

Since 2010, NSBF has engaged in securitizations of the unguaranteed portions of its SBA 7(a) loans. In the securitization, it uses a special purpose entity (the “Trust”) which is considered a variable interest entity. Applying the consolidation requirements for VIEs under the accounting rules in ASC Topic 860, Transfers and Servicing, and ASC Topic 810, Consolidation, which became effective January 1, 2010, the Company determined that as the primary beneficiary of the securitization vehicle, based on its power to direct activities through its role as servicer for the Trust and its obligation to absorb losses and right to receive benefits, it needed to consolidate the Trusts. NSBF therefore consolidated the entity using the carrying amounts of the Trust’s assets and liabilities. NSBF reflects the assets in SBA Unguaranteed Non-Affiliate Investments and reflects the associated financing in Notes Payable - Securitization Trusts.
In November 2016, NSBF completed its seventh securitization which resulted in the transfer of $56,073,000 of unguaranteed portions of SBA loans to the 2016-1 Trust.  The 2016-1 Trust in turn issued securitization notes for the par amount of $53,444,000, consisting of $43,632,000 Class A notes and $9,812,000 of Class B notes, against the assets in a private placement. The Class A and Class B notes received an “A” and “BBB+” rating by S&P, respectively, and the final maturity date of the notes is February 2042.
In December 2017, NSBF completed its eighth securitization which resulted in the transfer of $76,188,000 of unguaranteed portions of SBA loans to the 2017-1 Trust.  The 2017-1 Trust in turn issued securitization notes for the par amount of $75,426,000, consisting of $58,111,000 Class A notes and $17,315,000 of Class B notes, against the assets in a private placement. The Class A and Class B notes received an “A” and “BBB-” rating by S&P, respectively, and the final maturity date of the notes is February 2043.

In October 2018, the 2013-1 Trust was terminated as a result of NSBF purchasing the 2013-1 Trust assets, with the 2013-1 Trust’s noteholders receiving the redemption price.  Certain of the 2013-1 Trust’s assets were subsequently transferred to the 2018-1 Trust.

In November 2018, NSBF completed its ninth securitization which resulted in the transfer of $108,551,000 of unguaranteed portions of SBA loans to the 2018-1 Trust.  The 2018-1 Trust in turn issued securitization notes for the par amount of $108,551,000, consisting of $82,876,000 Class A notes and $25,675,000 of Class B notes, against the assets in a private placement. The Class A and Class B notes received an “A” and “BBB-” rating by S&P, respectively, and the final maturity date of the notes is February 2044.

For the years ended December 31, 2018, 2017 and 2016, interest expense including amortization of related deferred financing costs and discount was $8,748,000, $5,537,000 and $3,976,000, respectively.

At December 31, 2018 and 2017, the assets of the consolidated Trusts totaled $336,716,000 and $274,321,000 respectively, the liabilities of the consolidated Trusts totaled $220,137,000 and $165,432,000, respectively.

F-224




Notes Payable - Related Parties

In June 2015, the Company entered into the Related Party RLOC. Maximum borrowings under the Related Party RLOC were $38,000,000.

In June 2017, the Related Party RLOC was amended to increase maximum borrowings to $50,000,000. The outstanding balance bears interest at a rate equal to LIBOR (with a floor of 0.50%) plus 6% or at a rate equal to the greater of the Prime Rate or 3.5% plus 5.0%. In November 2018, the Related Party RLOC was amended to reduce the interest rate to LIBOR plus 2.5% or the Prime Rate plus 1.5%.

At December 31, 2018, the Related Party RLOC interest rate was 4.84%. The Related Party RLOC has a maturity date of November 8, 2023. Outstanding borrowings at December 31, 2018 were $16,840,000. For the years ended December 31, 2018, 2017 and 2016, interest expense was $916,000, $780,000 and $260,000, respectively.
Total expected principal repayments on the Company’s borrowings for the next five fiscal years and thereafter are as follows:
December 31,
Borrowings
2019
$
34,700

2020

2021

2022
8,324

2023
74,340

Thereafter
220,137

 
$
337,501

NOTE 9—COMMITMENTS AND CONTINGENCIES:
Operating and Employment Commitments
The Company leases office space and other office equipment in several states under operating lease agreements which expire at various dates through 2027. Those office space leases which are for more than one year generally contain scheduled rent increases or escalation clauses.
The following summarizes the Company’s obligations and commitments, as of December 31, 2018 for future minimum cash payments required under operating lease and employment agreements:
Year
Operating Leases (1)
 
Employment Agreements (2)
 
Total
2019
$
1,826

 
$
343

 
$
2,168

2020
1,593

 

 
1,593

2021
1,494

 

 
1,494

2022
1,506

 

 
1,506

2023
1,549

 

 
1,549

Thereafter
5,343

 

 
5,343

Total
$
13,312

 
$
343

 
$
13,654


(1) Minimum payments have not been reduced by minimum sublease rentals of $115,000 due in the future under non-cancellable subleases.
(2) Employment agreements with the Company’s named executive officers.
Rent expense including loss on lease for the years ended December 31, 2018, 2017 and 2016 was $1,238,000, $769,000 and $1,765,000, respectively.

F-225




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. See “Legal Proceedings - Portfolio Companies.” 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 is not currently involved in any litigation matters that are expected to have a material impact on the Company’s financial condition.

On October 13, 2017, the Company announced that its portfolio company, BSP, was served with a search warrant by the Federal Bureau of Investigation on October 12, 2017 at BSP’s offices in Westfield, Indiana.  The Company closed on its $5,400,000 investment in BSP in June 2016. While the outcome of this situation cannot at this time be predicted with certainty, the Company does not expect that the matter will materially affect the Company’s financial condition or results of operations.

As a result of a prior litigation with the Federal Trade Commission (the “FTC”), NMS voluntarily entered into, and is presently operating under, a Permanent Injunction with respect to certain of its business practices.

Guarantees
The Company is a guarantor on the Sterling Receivable and Inventory Facility at NBC. Maximum borrowings under the Sterling Receivable and Inventory Facility are $22,500,000. The Sterling Receivable and Inventory Facility matures in February 2020 and automatically renews annually. At December 31, 2018, total principal owed by NBC was $16,477,000. In addition, the Company deposited $750,000 to collateralize the guarantee. At December 31, 2018, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is also a guarantor on the Sterling 504 Facility at NBC. Maximum borrowings under the 504 Facility are $35,000,000, depending upon syndication. The Sterling 504 Facility matures in March 2019. At December 31, 2018, total principal owed by NBC was $7,283,000. At December 31, 2018, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is a guarantor on the NBL Facility. Maximum borrowings under the NBL Facility are $75,000,000 with an accordion feature to increase maximum borrowings to $150,000,000. The NBL Facility matures in July 2021. At December 31, 2018, total principal owed by NBL was $13,855,000. At December 31, 2018, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is a guarantor on the Webster Facility, a term loan facility between NMS and Webster Bank with an aggregate principal amount up to $50,000,000. The Webster Facility matures in November 2023. At December 31, 2018, total principal outstanding was $35,000,000. At December 31, 2018, the Company determined that it is not probable that payments would be required to be made under the guarantee.

Unfunded Commitments

At December 31, 2018, the Company had $8,234,000 of unfunded commitments in connection with its SBA 7(a) non-affiliate investments related to portions of loans originated which are partially funded. The Company will fund these commitments from the same sources it uses to fund its other investment commitments.

NOTE 10—EARNINGS PER SHARE:

The following table summarizes the calculation for the net increase in net assets resulting from operations per common share for the years ended December 31, 2018, 2017 and 2016:
 
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Net increase in net assets resulting from operations
 
$
35,678

 
$
38,976

 
$
27,305

Weighted average shares outstanding
 
18,714

 
17,327

 
14,541

Net increase in net assets resulting from operations per common share
 
$
1.91

 
$
2.25

 
$
1.88


F-226




NOTE 11—COMMON STOCK:

The following table summarizes the total shares issued and proceeds received net of underwriting discounts and offering costs in public offerings of the Company’s common stock since conversion to a BDC:

 
 
Year Ended
 
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Shares issued
 

 
2,587,500

 

Offering price per share
 
$

 
$
15.25

 
$

Proceeds, net of underwriting discounts and offering costs
 
$

 
$
37,042

 
$


In January 2017 the Company closed a public offering of 2,250,000 shares of its common stock at a public offering price of $15.25 per share. The Company also sold an additional 337,500 shares of its common stock at a public offering price of $15.25 per share pursuant to the underwriter’s full exercise of the over-allotment option.

ATM Program

On March 20, 2017, the Company entered into an ATM equity distribution agreement. The ATM equity distribution agreement provided that the Company may offer and sell up to 2,900,000 shares of common stock from time to time through the Placement Agents. On September 6, 2017, the Company entered into an amended ATM equity distribution Agreement for the purpose of adding D.A. Davidson as placement agent. On August 31, 2018, the Company entered into a Second Amended and Restated ATM Equity Distribution Agreement which increased the maximum number of shares that the Company may offer and sell up to 4,400,000 shares of common stock from time to time through the Placement Agents.

The following table summarizes the total shares sold and net proceeds received under the ATM equity distribution agreement:


 
 
Year Ended
 
 
December 31, 2018
 
December 31, 2017
Shares sold
 
291,232

 
1,139,181

Weighted average price per share
 
$
19.14

 
$
17.58

Net proceeds
 
$
5,196

 
$
19,620


The Company used the net proceeds for funding investments in debt and equity securities in accordance with its investment objective and strategies.

Investment in Mobil Money

During the year ended December 31, 2018, in connection with its investment in Mobil Money, the Company issued 10,966 restricted common shares valued at $200,000.

Investment in IPM

During the year ended December 31, 2017, in connection with its investment in IPM, the Company issued 60,490 restricted common shares valued at $1,000,000.

Investment in UCS

During the year ended December 31, 2017, in connection with its investment in UCS, the Company issued 28,741 restricted common shares valued at $500,000.


F-227




Share Repurchase Plan

On November 21, 2016 the Company announced that its Board approved a new share repurchase program under which the Company may repurchase up to 200,000 of the Company’s outstanding common shares on the open market. This program terminated on May 21, 2017.

On May 11, 2016, the Company announced that its Board approved a share repurchase program under which the Company could repurchase up to 150,000 of the Company’s outstanding common shares on the open market. This program terminated on November 11, 2016. On November 21, 2016 the Company announced that its Board approved a new share repurchase program under which the Company may repurchase up to 200,000 of the Company’s outstanding common shares on the open market. The program terminated on May 21, 2017. On December 17, 2018, the Company announced that its Board approved a new share repurchase program under which the Company may repurchase up to 300,000 of the Company’s outstanding common shares on the open market.

During the year ended December 31, 2016, the Company repurchased and retired 70,000 common shares in open market transactions for $866,000 as detailed in the table below. This program terminated on June 3, 2016. No shares were purchased in 2017 and 2018.

Purchase date
 
Number of Shares Purchased
 
Price per Share
 
Total
March 10, 2016
 
10,000

 
$
12.34

 
$
123

March 18, 2016
 
20,000

 
$
12.45

 
249

March 18, 2016
 
30,000

 
$
12.48

 
375

March 23, 2016
 
10,000

 
$
11.88

 
119

Total
 
70,000

 
 
 
$
866

NOTE 12—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 years ended December 31, 2018 and 2017.

Date Declared
 
Record Date
 
Payment Date
 
Amount Per Share
 
Cash Distribution
 
DRIP Shares Issued
 
DRIP Shares Value
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
January 18, 2018
 
March 20, 2018
 
March 30, 2018
 
$
0.40

 
$
7,202

 
10

 
$
168

May 11, 2018
 
June 15, 2018
 
June 29, 2018
 
$
0.42

 
$
7,637

 
9

 
$
178

August 23, 2018
 
September 17, 2018
 
September 28, 2018
 
$
0.48

 
$
8,544

 
21

 
$
414

October 29, 2018
 
December 18, 2018
 
December 28, 2018
 
$
0.50

 
$
9,051

 
21

 
$
339

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
March 6, 2017
 
March 20, 2017
 
March 31, 2017
 
$
0.36

 
$
6,062

 
6

 
$
89

May 4, 2016
 
May 31, 2017
 
June 30, 2017
 
$
0.40

 
$
6,804

 
7

 
$
112

August 21, 2017
 
September 22, 2017
 
September 29, 2017
 
$
0.44

 
$
7,585

 
11

 
$
184

November 9, 2017
 
December 18, 2017
 
December 28, 2017
 
$
0.44

 
$
7,838

 
14

 
$
260

 
During the years ended December 31, 2018 and 2017, an additional 11,200 and 7,200 shares valued at $211,000 and $122,000, respectively, were issued related to dividends from unvested restricted stock awards.

NOTE 13—BENEFIT PLANS:

F-228




Defined Contribution Plan
The Company’s employees participate in a defined contribution 401(k) plan (the “Plan”) adopted in 2004 which covers substantially all employees based on eligibility. The Plan is designed to encourage savings on the part of eligible employees and qualifies under Section 401(k) of the Code. Under the Plan, eligible employees may elect to have a portion of their pay, including overtime and bonuses, reduced each pay period, as pre-tax contributions up to the maximum allowed by law. The Company may elect to make a matching contribution equal to a specified percentage of the participant’s contribution, on their behalf as a pre-tax contribution. For the years ended December 31, 2018, 2017 and 2016, the Company matched 50% of the first 2% of employee contributions, resulting in $126,000, $197,000 and $63,000 in expense, respectively.
NOTE 14—INCOME TAXES:

As a RIC, the Company must distribute substantially all of its respective net taxable income each tax year as dividends to its shareholders. Accordingly, no provision for federal income tax has been made in the financial statements for the years ended December 31, 2018, 2017 and 2016.

Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal tax regulations, which may differ from amounts determined in accordance with GAAP and those differences could be material. These book-to-tax differences are either temporary or permanent in nature. Reclassifications due to permanent book-tax differences, including the offset of net operating losses against net short-term gains and nondeductible meals and entertainment, have no impact on net assets. During the year ended December 31, 2018, the Company decreased additional paid in capital by $37,000 and increased accumulated undistributed earnings by $37,000. During the year ended December 31, 2017, the Company decreased additional paid in capital by $342,000 and increased accumulated undistributed earnings by $342,000

Taxable income generally differs from net increase (decrease) in net assets for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses and generally excludes unrealized appreciation (depreciation) on investments as investment gains and losses are not included in taxable income until they are realized.

The following table reconciles net increase in net assets to taxable income for the years ended December 31, 2018, 2017 and 2016:
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Net increase in net assets
$
35,678

 
$
38,976

 
$
27,305

Net change in unrealized depreciation on investments
(1,069
)
 
(9,619
)
 
(12,343
)
Net change in deferred tax liabilities
1,077

 
2,179

 
5,128

GAAP versus tax basis consolidation of subsidiaries
926

 
1,210

 
1,536

Other income (deductions/losses) for tax, not book
1,029

 
181

 
(17
)
Other differences
(3,844
)
 
(2,593
)
 
1,871

Taxable income before deductions for distributions
$
33,797

 
$
30,334

 
$
23,480


The tax character of distributions paid during the years ended December 31, 2018, 2017 and 2016 were as follows:
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Ordinary income
$
32,499

 
$
24,866

 
$
18,774

Long-term capital gains
1,034

 
4,068

 
3,390

Return of capital

 

 


The determination of the tax attributes of the Company’s distributions is made annually as of the end of the Company’s fiscal year based upon the Company’s taxable income for the full year and distributions paid for the full year. Approximately 26% of the Company’s ordinary income was from qualified dividends. The actual tax characteristics of distributions to shareholders are reported to shareholders annually on Form 1099-DIV.

F-229




The tax basis components of distributable earnings/(accumulated losses) and reconciliation to accumulated earnings/(deficit) on a book basis for the years ended December 31, 2018, 2017 and 2016 were as follows:
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Undistributed ordinary income - tax basis
$
4,045

 
$
3,782

 
$
2,377

Net change in unrealized appreciation on investments
20,457

 
20,466

 
13,025

GAAP versus tax basis consolidation of subsidiaries
442

 
1,369

 
2,579

Other temporary differences
7,624

 
4,982

 
2,348

Total accumulated earnings - book basis
$
32,568

 
$
30,599

 
$
20,329


The differences between the components of distributable earnings on a tax basis and the amounts reflected in the consolidated statements of changes in net assets are primarily due to temporary book-tax differences that will reverse in a subsequent period.
NOTE 15—FINANCIAL HIGHLIGHTS:

The financial highlights for the Company are as follows:


F-230




Per share data (1)
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Net asset value at beginning of period
 
$
15.08

 
$
14.30

 
$
14.06

Net investment loss
 
(0.40
)
 
(0.45
)
 
(0.64
)
Net realized gain on investments
 
2.31

 
2.27

 
2.17

Net unrealized appreciation on investments
 
0.36

 
0.75

 
0.85

Net unrealized depreciation on servicing assets
 
(0.30
)
 
(0.20
)
 
(0.16
)
Change in provision for deferred taxes
 
(0.06
)
 
(0.12
)
 
(0.34
)
Net increase in net assets resulting from operations
 
1.91

 
2.25

 
1.88

Distributions to common stockholders
 
(1.80
)
 
(1.64
)
 
(1.53
)
Stock-based compensation expense
 
0.02

 
0.05

 
0.04

Consolidation of Exponential Business Development Co., Inc.
 

 

 
(0.03
)
Accretive effect of stock offerings (issuing shares above NAV per share)
 
0.04

 
0.02

 

Accretive effect of shares issued in connection with investments (issuing shares above NAV per share)
 

 
0.01

 

Accretive effect of shares issued in connection with DRIP (issuing shares above NAV per share)
 
0.01

 

 

Dilutive effect of restricted stock awards
 
(0.08
)
 

 
(0.11
)
Other (4)
 
0.01

 
0.09

 
(0.01
)
Net asset value at end of period
 
$
15.19

 
$
15.08

 
$
14.30

 
 
 
 
 
 
 
Per share market value at end of period
 
$
17.44

 
$
18.49

 
$
15.90

Total return based on market value (2)
 
4.06
 %
 
26.60
 %
 
24.51
 %
Total return based on average net asset value (2)(3)
 
12.67
 %
 
16.92
 %
 
12.59
 %
Shares outstanding at end of period (in thousands)
 
18,919

 
18,457

 
14,624

 
 
 
 
 
 
 
Ratios/Supplemental Data:
 
 
 

 

Net assets at end of period
 
$
287,445

 
$
278,329

 
$
209,094

Ratio of expenses to average net assets
 
20.15
 %
 
19.20
 %
 
19.48
 %
Ratio of net investment loss to average net assets
 
(2.65
)%
 
(3.23
)%
 
(4.48
)%
Portfolio turnover
 
130.41
 %
 
116.4
 %
 
109.6
 %
Average debt outstanding
 
$
279,254

 
$
193,747

 
$
151,502

Average debt outstanding per share
 
$
14.76

 
$
10.50

 
$
10.36

Asset coverage ratio (5)
 
185
 %
 
229
 %
 
222
 %

(1) Based on actual number of shares outstanding at the end of the corresponding period or the weighted average shares outstanding for the period, unless otherwise noted, as appropriate.
(2) Assumes dividends are reinvested.
(3) Total return based on average net asset value was calculated using the sum of ending net asset value plus dividends to stockholders during the period, divided by the beginning net asset value.
(4) Includes the impact of the different share amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of a period end or transaction date.
(5) Calculated based on $337,501,000, $221,007,000 and $171,244,000 of senior securities outstanding at December 31, 2018, 2017 and 2016, respectively.
NOTE 16—STOCK-BASED COMPENSATION:

Stock Plan

F-231





The Company accounts for its stock-based compensation plan using the fair value method, as prescribed by ASC 718, Compensation—Stock Compensation. Accordingly, for restricted stock awards, the Company measured the grant date fair value based upon the market price of its common stock on the date of the grant and amortizes the fair value of the awards as stock-based compensation expense over the requisite service period, which is generally the vesting term.
        
The Board approves the issuance of shares of restricted stock to employees and directors pursuant to the Equity Incentive Plan. These shares generally vest over a one or two year period from the grant date. The fair value is expensed over the service period, starting on the grant date. The following table summarizes the restricted stock issuances under the Equity Incentive Plan, net of shares forfeited and the remaining shares of restricted stock available for issuance as of December 31, 2018.

Restricted Stock authorized under the plan (1)
 
1,500,000

Less net restricted stock granted during:
 
 
Year ended December 31, 2016
 
(120,933
)
Year ended December 31, 2017
 
(5,007
)
Year ended December 31, 2018
 
(93,568
)
Restricted stock available for issuance as of December 31, 2018
 
1,280,492


(1) A maximum of 20% of total shares of common stock issued and outstanding, calculated on a fully diluted basis, not to exceed 3,000,000 shares, are available for awards of restricted stock and stock options under the Equity Incentive Plan. No more than 50% of the shares of stock reserved for the grant of awards under the Equity Incentive Plan may be restricted stock awards at any time during the term of the Equity Incentive Plan. No stock options have been granted under the Equity Incentive Plan.

For the years ended December 31, 2018, 2017 and 2016, the Company recognized total stock-based compensation expense of $585,000, $963,000 and $577,000, respectively.

As of December 31, 2018, there was $1,232,000 of total unrecognized compensation expense related to unvested restricted shares. This compensation expense is expected to be recognized over a remaining weighted-average period of approximately 2.17 years as of December 31, 2018.

NOTE 17—UNCONSOLIDATED SIGNIFICANT SUBSIDIARIES:

At December 31, 2018, the Company’s investment in NMS exceeded the 10% and 20% thresholds in at least one of the tests under Rule 3-09 and Rule 4-08(g) of Regulation S-X, and as such the audited financial statements of NMS are required to be filed as financial statement schedules herein within 90 days of the Company’s fiscal year end. Accordingly, the financial statements of NMS will be filed as an amendment to this Annual Report on Form 10-K on or before March 31, 2019.

Balance Sheets - Newtek Merchant Solutions, LLC
 
As of December 31, 2018 (Unaudited)
 
As of December 31, 2017 (Unaudited)
 
As of December 31, 2016 (Audited)
Current assets
 
$
16,044

 
$
17,005

 
$
11,522

Noncurrent assets
 
35,949

 
9,806

 
4,907

Total assets
 
$
51,993

 
$
26,811

 
$
16,429

Current liabilities
 
7,471

 
4,107

 
5,619

Noncurrent liabilities
 
31,660

 
29,857

 
16,432

Total liabilities
 
$
39,131

 
$
33,964

 
$
22,051

Total member’s equity (deficit)
 
$
12,862

 
$
(7,153
)
 
$
(5,622
)


F-232




Statements of Income - Newtek Merchant Solutions, LLC
 
Year Ended December 31, 2018 (Unaudited)
 
Year Ended December 31, 2017 (Unaudited)
 
Year Ended December 31, 2016 (Audited)
Revenue
 
$
121,579

 
$
111,272

 
$
103,886

Expenses
 
110,360

 
102,675

 
95,495

Income from operations
 
$
11,219

 
$
8,597

 
$
8,391

Interest (expense) income, net
 
(1,688
)
 
(1,477
)
 
(1,406
)
Gain on sale of merchant portfolio
 
5,581

 

 

Income before tax
 
$
15,112

 
$
7,120

 
$
6,985



NOTE 18—SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED):
The following tables set forth certain unaudited consolidated quarterly statement of operations data from the eight quarters ended December 31, 2018. This information is unaudited, but in the opinion of management, it has been prepared substantially on the same basis as the audited consolidated financial statements appearing elsewhere in this report, and all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below. The consolidated quarterly data should be read in conjunction with the current audited consolidated statements and notes thereto. The total of the quarterly EPS data may not equal to the full year results.
 
Three Months Ended
2018
March 31
 
June 30
 
September 30
 
December 31
Total investment income
$
11,068

 
$
11,404

 
$
12,385

 
$
14,658

Net investment loss
$
(2,773
)
 
$
(2,134
)
 
$
(1,446
)
 
$
(1,135
)
Net gain on investments
$
10,885

 
$
9,755

 
$
13,830

 
$
8,696

Net increase in net assets resulting from operations
$
8,112

 
$
7,621

 
$
12,384

 
$
7,561

Net increase in net assets resulting from operations per share
$
0.44

 
$
0.41

 
$
0.66

 
$
0.40

Net asset value per share at period end
$
15.05

 
$
15.06

 
$
15.28

 
$
15.19

 
Three Months Ended
2017
March 31
 
June 30
 
September 30
 
December 31
Total investment income
$
8,993

 
$
9,904

 
$
9,601

 
$
10,416

Net investment loss
$
(2,094
)
 
$
(1,680
)
 
$
(1,192
)
 
$
(2,915
)
Net gain on investments
$
7,998

 
$
8,610

 
$
9,269

 
$
20,980

Net increase in net assets resulting from operations
$
5,904

 
$
6,930

 
$
8,077

 
$
18,065

Net increase in net assets resulting from operations per share
$
0.36

 
$
0.40

 
$
0.46

 
$
1.00

Net asset value per share at period end
$
14.31

 
$
14.36

 
$
14.40

 
$
15.08

NOTE 19—SUBSEQUENT EVENTS:

Dividend Declaration

On February 15, 2019, the Company declared a quarterly cash dividend of $0.40 per share payable on March 29, 2019 to shareholders of record as of March 15, 2019. The dividend will be paid in cash or shares of the Company's common stock through participation in the Company's DRIP, at the election of shareholders.

Securitization Activity

On February 25, 2019, the 2010-1 Trust was terminated as a result of NSBF purchasing the 2010-1 Trust assets, with the 2010-1 Trust’s noteholders receiving the redemption price. 


F-233
See accompanying notes to these consolidated financial statements



Common Stock

From January 1, 2019 through March 15, 2019 the Company sold 134,658 shares of its common stock at a weighted average price of $18.89 per share under the ATM Equity Distribution Agreement. Proceeds, net of offering costs and expenses were $2,544,000. As of March 15, 2019, there were 2,834,929 shares of common stock available for sale under the ATM Equity Distribution Agreement.


F-234




Newtek Business Services Corp. and Subsidiaries
Schedule of Investments In and Advances to Affiliates
December 31, 2018
Portfolio Company
 
Type of Investment (1)
 
Amount of Realized Gain (Loss)
 
Amount of Unrealized Appreciation (Depreciation)
 
Amount of Interest or Dividends Credited to Income (3)
 
Fair Value at December 31, 2017
 
Gross Additions (4)
 
Gross Reductions (5)
 
Fair Value at December 31, 2018
Advanced Cyber Security Systems, LLC
 
50% Membership Interest (2)
 
$

 
$

 
$

 
$

 
$

 
$

 
$

 
 
Term Loan (10%) (2)
 

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Automated Merchant Services, Inc.
 
100% Common Stock (2)
 

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CDS Business Services, Inc.
 
