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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, 2019

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.)
 
 
 
4800 T Rex Avenue, Suite 120, Boca Raton, Florida
 
33431
(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:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, par value $0.02 per share
 
NEWT
 
Nasdaq Global Market LLC
6.25% Notes due 2023
 
NEWTI
 
Nasdaq Global Market LLC
5.75% Notes due 2024
 
NEWTL
 
Nasdaq Global Market LLC
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 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 pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ¨    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth 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
 
o
Accelerated filer
 
x
 
 
 
 
 
 
Non-accelerated filer
 
o
Smaller reporting company
 
o
 
 
 
 
 
 
 
 
 
Emerging growth company
 
o

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 or accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
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 $413,142,000 as of the last business day of the registrant’s second fiscal quarter of 2019, based on a closing price on that date of $23.00 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 13, 2020, there were 20,820,356 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 2020 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
2010-1 Trust
Newtek Small Business Loan Trust, Series 2010-1, terminated in March 2019
2013-1 Trust
Newtek Small Business Loan Trust, Series 2013-1, terminated in October 2018
2014-1 Trust
Newtek Small Business Loan Trust, Series 2014-1, terminated in July 2019
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
2019-1 Trust
Newtek Small Business Loan Trust, Series 2019-1
2021 Notes
7.00% Notes due 2021, redeemed in March 2018
2022 Notes
7.50% Notes due 2022, redeemed in August 2019
2023 Notes
6.25% Notes due 2023
2024 Notes
5.75% Notes due 2024
Amended 2019 ATM Distribution Agreement
First Amendment and Supplement to the Equity Distribution Agreement, dated as of February 28, 2020, by and among the Company and the placement agents
ASC
Accounting Standards Codification, as issued by the FASB
ASU
Accounting Standards Updates, as issued by the FASB
2017 ATM Equity Distribution Agreement
Second Amended and Restated Equity Distribution Agreement, dated August 31, 2018 by and among the Company and the placement agents
2019 ATM Equity Distribution Agreement
Equity Distribution Agreement, dated July 10, 2019 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
LIBOR
London Interbank Offered Rate
NAV
Net Asset Value
NBL Facility
Revolving Credit and Security Agreement between NBL SPV1, LLC, a wholly-owned subsidiary of NBL and Capital One
Related Party RLOC
Unsecured revolving line of credit agreement between NMS as lender and Newtek as borrower
PLP
Preferred Lender Program, as authorized by the SBA
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 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
NCL
Newtek Conventional Lending, LLC, a 50% owned 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 former wholly-owned controlled portfolio company which 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 wholly-owned 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
TAM
Titanium Asset Management LLC, a wholly-owned controlled portfolio company
EMCAP
EMCAP Loan Holdings, LLC
POS
POS on Cloud, LLC, a controlled portfolio company


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;
•
competition with other entities and our affiliates for investment opportunities;
​
•
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;
•
an economic downturn could disproportionately impact the companies that we intend to target for investment, potentially causing us to experience a decrease in investment opportunities and diminished demand for capital from these companies;
•
an economic downturn could also impact availability and pricing of our financing and our ability to access the debt and equity capital markets;
​
•
a contraction of available credit and/or an inability to access the equity markets could impair our lending and investment activities;
•
our ability to attract and retain personnel, including key personnel;
•
the speculative and illiquid nature of our investments;
•
our ability to qualify for and maintain our tax treatment as a RIC under the Code, and as a BDC;
•
interest rate volatility, including the decommissioning of LIBOR, 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 the ability of NSBF to continue to originate loans under the SBA 7(a) program, maintain its PLP status and continue to sell SBA guaranteed portions of SBA 7(a) loans at premiums; 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.



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 ecosystem 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 and its portfolio companies’ 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 suited for our needs 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 and financial 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 and financial 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 2019, NSBF has consistently been the largest non-bank SBA 7(a) lender and as of December 31, 2019 is the second 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. NewTracker® also permits our referral partners to have a real time window into the back office processing of the referrals they provide. NewTracker® automatically pre-populates any necessary forms or

6

applications so the processing is efficient and also cost effective. Finally, NewTracker® also identifies opportunities for the cross-sale of other Newtek branded products or services.

Business Finance Ecosystem

SBA 7(a) Lending

Our portfolio includes guaranteed and unguaranteed non-affiliate SBA 7(a) loan investments that were made through NSBF, a nationally licensed SBA lender under the federal Section 7(a) loan program, which is part of our business finance ecosystem. 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, either at or prior to maturity.

We intend to continue to expand our business finance ecosystem primarily by expanding senior secured lending through NSBF, as well as through our portfolio companies that make SBA 504 loans, nonconforming conventional loans and provide accounts receivable and inventory financing, as discussed below. 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 $517,692,000 of SBA 7(a) loans during 2019 and $469,176,000 of SBA 7(a) loans during 2018. 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 $5,000 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 50% 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. However, there is no guarantee that NSBF will be able to continue to earn premiums of 106% to 120% on future sales. See “Item 1A. Risk Factors - We have specific risks associates with SBA loans.” Since December 2010, NSBF has maintained its securitization program for unguaranteed portions of its SBA 7(a) loans and has successfully completed ten 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 October 2019, when it sold $118,920,000 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, with a goal of limiting NSBF’s exposure to regional and industry-specific economic downturns. Specifically, as of December 31, 2019, NSBF’s loan portfolio consisted of 2,395 loans originated across 50 states in 78 different industries as defined by the North American Industry Classification

7

System (“NAICS”). The following charts summarize NSBF’s mix of investment concentrations by industry and geography as of December 31, 2019 (in thousands):

Distribution by NAICS Code Description

NAICS Code Description
 
Number of Loans
 
Aggregate Balance ($)
 
Average Balance ($)
 
Percentage of Balance
Food Services and Drinking Places
 
292

 
$
38,417

 
$
132

 
8.9
%
Truck Transportation
 
96

 
30,160

 
314

 
7.0
%
Professional, Scientific, and Technical Services
 
188

 
25,768

 
137

 
6.0
%
Amusement, Gambling, and Recreation Industries
 
124

 
24,513

 
198

 
5.7
%
Ambulatory Health Care Services
 
133

 
21,956

 
165

 
5.1
%
Repair and Maintenance
 
117

 
20,166

 
172

 
4.7
%
Specialty Trade Contractors
 
120

 
16,435

 
137

 
3.8
%
Fabricated Metal Product Manufacturing
 
44

 
16,355

 
372

 
3.8
%
Administrative and Support Services
 
90

 
11,845

 
132

 
2.8
%
Personal and Laundry Services
 
97

 
11,706

 
121

 
2.7
%
Other
 
1,094

 
212,375

 
194

 
49.4
%
Total
 
2,395

 
$
429,696

 
$
179

 
100.0
%

Distribution by State

State
 
Number of Loans
 
Aggregate Balance ($)
 
Average Balance ($)
 
Percentage of Balance
Florida
 
265

 
$
40,886

 
$
154

 
9.5
%
California
 
184

 
36,688

 
199

 
8.5
%
New York
 
232

 
35,820

 
154

 
8.3
%
Texas
 
160

 
29,329

 
183

 
6.8
%
Connecticut
 
129

 
23,805

 
185

 
5.5
%
Illinois
 
86

 
19,686

 
229

 
4.6
%
Georgia
 
88

 
19,557

 
222

 
4.6
%
Pennsylvania
 
89

 
18,815

 
211

 
4.4
%
New Jersey
 
116

 
17,060

 
147

 
4.0
%
North Carolina
 
80

 
15,893

 
199

 
3.7
%
Other
 
966

 
172,156

 
178

 
40.1
%
Total
 
2,395

 
$
429,696

 
$
179

 
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:


8

Risk Rating

Portfolio
 
Number of Loans
 
Aggregate Balance ($)
 
Average Balance ($)
 
Percentage of Balance
Risk Rating 1 – 4
 
2,164

 
$
361,985

 
$
167

 
84.2
%
Risk Rating 5
 
27

 
10,830

 
401

 
2.5
%
Risk Rating 6
 
202

 
56,465

 
280

 
13.1
%
Risk Rating 6/7 and 7
 
2

 
416

 
208

 
0.1
%
Total
 
2,395

 
$
429,696

 
$
179

 
100.0
%

The weighted average term to maturity and weighted average interest rate of NSBF’s loan portfolio as of December 31, 2019 was 15.3 years and 7.7%, respectively.

Receivables Financing, Inventory Financing, SBA 504 Lending and Non-conforming Conventional Loans

The Company’s business finance ecosystem also includes NBC and NBL, both controlled portfolio companies, as well as NCL, a joint venture. 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. NCL provides non-conforming conventional commercial and industrial term loans up to $15 million to U.S. middle-market companies and small businesses.

Third Party Loan Servicing

SBL, a wholly owned, controlled portfolio company, engages in third-party loan servicing for SBA and non-SBA loans and provides lending institutions with outsourced solutions for the entire SBA lending process, including credit analysis, structuring and eligibility, packaging, closing compliance and servicing. SBL provides loan origination solutions to NSBF and also provides loan origination and servicing solutions to NBL, NCL, and third parties such as banks, credit unions and government agencies including the FDIC.

Controlled Portfolio Companies

In addition to our debt investments in portfolio companies, either directly or through our business finance ecosystem, we also hold controlling interests in certain portfolio companies that, as of December 31, 2019, represented approximately 30% of our total investment portfolio. Specifically, we hold controlling interests in NMS, Mobil Money, NTS, SBL, NBC, NBL, TAM, BSP, NPS, NIA, POS, 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 ecosystem.

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

9

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 2019, NMS processed merchant transactions with sales volumes of $5.8 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.

NMS maintains its principal customer service and sales support offices in 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.

POS on Cloud, LLC (POS) and Mobil Money, LLC

Our investment in payment processing companies additionally includes, POS, dba Newtek Payment Systems, a 2019 investment in a cloud based Point of Sale (POS) system for a variety of restaurant, retail, assisted living, parks and golf course businesses, which provides not only payments and purchase technology solutions, but also inventory, customer management, reporting, employee time clock, table and menu layouts, and ecommerce solutions as the central operating system for an SMB, as well as Mobil Money, a portfolio of taxi cab merchants and related licensed payment processing software.

Newtek Technology Solutions (NTS)

NTS offers web hosting and eCommerce, managed IT services, secure private cloud hosting, managed backup and disaster recovery, web design and application development, information technology security solutions, and other related services to customers worldwide.

NTS provides a full suite of outsourced IT infrastructure services, including managed IT services, private cloud (virtual) servers, shared server hosting, dedicated server hosting, and managed backup and disaster recovery, 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.

While there are many competitors in this space, we believe that NTS’ focus on proactive, reliable, and secure solutions sets us apart. 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 hosting without the support needed for the SMB market customer.

NTS currently operates data centers in Scottsdale, Arizona, Phoenix, Arizona, and Edison, New Jersey. In the second quarter of 2020, NTS intends to move its main data center in Scottsdale to a new facility in Phoenix, which is forecasted to result in a material reduction of NTS’ data center expense.

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The data center 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 data centers 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 data center 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 server hosting, disaster recovery 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.

International Professional Marketing (IPM) and SIDCO

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.

Small Business Lending, LLC (SBL)

SBL provides third-party loan servicing for SBA and non-SBA loans and provides lending institutions with outsourced solutions for the entire SBA lending process, including credit analysis, structuring and eligibility, packaging, closing compliance and servicing. SBL provides loan origination solutions to NSBF and is also the loan origination and loan servicing provider for NBL and NCL.

Newtek Business Lending, LLC (NBL)

NBL provides SBA 504 loans and financing to the SMB market for the acquisition of fixed assets such as real estate or equipment.

Newtek Conventional Lending, LLC (NCL)

On May 20, 2019, the Company and its joint venture partner launched NCL to provide non-conforming conventional commercial and industrial term loans of up to $15,000,000 to U.S. middle-market companies and small businesses. NCL is a 50/50 joint venture between Newtek Commercial Lending, Inc., a wholly-owned subsidiary of Newtek, and Conventional Lending TCP Holding, LLC, a wholly-owned, indirect subsidiary of BlackRock TCP Capital Corp. (Nasdaq:TCPC).

Newtek Business Credit Solutions (NBC)

NBC provides accounts receivable and inventory financing, management services and managerial assistance to SMBs.

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.


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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 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, ENT Federal Credit Union, Legacy Bank, Morgan Stanley Smith Barney, Navy Federal Credit

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Union, New York Community Bank, Raymond James, Randolph Brooks Federal Credit Union, UBS, Meineke Dealers Purchasing Cooperative, Independent Community Bankers, Transworld Business Advisors, Army Navy Federal Credit Union, Teachers Federal Credit Union, Nassau Federal Educators Federal Credit Union, Spire Federal Credit Union, PartsBase Inc., 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 ecosystem 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 whom 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, Michael A. Schwartz and Christopher Towers, 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 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 ecosystem 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 2019, NSBF has consistently been the largest non-bank originator of SBA 7(a) loans by dollar lending volume and is currently the second 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

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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 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, with the securitization notes being 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 applied to all of the service and product solutions we offer directly or through our controlled portfolio companies.


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Established Direct Origination Platform with Extensive Deal Sourcing Infrastructure. We have established a direct origination pipeline for investment opportunities without the necessity for financial institutions or brokers as well as broad marketing channels that we believe allow for highly selective underwriting. We believe 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 2019 we funded $517,692,000 of SBA 7(a) loans, based on the increased volume of loan referrals we received in 2019. 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 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 ecosystem through our controlled portfolio companies NBC, which provides receivables financing, inventory financing and health care receivables financing, NBL, which funds SBA 504 loans, and NCL, which funds nonconforming (non SBA) commercial 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 business finance ecosystem that allows us 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:

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have 3 to 10 years of operational history;

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significant experience in management;

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

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show a strong balance sheet to collateralize our investments; and

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

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 business finance ecosystem. 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 when necessary, 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 the 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. SBL services the loans funded by NBL and NCL.