100% Common Stock (2)
 

 
(3,000
)
 

 
8,000

 

 
(3,000
)
 
5,000

 
 
Line of Credit (Prime + 2.5%) (6)
 

 

 
563

 
6,396

 
11,318

 
(12,714
)
 
5,000

 
 
Term Loan (10%)
 
 
 
 
 
69

 

 
1,000

 

 
1,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newtek Technology Solutions, Inc.
 
100% Common Stock (2)
 

 
(3,900
)
 

 
12,400

 

 
(3,900
)
 
8,500

 
 
Line of Credit (LIBOR + 2.5%) (6)
 

 

 
49

 

 
6,800

 

 
6,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newtek Insurance Agency, LLC
 
100% Membership Interest (2)
 

 
(420
)
 

 
2,500

 
135

 
(420
)
 
2,215

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PMTWorks Payroll, LLC
 
100% Membership Interest (2)
 

 
(381
)
 

 

 
381

 
(381
)
 

 
 
Term Loans (10%-12%) (2)
 

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Small Business Lending, LLC
 
100% Membership Interest (2)
 

 
550

 

 
2,500

 
250

 
550

 
3,300

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
banc-serv Partners, LLC
 
100% Membership Interest (2)
 

 
(4,939
)
 

 
3,430

 
1,509

 
(4,939
)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
International Professional Marketing, Inc.
 
100% Common Stock
 

 
(700
)
 
125

 
4,000

 

 
(700
)
 
3,300

 
 
Line of Credit (Prime + 0.5%) (6)
 

 

 
20

 
450

 
850

 
(500
)
 
800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SIDCO, LLC
 
100% Membership Interest
 

 
700

 
1,250

 
7,120

 
700

 

 
7,820

 
 
Line of Credit (Prime + 0.5%) (6)
 

 

 
22

 
550

 
175

 
(550
)
 
175


F-235




Portfolio Company
 
Type of Investment (1)
 
Amount of Realized Gain (Loss)
 
Amount of Unrealized Appreciation (Depreciation)
 
Amount of Interest or Dividends Credited to Income (3)
 
Fair Value at December 31, 2017
 
Gross Additions (4)
 
Gross Reductions (5)
 
Fair Value at December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newtek Merchant Solutions, LLC (7)                                          
 
100% Membership Interest
 

 
13,250

 
10,750

 
103,000

 
13,250

 

 
116,250

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United Capital Source, LLC
 
100% Membership Interest
 
52

 

 
275

 
2,450

 

 
(2,450
)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Titanium Asset Management, LLC
 
100% Membership Interest (2)
 

 

 

 

 

 

 

 
 
Term Loans (10%) (2)
 

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newtek Business Lending, LLC
 
100% Membership Interest
 

 
3,000

 

 

 
16,909

 
(8,464
)
 
8,445

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mobil Money, LLC
 
100% Membership Interest
 

 

 
165

 

 
3,300

 
(320
)
 
2,980

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excel WebSolutions LLC
 
Term Loans (10%)
 

 
(112
)
 
17

 
360

 

 
(360
)
 

 
 
50% Membership Interest (2)
 

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Controlled Investments
 
 
 
$
52

 
$
4,048

 
$
13,305

 
$
153,156

 
$
56,577

 
$
(38,148
)
 
$
171,585

Non-Control/Affiliate Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EMCAP Loan Holdings, LLC
 
6.04% Membership Interest
 
$

 
$

 
$
65

 
$

 
$
1,000

 
$

 
$
1,000

Total Affiliate Investments
 
 
 
$
52

 
$
4,048

 
$
13,370

 
$
153,156

 
$
57,577

 
$
(38,148
)
 
$
172,585


This schedule should be read in connection with the Company’s Consolidated Financial Statements, including the Consolidated Schedule of Investments and Notes to the Consolidated Financial Statements.

(1) The principal amount and ownership detail as shown in the Company’s Consolidated Schedule of Investments.
(2) Represents non-income producing security.
(3) Represents the total amount of interest, fees or dividends credited to income for the period.
(4) Gross additions include 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 include net increases in unrealized appreciation or net decreases in unrealized depreciation.
(5) 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.
(6) Index based floating rate debt investments bear interest at rate of Prime of LIBOR plus a contractual spread which typically resets monthly. At December 31, 2018, the Prime rate and LIBOR was 5.25% and 2.34463%, respectively.
(7) On December 31, 2018, Premier was merged into NMS. The above table reflects the combined fair values, unrealized appreciation and amount of dividends credited to income. During the year ended December 31, 2018, $13,250,000 of unrealized appreciation related to the investment in NMS. During the year ended December 31, 2018, $7,800,000 and $2,950,000 of dividend income was earned from NMS and Premier, respectively.



F-236







F-237

Exhibit
Exhibit 10.26


NEWTEK BUSINESS SERVICES CORP.
_____________________________

Employment Agreement with
Barry Sloane
_____________________________

PREAMBLE. This Employment Agreement (the “Agreement”) is entered into as of the 1st day of March 2019 (the “Effective Date”), by and between NEWTEK BUSINESS SERVICES CORP. (the “Company”) and BARRY SLOANE (the “Executive”), effective immediately.
WHEREAS, the Executive is currently employed by the Company as Chief Executive Officer and President, and serves as Chairman of the Board of Directors; and

WHEREAS, the parties desire by this writing to set forth the employment relationship of the Company and the Executive as of the Effective Date.
NOW, THEREFORE, it is AGREED as follows:
1.    Defined Terms
When used anywhere in the Agreement, the following terms shall have the meaning set forth herein.
(a)    “Board” shall mean the Board of Directors of the Company.
(b)    “Change in Control” shall mean any one of the following events: (i) the acquisition of ownership, holding or power to vote more than 25% of the Company’s voting shares by any person or persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), (ii) the acquisition of the ability to control the election of a majority of the Board by any person or persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), (iii) the acquisition of a controlling influence over the management or policies of the Company by any person or by persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), or (iv) during any period of two consecutive years, individuals (the “Continuing Directors”) who at the beginning of such period constitute the Board (the “Existing Board”) cease for any reason to constitute at least two-thirds thereof, provided that any individual whose election or nomination for election as a member of the Existing Board was approved by a vote of at least two-thirds of the Continuing Directors then in office shall be considered a Continuing Director. For purposes of defining Change in Control, the term “person” refers to an individual or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not specifically listed herein. Notwithstanding the foregoing, a Change in Control as defined in this Section 1(b) shall not be treated as a Change in Control for purposes of this Agreement unless it constitutes a “change in control event” within the meaning of Section 1.409A-3(i)(5) of the Treasury Regulations promulgated under section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (the “Treasury Regulations”)
(c)    Common Stock” shall mean the shares of the Company’s common stock, par value of $0.02 per share.
(d)    “Good Reason” shall mean any of the following events, which has not been consented to in advance by the Executive in writing during the term of the Agreement: (i) the requirement that the



Exhibit 10.26

Executive move his personal residence, or perform his principal executive functions, more than fifty (50) miles from his primary office as of the Effective Date; (ii) a material reduction in the Executive’s Annual Base Compensation as the same may be increased from time to time; (iii) the failure by the Company to continue to provide the Executive with compensation and benefits provided for on the Effective Date, as the same may be increased from time to time, or with benefits substantially similar to those provided to him under any of the Executive benefit plans in which the Executive now or hereafter becomes a participant, or the taking of any action by the Company which would directly or indirectly reduce any of such benefits or deprive the Executive of any material fringe benefit enjoyed by him; (iv) the assignment to the Executive of duties and responsibilities that constitute a material diminution from those associated with his position on the Effective Date; (v) a failure to elect or reelect the Executive to the Board or as Chairman of the Board; (vi) a material diminution or reduction in the Executive’s responsibilities or authority (including reporting responsibilities) in connection with his employment with the Company.
(e)    “Just Cause” shall mean the Executive’s willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, conviction for a felony, or material breach of any provision of this Agreement. No act, or failure to act, on the Executive’s part shall be considered “willful” unless Executive has acted, or failed to act, with an absence of good faith and without a reasonable belief that Executive’s action or failure to act was in the best interests of the Company.
(f)    “Protected Period” shall mean the period that begins on the date six months before a Change in Control and ends on the earlier of six months following the Change in Control or the expiration date of this Agreement.
(g)    “Trigger Event” shall mean (i) the Executive’s voluntary termination of employment within ninety (90) days of an event that both occurs during the Protected Period and constitutes Good Reason, or (ii) the termination by the Company or its successor(s) in interest, of the Executive’s employment for any reason other than Just Cause during the Protected Period.
2.    Employment. The Executive is employed as Chief Executive Officer and President of the Company. The Executive shall render such administrative and management services for the Company and its subsidiaries and portfolio companies as are currently rendered and as are customarily performed by persons situated in a similar executive capacity and consistent with the duties of the Chief Executive Officer and President as set forth in the Bylaws of the Company. The Executive shall also promote, by entertainment or otherwise, as and to the extent permitted by law, the business of the Company and its subsidiaries and portfolio companies. The Executive’s other duties shall be such as the Board may from time to time reasonably direct, including normal duties as an officer of the Company.
3.    Annual Base Compensation. The Company agrees to pay the Executive during the term of this Agreement a salary at the rate of $700,000 per annum, payable in cash not less frequently than monthly.
4.    Cash Bonuses. The Board shall determine the Executive’s right to receive cash bonuses., Cash Bonuses shall be awarded annually based upon the Executive’s and the Company’s annual performance pursuant to the Company’s policy.
5.    Other Benefits.
(a)    Participation in Retirement, Medical and Other Plans. The Executive shall participate in any plan that the Company maintains for the benefit of its employees if the plan relates to (i) pension, profit-sharing, or other retirement benefits, (ii) medical insurance or the reimbursement of medical or dependent care expenses, or (iii) other group benefits, including disability and life insurance plans.



Exhibit 10.26

(b)    Executive Benefits; Expenses. The Executive shall participate in any fringe benefits which are or may become available to the Company’s senior management Executives, including for example incentive compensation plans, club memberships, and any other benefits which are commensurate with the responsibilities and functions to be performed by the Executive under this Agreement. The Executive shall be reimbursed for all reasonable out-of-pocket business expenses which Executive shall incur in connection with his services under this Agreement upon substantiation of such expenses in accordance with the policies of the Company.
6.    Term. The Company hereby employs the Executive, and the Executive hereby accepts such employment under this Agreement, for the period commencing on the Effective Date and ending on March 31, 2020 or such earlier date as is determined in accordance with Section 11 (the “Term”).”
7.    Loyalty; Noncompetition.
(a)    During the period of his employment hereunder and except for illnesses, reasonable vacation periods, and reasonable leaves of absence, the Executive shall devote substantially all his full business time, attention, skill, and efforts to the faithful performance of his duties hereunder; provided, however, from time to time, Executive may serve on the boards of directors of, and hold any other offices or positions in, companies or organizations, at the request of the Company or which will not present, in the opinion of the Board, any conflict of interest with the Company or any of its subsidiaries or portfolio companies, nor unfavorably affect the performance of Executive’s duties pursuant to this Agreement, nor violate any applicable statute or regulation. . During the Term of his employment under this Agreement, the Executive shall not engage in any business or activity contrary to the business affairs or interests of the Company.
(b)    Nothing contained in this Paragraph 7 shall be deemed to prevent or limit the Executive’s right to invest in the capital stock or other securities of any business dissimilar from that of the Company or, solely as a passive or minority investor, in any business, provided such investment does not: (i) constitute a conflict of interest, (ii) violate laws or regulations applicable to the Company, including, without limitation, the Investment Company Act of 1940, or (iii) violate any rules or polices promulgated by the Board.
8.    Facilities and Staff. The Company will provide Executive with the working facilities and staff customary for similar executives and necessary for him to perform his duties.
9.    Vacation and Sick Leave. At such reasonable times according to Company policy, the Executive shall be entitled, without loss of pay, to absent himself voluntarily from the performance of his employment under this Agreement, all such voluntary absences to count as vacation time; provided that:
(a)    The Executive shall be entitled to an annual vacation in accordance with the policies that the Company periodically establishes for senior management executives of the Company.
(b)    The Executive shall not receive any additional compensation from the Company on account of his failure to take a vacation, and the Executive shall not accumulate unused vacation from one fiscal year to the next, except in either case to the extent authorized by the Board.
(c)    In addition to the aforesaid paid vacations, the Executive shall be entitled - to absent himself voluntarily from the performance of his employment with the Company for such additional periods of time and for such valid and legitimate reasons as the Board may in its discretion determine. Further, the Board may grant to the Executive a leave or leaves of absence, with or without pay.



Exhibit 10.26

(d)    In addition, the Executive shall be entitled to an annual sick leave benefit as established by the Company
10.    Indemnification. The Company shall, to the extent permitted by the Company’s Bylaws, indemnify and hold harmless Executive from any and all loss, expense, or liability that Executive may incur due to his services for the Company as an officer and or a director of the Company or any of its subsidiaries or portfolio companies (including any liability Executive may ever incur, as the result of severance benefits Executive collects pursuant to Sections 11 or 13), during the full Term of this Agreement and shall at all times maintain adequate insurance for such purposes.
11.    Termination and Termination Pay. Subject to Section 13 hereof, the Executive’s employment hereunder may be terminated under the following circumstances:
(a)    Just Cause. The Board may, based on a good faith determination and only after giving the Executive written notice and a reasonable opportunity to cure, immediately terminate the Executive’s employment at any time, for Just Cause. The Executive shall have no right to receive compensation or other benefits for any period after termination for Just Cause.
(b) Without Just Cause. The Board may, by written notice to the Executive, immediately terminate his employment for a reason other than Just Cause. In such event, the Executive shall be entitled to a total severance payment (the “Severance Payment”) equal to two (2) times the sum of (i) Executive’s Annual Base Compensation in effect at the time of termination, plus (ii) the amount of all compensation paid to Executive under Section 4 hereof with respect to the immediately preceding fiscal year. The first $500,000 of the Severance Payment shall be paid in a lump sum to the Executive within thirty (30) days after Executive’s termination of employment. The remaining amount of the Severance Payment shall be paid in equal installments over a six (6) month period following the Executive’s termination of employment, payable in accordance with the Company’s regularly scheduled payroll (the “Installment Payments”). Each Installment Payment shall be treated as a separate payment for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii). In the event that, pursuant to the above, any of the Installment Payments will be paid after April 1 of the year following the year of termination and the total amount of any such Installment Payments which will be paid after April 1 exceeds the lesser of: (i) twice the Executive’s then Annual Base Compensation; or (ii) twice the Code Section 401(a)(17) limit in effect for the year of termination, the portion of any such Installment Payments that exceeds the foregoing threshold shall be accumulated and paid in the seventh (7 th ) month following the date of termination of employment, but only to the extent necessary to comply with the six (6) month delay rule pertaining to “specified employees” under Treasury Regulations Section 1.409A-3(i)(2).
 
(c)    Resignation by Executive with Good Reason. The Executive may at any time immediately terminate employment for Good Reason, in which case the Executive shall be entitled to receive the Severance Payment payable in the same manner and on the same basis as provided for under Section 11(b) herein upon a termination without Just Cause. In addition, the Executive will be entitled to health, life, disability and other benefits which the Executive would have been eligible to participate in through the expiration of the Term based on the benefit levels substantially equal to those that the Company provided for the Executive at the date of termination of employment, subject to any restrictions as may be required under Code Section 409A
(d)    Resignation by Executive without Good Reason. The Executive may voluntarily terminate employment with the Company during the term of this Agreement, upon at least 60 days’ prior written notice to the Board of Directors, in which case the Executive shall receive only his compensation, vested rights, and Executive benefits up to the date of Executive’s last day of employment.



Exhibit 10.26

(e)    Death, or Disability. If the Executive’s employment terminates during the Term of this Agreement due to Executive’s death or disability that results in collection of any long-term disability benefits, the Executive (or the beneficiaries of Executive’s estate) shall be entitled to receive the compensation and benefits that the Executive would otherwise have become entitled to receive pursuant to subsection (d) hereof upon a resignation without Good Reason.
(f) Non-Renewal Payment. If the Term of this Agreement is not extended for at least one (1) additional year in circumstances in which the Executive is willing and able to execute such extension and continue performing services, then the Executive’s employment shall be terminated by the Company effective as of the expiration of the Term, in which event Executive shall be entitled to a Severance Payment equal to one (1.0) times the sum of (i) Executive’s Annual Base Compensation in effect at the time of termination, plus (ii) the amount of all compensation paid to Executive under Section 4 hereof with respect to the immediately preceding fiscal year. The first $500,000 of the Severance Payment shall be paid in a lump sum to the Executive within thirty (30) days after his termination of employment. The remaining amount of the Severance Payment shall be paid in equal installments over a six (6) month period following the Executive’s termination of employment in Installment Payments. Each Installment Payment shall be treated as a separate payment for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii). In the event that, pursuant to the above, any of the Installment Payments will be paid after April 1 of the year following the year of termination and the total amount of any such Installment Payments which will be paid after April 1 exceeds the lesser of: (i) twice the Executive’s then current base salary; or (ii) twice the Code Section 401(a)(17) limit in effect for the year of termination, the portion of any such Installment Payments that exceeds the foregoing threshold shall be accumulated and paid in the seventh (7th) month following the date of his termination of employment, but only to the extent necessary to comply with the six (6) month delay rule pertaining to “specified employees” under Treasury Regulations Section 1.409A-3(i)(2).
(g)     Acceleration of Equity Awards. All (a) outstanding and unvested options to purchase Common Stock granted to Executive under any equity plan of the Company, (b) unvested shares of restricted Common Stock awarded to the Executive under any equity plan of the Company, and (c) other equity and equity equivalent awards then held by the Executive, shall be accelerated in full, and thereafter all such options, shares of restricted Common Stock and other equity awards shall be immediately vested and exercisable for such period of time as provided for by the specific agreements governing each such award, upon Executive’s termination pursuant to Sections 11(b), (c), (e) and (f) hereof.
12.    No Mitigation. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent employment.



Exhibit 10.26

13.    Change in Control. Notwithstanding any provision herein to the contrary, if a Trigger Event occurs during the Protected Period, the Executive shall be paid an amount equal to two (2) times the executive’s Annual Base Compensation plus (ii) the amount of all compensation paid to Executive under Section 4 hereof with respect to the immediately preceding fiscal year (the “Change in Control Payment”). If the Trigger Event occurs during the portion of the Protected Period that is prior to the date of the Change in Control, the Change in Control Payment shall be payable in the same manner as provided for under Section 11(b) herein upon a termination without Just Cause. If the Trigger Event occurs during the portion of the Protected Period that is on or after the date of the Change in Control, the Change in Control Payment shall be paid in a lump sum within ten (10) days of Executive’s termination of employment.
14.    Covenants.
(a)    Definitions. For purposes of this Agreement:
(i)    Restrictive Period. The term “Restrictive Period” shall mean the period beginning on the Effective Date and ending two (2) years after the termination of the Executive’s employment hereunder.
(ii)    Covered Customer. The term “Covered Customer” shall mean (A) during the Term, any customer, merchant, independent sales agency (ISA), independent sales organization (ISO), alliance partner or any intermediary of the Company or its portfolio companies and (B) after the Term, as of the end of the Term, a Covered Customer of the Company or its portfolio companies within the prior three years.
(iii)    Covered Business. The term “Covered Business” shall mean (A) during the term, any business in which the Company is engaged and (B) after the Term, any business in which the Company was engaged as of the end of the Term.
(iv)    Covered State. The term “Covered State” shall mean (A) during the Term, any state in the United States and (B) after the Term, any state (1) in which, as of the end of the Term, the Company was engaged in business or (2) with respect to which the Company, as of the end of the Term, had expended material expense and/or efforts in connection with preparing to do business therein.
(b)    Non-Interference. The Executive covenants and agrees that Executive will not at any time during the Restrictive Period for whatever reason, whether for Executive’s own account or for the account of any other person, firm, corporation or other business organization: (i) interfere with contractual relationships between the Company or its subsidiaries or portfolio companies and any of their Covered Customers or employees; (ii) hire, or solicit for hire, any person who is employed by the Company or its subsidiaries or portfolio companies, without the express written consent of the Company; or (iii) other than on behalf of the Company or its subsidiaries or portfolio companies, solicit any Covered Customer in connection with the engagement, by any person or entity, in any Covered Business in any Covered State.
(c)    Confidentiality. The Executive will not, at any time whether during or after his termination of employment, (i) disclose to anyone, without proper authorization from the Company, or (ii) use, for his or another’s benefit, any confidential or proprietary information of the Company or any parent or subsidiary of the Company, which may include trade secrets, business plans or outlooks, financial data, marketing or sales programs, customer lists, brand formulations, training and operations manuals, products or price strategies, mergers, acquisitions, and/or Company personnel issues.



Exhibit 10.26

(d)    Blue Pencil; Equitable Relief. The provisions contained in this Section 14 as to the time periods, scope of activities, persons or entities affected and territories restricted shall be deemed divisible so that if any provision contained in this Section is determined to be invalid or unenforceable, such provision shall be deemed modified so as to be valid and enforceable to the full extent lawfully permitted. The Executive acknowledges that the provisions of this Section 14 are reasonable and necessary for the protection of the Company and that the Company will be irrevocably damaged if such covenants are not specifically enforced. Accordingly, the Executive agrees that if Executive breaches or threatens to breach any of the covenants contained in this Section 14, the Company will be entitled (i) to damages sufficient to compensate the Company for any harm to the Company caused thereby and (ii) to specific performance and injunctive relief for the purpose of preventing the breach or threatened breach thereof without bond or other security or a showing that monetary damages will not provide an adequate remedy, in addition to any other relief to which the Company may be entitled under this Agreement.”
15.    Reimbursement for Litigation Expenses.
In the event that any dispute arises between the Executive and the Company as to the terms or interpretation of this Agreement, whether instituted by formal legal proceedings or otherwise, including any action that the Executive takes to enforce the terms of this Agreement or to defend against any action taken by the Company, the Executive shall be reimbursed for all costs and expenses, including reasonable attorneys’ fees, arising from such dispute, proceedings or actions, provided that the Executive shall obtain a final judgement by a court of competent jurisdiction in favor of the Executive. Such reimbursement shall be paid within ten (10) days of Executive’s furnishing to the Company written evidence, which may be in the form, among other things, of a cancelled check or receipt, of any costs or expenses incurred by the Executive.

16.    Successors and Assigns.
(a)    This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Company which shall acquire, directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of the Company.
(b)    Since the Company is contracting for the unique and personal skills of the Executive, the Executive shall be precluded from assigning or delegating his rights or duties hereunder without first obtaining the written consent of the Company.
17.    Corporate Authority. Company represents and warrants that the execution and delivery of this Agreement by it has been duly and properly authorized by the Board and that when so executed and delivered this Agreement shall constitute the lawful and binding obligation of the Company.
18.    Amendments. No amendments or additions to this Agreement shall be binding unless made in writing and signed by all of the parties, except as herein otherwise specifically provided.
19.    Applicable Law. Except to the extent preempted by Federal law, the laws of the State of New York shall govern this Agreement in all respects, whether as to its validity, construction, capacity, performance or otherwise.
20.    Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.



Exhibit 10.26

21.    Entire Agreement. This Agreement, together with any understanding or modifications thereof as agreed to in writing by the parties, shall constitute the entire agreement between the parties hereto with respect to the matters addressed and shall supercede all previous agreements with respect to such matters.
22.    Tax Matters.    All payments or benefits provided under this Agreement are subject to any applicable employment or tax withholdings or deductions. In addition, the parties hereby agree that it is their intention that all payments or benefits provided under this Agreement be exempt from, or if not so exempt, comply with, Code Section 409A and this Agreement shall be interpreted accordingly. Notwithstanding anything in this Agreement to the contrary, if any payments or benefits made or provided under the Agreement are considered deferred compensation subject to Code Section 409A payable on account of Employee’s separation from service (but that do not meet an exemption under Code Section 409A, including without limitation the short term deferral or the separation pay plan exemption), such payments or benefits shall be paid no earlier than the date that is six (6) months following Employee’s separation from service (or, if earlier, the date of death) to the extent required by Code Section 409A.
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first hereinabove written.
NEWTEK BUSINESS SERVICES CORP.


By:    /s/ Salvatore Mulia                
Salvatore Mulia, Chairman
Compensation, Corporate Governance and
Nominating Committee

EXECUTIVE

By:     /s/ Barry Sloane                    
    Barry Sloane, CEO & President



Exhibit
Exhibit 10.27


NEWTEK BUSINESS SERVICES CORP.
_____________________________

Employment Agreement with
Jennifer C. Eddelson
_____________________________

PREAMBLE. This Employment Agreement (the “Agreement”) is entered into as of the 1st day of March 2019 (the “Effective Date”), by and between NEWTEK BUSINESS SERVICES CORP. (the “Company”) and JENNIFER C. EDDELSON (the “Executive”).
WHEREAS, the Executive is currently employed by the Company as Executive Vice President and Chief Accounting Officer; and
WHEREAS, the parties desire by this writing to set forth the employment relationship of the Company and the Executive as of the Effective Date.
NOW, THEREFORE, it is AGREED as follows:
1.    Defined Terms
When used anywhere in the Agreement, the following terms shall have the meaning set forth herein.
(a)    “Board” shall mean the Board of Directors of the Company.
(b)    “Change in Control” shall mean any one of the following events: (i) the acquisition of ownership, holding or power to vote more than 25% of the Company’s voting shares by any person or persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), (ii) the acquisition of the ability to control the election of a majority of the Board by any person or persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), (iii) the acquisition of a controlling influence over the management or policies of the Company by any person or by persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), or (iv) during any period of two consecutive years, individuals (the “Continuing Directors”) who at the beginning of such period constitute the Board (the “Existing Board”) cease for any reason to constitute at least two-thirds thereof, provided that any individual whose election or nomination for election as a member of the Existing Board was approved by a vote of at least two-thirds of the Continuing Directors then in office shall be considered a Continuing Director. For purposes of defining Change in Control, the term “person” refers to an individual or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not specifically listed herein. Notwithstanding the foregoing, a Change in Control as defined in this Section 1(b) shall not be treated as a Change in Control for purposes of this Agreement unless it constitutes a “change in control event” within the meaning of Section 1.409A-3(i)(5) of the Treasury Regulations promulgated under section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (the “Treasury Regulations”).

(c)    Common Stock” shall mean shares of the Company’s common stock, par value $0.02 per share.