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Business Development Company Status

Our predecessor was formed on June 29, 1999 under the laws of the State of New York and, on November 12, 2014, in connection with our election to be regulated as a BDC, merged with and into us for the purpose of reincorporating under the laws of the State of Maryland.

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.

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.


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Investment Objectives

Debt Investments

We target our debt investments, which are principally made through our business finance ecosystem 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, 2019, 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.

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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.

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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.

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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 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,

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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, ENT Federal Credit Union, 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, Independent Community Bankers, Transworld Business Advisors, Army Navy Federal Credit Union, Teachers Federal Credit Union, Nassau Federal Educators Federal Credit Union, Spire Federal Credit Union, PartsBase Inc., 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 ecosystem 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.

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 and servicing 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 through our customized loan portal. 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.

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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

•
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.


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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 NSBF 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 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.

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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%

•
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

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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.

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


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•
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;

•
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;


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•
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 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.


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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, IPM and SIDCO, insurance solutions through NIA and payroll and benefits solutions 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

•
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.

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Our internal loan and investment risk rating system incorporates the following eight categories:
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, non-accrual, 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-accrual 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.


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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 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.


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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;

•
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®, Amazon Web Services®, Microsoft® Azure, Google®, and RackSpace among others.

Our business finance ecosystem 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;


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•
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;

•
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, 2019, 2018 and 2017, all of our revenue was derived from customers in the United States.

Employees

As of December 31, 2019, we had a total of 109 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 4800 T Rex Avenue, Suite 120, Boca Raton, Florida 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

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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. During 2019, the Company did not sell any shares of its common stock at a price below then-current net asset value per share.

Under the 1940 Act, a BDC generally may not issue senior securities unless the ratio of its total assets (less total liabilities other than indebtedness represented by senior securities) to its total indebtedness represented by senior securities plus preferred stock, if any, is at least 200%. This means that a BDC generally may borrow up to $1 for every $1 of investor equity. However, legislation enacted in March 2018 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, among other things, shareholders representing at least a majority of the votes cast, when quorum is met, approve a proposal to do so. At a Special Meeting of Shareholders held on July 26, 2018, our stockholders approved a proposal to reduce our minimum required asset coverage to 150%, effective July 27, 2018. As a result, we generally may borrow up to $2 for every $1 of investor equity. See “Senior Securities; Coverage Ratio.”

We may 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.

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;

(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

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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.

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

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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.”

As of December 31, 2019, we had an aggregate principal amount of senior securities outstanding of $439,550,000 and our asset coverage ratio was 173%.

Issuance of Shares Below Current Net Asset Value

At a Special Meeting of Shareholders held on July 26, 2018, our common stockholders approved a proposal that allowed us to issue common stock at a discount from our NAV per share, effective for a period that expired on June 14, 2019. 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%. At a Special Meeting of Shareholders held on August 2, 2019, our common stockholders authorized us to issue common stock at a discount from our NAV per share, effective for a period expiring on the earlier of August 2, 2020, or the date of our 2020 annual meeting of stockholders. Under the approved proposal, 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, 2019, 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.

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.


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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.

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

33

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. If NSBF were to lose PLP status, it would have a material adverse impact on NSBF’s ability to originate loans at current levels. See “Item 1A. Risk Factors – NSBF’s failure to maintain PLP status or maintain its SBA 7(a) license could adversely affect our results of operations.”

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. 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 rates. See “Item 1A. Risk Factors – We have specific risks associated with SBA loans.”

In connection with our most recent examination by the SBA, we entered into a voluntary agreement with the SBA. We have adopted the agreement pursuant to our commitment to operate under the SBA’s regulations and the agreement formalizes many of the actions to strengthen our operational procedures as they relate to our delegated lender authorities. Consistent with the terms of the agreement, we will establish and maintain a segregated restricted cash account in the amount of no less than $10 million to account for potential post-purchase repairs and denials of guaranteed portions of SBA 7(a) loans, and take certain

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actions to demonstrate the sufficiency of NSBF’s liquidity. We also have agreed to repurchase the guaranteed portions of several loans in the amount of approximately $5.6 million, and establish certain additional reporting and compliance procedures. In relation to the rapid growth of our 7(a) loan portfolio, we continue to assess and develop our policies and procedures to facilitate the successful implementation of our business, liquidity and operations.

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 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

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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.

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, 2019.

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, stockholders may receive a larger capital gain distribution than 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

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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. 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.


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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 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

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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.

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 shareholders 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, investors 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.


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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:
Assumed Return on Our Portfolio (1)
(net of expenses)
 
(10)%
(5)%
0%
5%
10%
Corresponding net return to shareholders (2)
(30.95)%
(18.58)%
(6.20)%
6.17%
18.55%
(1) Assumes $797,410,000 in total assets, $439,550,000 in debt outstanding, $322,226,000 in net assets as of December 31, 2019, and an average cost of funds of 4.55%. 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, 2019 total assets of at least 2.51%.

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.

At the Company’s Special Meeting of Shareholders, held on July 26, 2018, its shareholders approved, among other things, the reduction of the Company’s asset coverage requirements for senior securities 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, 2019, we had aggregate principal amount of senior securities outstanding of $439,550,000, and our asset coverage was 173%.

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, investors 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 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.

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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 shareholders 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.

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, 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

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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.

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 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

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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 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

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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.

Additionally, in connection with our most recent examination by the SBA, we have entered into a voluntary agreement with the SBA to meet certain other requirements and conditions. See “Item 1A. Risk Factors – 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 in part, could be transferred to NSBF.”

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. Sale prices for guaranteed portions of SBA 7(a) loans can be negatively impacted by market conditions, in particular a higher interest rate environment, which can lead to higher prepayments during the period, resulting in lower sale prices in the secondary market. A 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. In connection with our most recent examination by the SBA, we entered into a voluntary agreement with the SBA. We have adopted the agreement pursuant to our commitment to operate under the SBA’s regulations and the agreement formalizes many of the actions to strengthen our operational procedures as they relate to our delegated lender authorities. Consistent with the terms of the agreement, we will establish and maintain a segregated restricted cash account in the amount of no less than $10 million to account for potential post-purchase repairs and denials of guaranteed portions of SBA 7(a) loans, and take certain actions to demonstrate the sufficiency of NSBF’s liquidity. We also have agreed to repurchase the guaranteed portions of several loans in the amount of approximately $5.6 million, and establish certain additional reporting and compliance procedures. In relation to the rapid growth of our 7(a) loan portfolio, we continue to assess and develop our policies and procedures to facilitate the successful implementation of our business, liquidity and operations.


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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 would adversely impact our marketing efforts and ultimately loan origination volume which would 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 would 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.

The decision made in the United Kingdom referendum to leave the European Union has led to volatility in global financial markets, and in particular in the markets of the United Kingdom and across Europe, and may also lead to weakening in consumer, corporate and financial confidence in the United Kingdom and Europe. The United Kingdom and European Union announced in March 2018 an agreement in principle to transitional provisions under which European Union law would remain in force in the United Kingdom until the end of December 2020, but this remains subject to the successful conclusion of an agreement between the United Kingdom and the European Union. In the absence of such an agreement there would be no transitional provisions and the United Kingdom would exit the European Union and the relationship between the United Kingdom and the European Union would be based on the World Trade Organization rules (a “hard Brexit”). On October 28, 2019, the United Kingdom came to an agreement with the European Union to delay the deadline for withdrawal; however, the United Kingdom parliament did not approve the withdrawal agreement by January 31, 2020 and there was a hard Brexit on that date. While it is not currently possible to determine the extent of the impact a hard Brexit may have on our  investments, certain measures are being proposed and/or will be introduced, at the European Union level or at the member state level, which are designed to minimize disruption in the financial markets

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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 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, global health emergencies, 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, global health emergencies, 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.

Events outside of our control, including public health crises, may negatively affect the results of our operations.

Periods of market volatility may continue to occur in response to pandemics or other events outside of our control. These types of events could adversely affect our operating results. For example, in December 2019, a novel strain of coronavirus surfaced in Wuhan, China, which has resulted in the temporary closure of many corporate offices, retail stores, and manufacturing facilities and factories across China. As the potential impact on global markets from the coronavirus is difficult to predict, the extent to which the coronavirus may negatively affect our operating results or the duration of any potential business disruption is uncertain. Any potential impact to our results will depend to a large extent on future developments and new information that may emerge regarding the duration and severity of the coronavirus and the actions taken by authorities and other entities to contain the coronavirus or treat its impact, all of which are beyond our control. These potential impacts, while uncertain, could adversely affect our operating results.

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

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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 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 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.

We are subject to risks related to corporate social responsibility.
Our business faces increasing public scrutiny related to environmental, social and governance (“ESG”) activities. We risk damage to our brand and reputation if we fail to act responsibly in a number of areas, such as environmental stewardship, corporate governance and transparency and considering ESG factors in our investment processes. Adverse incidents with respect to ESG activities could impact the value of our brand, the cost of our operations and relationships with investors, all of

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which could adversely affect our business and results of operations. Additionally, new regulatory initiatives related to ESG could adversely affect our business.
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;

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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;

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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;

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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;

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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

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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

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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.

We are exposed to risks associated with changes in interest rates.

The majority of our debt investments are based on floating rates, primarily the Prime Rate. General interest rate fluctuations can be expected to have a substantial impact on the interest income we receive on our debt investments. For example, a reduction in interest rates could decrease the value of any investments we hold which earn floating interest rates. Alternatively, an increase in interest rates could decrease the value of any investments we hold which earn fixed interest rates.

General interest rate fluctuations may also have an impact on the value of our stock and our rate of return on invested capital. Because we have borrowed money, our net investment income depends, in part, upon the difference between the rate at which we borrow funds and the rate that our investments yield. 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. For example, rising interest rates could also adversely affect our performance if such increases cause our borrowing costs to rise at a rate in excess of the rate that our investments yield, thereby decreasing our net income. Also, an increase in interest rates available to investors could make an investment in our common stock less attractive if we are not able to increase our dividend rate, which could reduce the value of our common stock.

If general interest rates rise, there is a risk that the borrowers on our debt investments in floating rate loans will be unable to pay escalating interest amounts, which could result in a default under their loan documents with us. Rising interest rates could also cause borrowers to shift cash from other productive uses to the payment of interest, which may have a material adverse effect on their business and operations and could, over time, lead to increased defaults. In addition, rising interest rates may increase pressure on us to provide fixed rate loans to our borrowers, which could adversely affect our net investment income in the future as interest rates continue to fluctuate.

We do hold some floating rate debt investments that are tied to LIBOR. On July 27, 2017, the U.K. Financial Conduct Authority announced that it intends to stop persuading or compelling banks to submit LIBOR rates after 2021. At this time, it is not possible to predict the establishment of alternative reference rates or any other reforms to LIBOR that may be enacted in the United Kingdom or elsewhere, or how such changes could affect our results of operations or financial condition. The elimination of LIBOR or any other changes or reforms to the determination or supervision of LIBOR could have an adverse impact on the market for or value of any LIBOR-linked loans, and other financial obligations or extensions of credit held by or due to us. If LIBOR ceases to exist, we may need to renegotiate agreements extending beyond 2021 that utilize LIBOR as a factor in determining the interest rate, in order to replace LIBOR with the new standard that is established. Following the replacement of LIBOR, some or all of these credit agreements may bear interest a less favorable interest rate, which could have an adverse impact on our overall financial condition and results of operations.

Additionally, on July 12, 2019, the SEC’s Division of Corporate Finance, Division of Investment Management, Division of Trading and Markets, and Office of the Chief Accountant issued a statement about the potentially significant effects on financial markets and market participants if LIBOR is discontinued in 2021 and no longer available as a reference benchmark rate. The Staff encouraged all market participants to identify contracts that reference LIBOR and begin transitions to alternative rates. On December 30, 2019, the SEC’s Chairman, Division of Corporate Finance and Office of the Chief Accountant issued a

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statement to encourage audit committees in particular to understand management’s plans to identify and address the risks associated with the elimination of LIBOR, and, specifically, the impact on accounting and financial reporting and any related issues associated with financial products and contracts that reference LIBOR, as the risks associated with the discontinuation of LIBOR and transition to an alternative reference rate will be exacerbated if the work is not completed in a timely manner.
The elimination of LIBOR or any other changes or reforms to the determination or supervision of LIBOR could have an adverse impact on the market for or value of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us, or on our overall financial condition or results of operations. If LIBOR ceases to exist, we may need to renegotiate the credit agreements extending beyond 2021 with our portfolio companies that utilize LIBOR as a factor in determining the interest rate to replace LIBOR with the new standard that is established.

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.

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.


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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 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-accrual 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.


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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, 2019, our three largest investments, NMS, NTS and NBL equaled approximately 15%, 2% and 3%, 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.

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.


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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.

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.


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

If our level of non-accrual assets in our SBA lending business rises in the future, it could adversely affect our investment income and earnings. Non-accrual assets are primarily loans on which borrowers are not making their required payments. Non-accrual 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-accrual, 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.

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.

Our ability to enter into transactions involving derivatives and financial commitment transactions may be limited.

In November 2019, the SEC published a proposed rule regarding the ability of a BDC (or a registered investment company) to use derivatives and other transactions that create future payment or delivery obligations (except reverse repurchase agreements

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and similar financing transactions). If adopted as proposed, BDCs that use derivatives would be subject to a value-at-risk leverage limit, certain other derivatives risk management program and testing requirements and requirements related to board reporting. These new requirements would apply unless the BDC qualified as a “limited derivatives user,” as defined in the SEC’s proposal. A BDC that enters into reverse repurchase agreements or similar financing transactions would need to aggregate the amount of indebtedness associated with the reverse repurchase agreements or similar financing transactions with the aggregate amount of any other senior securities representing indebtedness when calculating the BDC’s asset coverage ratio. Under the proposed rule, a BDC may enter into an unfunded commitment agreement that is not a derivatives transaction, such as an agreement to provide financing to a portfolio company, if the BDC has a reasonable belief, at the time it enters into such an agreement, that it will have sufficient cash and cash equivalents to meet its obligations with respect to all of its unfunded commitment agreements, in each case as it becomes due. If the BDC cannot meet this test, it is required to treat unfunded commitments as a derivatives transaction subject to the requirements of the rule. Collectively, these proposed requirements, if adopted, may limit our ability to use derivatives and/or enter into certain other financial contracts.
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.

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.


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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.

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

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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:

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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.

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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.

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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

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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 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.

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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 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.


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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 or inventory portfolios would reduce its income and increase its expenses.

If NBC’s level of non-accrual assets in its receivable financing or inventory financing business rises in the future, it could adversely affect its revenue, earnings and cash flow. Non-accrual 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.

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-accrual 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 $35,000,000. The Sterling Receivable and Inventory Facility matures in August 2022 and automatically renews annually. At December 31, 2019, total principal owed by NBC was $25,802,000.

We have guaranteed NBC’s obligations under this facility. If NBC defaults on this line of credit, we would be required to make payments under the guarantee, which could have a material adverse effect on our financial condition and results of operations.

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In addition, if NBC loses this line of credit and NBC is unable to renew or replace this line 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.
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 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, 2019, our CEO beneficially owns and has shared voting power over approximately 5.5% 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

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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:
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price and volume fluctuations in the overall stock market from time to time;
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investor demand for our stock;
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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;
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changes in regulatory policies or tax guidelines with respect to RICs, BDCs, or SBLCs;
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failure to qualify as a RIC, or the loss of RIC status;
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any shortfall in revenue or net income or any increase in losses from levels expected by investors or securities analysts;
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changes, or perceived changes, in the value of our portfolio investments;
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departures of key Company personnel;
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operating performance of companies comparable to us; or
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general economic conditions and trends and other external factors.

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 179,469,690 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

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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 shareholders may experience dilution.

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

The Company has instituted in the past, and may institute in the future, programs that may allow the Company to repurchase the Company’s outstanding common shares on the open market. Under such programs, purchases generally may be made at management’s discretion from time to time in open-market transactions, in accordance with all applicable securities laws and regulations, which may have a dilutive effect on current shareholders. Most recently, on December 17, 2018, the Company announced that its Board approved a 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 program terminated on June 18, 2019, was extended on June 21, 2019 and terminated on December 18, 2019.

Dilution may occur under repurchase programs if the Company repurchases shares of its common stock at prices that are below the Company’s net asset value per share. This may cause a proportionately smaller increase in our shareholders' interest in our earnings and assets and their voting interest in us than the decrease in our assets resulting from such repurchase. As a result of any such dilution, our market price per share may decline. The actual dilutive effect will depend on the number of shares of common stock that could be so repurchased, the price and the timing of any repurchases under any such program.
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 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.


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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 1,283,000 shares, or approximately 6% of our total outstanding shares as of December 31, 2019. 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.

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.


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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 August 2, 2019, 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 2023 Notes and the 2024 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 February 2018 and July 2019, we issued $57,500,000 and $63,250,000 in aggregate principal amount of the 2023 Notes and 2024 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 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

67

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 limited by the terms of the Notes may have important consequences for holders 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

68

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 March 1, 2020 and August 1, 2021, we may choose to redeem the 2023 Notes and the 2024 Notes, respectively, especially if prevailing interest rates are lower than the interest rates on the 2023 Notes or 2024 Notes. If prevailing rates are lower at the time of redemption, holders of the Notes 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 March 22, 2018, 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.

On August 29, 2019, the Company redeemed all $8,324,000 in aggregate principal amount of the 2022 Notes on the redemption date at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon from July 1, 2019, through, but excluding, the redemption date.

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

The 2023 Notes and the 2024 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
•
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 should holders of the Notes decide to sell the 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.


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ITEM 2. PROPERTIES.
We conduct our principal business activities in facilities leased from unrelated parties at market rates. Our headquarters are located in Boca Raton, Florida. 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, 2019 which are material to the conduct of our business:
Location
 
Lease expiration
 
Purpose
 
Approximate square feet
 
 
 
 
 
 
 
4800 T Rex Avenue
Boca Raton, FL 33431
 
April 2026
 
Corporate headquarters and NSBF lending operations
 
7,800

1981 Marcus Avenue
Lake Success, NY 11042
 
April 2027
 
Lending operations, corporate 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

14 East Washington Street
Orlando, FL 32801
 
August 2022
 
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.”

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.

ITEM 4. MINE SAFETY DISCLOSURES.

None.


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PART II

ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
Price Range of Common Stock
Our common stock is traded on the Nasdaq Global Market under the symbol “NEWT.” High and low prices for the common stock over the previous two years are set forth below, based on the highest and lowest intraday sales price per share during that period.
 
Price Range
 
NAV (1)
 
Premium of High Sales Price to NAV (2)
 
Premium of Low Sales Price to NAV (2)
 
High
 
Low
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
 
First Quarter
$18.95
 
$16.07
 
$15.05
 
26%
 
7%
Second Quarter
$20.76
 
$17.53
 
$15.06
 
38%
 
16%
Third Quarter
$24.24
 
$19.93
 
$15.28
 
59%
 
30%
Fourth Quarter
$21.85
 
$15.59
 
$15.19
 
44%
 
3%
 
 
 
 
 
 
 
 
 
 
2019
 
 
 
 
 
 
 
 
 
First Quarter
$20.74
 
$17.23
 
$15.31
 
35%
 
13%
Second Quarter
$23.83
 
$19.70
 
$15.33
 
55%
 
29%
Third Quarter
$23.99
 
$20.21
 
$15.41
 
56%
 
31%
Fourth Quarter
$23.73
 
$20.75
 
$15.70
 
51%
 
32%
(1) Net asset value per share is determined as of the last day in the relevant quarter and therefore may not reflect the net asset value per share on the date of the high and low sales prices. The values reflect net asset value per share and are based on outstanding shares at the end of each period.
(2)Calculated as the respective high or low sales price divided by net asset value and subtracting 1.
The last reported price for our common stock on March 13, 2020 was $13.77 per share.
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.
Holders
As of March 13, 2020, there were approximately 91 holders of record of our common stock.
Fees and Expenses

The following table is intended to assist stockholders in understanding the costs and expenses that stockholders will bear directly or indirectly. We caution you that many of the percentages indicated in the table below are estimates and may vary. Except where the context suggests otherwise, whenever this Annual Report contains a reference to fees or expenses paid by “you,” “us” or “Newtek,” or that “we” will pay fees or expenses, the Company will pay such fees and expenses out of its net assets and, consequently, stockholders will indirectly bear such fees or expenses as an investor in Newtek Business Services

71
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Corp. However stockholders will not be required to deliver any money or otherwise bear personal liability or responsibility for such fees or expenses.
Stockholder transaction expenses:
 
 
Sales load (as a percentage of offering price) (1)
 
—
%
Offering expenses borne by the Company (as a percentage of offering price) (2)
 
—
%
Dividend reinvestment plan fees (3)
 
$
15.00

 
 
 
Total stockholder transaction expenses (as a percentage of offering price) (4)
 
—
%
 
 
 
Annual expenses (as a percentage of net assets attributable to common stock) (5):
 
 
Operating expenses (6)
 
13.78
%
Interest payments on borrowed funds (7)
 
6.34
%
Other expenses (8)
 
0.02
%
Acquired funds fees and expenses (9)
 
—
%
Total annual expenses (10)
 
20.14
%
(1) In the event that the securities applicable to a prospectus relates to shares that are sold to or through underwriters, a corresponding prospectus supplement will disclose the applicable sales load and the example will be updated accordingly.
(2) A prospectus supplement corresponding to each offering will disclose the applicable estimated amounts of offering expenses of the offering and offering expenses borne by the Company as a percentage of the offering price.
(3) The expenses of the dividend reinvestment plan are included in “other expenses.” The plan administrator’s fees will be paid by the Company. There will be no brokerage charges or other charges to stockholders who participate in the plan except that, if a participant elects by written notice to the plan administrator to have the plan administrator sell part or all of the shares held by the plan administrator in the participant’s account and remit the proceeds to the participant, the plan administrator is authorized to deduct a $15.00 transaction fee plus a $0.10 per share brokerage commission from the proceeds.
(4) Total stockholder transaction expenses may include sales load and will be disclosed in a future prospectus supplement, if any.
(5) The annualized expenses are based on the Company’s expenses and net asset value for the year ended December 31, 2019 and as of December 31, 2019.
(6)  “Operating expenses” represents an estimate of the Company’s annual operating expense. The Company does not have an investment advisor. We are internally managed by our executive officers under the supervision of our Board. As a result, we do not pay investment advisory fees. Instead we pay the operating costs associated with employing investment management professionals.
(7) The Company may borrow funds from time to time to make investments to the extent that the economic situation is conducive to doing so. “Interest Payments on Borrowed Funds” represents estimated interest and fee payments on borrowed funds by estimating our annualized interest, fees and other debt-related expenses incurred for the year ended December 31, 2019, including our bank notes payable, 2024 Notes, 2023 Notes, Notes payable - related party and securitization notes payable.
(8)  “Other expenses” consist of estimated transfer agent expenses related to our dividend reinvestment plan.
(9)  We have no current intention to invest in the securities of other investment companies. However, we are permitted to make such investments in limited circumstances under the 1940 Act. If we were to make such investments, we would incur fees and our stockholders would pay two levels of fees. As we have no current expectation of making any such investments, any estimate of the amount of such fees would be highly speculative.
(10) The holders of shares of our common stock indirectly bear the cost associated with our annual expenses.
Example

The following example demonstrates the projected dollar amount of total cumulative expenses that would be incurred over various periods with respect to a hypothetical investment in our common stock. In calculating the following expense amounts, we have assumed that our annual operating expenses would remain at the levels set forth in the table above.

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1 Year
 
3 Years
 
5 Years
 
10 Years
A stockholder would pay the following expenses on a $1,000 investment, assuming a 5% annual return
 
$
212

 
$
667

 
$
1,169

 
$
2,661


The example and the expenses in the tables above should not be considered a representation of our future expenses, and actual expenses may be greater or less than those shown. While the example assumes, as required by the SEC, a 5% annual return, our performance will vary and may result in a return greater or less than 5%. Further, while the example assumes reinvestment of all dividends and distributions at net asset value, participants in our dividend reinvestment plan will receive a number of shares of our common stock, generally determined by dividing the total dollar amount of the dividend payable to a participant by the market price per share of our common stock at the close of trading on the dividend payment date, which may be at, above or below net asset value.

Sales of Unregistered Securities

We did not engage in any sales of unregistered securities during the year ended December 31, 2019.

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.

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.”


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The following table summarizes our dividend declarations and distributions through December 31, 2019:
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

March 15, 2019
 
March 29, 2019
 
$
0.40

June 14, 2019
 
June 28, 2019
 
$
0.46

September 20, 2019
 
September 30, 2019
 
$
0.58

December 16, 2019
 
December 30, 2019
 
$
0.71

 
 
 
 
$
11.57

(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, 2019 and 2018, 100% were distributions derived from our current and accumulated earnings and profits and capital gains, see NOTE 17—INCOME TAXES. There can be no certainty to shareholders that this determination is representative of the tax attributes of the 2020 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, 2019 and 2018, we issued 54,000 and 61,000 shares, respectively, of common stock to shareholders in connection with the dividend reinvestment plan.

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Securities authorized for issuance under equity compensation plans as of December 31, 2019:
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
 
2,774,207 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, 2014 through December 31, 2019. The graph assumes that, on January 1, 2015, 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/fbba7a20e54d2a64ce6ff225882688fd-chart-1efd31573f69c7eafb1a01.jpg

75

Senior Securities

Information about our senior securities is shown in the following table as of the end of each fiscal year for the past ten years. The information as of December 31, 2019, 2018, 2017, 2016, 2015, 2014, 2013, 2012, 2011, and 2010 has been derived from Newtek Business Services Corp. and Subsidiaries’, and Newtek Business Services, Inc. and Subsidiaries’, consolidated financial statements, which have been audited by independent registered public accounting firms. Information as of December 31, 2019, 2018, 2017, 2016, 2015, 2014, and 2013 was audited by RSM US LLP and information as of December 31, 2012, 2011, and 2010 was audited by our previous independent registered public accounting firm. RSM US LLP’s report on the senior securities table as of December 31, 2019 is attached as an exhibit to this Annual Report.