Exhibit 10.27

(d)    “Good Reason” shall mean any of the following events, which has not been consented to in advance by the Executive in writing during the term of the Agreement: (i) the requirement that the Executive move her personal residence, or perform her principal executive functions, more than fifty (50) miles from her primary office as of the Effective Date; (ii) a material reduction in the Executive’s Annual Base Compensation as the same may be increased from time to time; (iii) the failure by the Company to continue to provide the Executive with compensation and benefits provided for on the Effective Date, as the same may be increased from time to time, or with benefits substantially similar to those provided to her under any of the Executive benefit plans in which the Executive now or hereafter becomes a participant, or the taking of any action by the Company which would directly or indirectly reduce any of such benefits or deprive the Executive of any material fringe benefit enjoyed by her; (iv) the assignment to the Executive of duties and responsibilities that constitute a material diminution from those associated with her position on the Effective Date; or (v) a material diminution or reduction in the Executive’s responsibilities or authority (including reporting responsibilities) in connection with her employment with the Company.
(e)    “Just Cause” shall mean the Executive’s willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, conviction for a felony, or material breach of any provision of this Agreement. No act, or failure to act, on the Executive’s part shall be considered “willful” unless Executive has acted, or failed to act, with an absence of good faith and without a reasonable belief that Executive’s action or failure to act was in the best interests of the Company.
2.    Employment. The Executive is employed as Executive Vice President and Chief Accounting Officer of the Company. The Executive shall render such administrative and management services for the Company, its subsidiaries and portfolio companies as are currently rendered and as are customarily performed by persons situated in a similar executive capacity and consistent with the duties of an Executive Vice President as set forth in the bylaws of the Company. The Executive shall report to the Chief Executive Officer. The Executive shall also promote, by entertainment or otherwise, as and to the extent permitted by law, the business of the Company and its subsidiaries. The Executive’s other duties shall be such as the Chief Executive Officer may from time to time reasonably direct, including normal duties as an officer of the Company.
3.    Annual Base Compensation. The Company agrees to pay the Executive during the term of this Agreement a salary at the rate of $335,000 per annum, payable in cash not less frequently than monthly.
4.    Cash Bonuses. The Chief Executive Officer shall determine the Executive’s right to receive a cash bonus. Cash bonuses shall be awarded annually based upon the Chief Accounting Officer’s and the Company’s annual performance pursuant to the Company’s policy.
5.    Other Benefits.
(a)    Participation in Retirement, Medical and Other Plans. The Executive shall participate in any plan that the Company maintains for the benefit of its employees if the plan relates to (i) pension, profit-sharing, or other retirement benefits, (ii) medical insurance or the reimbursement of medical or dependent care expenses, or (iii) other group benefits, including disability and life insurance plans.
(b)    Executive Benefits; Expenses. The Executive shall participate in any fringe benefits which are or may become available to the Company’s senior management Executives, including for example incentive compensation plans, club memberships, and any other benefits which are commensurate with the responsibilities and functions to be performed by the Executive under this Agreement. The Executive shall be reimbursed for all reasonable out-of-pocket business expenses which she shall incur in connection with



Exhibit 10.27

her services under this Agreement upon substantiation of such expenses in accordance with the policies of the Company.
6.    Term. The Company hereby employs the Executive, and the Executive hereby accepts such employment, subject to the terms and conditions of this Agreement, for the period commencing on the Effective Date and ending on March 31, 2020 or such earlier date as is determined in accordance with Section 11 (the “Term”).”
7.    Loyalty; Noncompetition.
(a)    During the period of Executive’s employment hereunder and except for illnesses, reasonable vacation periods, and reasonable leaves of absence, the Executive shall devote substantially all Executive’s full business time, attention, skill, and efforts to the faithful performance of Executive’s duties hereunder; provided, however, from time to time, Executive may serve on the boards of directors of, and hold any other offices or positions in, companies or organizations, which will not in the opinion of the Board present any conflict of interest with the Company or any of its subsidiaries or portfolio companies, nor unfavorably affect the performance of Executive’s duties pursuant to this Agreement, nor violate any applicable statute or regulation. “Full business time” is hereby defined as that amount of time usually devoted to like companies by similarly situated executive officers. During the Term of Executive’s employment under this Agreement, the Executive shall not engage in any business or activity contrary to the business affairs or interests of the Company.
(b)    Nothing contained in this Paragraph 7 shall be deemed to prevent or limit the Executive’s right to invest in the capital stock or other securities of any business dissimilar from that of the Company or, solely as a passive or minority investor, in any business, provided such investment does not: (i) constitute a conflict of interest, (ii) violate laws or regulations applicable to the Company, without limitation, the Investment Company Act of 1940, or (iii) violate any rules or polices promulgated by the Board.
8.    Standards. The Executive shall perform her duties under this Agreement in accordance with such reasonable standards as the Chief Executive Officer may establish from time to time. The Company will provide Executive with the working facilities and staff customary for similar executives and necessary for her to perform her duties.
9.    Vacation and Sick Leave. At such reasonable times according to Company policy, the Executive shall be entitled, without loss of pay, to absent herself voluntarily from the performance of her employment under this Agreement, all such voluntary absences to count as vacation time; provided that:
(a)    The Executive shall be entitled to an annual vacation in accordance with the Company policy for senior management Executives of the Company.
(b)    The Executive shall not receive any additional compensation from the Company on account of her failure to take a vacation, and the Executive shall not accumulate unused vacation from one fiscal year to the next, except in either case to the extent authorized by the Chief Executive Officer.
(c)    In addition to the aforesaid paid vacations, the Executive shall be entitled to absent herself voluntarily from the performance of her employment with the Company for such additional periods of time and for such valid and legitimate reasons as the Chief Executive Officer may in its discretion determine. Further, the Chief Executive Officer may grant to the Executive a leave or leaves of absence with or without pay.



Exhibit 10.27

(d)    In addition, the Executive shall be entitled to an annual sick leave benefit as established by Company.
10.    Indemnification. The Company shall, to the extent permitted by the Company’s Bylaws, indemnify and hold harmless Executive from any and all loss, expense, or liability that she may incur due to her services for the Company as an officer and or a director of the Company or any of its subsidiaries or portfolio companies (including any liability Executive may ever incur as the result of severance benefits Executive collects pursuant to Sections 11 or 13), during the full Term of this Agreement and shall at all times maintain adequate insurance for such purposes.
11.    Termination and Termination Pay. Subject to Section 13 hereof, the Executive’s employment hereunder may be terminated under the following circumstances:
(a)    Just Cause. The Chief Executive Officer may, based on a good faith determination and only after giving the Executive written notice and a reasonable opportunity to cure, immediately terminate the Executive’s employment at any time, for Just Cause. The Executive shall have no right to receive compensation or other benefits for any period after termination for Just Cause.
(b)    Without Just Cause. The Chief Executive Officer may, by written notice to the Executive, immediately terminate Executive’s employment for a reason other than Just Cause. In such event, the Executive shall be entitled to a total severance payment (the “Severance Payment”) equal to one (1) times the sum of (i) Executive’s Annual Base Compensation in effect at the time of termination, plus (ii) the amount of all compensation paid to Executive under Section 4 hereof with respect to the immediately preceding fiscal year. The Severance Payment shall be paid in equal installments over a twelve (12) month period following the Executive’s termination of employment, payable in accordance with the Company’s regularly scheduled payroll (the “Installment Payments”). Each Installment Payment shall be treated as a separate payment for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii).
(c)    Resignation by Executive with Good Reason. The Executive may at any time immediately terminate employment for Good Reason, in which case the Executive shall be entitled to receive the Severance Payment payable in the same manner and on the same basis as provided for under Section 11(b) herein upon a termination without Just Cause. In addition, the Executive will be entitled to health, life, disability and other benefits which the Executive would have been eligible to participate in through the expiration of the Term based on the benefit levels substantially equal to those that the Company provided for the Executive at the date of termination of employment, subject to any restrictions as may be required under Code Section 409A
(d)    Resignation by Executive without Good Reason. The Executive may voluntarily terminate employment with the Company during the term of this Agreement, upon at least 60 days’ prior written notice to the Chief Executive Officer, in which case the Executive shall receive only Executive’s compensation, vested rights, and Executive benefits up to the date of Executive’s last day of employment.
(e)    Death, or Disability. If the Executive’s employment terminates during the Term of this Agreement due to her death, a disability that results in Executive’s collection of any long-term disability benefits the Executive (or the beneficiaries of Executive’s estate) shall be entitled to receive the compensation and benefits that the Executive would otherwise have become entitled to receive pursuant to subsection (d) hereof upon a resignation without Good Reason.
(f)     Non-Renewal Payment. If the Term of this Agreement is not extended for at least one (1) additional year in circumstances in which the Executive is willing and able to execute such extension



Exhibit 10.27

and continue performing services (the “Non-Renewal”), then the Executive’s employment shall be terminated by the Company effective as of the expiration of the Term, in which event Executive shall be entitled to fifty percent (50%) times the Severance Payment (the “Non-Renewal Payment”). The Non-Renewal Payment shall be paid in equal installments over the six (6) month period following the Executive’s termination of employment, payable in accordance with the Company’s regularly scheduled payroll. However, if the Non-Renewal occurs following a Change in Control, the Non-Renewal Payment shall be paid in a lump sum within thirty (30) days of Executive’s termination of employment.
(g)    Acceleration of Equity Awards. All (a) outstanding and unvested options to purchase Common Stock granted to Executive under any equity plan of the Company, (b) unvested shares of restricted Common Stock awarded to the Executive under any equity plan of the Company, and (c) other equity and equity equivalent awards then held by the Executive, shall be accelerated in full, and thereafter all such options, shares of restricted Common Stock and other equity awards shall be immediately vested and exercisable for such period of time as provided for by the specific agreements governing each such award, upon Executive’s termination pursuant to Sections 11(b), (c), (e) or (f) hereof.



12.    No Mitigation. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent employment.
13.    Change in Control. Notwithstanding any provision in this Agreement to the contrary, if Executive’s employment is terminated following a Change of Control: (i) by the Company or its successor in interest for any reason other than Just Cause, or (ii) by the Executive for Good Reason, the Executive shall be paid the Severance Payment, in a lump sum within thirty (30) days of Executive’s termination of employment.
14.    Covenants.
(a)    Definitions. For purposes of this Agreement:
(i)    Restrictive Period. The term “Restrictive Period” shall mean the period beginning on the Effective Date and ending two (2) years after the termination of the Executive’s employment hereunder.
(ii)    Covered Customer. The term “Covered Customer” shall mean: (A) during the Term, any customer, merchant, independent sales agency (ISA), independent sales organization (ISO), alliance partner, referral partner or any intermediary of the Company or its portfolio companies and (B) after the Term, as of the end of the Term, a Covered Customer of the Company or its portfolio companies within the prior three years.
(iii)    Covered Business. The term “Covered Business” shall mean (A) during the term, any business in which the Company is engaged and (B) after the Term, any business in which the Company was engaged as of the end of the Term.



Exhibit 10.27

(iv)    Covered State. The term “Covered State” shall mean (A) during the Term, any state in the United States and (B) after the Term, any state (1) in which, as of the end of the Term, the Company was engaged in business or (2) with respect to which the Company, as of the end of the Term, had expended material expense and/or efforts in connection with preparing to do business therein.
(b)    Non-Interference. The Executive covenants and agrees that Executive will not at any time during the Restrictive Period for whatever reason, whether for Executive’s own account or for the account of any other person, firm, corporation or other business organization: (i) interfere with contractual relationships between the Company or its subsidiaries or portfolio companies and any of their Covered Customers or employees; (ii) hire, or solicit for hire, any person who is employed by the Company or its subsidiaries or portfolio companies, without the express written consent of the Company; or (iii) other than on behalf of the Company or its subsidiaries or portfolio companies, solicit any Covered Customer in connection with the engagement, by any person or entity, in any Covered Business in any Covered State.
(c)    Confidentiality. The Executive will not, at any time whether during or after her termination of employment, (i) disclose to anyone, without proper authorization from the Company, or (ii) use, for her or another’s benefit, any confidential or proprietary information of the Company or any subsidiary of the Company, which may include trade secrets, business plans or outlooks, financial data, marketing or sales programs, customer lists, brand formulations, training and operations manuals, products or price strategies, mergers, acquisitions, and/or Company personnel issues.
(d)    Blue Pencil; Equitable Relief. The provisions contained in this Section 14 as to the time periods, scope of activities, persons or entities affected and territories restricted shall be deemed divisible so that if any provision contained in this Section is determined to be invalid or unenforceable, such provision shall be deemed modified so as to be valid and enforceable to the full extent lawfully permitted. The Executive acknowledges that the provisions of this Section 14 are reasonable and necessary for the protection of the Company and that the Company will be irrevocably damaged if such covenants are not specifically enforced. Accordingly, the Executive agrees that if she breaches or threatens to breach any of the covenants contained in this Section 14, the Company will be entitled (i) to damages sufficient to compensate the Company for any harm to the Company caused thereby and (ii) to specific performance and injunctive relief for the purpose of preventing the breach or threatened breach thereof without bond or other security or a showing that monetary damages will not provide an adequate remedy, in addition to any other relief to which the Company may be entitled under this Agreement.
15.    Reimbursement for Litigation Expenses.
In the event that any dispute arises between the Executive and the Company as to the terms or interpretation of this Agreement, whether instituted by formal legal proceedings or otherwise, including any action that the Executive takes to enforce the terms of this Agreement or to defend against any action taken by the Company, the Executive shall be reimbursed for all costs and expenses, including reasonable attorneys’ fees, arising from such dispute, proceedings or actions, provided that the Executive shall obtain a final judgement by a court of competent jurisdiction in favor of the Executive. Such reimbursement shall be paid within ten (10) days of Executive’s furnishing to the Company written evidence, which may be in the form, among other things, of a cancelled check or receipt, of any costs or expenses incurred by the Executive.

16.    Successors and Assigns.
(a)    This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Company which shall acquire, directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of the Company.