Class and Year
 
Total Amount Outstanding Exclusive of Treasury Securities (1)
(in thousands)
 
Asset Coverage Ratio Per Unit (2)
 
Involuntary Liquidation Preference Per Unit (3)
 
Average Market Value Per Unit (4)
Securitization Trust
 
 
 
 
 
 
 
 
December 31, 2019
 
$
276,637

 
$
2,754

 
$
—

 
$ N/A

2018
 
220,137

 
2,839

 
—

 
N/A

2017
 
165,432

 
3,018

 
—

 
N/A

2016
 
120,945

 
3,184

 
—

 
N/A

2015
 
91,745

 
3,692

 
—

 
N/A

2014
 
79,520

 
3,634

 
—

 
N/A

2013
 
60,140

 
2,966

 
—

 
N/A

2012
 
22,039

 
5,933

 
—

 
N/A

2011
 
26,368

 
3,758

 
—

 
N/A

2010
 
15,104

 
5,538

 
—

 
N/A

 
 
 
 
 
 
 
 
 
Bank Notes Payable
 
 
 
 
 
 
 
 
December 31, 2019
 
30,000

 
25,392

 
—

 
N/A

2018
 
34,700

 
18,010

 
—

 
N/A

2017
 
—

 
—

 
—

 
N/A

2016
 
5,100

 
75,512

 
—

 
N/A

2015
 
29,100

 
11,641

 
—

 
N/A

2014
 
43,023

 
6,716

 
—

 
N/A

2013
 
41,218

 
4,327

 
—

 
N/A

2012
 
39,823

 
3,284

 
—

 
N/A

2011
 
13,565

 
7,305

 
—

 
N/A

2010
 
12,949

 
6,460

 
—

 
N/A

 
 
 
 
 
 
 
 
 
Notes Payable Related Parties
 
 
 
 
 
 
December 31, 2019
 
12,163

 
62,633

 
—

 
N/A

2018
 
16,840

 
37,111

 
—

 
N/A

2017
 
7,001

 
71,324

 
—

 
N/A

2016
 
1,400

 
275,081

 
—

 
N/A

2015
 
5,647

 
59,990

 
—

 
N/A

2014
 
—

 
—

 
—

 
N/A

2013
 
—

 
—

 
—

 
N/A

2012
 
—

 
—

 
—

 
N/A

2011
 
—

 
—

 
—

 
N/A


76

2010
 
—

 
—

 
—

 
N/A

 
 
 
 
 
 
 
 
 
Notes due 2024
 
 
 
 
 
 
 
 
December 31, 2019
 
63,250

 
7,670

 
—

 
1,009

 
 
 
 
 
 
 
 
 
Notes due 2023
 
 
 
 
 
 
 
 
December 31, 2019
 
57,500

 
13,248

 
—

 
1,027

2018
 
57,500

 
10,869

 
—

 
1,023

 
 
 
 
 
 
 
 
 
Notes due 2022 (5)
 
 
 
 
 
 
 
 
December 31, 2019
 
—

 
—

 
—

 
N/A

2018
 
8,324

 
75,078

 
—

 
968

2017
 
8,324

 
59,988

 
—

 
1,018

2016
 
8,324

 
46,265

 
—

 
969

2015
 
8,324

 
40,697

 
—

 
1,025

2014
 
—

 
—

 
—

 
N/A

2013
 
—

 
—

 
—

 
N/A

2012
 
—

 
—

 
—

 
N/A

2011
 
—

 
—

 
—

 
N/A

2010
 
—

 
—

 
—

 
N/A

 
 
 
 
 
 
 
 
 
Notes due 2021 (6)
 
 
 
 
 
 
 
 
December 31, 2019
 
—

 
—

 
—

 
N/A

2018
 
—

 
—

 
—

 
N/A

2017
 
40,250

 
12,406

 
—

 
1,019

2016
 
40,250

 
9,568

 
—

 
972

2015
 
—

 
—

 
—

 
N/A

2014
 
—

 
—

 
—

 
N/A

2013
 
—

 
—

 
—

 
N/A

2012
 
—

 
—

 
—

 
N/A

2011
 
—

 
—

 
—

 
N/A

2010
 
—

 
—

 
—

 
N/A

(1) Total amount of each class of senior securities outstanding at the end of the period presented.
(2) Asset coverage per unit is the ratio of the carrying value of our total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness.
(3) The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. The “—” indicates information that the SEC expressly does not require to be disclosed for certain types of senior securities.
(4) Not applicable for senior securities that are not registered for public trading. The average market values per unit for our 2024 Notes, 2023 Notes, 2022 Notes, and for our 2021 Notes are based on the average daily prices of such notes and are expressed per $1,000 of indebtedness.
(5) The Company redeemed all $8,324,000 in aggregate principal amount of the 2022 Notes on August 29, 2019.
(6) The Company redeemed all $40,250,000 in aggregate principal amount of the 2021 Notes on March 23, 2018.
(7) The Company had $7,653,000 of unfunded commitments as of December 31, 2019, and our asset coverage ratio was 173%.


77
Table of Contents

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, 2019. The Consolidated Financial Statements for each of the five years ended December 31, 2019 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.
 
 
2019
 
2018
 
2017
 
2016
 
2015
Statement of Operations Data:
 
 
 
 
 
 
 
 
 
 
Investment income
 
$
59,295

 
$
49,515

 
$
38,914

 
$
30,965

 
$
26,070

Expenses
 
$
64,914

 
$
57,003

 
$
46,795

 
$
40,225

 
$
32,255

Net investment loss
 
$
(5,619
)
 
$
(7,488
)
 
$
(7,881
)
 
$
(9,260
)
 
$
(6,185
)
Net increase in net assets resulting from operations
 
$
41,135

 
$
35,678

 
$
38,976

 
$
27,305

 
$
35,736

Net realized and unrealized gains (losses)
 
$
46,754

 
$
43,166

 
$
46,857

 
$
36,565

 
$
41,921

Per Share Data:
 
 
 
 
 
 
 
 
 
 
Net investment loss
 
$
(0.29
)
 
$
(0.40
)
 
$
(0.45
)
 
$
(0.64
)
 
$
(0.57
)
Net increase in net assets resulting from operations
 
$
2.13

 
$
1.91

 
$
2.25

 
$
1.88

 
$
3.32

Dividends declared
 
$
2.15

 
$
1.80

 
$
1.64

 
$
1.53

 
$
4.45

Balance Sheet Data (at end of period):
 
 
 
 
 
 
 
 
 
 
Investments, at fair value
 
$
659,043

 
$
541,096

 
$
456,689

 
$
345,224

 
$
266,874

Total assets
 
$
797,410

 
$
653,341

 
$
519,611

 
$
401,450

 
$
352,430

Total debt
 
$
370,574

 
$
331,630

 
$
216,252

 
$
171,242

 
$
131,761

Total liabilities
 
$
475,185

 
$
365,896

 
$
241,282

 
$
192,356

 
$
148,481

Total net assets
 
$
322,225

 
$
287,445

 
$
278,329

 
$
209,094

 
$
203,949

Common shares outstanding at end of period
 
20,530

 
18,919

 
18,457

 
14,624

 
14,509


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.
Executive Overview

We are a leading national non-bank lender and own and control certain portfolio companies under the Newtek® brand (our “controlled portfolio companies,” as defined below) that provide a wide range of business and financial solutions to SMBs. Newtek's and its portfolio companies’ business and financial solutions include: Business Lending, including origination of SBA 7(a), SBA 504 loans and nonconforming (non SBA) conventional loans, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), Technology Consulting, eCommerce, Accounts Receivable and Inventory Financing, personal and commercial 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

78

enables us and our controlled portfolio companies to acquire and process our SMB clients in a very cost effective manner. This capability is supported in large part by NewTracker®, our patented prospect management technology software, which is similar to, but we believe better suited for our needs than, the system popularized by Salesforce.com. We believe that this technology and 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
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 on December 31, 2018.
(2) Entity was merged into The Whitestone Group, LLC on December 31, 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”.

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 with 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 would adversely impact our marketing efforts and ultimately our loan origination volume which would negatively impact our results of operations.


79

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

We target our debt investments, which are principally made through our business finance ecosystem 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.

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 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 realized gain.

We recognize realized gains or losses on investments based on the difference between the net proceeds from the disposition and the cost basis of the investment without regard to unrealized gains or losses previously recognized. We record current period

80

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, origination and servicing 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 $35,000,000. The Sterling Receivable and Inventory Facility matures in August 2022 and automatically renews annually. At December 31, 2019, total principal owed by NBC was $25,802,000. In addition, the Company deposited $750,000 to collateralize the guarantee. At December 31, 2019, 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, 2019, total principal owed by NBL was $12,165,000. At December 31, 2019, 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 with Webster Bank with an aggregate principal amount up to $50,000,000. The Webster Facility matures in November 2023. At December 31, 2019, total principal outstanding was $32,375,000. At December 31, 2019, the Company determined that it is not probable that payments would be required to be made under the guarantee.

Unfunded Commitments

At December 31, 2019, the Company had $7,653,000 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 tables set forth distributions of the cost basis of the Company’s SBA 7(a) loan portfolio at December 31, 2019 and December 31, 2018, respectively, in thousands. The tables include loans in which NSBF owns 100% as a result of NSBF originating the loan and subsequently repurchasing the guaranteed portion from the SBA. The total of 100% NSBF-owned loans at December 31, 2019 and December 31, 2018 is $11,307,000 and $11,605,000, respectively.
Distribution by Business Type
As of December 31, 2019
 
 
 
 
 
 
 
 
Business Type
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Existing Business
 
1,892

 
$
349,320

 
$
185

 
81.3
%
Business Acquisition
 
273

 
58,155

 
207

 
13.5
%
Start-Up Business
 
230

 
22,221

 
96

 
5.2
%
Total
 
2,395

 
$
429,696

 
$
179

 
100.0
%
As of December 31, 2018
 
 
 
 
 
 
 
 
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
%

81

Distribution by Borrower Credit Score
December 31, 2019
 
 
 
 
 
 
 
 
Credit Score
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
500 to 550
 
20

 
$
4,315

 
$
216

 
1.0
%
551 to 600
 
66

 
18,296

 
277

 
4.3
%
601 to 650
 
344

 
69,265

 
201

 
16.1
%
651 to 700
 
749

 
126,797

 
169

 
29.5
%
701 to 750
 
709

 
124,725

 
176

 
29.0
%
751 to 800
 
439

 
77,646

 
177

 
18.1
%
801 to 850
 
65

 
8,528

 
131

 
2.0
%
Not available
 
3

 
124

 
41

 
—
%
Total
 
2,395

 
$
429,696

 
$
179

 
100.0
%
December 31, 2018
 
 
 
 
 
 
 
 
Credit Score
 
# of Loans
 
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
%
Distribution by Primary Collateral Type
December 31, 2019
 
 
 
 
 
 
 
 
Collateral Type
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Commercial Real Estate
 
962

 
$
225,434

 
$
234

 
52.5
%
Machinery and Equipment
 
420

 
82,725

 
197

 
19.3
%
Residential Real Estate
 
507

 
41,713

 
82

 
9.7
%
Accounts Receivable and Inventory
 
255

 
39,380

 
154

 
9.2
%
Other
 
105

 
32,380

 
308

 
7.5
%
Unsecured
 
104

 
4,362

 
42

 
1.0
%
Furniture and Fixtures
 
28

 
2,674

 
96

 
0.6
%
Liquid Assets
 
14

 
1,026

 
73

 
0.2
%
Total
 
2,395

 
$
429,696

 
$
179

 
100.0
%

82

December 31, 2018
 
 
 
 
 
 
 
 
Collateral Type
 
# of Loans
 
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
%
Distribution by Days Delinquent
December 31, 2019
 
 
 
 
 
 
 
 
Delinquency Status
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Accrual
 
 
 
 
 
 
 
 
     Current
 
2,086

 
$
338,919

 
$
162

 
78.8
%
     31 to 60 days
 
48

 
14,459

 
301

 
3.4
%
     61 to 90 days
 
—

 
—

 
—

 
—
%
     91 days or greater
 
48

 
17,233

 
359

 
4.0
%
Non-accrual
 
213

 
59,085

 
277

 
13.8
%
Total
 
2,395

 
$
429,696

 
$
179

 
100.0
%
December 31, 2018
 
 
 
 
 
 
 
 
Delinquency Status
 
# of Loans
 
Balance
 
Average Balance
 
% of Balance
Accrual
 
 
 
 
 
 
 
 
     Current
 
1,765

 
$
303,320

 
$
172

 
85.3
%
     31 to 60 days
 
34

 
7,562

 
222

 
2.1
%
     61 to 90 days
 
—

 
—

 
—

 
—
%
     91 days or greater
 
13

 
7,980

 
614

 
2.2
%
Non-accrual
 
148

 
36,727

 
248

 
10.4
%
Total
 
1,960

 
$
355,589

 
$
181

 
100.0
%

Set forth below is a comparison of the results of operations for the years ended December 31, 2019 and 2018. For a comparison of the results of operations for the years ended December 31, 2018 and 2017, see the Company's Form 10-K for the year ended December 31, 2018, as filed with the SEC on March 18, 2019.

83

Comparison of the year ended December 31, 2019 and 2018
Investment Income
(in thousands)
Year Ended December 31, 2019
 
Year Ended December 31, 2018
 
Change
Investment income:
 
 
 
 
 
Interest income
$
29,491

 
$
23,807

 
$
5,684

Dividend income
14,398

 
12,630

 
1,768

Servicing income
10,078

 
8,552

 
1,526

Other income
5,328

 
4,526

 
802

Total investment income
$
59,295

 
$
49,515

 
$
9,780

Interest Income
The increase in interest income was attributable to the average outstanding accrual portfolio of SBA non-affiliate investments increasing to $339,128,000 from $282,378,000 for the year ended December 31, 2019 and 2018, respectively. The increase in the average outstanding accrual portfolio resulted from the origination of new SBA non-affiliate investments period over period. We also recognized an additional $897,000 of interest income period over period from holding SBA guaranteed loans.
Dividend Income

Dividend income is dependent on portfolio company earnings. Current year dividend income may not be indicative of future period dividend income. Dividend income was earned from the following portfolio companies for the year ended December 31, 2019 and 2018:
(in thousands)
Year Ended December 31, 2019
 
Year Ended December 31, 2018
 
Change
Newtek Merchant Solutions, LLC (NMS)
$
11,490

 
$
7,800

 
$
3,690

Premier Payments LLC (1)
—

 
2,950

 
(2,950
)
International Professional Marketing, Inc.
900

 
125

 
775

SIDCO, LLC
700

 
1,250

 
(550
)
United Capital Source LLC (UCS)
—

 
275

 
(275
)
Mobil Money, LLC
375

 
165

 
210

Newtek Conventional Lending, LLC
822

 
—

 
822

EMCAP Loan Holdings, LLC
111

 
65

 
46

Total dividend income
$
14,398

 
$
12,630

 
$
1,768

(1)On December 31, 2018, Premier was merged into NMS.
NSBF Servicing Portfolio and Related Servicing Income
The following table represents the NSBF originated servicing portfolio and servicing income earned for the year ended December 31, 2019 and 2018:
(in thousands):
Year Ended December 31, 2019
 
Year Ended December 31, 2018
 
 Change
Total NSBF originated servicing portfolio (1)
$
1,770,864

 
$
1,498,907

 
$
271,957

Total servicing income earned
$
10,078

 
$
8,552

 
$
1,526

(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $1,180,558,000 and $975,852,000 for the year ended December 31, 2019 and 2018, 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 $204,706,000 period over period. The increase was attributable to an increase in SBA 7(a) non-affiliate investments period over period.

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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, prepayment and packaging fees earned as a result of the larger dollar volume of loans originated.
Expenses:
(in thousands)
Year Ended
December 31, 2019
 
Year Ended
December 31, 2018
 
Change
Salaries and benefits
$
14,305

 
$
21,082

 
$
(6,777
)
Interest
20,422

 
16,066

 
4,356

Depreciation and amortization
501

 
484

 
17

Professional fees
3,807

 
3,094

 
713

Origination and loan processing
9,215

 
8,362

 
853

Origination and loan processing - related party
9,944

 
—

 
9,944

Change in fair value of contingent consideration liabilities
42

 
(51
)
 
93

Loss on extinguishment of debt
251

 
1,059

 
(808
)
Other general and administrative costs
6,427

 
6,907

 
(480
)
Total expenses
$
64,914

 
$
57,003

 
$
7,911

Salaries and Benefits

As discussed below, the decrease in salaries and benefits was the result of certain NSBF employees being hired by SBL. SBL is a lender service provider that, effective January 1, 2019, provides NSBF with loan origination and loan processing functions performed by its employees. As a result, costs related to these employees previously included in salaries and benefits, are included in origination and loan processing - related party. The decrease was partially offset due to an increase in headcount, primarily related 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 year ended December 31, 2019 and 2018:
(in thousands)
Year Ended December 31, 2019
 
Year Ended December 31, 2018
 
Change
Notes payable - Securitization Trusts
$
11,148

 
$
8,748

 
$
2,400

Bank notes payable
2,122

 
1,473

 
649

Notes due 2022
469

 
707

 
(238
)
Notes due 2021
—

 
718

 
(718
)
Notes due 2023
4,065

 
3,483

 
582

Notes due 2024
1,701

 
—

 
1,701

Notes payable - related parties
911

 
916

 
(5
)
Other
6

 
21

 
(15
)
Total interest expense
$
20,422

 
$
16,066

 
$
4,356


The increase in interest expense period over period is primarily related to interest from the Notes payable - Securitization Trusts, Bank notes payable, 2023 Notes and 2024 Notes. The increase from Notes payable - Securitization Trusts was the result of an additional securitization transaction completed in October 2019. We recognized $4,065,000 of interest expense attributable to the 2023 Notes which represented a full period of interest as compared to partial period of interest during the year ended December 31, 2018. We recognized $1,701,000 interest expense related to the 2024 Notes offset by a reduction of interest expense related to our redemption of the 2022 Notes. These increases were offset by the decrease in interest expense related the 2021 Notes of $718,000 as a result of our redemption of the 2021 Notes in March 2018 and issuance of $57,500,000

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of 2023 Notes. The increase in interest expense from Bank Notes payable was related to an increase in the average outstanding balance period over period.

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. As a result, we recorded loss on extinguishment of debt of $1,059,000.

During the year ended December 31, 2019, we redeemed all $8,324,000 in aggregate principal amount of the 2022 Notes at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon. As a result, we recorded loss on extinguishment of debt of $251,000.

Origination and Loan Processing - Related Party

The increase in origination and servicing expenses was attributed to $9,944,000 of origination and servicing costs incurred from SBL. Effective January 1, 2019, certain employees performing origination and loan processing functions were hired by SBL. As a result, costs related to these employees previously included in salaries and benefits, are included in origination and loan processing - related party.
Net Realized Gains and Net Unrealized Appreciation and Depreciation

Net realized gains from SBA non-affiliate investments for the year ended December 31, 2019 and 2018 were $47,816,000 and $42,845,000, respectively, which included realized losses of $3,924,000 and $1,751,000, respectively.

Net Realized Gains on SBA Non-Affiliate Investments
 
Year Ended
 
December 31, 2019
 
December 31, 2018
 
# of Debt Investments
 
$ Amount
(in thousands)
 
# of Debt Investments
 
$ Amount
(in thousands)
SBA non-affiliate investments originated
659

 
$
517,692

 
569

 
$
469,176

SBA guaranteed non-affiliate investments sold
633

 
$
394,248

 
563

 
$
360,483

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

 
$
51,740

 
—

 
$
45,583

Average sale price as a percent of principal balance (1)
—

 
111.16
%
 
—

 
110.52
%
(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 on Controlled Investments

During the year ended December 31, 2019, realized gains on controlled investments were $2,585,000 and represent distributions in excess of our cost basis from NMS.

Net Unrealized Appreciation (Depreciation) on Investments
(in thousands)
Year Ended December 31, 2019
 
Year Ended December 31, 2018
 
Change
Net unrealized depreciation on SBA guaranteed non-affiliate investments
$
(225
)
 
$
(766
)
 
$
541

Net unrealized (depreciation) appreciation on SBA unguaranteed non-affiliate investments
(6,291
)
 
3,471

 
(9,762
)
Net unrealized appreciation on controlled investments
11,211

 
4,048

 
7,163

Change in deferred taxes
(3,164
)
 
(1,077
)
 
(2,087
)
Total net unrealized appreciation on investments
$
1,531

 
$
5,676

 
$
(4,145
)

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

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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

Unrealized appreciation (depreciation) was derived from the following portfolio companies for the year ended December 31, 2019 and 2018:

(in thousands)
Year Ended December 31, 2019
 
Year Ended December 31, 2018
 
Change
Newtek Merchant Solutions, LLC (NMS)
$
5,000

 
$
13,250

 
$
(8,250
)
Newtek Technology Solutions, Inc. (NTS)
500

 
(3,900
)
 
4,400

CDS Business Services, Inc.
(2,000
)
 
(3,000
)
 
1,000

International Professional Marketing, Inc.
850

 
(700
)
 
1,550

SIDCO, LLC
(1,170
)
 
700

 
(1,870
)
PMTWorks Payroll, LLC
(622
)
 
(381
)
 
(241
)
banc-serv Partners, LLC (BSP)
(286
)
 
(4,939
)
 
4,653

Small Business Lending, LLC
6,002

 
550

 
5,452

Newtek Insurance Agency, LLC
—

 
(420
)
 
420

Newtek Business Lending, LLC
630

 
3,000

 
(2,370
)
Newtek Conventional Lending, LLC
1,853

 
—

 
1,853

Titanium Asset Management LLC
(316
)
 
—

 
(316
)
Mobil Money, LLC
770

 
—

 
770

Excel WebSolutions, LLC
—

 
(112
)
 
112

Total net unrealized appreciation on controlled investments
$
11,211

 
$
4,048

 
$
7,163


Provision for Deferred Taxes on Unrealized Appreciation of Investments

Certain consolidated subsidiaries of ours are subject to U.S. federal and state income taxes. These taxable subsidiaries are not consolidated with the Company for income tax purposes, but are consolidated for GAAP purposes, and may generate income tax liabilities or assets from temporary differences in the recognition of items for financial reporting and income tax purposes at the subsidiaries. During the year ended December 31, 2019 and 2018, we recognized a provision for deferred taxes of $3,164,000 and $1,077,000 related to the net unrealized appreciation of controlled portfolio company investments, respectively.

Liquidity and Capital Resources
Overview

Our liquidity and capital resources are derived from our Capital One Facility, Notes payable - related parties, 2023 Notes, 2024 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, 2019, our asset coverage was 173% based on $439,550,000 of aggregate principal amount of senior securities outstanding. 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.


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Public Offerings

ATM Program

The 2017 ATM Equity Distribution Agreement provided that we may offer and sell up to 4,400,000 shares of common stock from time to time through the placement agents. From inception through December 31, 2019, we sold 1,618,375 shares of our common stock at a weighted average price of $18.07 per share. Proceeds, net of offering costs and expenses were $28,466,000 . On July 8, 2019, the Company gave notice to terminate the 2017 ATM Equity Distribution Agreement, with such termination effective as of July 9, 2019.

On July 10, 2019, the Company entered into the 2019 ATM Equity Distribution Agreement. The 2019 ATM Equity Distribution Agreement provides that the Company may offer and sell up to 3,000,000 shares of common stock from time to time through the placement agents. From inception through December 31, 2019, we sold 1,356,698 shares of our common stock at a weighted average price of $22.27 per share. Proceeds, net of offering costs and expenses were $30,212,000.

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.

As of December 31, 2019, there were 1,643,302 shares of common stock available for sale under the 2019 ATM Equity Distribution Agreement.

On February 28, 2020, we entered into the Amended 2019 ATM Equity Distribution Agreement with the placement agents. The purpose of the amendment is to add UBS Securities LLC as a placement agent. See “Recent Developments.”

Debt Offerings

In July 2019, the Company and the Trustee entered into the Fourth Supplemental Indenture to the Base Indenture between the Company and the Trustee, relating to the Company’s issuance, offer and sale of $55,000,000 aggregate principal amount of 5.75% Notes due 2024. The Company granted an overallotment option of up to $8,250,000 in aggregate principal amount of the 2024 Notes. The sale of the 2024 Notes generated proceeds of approximately $53,186,000, net of underwriter's fees and expenses. In July 20189 the underwriters exercised their option to purchase $8,250,000 in aggregate principal amount of 2024 Notes for an additional $8,003,000 in net proceeds. The 2024 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 2024 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 2024 Notes will mature on August 1, 2024 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 August 1, 2021, 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 2024 Notes bear interest at a rate of 5.75% per year payable quarterly on February 1, May 1, August 1, and November 1 of each year, commencing on November 1, 2019, and trade on the Nasdaq Global Market under the trading symbol “NEWTL.” At December 31, 2019, the Company was in compliance with all covenants related to the 2024 Notes.

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.


88

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) of the 1940 Act (or any successor provisions), 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) 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, 2019, 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.

On August 29, 2019, the Company redeemed all $8,324,000 in aggregate principal amount of the 2022 Notes on the redemption date of August 29, 2019 at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon from July 1, 2019, through, but excluding, the redemption date.

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. In June 2019, the facility was increased from $100,000,000 to $150,000,000.

89


At December 31, 2019, there was $0 and $30,000,000 outstanding under the unguaranteed and guaranteed lines of credit, respectively. At December 31, 2019, we were in full compliance with all applicable loan covenants.

Notes Payable - Related Parties

In June 2015, the Company entered into the 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 1 month LIBOR (with a floor of 0.50%) plus 6.0% 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 of 1 month LIBOR plus 2.5% or the Prime Rate plus 1.5%.

At December 31, 2019, the Related Party RLOC interest rate was 4.71%. The Related Party RLOC has a maturity date of November 8, 2023. Outstanding borrowings due to NMS at December 31, 2019 were $12,163,000.

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 on the Consolidated Statements of Assets and Liabilities.

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. The Class A and Class B notes bear interest at a rate of 1 month LIBOR plus 3.0% and 4.25%, respectively.

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. The Class A and Class B notes bear interest at a rate of 1 month LIBOR plus 2.0% and 3.0%, respectively.

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.

In March 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. 

In July 2019, the 2014-1 Trust was terminated as a result of NSBF purchasing the 2014-1 Trust assets, with the 2014-1 Trust’s noteholders receiving the redemption price.


90

In October 2019, NSBF completed its tenth securitization which resulted in the transfer of $118,920,000 of unguaranteed portions of SBA loans to the 2019-1 Trust, The 2019-1 Trust in turn issued securitization notes for the par amount of $118,920,000, consisting of $93,540,000 of Class A notes and $25,380,000 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 December 2044. The Class A and Class B notes bear interest at a rate of LIBOR plus 1.83% across both classes.
Cash Flows and Liquidity
As of December 31, 2019, the Company’s unused sources of liquidity consisted of $40,639,000 available through the Capital One facility; $21,206,000 available through notes payable with related parties; and $1,762,000 in unrestricted cash.

Restricted cash of $31,445,000 as of December 31, 2019 is primarily held by NSBF. The majority, or $30,692,000 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:
(in thousands)
Year Ended December 31, 2019
 
Year Ended December 31, 2018
Net cash used in operating activities
$
(88,957
)
 
$
(73,666
)
Net cash used in investing activities
(126
)
 
(627
)
Net cash provided by financing activities
90,940

 
85,105

Net increase in cash and restricted cash
1,857

 
10,812

Cash and restricted cash, beginning of period
31,350

 
20,538

Cash and restricted cash, end of period
$
33,207

 
$
31,350

During the year ended December 31, 2019, operating activities used cash of $88,957,000, consisting primarily of (i)  $517,692,000 of SBA 7(a) loan investments funded and (ii) $39,650,000 of investments in controlled portfolio companies including $14,270,000 investments in NCL and $17,378,000 of investments in NBL.
These decreases were offset by (i) $445,988,000 of proceeds from the sale of SBA 7(a) guaranteed loan investments, (ii)$47,171,000 of principal payments received from SBA non-affiliate investments, and (iii) a $8,557,000 decrease in broker receivables which arise from the guaranteed portions of SBA 7(a) loans that were traded in the period but settled during the current period end and the cash was received from the purchasing broker during the current period; the amount varies depending on loan origination volume and timing of sales at quarter end,.
Net cash provided by financing activities was $90,940,000 consisting primarily of (i) $63,250,000 of proceeds from the issuance of the 2024 Notes, (ii) $33,740,000 of net proceeds from the sale of common shares under the ATM Equity Distribution Agreement and (iii) the issuance of additional securitization notes payable of $118,920,000.
These increases were offset by (i) $40,769,000 of dividend payments, (ii) $62,507,000 of principal payments related to securitization notes payable and (iii) a redemption of $8,324,000 related to the 2022 Notes, (iv) net repayments of $4,678,000 under the Related Party RLOC (v) net repayments of $4,700,000 under our bank notes payable.