Exhibit 10.27

(b)    Since the Company is contracting for the unique and personal skills of the Executive, the Executive shall be precluded from assigning or delegating her rights or duties hereunder without first obtaining the written consent of the Company.
17.    Corporate Authority. Company represents and warrants that the execution and delivery of this Agreement by it has been duly and properly authorized by the Board and that when so executed and delivered this Agreement shall constitute the lawful and binding obligation of the Company.
18.    Amendments. No amendments or additions to this Agreement shall be binding unless made in writing and signed by all of the parties, except as herein otherwise specifically provided.
19.    Applicable Law. Except to the extent preempted by Federal law, the laws of the State of New York shall govern this Agreement in all respects, whether as to its validity, construction, capacity, performance or otherwise.
20.    Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.
21.    Entire Agreement. This Agreement, together with any understanding or modifications thereof as agreed to in writing by the parties, shall constitute the entire agreement between the parties hereto with respect to the matters addressed and shall supercede all previous agreements with respect to such matters.
22.    Tax Matters.    All payments or benefits provided under this Agreement are subject to any applicable employment or tax withholdings or deductions. In addition, the parties hereby agree that it is their intention that all payments or benefits provided under this Agreement be exempt from, or if not so exempt, comply with, Code Section 409A and this Agreement shall be interpreted accordingly. Notwithstanding anything in this Agreement to the contrary, if any payments or benefits made or provided under the Agreement are considered deferred compensation subject to Code Section 409A payable on account of Employee’s separation from service (but that do not meet an exemption under Code Section 409A, including without limitation the short term deferral or the separation pay plan exemption), such payments or benefits shall be paid no earlier than the date that is six (6) months following Employee’s separation from service (or, if earlier, the date of death) to the extent required by Code Section 409A.
[signatures on following page]
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first hereinabove written.
NEWTEK BUSINESS SERVICES CORP.


By:    /s/ Barry Sloane                        
Barry Sloane, Chief Executive Officer

EXECUTIVE


By:    /s/ Jennifer C. Eddelson                                Jennifer C. Eddelson



Exhibit
Exhibit 10.28


NEWTEK BUSINESS SERVICES CORP.
_____________________________

Employment Agreement with
Michael A. Schwartz
_____________________________

PREAMBLE. This EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of the 1st day of March 2019 (the “Effective Date”), by and between NEWTEK BUSINESS SERVICES CORP. (the “Company”) and MICHAEL A. SCHWARTZ (the “Executive”).
WHEREAS, the Executive is currently employed by the Company as Chief Legal Officer, Chief Compliance Officer and Corporate Secretary; and
WHEREAS, the parties desire by this writing to set forth the employment relationship of the Company and the Executive as of the Effective Date.
NOW, THEREFORE, it is AGREED as follows:
1.    Defined Terms
When used anywhere in the Agreement, the following terms shall have the meaning set forth herein.
(a)    “Board” shall mean the Board of Directors of the Company.
(b)    “Change in Control” shall mean any one of the following events: (i) the acquisition of ownership, holding or power to vote more than 25% of the Company’s voting shares by any person or persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), (ii) the acquisition of the ability to control the election of a majority of the Board by any person or persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), (iii) the acquisition of a controlling influence over the management or policies of the Company by any person or by persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), or (iv) during any period of two consecutive years, individuals (the “Continuing Directors”) who at the beginning of such period constitute the Board (the “Existing Board”) cease for any reason to constitute at least two-thirds thereof, provided that any individual whose election or nomination for election as a member of the Existing Board was approved by a vote of at least two-thirds of the Continuing Directors then in office shall be considered a Continuing Director. For purposes of defining Change in Control, the term “person” refers to an individual or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not specifically listed herein. Notwithstanding the foregoing, a Change in Control as defined in this Section 1(b) shall not be treated as a Change in Control for purposes of this Agreement unless it constitutes a “change in control event” within the meaning of Section 1.409A-3(i)(5) of the Treasury Regulations promulgated under section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (the “Treasury Regulations”).
(c)     Common Stock” shall mean shares of the Company’s common stock, par value $0.02 per share.
(d)     “Good Reason” shall mean any of the following events, which has not been consented to in advance by the Executive in writing during the term of the Agreement: (i) the requirement that the



Exhibit 10.28

Executive move his personal residence, or perform his principal executive functions, more than fifty (50) miles from his primary office as of the Effective Date; (ii) a material reduction in the Executive’s Annual Base Compensation as the same may be increased from time to time; (iii) the failure by the Company to continue to provide the Executive with compensation and benefits provided for on the Effective Date, as the same may be increased from time to time, or with benefits substantially similar to those provided to him under any of the Executive benefit plans in which the Executive now or hereafter becomes a participant, or the taking of any action by the Company which would directly or indirectly reduce any of such benefits or deprive the Executive of any material fringe benefit enjoyed by him; (iv) the assignment to the Executive of duties and responsibilities that constitute a material diminution from those associated with his position on the Effective Date; or (v) a material diminution or reduction in the Executive’s responsibilities or authority (including reporting responsibilities) in connection with his employment with the Company.
(e)    “Just Cause” shall mean the Executive’s willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, conviction for a felony, or material breach of any provision of this Agreement. No act, or failure to act, on the Executive’s part shall be considered “willful” unless Executive has acted, or failed to act, with an absence of good faith and without a reasonable belief that Executive’s action or failure to act was in the best interests of the Company.
2.    Employment. The Executive is employed as Chief Legal Officer, Chief Compliance Officer and Corporate Secretary of the Company. The Executive shall render such administrative and management services for the Company, its subsidiaries and portfolio companies as are currently rendered and as are customarily performed by persons situated in a similar executive capacity and consistent with the duties of a Chief Legal Officer and Chief Compliance Officer as set forth in the Bylaws of the Company. The Executive shall report to the Chief Executive Officer in his role as Chief Legal Officer. The Executive shall report to the Board in his role as Chief Compliance Officer. The Executive shall also promote, by entertainment or otherwise, as and to the extent permitted by law, the business of the Company and its subsidiaries. The Executive’s other duties shall be such as the Chief Executive Officer or Board may from time to time reasonably direct, including normal duties as an officer of the Company.
3.    Annual Base Compensation. The Company agrees to pay the Executive during the term of this Agreement a salary at the rate of $335,000 per annum, payable in cash not less frequently than monthly.
4.    Cash Bonuses. The Chief Executive Officer shall determine the Executive’s right to receive cash bonuses. Cash bonuses shall be awarded annually based upon the Executive’s and the Company’s annual performance pursuant to the Company’s policy.
5.    Other Benefits.
(a)    Participation in Retirement, Medical and Other Plans. The Executive shall participate in any plan that the Company maintains for the benefit of its employees if the plan relates to (i) pension, profit-sharing, or other retirement benefits, (ii) medical insurance or the reimbursement of medical or dependent care expenses, or (iii) other group benefits, including disability and life insurance plans.
(b)    Executive Benefits; Expenses. The Executive shall participate in any fringe benefits which are or may become available to the Company’s senior management Executives, including for example incentive compensation plans, club memberships, and any other benefits which are commensurate with the responsibilities and functions to be performed by the Executive under this Agreement. The Executive shall be reimbursed for all reasonable out-of-pocket business expenses which he shall incur in connection with his services under this Agreement upon substantiation of such expenses in accordance with the policies of the Company.



Exhibit 10.28

6.    Term. The Company hereby employs the Executive, and the Executive hereby accepts such employment, subject to the terms and conditions of this Agreement, for the period commencing on the Effective Date and ending on March 31, 2020 or such earlier date as is determined in accordance with Section 11 (the “Term”).”
7.    Loyalty; Noncompetition.
(a)    During the period of Executive’s employment hereunder and except for illnesses, reasonable vacation periods, and reasonable leaves of absence, the Executive shall devote substantially all of Executive’s full business time, attention, skill, and efforts to the faithful performance of Executive’s duties hereunder; provided, however, from time to time, Executive may serve on the boards of directors of, and hold any other offices or positions in, companies or organizations, at the request of the Company or which will not present in the opinion of the Board any conflict of interest with the Company or any of its subsidiaries or portfolio companies, nor unfavorably affect the performance of Executive’s duties pursuant to this Agreement, nor violate any applicable statute or regulation. During the Term of Executive’s employment under this Agreement, the Executive shall not engage in any business or activity contrary to the business affairs or interests of the Company.
(b)    Nothing contained in this Paragraph 7 shall be deemed to prevent or limit the Executive’s right to invest in the capital stock or other securities of any business dissimilar from that of the Company or, solely as a passive or minority investor, in any business, provided such investment does not: (i) constitute a conflict of interest, (ii) violate laws or regulations applicable to the Company, including, without limitation, the Investment Company Act of 1940, or (iii) violate any rules or polices promulgated by the Board.
8.    Standards. The Executive shall perform his duties under this Agreement in accordance with such reasonable standards as the Chief Executive Officer may establish from time to time. The Company will provide Executive with the working facilities and staff customary for similar executives and necessary for him to perform his duties.
9.    Vacation and Sick Leave. At such reasonable times according to Company policy the Executive shall be entitled, without loss of pay, to absent himself voluntarily from the performance of his employment under this Agreement, all such voluntary absences to count as vacation time; provided that:
(a)    The Executive shall be entitled to an annual vacation in accordance with the policies that the Company periodically establishes for senior management Executives of the Company.
(b)    The Executive shall not receive any additional compensation from the Company on account of his failure to take a vacation, and the Executive shall not accumulate unused vacation from one fiscal year to the next, except in either case to the extent authorized by the Chief Executive Officer.
(c)    In addition to the aforesaid paid vacations, the Executive shall be entitled to absent himself voluntarily from the performance of his employment with the Company for such additional periods of time and for such valid and legitimate reasons as the Chief Executive Officer may in his discretion determine. Further, the Chief Executive Officer may grant to the Executive a leave or leaves of absence with or without pay.
(d)    In addition, the Executive shall be entitled to an annual sick leave benefit as established by the Company.



Exhibit 10.28

10.    Indemnification. The Company shall, to the extent permitted by the Company’s Bylaws, indemnify and hold harmless Executive from any and all loss, expense, or liability that he may incur due to his services for the Company as an officer and or a director of the Company or any of its subsidiaries or portfolio companies (including any liability Executive may ever incur as the result of severance benefits Executive collects pursuant to Sections 11 or 13), during the full Term of this Agreement and shall at all times maintain adequate insurance for such purposes.
11.    Termination and Termination Pay. Subject to Section 13 hereof, the Executive’s employment hereunder may be terminated under the following circumstances:
(a)    Just Cause. The Chief Executive Officer may, based on a good faith determination and only after giving the Executive written notice and a reasonable opportunity to cure, immediately terminate the Executive’s employment at any time, for Just Cause. The Executive shall have no right to receive compensation or other benefits for any period after termination for Just Cause.
(b)    Without Just Cause. The Chief Executive Officer may, by written notice to the Executive, immediately terminate Executive’s employment for a reason other than Just Cause. In such event, the Executive shall be entitled to a total severance payment equal to one (1) times the sum of (i) Executive’s Annual Base Compensation in effect at the time of termination, plus (ii) the amount of all compensation paid to Executive under Section 4 hereof with respect to the immediately preceding fiscal year (the “Severance Payment”). The Severance Payment shall be paid in equal installments over a twelve (12) month period following the Executive’s termination of employment, payable in accordance with the Company’s regularly scheduled payroll (the “Installment Payments”). Each Installment Payment shall be treated as a separate payment for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii).
(c)    Resignation by Executive with Good Reason. The Executive may at any time immediately terminate employment for Good Reason, in which case the Executive shall be entitled to receive the Severance Payment payable in the same manner and on the same basis as provided for under Section 11(b) herein upon a termination without Just Cause. In addition, the Executive will be entitled to health, life, disability and other benefits which the Executive would have been eligible to participate in through the expiration of the Term based on the benefit levels substantially equal to those that the Company provided for the Executive at the date of termination of employment, subject to any restrictions as may be required under Code Section 409A
(d)    Resignation by Executive without Good Reason. The Executive may voluntarily terminate employment with the Company during the term of this Agreement, upon at least 60 days’ prior written notice to the Chief Executive Officer, in which case the Executive shall receive only his compensation, vested rights, and Executive benefits up to the date of Executive’s last day of employment.
(e)    Death, or Disability. If the Executive’s employment terminates during the Term of this Agreement due to Executive’s death or a disability that results in Executive’s collection of any long-term disability benefits, the Executive (or the beneficiaries of Executive’s estate) shall be entitled to receive the compensation and benefits that the Executive would otherwise have become entitled to receive pursuant to subsection (d) hereof upon a resignation without Good Reason.
(f)     Non-Renewal Payment. If the Term of this Agreement is not extended for at least one (1) additional year in circumstances in which the Executive is willing and able to execute such extension and continue performing services (the “Non-Renewal”), then the Executive’s employment shall be terminated by the Company effective as of the expiration of the Term, in which event Executive shall be entitled to fifty percent (50%) times the Severance Payment (the “Non-Renewal Payment”). The Non-Renewal Payment



Exhibit 10.28

shall be paid in equal installments over the six (6) month period following the Executive’s termination of employment, payable in accordance with the Company’s regularly scheduled payroll. However, if the Non-Renewal occurs following a Change in Control, the Non-Renewal Payment shall be paid in a lump sum within thirty (30) days of Executive’s termination of employment.
(g)     Acceleration of Equity Awards. All: (i) outstanding and unvested options to purchase Common Stock granted to Executive under any equity plan of the Company, (ii) unvested shares of restricted Common Stock awarded to the Executive under any equity plan of the Company, and (iii) other equity and equity equivalent awards then held by the Executive, shall be accelerated in full, and thereafter all such options, shares of restricted Common Stock and other equity awards shall be immediately vested and exercisable for such period of time as provided for by the specific agreements governing each such award, upon Executive’s termination pursuant to Sections 11(b), (c), (e) or (f) hereof.