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Contractual Obligations
The following table represents the Company’s obligations and commitments as of December 31, 2019:
(in thousands)
Payments due by period
Contractual Obligations
Total
 
2020
 
2021
 
2022
 
2023
 
2024
 
Thereafter
Bank notes payable
$
30,000

 
$
30,000

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Securitization notes payable (1)
276,637

 
—

 
—

 
—

 
—

 
—

 
276,637

Notes due 2023 (1)
57,500

 
—

 
—

 
—

 
57,500

 
—

 
—

Notes due 2024 (1)
63,250

 
—

 
—

 
—

 
—

 
63,250

 
—

Notes payable - related parties
12,163

 
—

 
—

 
—

 
12,163

 
—

 
—

Employment agreements
384

 
384

 
—

 
—

 
—

 
—

 
—

Operating leases
13,371

 
1,662

 
1,563

 
1,576

 
1,619

 
3,281

 
3,670

Totals
$
453,305

 
$
32,046

  
$
1,563

  
$
1,576

 
$
71,282

 
$
66,531

 
$
280,307

(1) Amounts represent principal only and are not shown net of unamortized debt issuance costs. See NOTE 8—BORROWINGS.
Critical Accounting Policies and Estimates

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

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

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 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:

92

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

Valuation of Investments

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


When determining fair value of Level 3 debt and equity investments, the Company may take into account the following factors, where relevant: the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons to publicly traded securities, and changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made and other relevant factors. The primary 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. 

For certain investments, the Company generally calculates the fair value of the investment primarily based on the NAV of the entity and adjusts the fair value for other factors that would affect the fair value of the investment. The Company uses this valuation approach for its investment in NCL.

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.


93

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, 2019 and December 31, 2018 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

Management reviews all loans that become 90 days or more past due on principal or interest or when there is reasonable doubt that principal or interest will be collected for possible placement on management’s designation of non-accrual status. Interest receivable is analyzed regularly and may be reserved against when deemed uncollectible. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection.

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 and recorded daily. 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 a 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 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 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

94

Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. For the years ended December 31, 2019 and 2018, 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 $12,405,000 and $9,241,000 at December 31, 2019 and December 31, 2018, 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.

Recently Adopted Accounting Standards

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 Company adopted ASC 842 on January 1, 2019 using the modified transition method. As part of the transition to ASC 842, the Company elected the package of practical expedients that allowed it to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company recognized the cumulative effect of applying ASC 842 as an opening balance sheet adjustment at January 1, 2019. The comparative information has not been retrospectively adjusted and continues to be reported under the accounting standards in effect for those periods.The adoption of ASC 842 did not have a material impact on the Company’s accompanying consolidated statements of assets and liabilities, statements of operations or statements of cash flows. Due to the adoption of ASC 842, the Company recognized operating lease right-of-use assets and lease liabilities for its operating leases with lease terms greater than one year. The Company expects the adoption of ASC 842 will not materially impact its results of operations, financial condition, or cash flows on an ongoing basis.

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 elected to early adopt ASU 2018-13 on December 31, 2019. No significant changes to our fair value disclosures were necessary in the notes to the consolidated financial statements in order to comply with ASU 2018-13.
Off Balance Sheet Arrangements
There were no off balance sheet arrangements as of December 31, 2019.
Recent Developments

Common Stock

On February 28, 2020, we entered into the Amended 2019 ATM Equity Distribution Agreement with the placement agents. The purpose of the amendment was to add UBS Securities LLC as a placement agent. 

From January 1, 2020 through March 13, 2020 the Company sold 290,046 shares of its common stock at a weighted average price of $21.47 per share under the 2019 ATM Equity Distribution Agreement. Proceeds, net of offering costs and expenses were $6,228,000. As of March 13, 2020, there were 1,353,256 shares of common stock available for sale under the 2019 ATM Equity Distribution Agreement.

Dividend Declaration

On February 5, 2020, the Company declared a quarterly cash dividend of $0.44 per share payable on March 31, 2020 to
shareholders of record as of March 18, 2020. 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.


95

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. Risk management systems and procedures are designed to identify and analyze our risks, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs.
NSBF primarily lends at an interest rate of prime, which resets on a quarterly basis, plus a fixed margin. The Capital One revolver lines are on a prime plus or minus a fixed factor basis and the securitization notes are at prime or 1 month LIBOR, plus a fixed margin, whichever is less. 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 originated; this should improve our net investment income, holding all other factors constant. However, a reduction in interest rates will result in the Company experiencing a reduction in investment income; that is, its interest income will decline more quickly than interest expense resulting in a net reduction of benefit to investment income.

NSBF depends on the availability of secondary market purchasers for the guaranteed portions of SBA loans and the premium received on such sales to support its lending operations. Sale prices for guaranteed portions of SBA 7(a) loans could be negatively impacted by market conditions, in particular a higher interest rate environment, which typically lead to higher prepayments during the period, resulting in lower sale prices in the secondary market. A 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 (includes cash and cash equivalents and restricted cash) which was approximately $33,207,000 at December 31, 2019. 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. As of December 31, 2019, cash deposits in excess of insured amounts totaled approximately $15,490,000.

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, 2019 (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. There has not been any change in our internal controls over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.


96

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

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, 2019. 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, 2019 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, 2019 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, 2019, 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.

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 2020 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 2020 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

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Table of Contents

The information required by Item 12 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2020 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 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 2020 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 2020 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)    The following financial statement schedule is filed herewith:
No other financial statement schedules are filed herewith because (1) such schedules are not required or (2) the information has been presented in the aforementioned financial statements.
(a)(3)    Exhibits.
The following exhibits are filed herewith or are incorporated by reference to exhibits previously filed with the Securities and Exchange Commission.

Number
 
Description
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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100
Table of Contents

 
 
 
 
 
 
 
 
 
 
 
 
 


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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 16, 2020
By:
/S/    BARRY SLOANE        
 
 
Barry Sloane
 
 
Chief Executive Officer, President and Chairman of the Board
(Principal Executive Officer)
 
 
 
Date: March 16, 2020
By:
/S/    CHRISTOPHER TOWERS       
 
 
Christopher Towers
 
 
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 16, 2020
Barry Sloane
 
 
 
/S/    CHRISTOPHER TOWERS
Chief Accounting Officer (Principal Financial Officer and Principal Accounting Officer)
March 16, 2020
Christopher Towers
 
 
 
/S/    RICHARD SALUTE
Director
March 16, 2020
Richard Salute
 
 
 
/S/    SALVATORE MULIA        
Director
March 16, 2020
Salvatore Mulia
 
 
 
/S/    GREGORY ZINK
Director
March 16, 2020
Gregory Zink
 
 
 
/S/    PETER DOWNS
Director
March 16, 2020
Peter Downs









NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Table of Contents
 
PAGE NO.
 
 
 
 
 
Report of Independent Registered Public Accounting Firm
 
 
Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting
 
 
Consolidated Statements of Assets and Liabilities as of December 31, 2019 and 2018
 
 
Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017
 
 
Consolidated Statements of Changes in Net Assets for the years ended December 31, 2019, 2018 and 2017
 
 
Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 and 2017
 
 
Consolidated Schedules of Investments as of December 31, 2019 and 2018
 
 
Notes to Consolidated Financial Statements
 
 


102


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, 2019 and 2018, 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, 2019, and the related notes to the consolidated financial statements and the financial statement schedule of the Company listed in the accompanying index appearing under Item 15(a)(2) (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, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America, and in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

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, 2019, 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 16, 2020, 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, 2019 and 2018, 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 16, 2020







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, 2019, 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, 2019, 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, 2019 and 2018, 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, 2019, and our report dated March 16, 2020 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 16, 2020



F-2

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)
 
December 31, 2019
 
December 31, 2018
ASSETS

 
 
Investments, at fair value
 
 
 
SBA unguaranteed non-affiliate investments (cost of $429,697 and $355,589, respectively; includes $364,063 and $323,388, respectively, related to securitization trusts)
$
417,223

 
$
349,402

SBA guaranteed non-affiliate investments (cost of $23,345 and $17,217, respectively)
25,004

 
19,100

Controlled investments (cost of $107,300 and $74,279, respectively)
215,817

 
171,585

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

 
1,000

Investments in money market funds (cost of $0 and $9, respectively)
—

 
9

Total investments at fair value
659,044

 
541,096

Cash
1,762

 
2,316

Restricted cash
31,445

 
29,034

Broker receivable
51,173

 
42,617

Due from related parties
2,972

 
3,232

Servicing assets, at fair value
24,411

 
21,360

Right of use assets
7,990

 
—

Other assets
18,614

 
13,686

Total assets
$
797,411

 
$
653,341

 
 
 
 
LIABILITIES AND NET ASSETS
 
 
 
Liabilities:
 
 
 
Bank notes payable
$
30,000

 
$
34,700

Notes due 2022 (par: $0 as of December 31, 2019 and $8,324 as of December 31, 2018, Note 8)
—

 
8,019

Notes due 2023 (par: $57,500 as of December 31, 2019 and December 31, 2018, Note 8)
56,035

 
55,564

Notes due 2024 (par: $63,250 as of December 31, 2019 and $0 as of December 31, 2018, Note 8)
61,354

 
—

Notes payable - Securitization trusts (par: $276,637 and $220,137 as of December 31, 2019 and December 31, 2018, Note 8)
272,376

 
216,507

Notes payable - related parties
12,163

 
16,840

Due to related parties
131

 
4

Lease liabilities
9,897

 
—

Deferred tax liabilities
12,405

 
9,241

Accounts payable, accrued expenses and other liabilities
20,824

 
25,021

Total liabilities
475,185

 
365,896

 
 
 
 
Commitment 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, 20,530 and 18,919 issued and outstanding, respectively)
411

 
379

Additional paid-in capital
289,963

 
254,498

Accumulated undistributed earnings
31,852

 
32,568

Total net assets
322,226

 
287,445

Total liabilities and net assets
$
797,411

 
$
653,341

Net asset value per common share
$
15.70

 
$
15.19


F-3
See accompanying notes to consolidated financial statements.



sn
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except for Per Share Data)
 
 
 
Year ended December 31,
 
2019
 
2018
 
2017
Investment income
 
 
 
 
 
From non-affiliate investments:
 
 
 
 
 
Interest income
$
28,467

 
$
23,067

 
$
18,018

Servicing income
10,078

 
8,552

 
7,206

Other income
5,328

 
4,526

 
3,236

Total investment income from non-affiliate investments
43,873

 
36,145

 
28,460

From non-control/affiliate investments:
 
 
 
 
 
Dividend income
111

 
65

 
—

From controlled investments:
 
 
 
 
 
Interest income
1,024

 
740

 
653

Dividend income
14,287

 
12,565

 
9,747

Other income
—

 
—

 
54

Total investment income from controlled investments
15,311

 
13,305

 
10,454

Total investment income
59,295

 
49,515

 
38,914

Expenses:
 
 
 
 
 
Salaries and benefits
14,305

 
21,082

 
19,292

Interest
20,422

 
16,066

 
11,397

Depreciation and amortization
501

 
484

 
402

Professional fees
3,807

 
3,094

 
3,009

Origination and loan processing
9,215

 
8,362

 
5,871

Origination and loan processing - related party
9,944

 
—

 
—

Change in fair value of contingent consideration liabilities
42

 
(51
)
 
(455
)
Loss on extinguishment of debt
251

 
1,059

 
—

Other general and administrative costs
6,427

 
6,907

 
7,279

Total expenses
64,914

 
57,003

 
46,795

Net investment loss
(5,619
)
 
(7,488
)
 
(7,881
)
Net realized and unrealized gains (losses):
 
 
 
 
 
Net realized gain on non-affiliate investments - SBA 7(a) loans
47,816

 
42,845

 
39,617

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

 
278

 
—

Net realized gain (loss) on controlled investments
2,585

 
52

 
(200
)
Net unrealized (depreciation) appreciation on SBA guaranteed non-affiliate investments
(225
)
 
(766
)
 
1,398

Net unrealized (depreciation) appreciation on SBA unguaranteed non-affiliate investments
(6,291
)
 
3,471

 
(1,342
)
Net unrealized appreciation on controlled investments
11,211

 
4,048

 
12,957

Change in deferred taxes
(3,164
)
 
(1,077
)
 
(2,179
)
Net unrealized depreciation on servicing assets
(5,178
)
 
(5,685
)
 
(3,394
)
Net realized and unrealized gains
$
46,754

 
$
43,166

 
$
46,857

Net increase in net assets resulting from operations
$
41,135

 
$
35,678

 
$
38,976

Net increase in net assets resulting from operations per share
$
2.13

 
$
1.91

 
$
2.25

Net investment loss per share
$
(0.29
)
 
$
(0.40
)
 
$
(0.45
)

F-4
See accompanying notes to consolidated financial statements.



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Weighted average number of shares outstanding
19,326

 
18,714

 
17,327


F-5
See accompanying notes to consolidated financial statements.



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(In Thousands)
 
 
 
 
 
 
 
Year Ended December 31,
 
2019
 
2018
 
2017
Increase in net assets:
 
 
 
 
 
Net investment loss
$
(5,619
)
 
$
(7,488
)
 
$
(7,881
)
Net realized gains on investments
50,401

 
43,175

 
39,417

Net unrealized (depreciation) appreciation on investments
(3,646
)
 
(9
)
 
7,440

Net increase in net assets resulting from operations
41,136

 
35,678

 
38,976

Distributions to common stockholders
(41,895
)
 
(33,533
)
 
(28,934
)
Capital share transactions:
 
 
 
 
 
Issuance of common stock under dividend reinvestment plan
1,126

 
1,099

 
735

Stock-based compensation expense
636

 
585

 
963

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
(92
)
 
(109
)
 
(667
)
Issuance of common stock, net of offering costs
33,740

 
5,196

 
56,662

Net increase in net assets from capital share transactions
35,410

 
6,971

 
59,193

Impact of ASC 842 adoption
130

 
—

 
—

Total increase in net assets
34,781

 
9,116

 
69,235

Net assets at beginning of period
287,445

 
278,329

 
209,094

Net assets at end of period
$
322,226

 
$
287,445

 
$
278,329

Common shares outstanding at end of period
20,530

 
18,919

 
18,457

Capital share activity:
 
 
 
 
 
Shares issued under dividend reinvestment plan
54

 
61

 
44

Shares issued in connection with sales of common stock
1,545

 
291

 
3,727

Shares issued in connection with investment in Mobil Money, LLC
—

 
11

 
—

Shares issued in connection with International Professional Marketing, Inc.
—

 
—

 
60

Shares issued in connection with investment in United Capital Source, LLC
—

 
—

 
29

Purchase of vested stock for employee payroll tax withholding
(4
)
 
(6
)
 
(39
)
Restricted shares issued under Equity Incentive Plan, net of forfeitures
17

 
105

 
12

Net increase in capital activity
1,612

 
462

 
3,833


F-6
See accompanying notes to consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
 
Year Ended December 31,
 
2019
 
2018
 
2017
Cash flows from operating activities:
 
 
 
 
 
Net increase in net assets resulting from operations
$
41,135

 
$
35,678

 
$
38,976

Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
 
 
 
 
 
Net unrealized depreciation (appreciation) on controlled investments
(11,211
)
 
(4,048
)
 
(12,957
)
Net unrealized depreciation (appreciation) on non-affiliate investments
6,515

 
(2,706
)
 
(56
)
Net unrealized depreciation on servicing assets
5,178

 
5,685

 
3,394

Net realized (gains) losses on controlled investments
(2,585
)
 
(52
)
 
200

Net realized gains on non-affiliate investments
(47,816
)
 
(43,122
)
 
(39,617
)
Allowance for doubtful accounts
33

 
537

 
1,397

Change in fair value of contingent consideration liabilities
42

 
(51
)
 
(455
)
Loss on extinguishment of debt
251

 
1,059

 
—

Amortization of deferred financing costs
1,961

 
1,871

 
1,392

Deferred income taxes
3,164

 
1,077

 
2,179

Depreciation and amortization
501

 
484

 
402

Purchase of loans
(10,438
)
 
(1,206
)
 
(6,469
)
Purchase of SBA 7(a) loan portfolio
—

 
—

 
(175
)
Funding of guaranteed non-affiliate SBA loans
(387,479
)
 
(356,075
)
 
(296,120
)
Funding of unguaranteed non-affiliate SBA loans
(130,214
)
 
(113,101
)
 
(89,762
)
Funding of controlled investments
(39,650
)
 
(38,077
)
 
(32,320
)
Funding of non-control/affiliate investment
—

 
(1,000
)
 
—

Funding of non-control/non-affiliate investment
—

 
(5,700
)
 
(3,255
)
Proceeds from sale of non-affiliate SBA loans
445,988

 
406,066

 
324,141

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
47,171

 
42,505

 
27,035

Principal received from controlled investments
2,429

 
14,011

 
16,846

Distributions received from investments in excess of basis
2,585

 
—

 
100

Return of investment from controlled investments
4,200

 
8,785

 
50

Other, net
(282
)
 
995

 
908

Changes in operating assets and liabilities:
 
 
 
 
 
Investment in money market funds
9

 
—

 
26

Broker receivable
(8,557
)
 
(34,078
)
 
(6,137
)
Due to/from related parties
351

 
(1,511
)
 
(1,131
)
Other assets
(2,013
)
 
410

 
(632
)
Accounts payable, accrued expenses and other liabilities
(2,093
)
 
7,162

 
2,374

Capitalized servicing asset
(8,229
)
 
(7,686
)
 
(6,506
)
Other, net
97

 
(58
)
 
(19
)
Net cash used in operating activities
(88,957
)
 
(73,666
)
 
(72,936
)
Cash flows from investing activities:
 
 
 
 
 

F-7
See accompanying notes to consolidated financial statements.



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
 
Year Ended December 31,
 
2019
 
2018
 
2017
Purchase of fixed assets
(126
)
 
(627
)
 
(446
)
Cash flows from financing activities:
 
 
 
 
 
Net borrowings on bank notes payable
(4,700
)
 
34,700

 
(5,100
)
Proceeds from common shares sold, net of offering costs
33,740

 
5,196

 
56,662

Net (repayments) proceeds under related party line of credit
(4,678
)
 
9,839

 
5,601

Proceeds from Notes due 2023
—

 
57,500

 
—

Proceeds from Notes due 2024
63,250

 
—

 
—

Redemption of Notes due 2021
—

 
(40,250
)
 
—

Redemption of Notes due 2022
(8,324
)
 
—

 
—

Payments on Notes Payable - Securitization Trusts
(62,507
)
 
(53,938
)
 
(31,036
)
Issuance of Notes Payable - Securitization Trusts
118,920

 
108,551

 
75,426

Dividends paid
(40,769
)
 
(32,433
)
 
(28,198
)
Additions to deferred financing costs
(3,899
)
 
(3,951
)
 
(1,664
)
Purchase of vested stock for employee payroll tax withholding
(93
)
 
(109
)
 
(667
)
Net cash provided by financing activities
90,940

 
85,105

 
71,024

Net increase (decrease) in cash and restricted cash
1,857

 
10,812

 
(2,358
)
Cash and restricted cash—beginning of period (Note 2)
31,350

 
20,538

 
22,896

Cash and restricted cash—end of period (Note 2)
$
33,207

 
$
31,350

 
$
20,538

 
 
 
 
 
 
Non-cash operating, investing and financing activities:
 
 
 
 
 
Foreclosed real estate acquired
$
2,540

 
$
2,367

 
$
503

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
$
1,126

 
$
1,099

 
$
735

            



F-8
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Global Information Technology, Inc
(#)
1 Cragwood Rd, South Plainfield, NJ 07080
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/31/2029
 
$
567.5

 
$
567.5

 
$
501.2

 
0.16
%
Nick's Country Kitchen, LLC
(#)
3 Flanders Rd, Bethlehem, CT 06751
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/31/2044
 
287.5

 
287.5

 
308.3

 
0.10
%
Bearwaters Brewing Company
(#)
101 Park St, Canton, NC 28716
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/31/2044
 
257.5

 
257.5

 
281.1

 
0.09
%
Pecos Entertainment LLC dba State Theater
(#)
421 South Oak St, Pecos, TX 79772
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
12/31/2029
 
130.0

 
130.0

 
136.8

 
0.04
%
Spinnaker Vero Inc.
(#)
983 12th St., Vero Beach, FL 32960
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/30/2044
 
787.5

 
787.5

 
814.1

 
0.25
%
Kiddie Garden Child Development Center, LLC
(#)
2809 W. Atkinson Ave, Milwaukee, WI 53209
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/30/2044
 
43.0

 
43.0

 
46.9

 
0.01
%
VIP Construction Group Inc.
(#)
3332 W Mulberry Drive, Mequon, WI 53092
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/30/2029
 
62.5

 
62.5

 
65.2

 
0.02
%
Kwik Stop dba Dilpreet Hundai
(#)
1001 Sacramento Ave, West Sacramento, CA 95605
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/30/2044
 
242.0

 
242.0

 
254.8

 
0.08
%
Jauchem & Meeh Inc.dba Gregory Meeh Design;Jermy Chernick Design;J&M S
(#)
524 Sackett St., Brooklyn, NY 11217
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2029
 
275.0

 
275.0

 
264.9

 
0.08
%
Home Decor Liquidators, LLC dba Home Decor Outlets;Home Decor Mattress
(#)
4187 Pleasant Hill Rd, Duluth, GA 30096
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/30/2029
 
987.5

 
987.5

 
897.7

 
0.28
%
Destination Hope, Inc. and The Academy for Addiction Professionals, In
(#)
6555 NW 9th Ave, Fort Lauderdale, FL 33309
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2044
 
375.0

 
375.0

 
397.1

 
0.12
%
Larry J. Frick dba L & S Trucking
(#)
157571 E Wausau Ave, Wausau, WI 54403
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/30/2029
 
49.5

 
49.5

 
46.2

 
0.01
%
Vance Ewing LLC
(#)
22940 Harlan Ln, St. Robert, MO 65584
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/30/2029
 
112.5

 
112.5

 
117.3

 
0.04
%
Destination Hope, Inc, TrilogyTreatment & Wellness Center, Inc, The Ac
(#)
6555 NW 9th Ave, Fort Lauderdale, FL 33309
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2029
 
363.8

 
363.8

 
324.5

 
0.10
%
American Landscaping Company and Ground Effects Landscaping, LLC
(#)
6151 A St., Anchorage, AK 99518
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2044
 
646.7

 
646.7

 
713.7

 
0.22
%
Mankamana Holdings, LLc dba Perfect Brow Art, Mankamana Holdings, LLC
(#)
7302 Kirby Ave, Lubbock, TX 79424
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
137.5

 
137.5

 
132.1

 
0.04
%
Irony LLC dba Mulberry’s Garment Care
(#)
2579 Fairview Ave North, Roseville, MN 55113
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
1,042.5

 
1,042.5

 
925.1

 
0.29
%
American Landscaping Company
(#)
6151 A St., Anchorage, AK 99518
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
326.3

 
326.3

 
321.3

 
0.10
%

F-9
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Pro-Tek Pest Control, Inc, Pro-Tek Nurseries, LLC, Pro-Tek Irrigation
(#)
8712 60th Terrace South, Lake Worth, FL 33467
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
186.3

 
186.3

 
170.7

 
0.05
%
313 Air Duct LLC Dba Jouny Cleaning Services, M & J Restoration Emerge
(#)
25150 W Warren Ave, Dearborn Heights, MI 48127
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2044
 
250.0

 
250.0

 
269.6

 
0.08
%
313 Air Duck LLC dba Jouny Cleaning Services, M & J Restoration Emerge
(#)
25150 W Warren Ave, Dearborn Heights, MI 48127
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
162.0

 
162.0

 
151.0

 
0.05
%
Tatoo Tony's Under My Skin LLC
(#)
73 Memorial Parkway, Atlantic Highlands, NJ 07716
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2044
 
100.0

 
100.0

 
112.5

 
0.03
%
QXC Communications, Inc
(#)
4541 N Dixie Hwy, Boca Raton, FL 33431
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
525.0

 
525.0

 
464.5

 
0.14
%
K&S Hardware mLLC dba Gopher Ace
(#)
1865 Wayzata Blvd, Long Lake, MN 55356
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
62.5

 
62.5

 
61.3

 
0.02
%
Watearth Inc
(#)
3371 Glendale Blvd Ste 208, Los Angeles, CA 90039
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
46.8

 
46.8

 
41.2

 
0.01
%
A Family Member Homecare Group Inc, A Family Member Homecare Holdings,
(#)
11788 Sample Rd, Coral Springs, FL 33065
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2044
 
118.8

 
118.8

 
125.4

 
0.04
%
Protek Pest Control, Inc. Pro-tek Nurseries LLC, Pro-Tek Irrigation
(#)
8712 60TH TER South, Lake Worth, FL 33467
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2044
 
142.5

 
142.5

 
157.4

 
0.05
%
Icebox Cafe L.C. and Icebox Pantry, LLC
(#)
219 NE 3rd St., Hallendale Beach, FL 33009
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/26/2030
 
242.9

 
242.9

 
229.6

 
0.07
%
Bhatti LLC 2, Bhatti LLC
(#)
1451 Coral Ridge Ave, Coralville, IA 52241
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/26/2029
 
112.5

 
112.5

 
101.3

 
0.03
%
Ink! Coffee Company
(#)
2851 Larimer St., Denver, CO 80205
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/24/2029
 
515.3

 
515.3

 
454.3

 
0.14
%
Richwood Enterprises, LLC, Richwood Transport LLC, Richwood Transport
(#)
2564 Branch St., Middleton, WI 53562
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/24/2029
 
134.2

 
134.2

 
137.4

 
0.04
%
Synergistic-Designs, LLC
(#)
493 Wilson Mill Rd, New Wilmington, PA 16142
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/24/2029
 
7.5

 
7.5

 
6.6

 
—
%
Aitheras Aviation Group, LLC and International Aviation Sales, Ltd.
(#)
2301 N Marginal Rd, Cleveland, OH 44114
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/23/2029
 
527.5

 
527.5

 
481.7

 
0.15
%
Food Civilization Services LLC and 1701 W 15th St LLC
(#)
1701 W 15th St, Houston, TX 77008
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
12/23/2044
 
150.0

 
150.0

 
167.3

 
0.05
%
512 E 11th Street LLC and Big Brand Management Ltd. Co.
(#)
512 E 11th St, Houston, TX 77008
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
12/23/2044
 
333.8

 
333.8

 
366.1

 
0.11
%

F-10
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
The Lamkin Group LLC and National Championship Enterprises LLC
(#)
901 Lily Creek Rd, Ste 102, Louisville, KY 40243
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/23/2029
 
667.5

 
667.5

 
589.2

 
0.18
%
Chris Farley DVM PA. dba Farley Veterinary Clinic
(#)
6487 Taft St., Hollywood, CA 33024
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2029
 
13.5

 
13.5

 
14.2

 
—
%
Freedom Enterprises, Inc
(#)
2431 14th Ave SE, Watertown, SD 57201
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/20/2029
 
325.0

 
325.0

 
295.5

 
0.09
%
Shaddai Aesthetics Inc
(#)
706 W 34th St., Austin, TX 78705
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2029
 