12.    No Mitigation. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent employment.
13.    Change in Control. Notwithstanding any provision in this Agreement to the contrary, if Executive’s employment is terminated following a Change of Control: (i) by the Company or its successor in interest for any reason other than Just Cause, or (ii) by the Executive for Good Reason, the Executive shall be paid the Severance Payment in a lump sum within thirty (30) days of Executive’s termination of employment.
14.    Covenants.
(a)    Definitions. For purposes of this Agreement:
(i)    Restrictive Period. The term “Restrictive Period” shall mean the period beginning on the Effective Date and ending two (2) years after the termination of the Executive’s employment hereunder.
(ii)    Covered Customer. The term “Covered Customer” shall mean (A) during the Term, any customer, merchant, independent sales agency (ISA), independent sales organization (ISO), alliance partner, referral partner or any intermediary of the Company or its portfolio companies and (B) after the Term, as of the end of the Term, a Covered Customer of the Company or its portfolio companies within the prior three years.
(iii)    Covered Business. The term “Covered Business” shall mean (A) during the term, any business in which the Company is engaged and (B) after the Term, any business in which the Company was engaged as of the end of the Term.
(iv)    Covered State. The term “Covered State” shall mean (A) during the Term, any state in the United States and (B) after the Term, any state (1) in which, as of the end of the Term, the Company was engaged in business or (2) with respect to which the Company, as of the end of the Term, had expended material expense and/or efforts in connection with preparing to do business therein.
(b)    Non-Interference. The Executive covenants and agrees that Executive will not at any time during the Restrictive Period for whatever reason, whether for Executive’s own account or for the



Exhibit 10.28

account of any other person, firm, corporation or other business organization: (i) interfere with contractual relationships between the Company or its subsidiaries or portfolio companies and any of their Covered Customers or employees; (ii) hire, or solicit for hire, any person who is employed by the Company or its subsidiaries or portfolio companies, without the express written consent of the Company; or (iii) other than on behalf of the Company or its subsidiaries or portfolio companies, solicit any Covered Customer in connection with the engagement, by any person or entity, in any Covered Business in any Covered State.
(c)    Confidentiality. The Executive will not, at any time whether during or after his termination of employment, (i) disclose to anyone, without proper authorization from the Company, or (ii) use, for his or another’s benefit, any confidential or proprietary information of the Company or any subsidiary of the Company, which may include trade secrets, business plans or outlooks, financial data, marketing or sales programs, customer lists, brand formulations, training and operations manuals, products or price strategies, mergers, acquisitions, and/or Company personnel issues.
(d)    Blue Pencil; Equitable Relief. The provisions contained in this Section 14 as to the time periods, scope of activities, persons or entities affected and territories restricted shall be deemed divisible so that if any provision contained in this Section is determined to be invalid or unenforceable, such provision shall be deemed modified so as to be valid and enforceable to the full extent lawfully permitted. The Executive acknowledges that the provisions of this Section 14 are reasonable and necessary for the protection of the Company and that the Company will be irrevocably damaged if such covenants are not specifically enforced. Accordingly, the Executive agrees that if he breaches or threatens to breach any of the covenants contained in this Section 14, the Company will be entitled (i) to damages sufficient to compensate the Company for any harm to the Company caused thereby and (ii) to specific performance and injunctive relief for the purpose of preventing the breach or threatened breach thereof without bond or other security or a showing that monetary damages will not provide an adequate remedy, in addition to any other relief to which the Company may be entitled under this Agreement.
15.    Reimbursement for Litigation Expenses.
In the event that any dispute arises between the Executive and the Company as to the terms or interpretation of this Agreement, whether instituted by formal legal proceedings or otherwise, including any action that the Executive takes to enforce the terms of this Agreement or to defend against any action taken by the Company, the Executive shall be reimbursed for all costs and expenses, including reasonable attorneys’ fees, arising from such dispute, proceedings or actions, provided that the Executive shall obtain a final judgement by a court of competent jurisdiction in favor of the Executive. Such reimbursement shall be paid within ten (10) days of Executive’s furnishing to the Company written evidence, which may be in the form, among other things, of a cancelled check or receipt, of any costs or expenses incurred by the Executive.

16.    Successors and Assigns.
(a)    This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Company which shall acquire, directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of the Company.
(b)    Since the Company is contracting for the unique and personal skills of the Executive, the Executive shall be precluded from assigning or delegating his rights or duties hereunder without first obtaining the written consent of the Company.



Exhibit 10.28

17.    Corporate Authority. Company represents and warrants that the execution and delivery of this Agreement by it has been duly and properly authorized by the Board and that when so executed and delivered this Agreement shall constitute the lawful and binding obligation of the Company.
18.    Amendments. No amendments or additions to this Agreement shall be binding unless made in writing and signed by all of the parties, except as herein otherwise specifically provided.
19.    Applicable Law. Except to the extent preempted by Federal law, the laws of the State of New York shall govern this Agreement in all respects, whether as to its validity, construction, capacity, performance or otherwise.
20.    Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.
21.    Entire Agreement. This Agreement, together with any understanding or modifications thereof as agreed to in writing by the parties, shall constitute the entire agreement between the parties hereto with respect to the matters addressed and shall supercede all previous agreements with respect to such matters.
22.    Tax Matters.    All payments or benefits provided under this Agreement are subject to any applicable employment or tax withholdings or deductions. In addition, the parties hereby agree that it is their intention that all payments or benefits provided under this Agreement be exempt from, or if not so exempt, comply with, Code Section 409A and this Agreement shall be interpreted accordingly. Notwithstanding anything in this Agreement to the contrary, if any payments or benefits made or provided under the Agreement are considered deferred compensation subject to Code Section 409A payable on account of Employee’s separation from service (but that do not meet an exemption under Code Section 409A, including without limitation the short term deferral or the separation pay plan exemption), such payments or benefits shall be paid no earlier than the date that is six (6) months following Employee’s separation from service (or, if earlier, the date of death) to the extent required by Code Section 409A.
[signatures on following page]
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first hereinabove written.
NEWTEK BUSINESS SERVICES CORP.


By:    /s/ Barry Sloane                        
Barry Sloane, Chief Executive Officer

EXECUTIVE
                
By:    /s/ Michael A. Schwartz                    
Michael A. Schwartz



Exhibit



NEWTEK SMALL BUSINESS FINANCE, LLC
_____________________________

Employment Agreement with
Peter Downs
_____________________________

PREAMBLE. This EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of the 1st day of March 2019 (the “Effective Date”), by and between NEWTEK SMALL BUSINESS FINANCE, LLC (the “Company”) and PETER DOWNS (the “Executive”).
WHEREAS, the Executive is currently employed by the Company as President; and
WHEREAS, the Company is a wholly owned consolidated subsidiary of Newtek Business Services Corp. (“Parent”) and Executive serves as Chief Lending Officer of Parent; and
WHEREAS, the parties desire by this writing to set forth the employment relationship of the Company and the Executive as of the Effective Date.
NOW, THEREFORE, it is AGREED as follows:
1.    Defined Terms
When used anywhere in the Agreement, the following terms shall have the meaning set forth herein.
(a)    “Board” shall mean the Board of Managers of the Company.
(b)    “Change in Control” shall mean any one of the following events: (i) the acquisition of ownership, holding or power to vote more than 25% of Company’s or Parent’s voting shares by any person or persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), (ii) the acquisition of the ability to control the election of a majority of the Company’s Board or Parent board of directors (“Parent Board”) by any person or persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), (iii) the acquisition of a controlling influence over the management or policies of the Company by any person or by persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), or (iv) during any period of two consecutive years, individuals (the “Continuing Directors”) who at the beginning of such period constitute the Parent Board (the “Existing Board”) cease for any reason to constitute at least two-thirds thereof, provided that any individual whose election or nomination for election as a member of the Existing Board was approved by a vote of at least two-thirds of the Continuing Directors then in office shall be considered a Continuing Director. For purposes of defining Change in Control, the term “person” refers to an individual or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not specifically listed herein. Notwithstanding the foregoing, a Change in Control as defined in this Section 1(b) shall not be treated as a Change in Control for purposes of this Agreement unless it constitutes a “change in control event” within the meaning of Section 1.409A-3(i)(5) of the Treasury Regulations promulgated under section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (the “Treasury Regulations”).
(c)     Common Stock” shall mean shares of Parent’s common stock, par value $0.02 per share.





(d)     “Good Reason” shall mean any of the following events, which has not been consented to in advance by the Executive in writing during the term of the Agreement: (i) the requirement that the Executive move his personal residence, or perform his principal executive functions, more than fifty (50) miles from his primary office as of the Effective Date; (ii) a material reduction in the Executive’s Annual Base Compensation as the same may be increased from time to time; (iii) the failure by the Company to continue to provide the Executive with compensation and benefits provided for on the Effective Date, as the same may be increased from time to time, or with benefits substantially similar to those provided to him under any of the Executive benefit plans in which the Executive now or hereafter becomes a participant, or the taking of any action by the Company which would directly or indirectly reduce any of such benefits or deprive the Executive of any material fringe benefit enjoyed by him; (iv) the assignment to the Executive of duties and responsibilities that constitute a material diminution from those associated with his position on the Effective Date; or (v) a material diminution or reduction in the Executive’s responsibilities or authority (including reporting responsibilities) in connection with his employment with the Company.
(e)    “Just Cause” shall mean the Executive’s willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, conviction for a felony, or material breach of any provision of this Agreement. No act, or failure to act, on the Executive’s part shall be considered “willful” unless Executive has acted, or failed to act, with an absence of good faith and without a reasonable belief that Executive’s action or failure to act was in the best interests of the Company.
2.    Employment. The Executive is employed as President of the Company. The Executive shall render such administrative and management services for the Company, its Parent and Parent’s subsidiaries and portfolio companies as are currently rendered and as are customarily performed by persons situated in a similar executive capacity and consistent with the duties of a President as set forth in the Amended and Restated Operating Agreement of the Company. The Executive shall report to the Chief Executive Officer and the Board. The Executive shall also promote, by entertainment or otherwise, as and to the extent permitted by law, the business of the Company and its Parent. The Executive’s other duties shall be such as the Chief Executive Officer or Board may from time to time reasonably direct, including normal duties as an officer of the Company.
3.    Annual Base Compensation. The Company agrees to pay the Executive during the term of this Agreement a salary at the rate of $500,000 per annum, payable in cash not less frequently than monthly.
4.    Cash Bonuses. The Chief Executive Officer shall determine the Executive’s right to receive cash bonuses. Cash bonuses shall be awarded annually based upon the Executive’s and the Company’s annual performance pursuant to the Company’s policy.
5.    Other Benefits.
(a)    Participation in Retirement, Medical and Other Plans. The Executive shall participate in any plan that the Company maintains for the benefit of its employees if the plan relates to (i) pension, profit-sharing, or other retirement benefits, (ii) medical insurance or the reimbursement of medical or dependent care expenses, or (iii) other group benefits, including disability and life insurance plans.
(b)    Executive Benefits; Expenses. The Executive shall participate in any fringe benefits which are or may become available to the Company’s senior management Executives, including for example incentive compensation plans, club memberships, and any other benefits which are commensurate with the responsibilities and functions to be performed by the Executive under this Agreement. The Executive shall be reimbursed for all reasonable out-of-pocket business expenses which he shall incur in connection with





his services under this Agreement upon substantiation of such expenses in accordance with the policies of the Company.
6.    Term. The Company hereby employs the Executive, and the Executive hereby accepts such employment, subject to the terms and conditions of this Agreement, for the period commencing on the Effective Date and ending on March 31, 2020 or such earlier date as is determined in accordance with Section 11 (the “Term”).”
7.    Loyalty; Noncompetition.
(a)    During the period of Executive’s employment hereunder and except for illnesses, reasonable vacation periods, and reasonable leaves of absence, the Executive shall devote substantially all of Executive’s full business time, attention, skill, and efforts to the faithful performance of Executive’s duties hereunder; provided, however, from time to time, Executive may serve on the boards of directors of, and hold any other offices or positions in, companies or organizations, at the request of the Company or Parent, or which will not present in the opinion of the Board any conflict of interest with the Company or Parent and any of Parent’s subsidiaries or portfolio companies, nor unfavorably affect the performance of Executive’s duties pursuant to this Agreement, nor violate any applicable statute or regulation. During the Term of Executive’s employment under this Agreement, the Executive shall not engage in any business or activity contrary to the business affairs or interests of the Company or Parent.
(b)    Nothing contained in this Paragraph 7 shall be deemed to prevent or limit the Executive’s right to invest in the capital stock or other securities of any business dissimilar from that of the Company or Parent, or, solely as a passive or minority investor, in any business, provided such investment does not: (i) constitute a conflict of interest, (ii) violate laws or regulations applicable to the Company or Parent, including, without limitation, the Investment Company Act of 1940, or (iii) violate any rules or polices promulgated by the Board.
8.    Standards. The Executive shall perform his duties under this Agreement in accordance with such reasonable standards as the Chief Executive Officer may establish from time to time. The Company will provide Executive with the working facilities and staff customary for similar executives and necessary for him to perform his duties.
9.    Vacation and Sick Leave. At such reasonable times according to Company policy the Executive shall be entitled, without loss of pay, to absent himself voluntarily from the performance of his employment under this Agreement, all such voluntary absences to count as vacation time; provided that:
(a)    The Executive shall be entitled to an annual vacation in accordance with the policies that the Company periodically establishes for senior management Executives of the Company.
(b)    The Executive shall not receive any additional compensation from the Company on account of his failure to take a vacation, and the Executive shall not accumulate unused vacation from one fiscal year to the next, except in either case to the extent authorized by the Chief Executive Officer.
(c)    In addition to the aforesaid paid vacations, the Executive shall be entitled to absent himself voluntarily from the performance of his employment with the Company for such additional periods of time and for such valid and legitimate reasons as the Chief Executive Officer may in his discretion determine. Further, the Chief Executive Officer may grant to the Executive a leave or leaves of absence with or without pay.





(d)    In addition, the Executive shall be entitled to an annual sick leave benefit as established by the Company.
10.    Indemnification. The Company and Parent shall, to the extent permitted by the Company’s Operating Agreement and Parent’s Bylaws, indemnify and hold harmless Executive from any and all loss, expense, or liability that he may incur due to his services for the Company as an officer and or a director of the Company, Parent or any Parent’s subsidiaries or portfolio companies (including any liability Executive may ever incur as the result of severance benefits Executive collects pursuant to Sections 11 or 13), during the full Term of this Agreement and shall at all times maintain adequate insurance for such purposes.
11.    Termination and Termination Pay. Subject to Section 13 hereof, the Executive’s employment hereunder may be terminated under the following circumstances:
(a)    Just Cause. The Chief Executive Officer may, based on a good faith determination and only after giving the Executive written notice and a reasonable opportunity to cure, immediately terminate the Executive’s employment at any time, for Just Cause. The Executive shall have no right to receive compensation or other benefits for any period after termination for Just Cause.
(b)    Without Just Cause. The Chief Executive Officer may, by written notice to the Executive, immediately terminate Executive’s employment for a reason other than Just Cause. In such event, the Executive shall be entitled to a total severance payment equal to one (1) times the sum of (i) Executive’s Annual Base Compensation in effect at the time of termination, plus (ii) the amount of all compensation paid to Executive under Section 4 hereof with respect to the immediately preceding fiscal year (the “Severance Payment”). The Severance Payment shall be paid in equal installments over a twelve (12) month period following the Executive’s termination of employment, payable in accordance with the Company’s regularly scheduled payroll (the “Installment Payments”). Each Installment Payment shall be treated as a separate payment for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii).
(c)    Resignation by Executive with Good Reason. The Executive may at any time immediately terminate employment for Good Reason, in which case the Executive shall be entitled to receive the Severance Payment payable in the same manner and on the same basis as provided for under Section 11(b) herein upon a termination without Just Cause. In addition, the Executive will be entitled to health, life, disability and other benefits which the Executive would have been eligible to participate in through the expiration of the Term based on the benefit levels substantially equal to those that the Company provided for the Executive at the date of termination of employment, subject to any restrictions as may be required under Code Section 409A
(d)    Resignation by Executive without Good Reason. The Executive may voluntarily terminate employment with the Company during the term of this Agreement, upon at least 60 days’ prior written notice to the Chief Executive Officer, in which case the Executive shall receive only his compensation, vested rights, and Executive benefits up to the date of Executive’s last day of employment.
(e)    Death, or Disability. If the Executive’s employment terminates during the Term of this Agreement due to Executive’s death or a disability that results in Executive’s collection of any long-term disability benefits, the Executive (or the beneficiaries of Executive’s estate) shall be entitled to receive the compensation and benefits that the Executive would otherwise have become entitled to receive pursuant to subsection (d) hereof upon a resignation without Good Reason.
(f)     Non-Renewal Payment. If the Term of this Agreement is not extended for at least one (1) additional year in circumstances in which the Executive is willing and able to execute such extension





and continue performing services (the “Non-Renewal”), then the Executive’s employment shall be terminated by the Company effective as of the expiration of the Term, in which event Executive shall be entitled to fifty percent (50%) times the Severance Payment (the “Non-Renewal Payment”). The Non-Renewal Payment shall be paid in equal installments over the six (6) month period following the Executive’s termination of employment, payable in accordance with the Company’s regularly scheduled payroll. However, if the Non-Renewal occurs following a Change in Control, the Non-Renewal Payment shall be paid in a lump sum within thirty (30) days of Executive’s termination of employment.
(g)     Acceleration of Equity Awards. All: (i) outstanding and unvested options to purchase Common Stock granted to Executive under any equity plan of the Parent, (ii) unvested shares of restricted Common Stock awarded to the Executive under any equity plan of the Parent, and (iii) other equity and equity equivalent awards then held by the Executive, shall be accelerated in full, and thereafter all such options, shares of restricted Common Stock and other equity awards shall be immediately vested and exercisable for such period of time as provided for by the specific agreements governing each such award, upon Executive’s termination pursuant to Sections 11(b), (c), (e) or (f) hereof.

12.    No Mitigation. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent employment.
13.    Change in Control. Notwithstanding any provision in this Agreement to the contrary, if Executive’s employment is terminated following a Change of Control: (i) by the Company or its successor in interest for any reason other than Just Cause, or (ii) by the Executive for Good Reason, the Executive shall be paid the Severance Payment in a lump sum within thirty (30) days of Executive’s termination of employment.
14.    Covenants.
(a)    Definitions. For purposes of this Agreement:
(i)    Restrictive Period. The term “Restrictive Period” shall mean the period beginning on the Effective Date and ending two (2) years after the termination of the Executive’s employment hereunder.
(ii)    Covered Customer. The term “Covered Customer” shall mean (A) during the Term, any customer, merchant, independent sales agency (ISA), independent sales organization (ISO), alliance partner, referral partner or any intermediary of the Company or Parent or Parent’s portfolio companies and (B) after the Term, as of the end of the Term, a Covered Customer of the Company or Parent or Parent’s portfolio companies within the prior three years.
(iii)    Covered Business. The term “Covered Business” shall mean (A) during the term, any business in which the Company is engaged and (B) after the Term, any business in which the Company was engaged as of the end of the Term.
(iv)    Covered State. The term “Covered State” shall mean (A) during the Term, any state in the United States and (B) after the Term, any state (1) in which, as of the end of the Term, the Company was engaged in business or (2) with respect to which the Company, as of the end of the Term, had expended material expense and/or efforts in connection with preparing to do business therein.





(b)    Non-Interference. The Executive covenants and agrees that Executive will not at any time during the Restrictive Period for whatever reason, whether for Executive’s own account or for the account of any other person, firm, corporation or other business organization: (i) interfere with contractual relationships between the Company or Parent or Parent’s subsidiaries or portfolio companies and any of their Covered Customers or employees; (ii) hire, or solicit for hire, any person who is employed by the Company or Parent or Parent’s subsidiaries or portfolio companies, without the express written consent of the Company or Parent; or (iii) other than on behalf of the Company or Parent or Parent’s subsidiaries or portfolio companies, solicit any Covered Customer in connection with the engagement, by any person or entity, in any Covered Business in any Covered State.
(c)    Confidentiality. The Executive will not, at any time whether during or after his termination of employment, (i) disclose to anyone, without proper authorization from the Company or Parent, or (ii) use, for his or another’s benefit, any confidential or proprietary information of the Company or Parent or any subsidiary or portfolio company of Parent, which may include trade secrets, business plans or outlooks, financial data, marketing or sales programs, customer lists, brand formulations, training and operations manuals, products or price strategies, mergers, acquisitions, and/or Company or Parent personnel issues.
(d)    Blue Pencil; Equitable Relief. The provisions contained in this Section 14 as to the time periods, scope of activities, persons or entities affected and territories restricted shall be deemed divisible so that if any provision contained in this Section is determined to be invalid or unenforceable, such provision shall be deemed modified so as to be valid and enforceable to the full extent lawfully permitted. The Executive acknowledges that the provisions of this Section 14 are reasonable and necessary for the protection of the Company and that the Company will be irrevocably damaged if such covenants are not specifically enforced. Accordingly, the Executive agrees that if he breaches or threatens to breach any of the covenants contained in this Section 14, the Company will be entitled (i) to damages sufficient to compensate the Company for any harm to the Company caused thereby and (ii) to specific performance and injunctive relief for the purpose of preventing the breach or threatened breach thereof without bond or other security or a showing that monetary damages will not provide an adequate remedy, in addition to any other relief to which the Company may be entitled under this Agreement.
15.    Reimbursement for Litigation Expenses.
In the event that any dispute arises between the Executive and the Company as to the terms or interpretation of this Agreement, whether instituted by formal legal proceedings or otherwise, including any action that the Executive takes to enforce the terms of this Agreement or to defend against any action taken by the Company, the Executive shall be reimbursed for all costs and expenses, including reasonable attorneys’ fees, arising from such dispute, proceedings or actions, provided that the Executive shall obtain a final judgement by a court of competent jurisdiction in favor of the Executive. Such reimbursement shall be paid within ten (10) days of Executive’s furnishing to the Company written evidence, which may be in the form, among other things, of a cancelled check or receipt, of any costs or expenses incurred by the Executive.

16.    Successors and Assigns.
(a)    This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Company or Parent which shall acquire, directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of the Company.
(b)    Since the Company is contracting for the unique and personal skills of the Executive, the Executive shall be precluded from assigning or delegating his rights or duties hereunder without first obtaining the written consent of the Company.





17.    Corporate Authority. Company and Parent represent and warrant that the execution and delivery of this Agreement has been duly and properly authorized by their respective Board and board of directors and that when so executed and delivered by them that this Agreement shall constitute the lawful and binding obligations of the Company and Parent.
18.    Amendments. No amendments or additions to this Agreement shall be binding unless made in writing and signed by all of the parties, except as herein otherwise specifically provided.
19.    Applicable Law. Except to the extent preempted by Federal law, the laws of the State of New York shall govern this Agreement in all respects, whether as to its validity, construction, capacity, performance or otherwise.
20.    Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.
21.    Entire Agreement. This Agreement, together with any understanding or modifications thereof as agreed to in writing by the parties, shall constitute the entire agreement between the parties hereto with respect to the matters addressed and shall supercede all previous agreements with respect to such matters.
22.    Tax Matters.    All payments or benefits provided under this Agreement are subject to any applicable employment or tax withholdings or deductions. In addition, the parties hereby agree that it is their intention that all payments or benefits provided under this Agreement be exempt from, or if not so exempt, comply with, Code Section 409A and this Agreement shall be interpreted accordingly. Notwithstanding anything in this Agreement to the contrary, if any payments or benefits made or provided under the Agreement are considered deferred compensation subject to Code Section 409A payable on account of Employee’s separation from service (but that do not meet an exemption under Code Section 409A, including without limitation the short term deferral or the separation pay plan exemption), such payments or benefits shall be paid no earlier than the date that is six (6) months following Employee’s separation from service (or, if earlier, the date of death) to the extent required by Code Section 409A.
[signatures on following page]






IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first hereinabove written.
NEWTEK SMALL BUSINESS FINANCE, LLC


By:    /s/ Barry Sloane                        
Barry Sloane, Chief Executive Officer


NEWTEK BUSINESS SERVICES CORP.


By:    /s/ Barry Sloane                        
Barry Sloane, Chief Executive Officer


EXECUTIVE
                
By:    /s/ Peter Downs                    
Peter Downs



Exhibit


NEWTEK BUSINESS SERVICES CORP.
 
 
SUBSIDIARIES
 
 
 
 
 
Name of Company
 
State of Incorporation/Organization
 
 
 
Newtek Small Business Finance, LLC
 
New York
Newtek Asset Backed Securities, LLC
 
New York
The Whitestone Group, LLC
 
New York
Wilshire Colorado Partners, LLC
 
Colorado
Wilshire DC Partners, LLC
 
District of Columbia
Wilshire Holdings I, Inc.
 
New York
Wilshire Louisiana Bidco, LLC
 
Louisiana
Wilshire Louisiana Partners II, LLC
 
Louisiana
Wilshire Louisiana Partners III, LLC
 
Louisiana
Wilshire Louisiana Partners IV, LLC
 
Louisiana
Wilshire New York Advisers II, LLC
 
New York
Wilshire New York Partners III, LLC
 
New York
Wilshire Partners, LLC
 
Florida
Newtek Business Services Holdco 1, Inc.
 
New York
Newtek Business Services Holdco 2, Inc.
 
New York
Newtek Business Services Holdco 3, Inc.
 
New York
Newtek Business Services Holdco 4, Inc.
 
New York
Newtek Business Services Holdco 5, Inc. (formerly Banc Serv Acquisition Co, Inc.)
 
New York
Newtek Business Services Holdco 6, Inc.
 
New York
CCC Real Estate Holdings, LLC
 
Delaware
Newtek LSP Holdco, LLC
 
New York
NBSH Holdings, LLC
 
New York
Exponential Business Development Co., Inc.
 
New York
Newtek Commercial Lending, Inc.
 
New York



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 annual report on Form 10-K of Newtek Business Services Corp. (the “registrant”).
2. Based on my knowledge, this annual 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 annual 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: March 18, 2019


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 annual report on Form 10-K of Newtek Business Services Corp. (the “registrant”).
2. Based on my knowledge, this annual 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 annual 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/    JENNIFER EDDELSON        
 
Jennifer Eddelson
 
Principal Financial Officer
Date: March 18, 2019



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 Annual Report on Form 10-K of Newtek Business Services Corp. (the “Company”), for the year ended December 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Barry Sloane, Chief Executive Officer of the Company, pursuant to 18 U.S.C. Section 1350, as added by Section 906 of the Sarbanes-Oxley Act of 2002, certify that, to the best of our 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
March 18, 2019


Exhibit


Exhibit 32.2
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 Annual Report on Form 10-K of Newtek Business Services Corp. (the “Company”), for the year ended December 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jennifer Eddelson, Chief Accounting Officer of the Company, pursuant to 18 U.S.C. Section 1350, as added by Section 906 of the Sarbanes-Oxley Act of 2002, certify that, to the best of our 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/    Jennifer Eddelson        
 
Jennifer Eddelson
 
Principal Financial Officer
March 18, 2019