18.9

 
18.9

 
16.7

 
0.01
%
ACC International LLC
(#)
200 N Furnace St, Birdsboro, PA 19508
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2044
 
322.5

 
322.5

 
335.2

 
0.10
%
Romain Tower Inc.
(#)
215 S Persimmon St, Tomball, TX 77375
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
12/20/2044
 
897.5

 
897.5

 
923.6

 
0.29
%
Macon Arts Center LLC
(#)
4570 Pio Nono Ave, Macon, GA 31206
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/20/2044
 
625.0

 
625.0

 
684.8

 
0.21
%
Freedom Enterprises, Inc - New RE company to be formed
(#)
2431 14th Ave SE, Watertown, SD 57201
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/20/2044
 
207.5

 
207.5

 
226.1

 
0.07
%
La Tradicion Cubana Inc
(#)
1336 SW 8th St., Miami, FL 33135
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 6.5%
 
12/20/2029
 
12.5

 
12.5

 
12.8

 
—
%
United Capital Group LLC
(#)
23022 La Cadena Dr, Laguna Hills, CA 92653
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/19/2029
 
322.0

 
322.0

 
295.7

 
0.09
%
RWBB LLC
(#)
4120 7th Ave, Kenosha, WI 53140
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/19/2029
 
16.7

 
16.7

 
15.6

 
—
%
Nebulos, LLC
(#)
5428 Twilight Way, Parker, CO 80134
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/19/2029
 
62.5

 
62.5

 
59.8

 
0.02
%
New Casa Technologies, LLC
(#)
7928 S 70th Lane, Laveen, AZ 85339
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/19/2029
 
8.3

 
8.3

 
7.4

 
—
%
MBK IT Services Inc.
(#)
626 Trailwood Ct., Garland, TX 75043
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/19/2029
 
21.6

 
21.6

 
22.7

 
0.01
%
Kuros, LLC
(#)
21221 Baron Lake Drive, Cedaredge, CO 81413
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/19/2044
 
397.5

 
397.5

 
446.2

 
0.14
%
Kuros, LLC
(#)
21221 Baron Lake Drive, Cedaredge, CO 81413
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/19/2045
 
9.3

 
9.3

 
10.5

 
—
%
GDIM Enterprises Inc dba AAMCO
(#)
1657 Whiskey Rd., Aiken, SC 29803
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/19/2029
 
19.5

 
19.5

 
18.4

 
0.01
%
Skyfall LLC dba EZ Self Storage
(#)
2705 US Hwy 45 N, Henderson, TN 38340
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
12/18/2044
 
146.3

 
146.3

 
164.4

 
0.05
%
Premier Gaming Solutions Inc
(#)
17 South Grand Ave, Passedena, CA 91105
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/18/2029
 
11.3

 
11.3

 
11.8

 
—
%
Louisiana Apple, LLC, Mountain Apple, LLC, Kentucky Apple, LLC
(#)
3909 Ambassador Caffrey Pkwy Bldg 1, Lafayette, LA 70503
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/18/2029
 
900.0

 
900.0

 
793.6

 
0.25
%

F-11
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
The Burlington Academy of Learning LLC
(#)
10 Covey Rd, Burlington, CT 06013
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/18/2029
 
50.0

 
50.0

 
52.5

 
0.02
%
Sago Technologies Inc. dba Jak Ecig
(#)
785 Woodfern Drive, Hampshire, IL 60140
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/17/2029
 
235.0

 
235.0

 
246.9

 
0.08
%
Pamela Bruner Enterprises, LLC
(#)
4370 Old US 25 Hwy, Zinconia, NC 28790
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/17/2029
 
62.5

 
62.5

 
57.6

 
0.02
%
HADD Corp
(#)
364 Rugby Rd, Cedarhurst, NY 11516
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
12/17/2029
 
12.5

 
12.5

 
12.8

 
—
%
J and K Project Management Consultants LLC
(#)
350 Mc Donnell St, Lewisville, TX 75057
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/16/2044
 
313.4

 
313.4

 
350.0

 
0.11
%
Signco America LP & Sparkle corporation Inc.
(#)
7938 Wright Rd, Houston, TX 77041
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/16/2044
 
1,250.0

 
1,250.0

 
1,405.2

 
0.44
%
Farain Saremi dba USA Produce
(#)
461 G St., Los Banos, CA 93635
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/16/2044
 
475.0

 
475.0

 
511.5

 
0.16
%
J and K Project Management Consultants dba A. C. T. Construction
(#)
350 Mc Donnell St, Lewisville, TX 75057
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/16/2029
 
207.8

 
207.8

 
215.2

 
0.07
%
Nulane Entertainment LLC
(#)
4100 W. Alameda Ave # 300, Burbank, CA 91505
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2029
 
7.5

 
7.5

 
6.6

 
—
%
Dr Steven J Seidel
(#)
42 Campeau Place, Bergenfield, NJ 07621
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2029
 
81.3

 
81.3

 
71.8

 
0.02
%
WURA LLC dba Dickey's Barbecue Pit
(#)
4325 E. University Drive Ste 40, Prosper, TX 75078
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/13/2029
 
90.8

 
90.8

 
82.1

 
0.03
%
Math Enrichment, LLC
(#)
1009 E Capitol Expressway, San Jose, CA 95121
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2029
 
200.0

 
200.0

 
176.3

 
0.05
%
Jen Macias LLC dba Duende
(#)
2301 NW Thurman St., Portland, OR 97210
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2029
 
8.1

 
8.1

 
7.1

 
—
%
The Crane Guys, LLC
(#)
14480 Alondra Blvd, La Mirada, CA 90638
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2029
 
1,250.0

 
1,250.0

 
1,172.8

 
0.36
%
The Floor Covering Warehouse, Inc
(#)
112 Orchard St., Stamford, CT 06902
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/13/2044
 
240.0

 
240.0

 
269.8

 
0.08
%
Essex Indoor Golf Center LLC
(#)
23 Saybrook Rd, Essex, CT 06426
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/13/2029
 
78.8

 
78.8

 
73.6

 
0.02
%
Belle Properties Northwest, Inc.
(#)
223 Ave B, Snohomish, WA 98290
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/12/2044
 
131.3

 
131.3

 
142.8

 
0.04
%
Stockton TRI Industries, LLC
(#)
2141 E Anderson St., Stockton, CA 95205
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/12/2044
 
1,107.5

 
1,107.5

 
1,197.0

 
0.37
%
Joyner5, Inc.dba British Swim School
(#)
1000 Settlers Landing Court, Wake Forest, NC 27587
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/12/2029
 
22.5

 
22.5

 
19.8

 
0.01
%
Abylex, Inc and Worpex LLC
(#)
7473 Reese Rd #2, Sacremento, CA 95828
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/12/2044
 
95.0

 
95.0

 
91.3

 
0.03
%

F-12
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Chambers Funeral Home & Crematorium PA & Riverdale Park Crematory, LLC
(#)
5801 Cleveland Ave, Riverdale, MD 20737
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2044
 
300.0

 
300.0

 
337.3

 
0.10
%
Vaughn Chiropractic, PLLC dba Catalyst Chiropractic and Rehab
(#)
10904 Baltimore St NE, Blaine, MN 55449
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2029
 
41.5

 
41.5

 
36.7

 
0.01
%
CCD Construction Services LLC dba Clearwater Outdoor Design, CCD Exca
(#)
175 W Borgfeld Drive, San Antonio, TX 78260
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/11/2044
 
112.5

 
112.5

 
121.0

 
0.04
%
Professional Plumbing Services of Nela, LLC
(#)
99 Plum St., West Monroe, LA 71292
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/11/2029
 
18.0

 
18.0

 
17.8

 
0.01
%
Ciel Du Mel LLC dba Lala's Creamery
(#)
134 Petaluma Blvd North, Petalumaca, CA 94952
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/10/2029
 
16.5

 
16.5

 
15.1

 
—
%
Helping Hands Group Daycare dba Dawn to Dusk Learning and Child Care L
(#)
10 Tremont Rd, Tremont, PA 17981
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/10/2044
 
39.0

 
39.0

 
42.3

 
0.01
%
SLCP Transport, LLC dba Aamco
(#)
1407 Lomaland Drive, El Paso, TX 79935
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/10/2029
 
62.5

 
62.5

 
59.8

 
0.02
%
Elita 7, LLC and Behavioral Nutrition Inc.
(#)
16 Marble St., Worchester, MA 01603
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
12/9/2029
 
300.0

 
300.0

 
291.4

 
0.09
%
Eagle Eye Truck Lines LLC and Eagle Eye Logistics LLC
(#)
560 56th St SW, Grand Rapids, MI 49548
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/6/2029
 
1,100.0

 
1,100.0

 
983.3

 
0.31
%
Bay Area Metal Fabricarion LLC
(#)
510 -512 Stone Rd, Benicia, CA 94510
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/6/2029
 
136.8

 
136.8

 
127.2

 
0.04
%
The Stout Group LLC
(#)
10850 NW 138th St, Hialeah Gardens, FL 33018
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
12/6/2029
 
240.0

 
240.0

 
222.4

 
0.07
%
DB Talak LLC
(#)
2018 SE 6th Ave, Portland, OR 97214
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/6/2044
 
153.5

 
153.5

 
172.6

 
0.05
%
Scott's Hardware, Inc., dba Medford Inc
(#)
200 Tuckerton Rd, Medford, NJ 08055
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 6.5%
 
12/6/2029
 
12.5

 
12.5

 
12.8

 
—
%
Mazhar Family, Inc dba Edible Arrangements
(#)
601 Portion Rd, #17, Lake Ronkonkoma, NY 11779
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/6/2029
 
67.5

 
67.5

 
60.0

 
0.02
%
Glen Lamb dba Lambs Tree And Plant Health Care
(#)
413 Pond Meadow Rd, Westbrook, CT 06498
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/6/2029
 
18.8

 
18.8

 
17.5

 
0.01
%
Natalie Enterprise Inc
(#)
2500 Grand Ave, Billings, MT 59102
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/6/2029
 
20.3

 
20.3

 
21.3

 
0.01
%
Wolf Pack, LLC
(#)
939 South 25th East, Ste. 115, Ammon, ID 83406
 
Management of Companies and Enterprises
 
Term Loan
 
Prime plus 2.75%
 
3/6/2030
 
224.5

 
224.5

 
206.3

 
0.06
%
Ohanyan LLC dba Nestle Toll House Caf'e By Chip
(#)
14006 Riverside Dr. #9270, Sherman Oaks, CA 91423
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/6/2029
 
33.3

 
33.3

 
31.3

 
0.01
%

F-13
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Clearwater Engineering Inc
(#)
301 N River St., Derby, KS 67037
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/5/2029
 
590.0

 
590.0

 
548.6

 
0.17
%
Used Tire Express 1, Corp
(#)
437 N. Battlefield, Chesapeake, VA 23320
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/5/2029
 
86.3

 
86.3

 
78.8

 
0.02
%
Standard Capital Corp
(#)
2377 Wessington Drive, Virginia Beach, VA 23456
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 6.5%
 
12/5/2029
 
12.5

 
12.5

 
12.8

 
—
%
Hook Line and Schooner Vinings LLC
(#)
400 West Village Way #3009, Smyrna, GA 30008
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/4/2029
 
22.5

 
22.5

 
21.1

 
0.01
%
Soto Injury Law Firm, PA and My Attorney Inc
(#)
2050 Capital Circle NE Ste B, Tallahassee, FL 32308
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/3/2029
 
62.5

 
62.5

 
55.2

 
0.02
%
Mega Sales Detergent Distributor, LLC
(#,^)
1 Ackerman Ave, Clifton, NJ 07011
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/29/2029
 
50.0

 
50.0

 
44.1

 
0.01
%
Loading Arms Plus Inc
(#)
5401 Mitchelldale St., Ste B4, Houston, TX 77092
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/27/2029
 
79.3

 
79.3

 
70.9

 
0.02
%
Behind the Scenes Chicago, LLC dba Paramount Events
(#)
1750 W Lake St., Chicago, IL 60612
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/27/2029
 
464.6

 
464.6

 
427.2

 
0.13
%
Keith E Burks dba 3B's Chalk It Up
(#)
22540 Foothill Boulevard, Hayward, CA 94541
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/27/2029
 
13.5

 
13.5

 
13.2

 
—
%
American Bio Source, LLC dba Dieselgreen Fuels
(#)
2522 N Hwy 287, Decatur, TX 76234
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
11/27/2029
 
57.3

 
57.3

 
60.2

 
0.02
%
Codorado, Inc. dba Dentalmart
(#,^)
10 Glorieta Rd, Sante Fe, NM 87508
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/27/2029
 
10.5

 
10.5

 
9.3

 
—
%
Alice's Tea Cup, ATC !! LLC and ATC 111, LLC
(#)
102 W 73rd St., New York, NY 10023
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/27/2029
 
272.5

 
272.5

 
243.4

 
0.08
%
Roots'n Shoots, LLC
(#)
86 Boston Rd, Chelmsford, MA 01824
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/27/2029
 
10.7

 
10.7

 
9.4

 
—
%
Haversack Holdings LLC
(#)
101 S Tryon St., Charlotte, NC 28280
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/27/2029
 
125.0

 
125.0

 
110.2

 
0.03
%
Kanti Group Inc, Marina 84 Sport Bar & Grill LLC and Pub 52 Sports
(#)
2440 Wesr State Rd 84, Fort Lauderdale, FL 33312
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/27/2029
 
150.0

 
150.0

 
133.8

 
0.04
%
ADPM Inc.
(#,^)
77 Main St, Amesbury, MA 01913
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
11/26/2029
 
47.5

 
47.5

 
41.9

 
0.01
%
Ultra Flow Dispense, LLC
(#)
820 Prospect Hill Rd, Windsor, CT 06095
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/26/2029
 
102.5

 
102.5

 
91.0

 
0.03
%
Ford Custom Renovation LLC
(#,^)
405 Broadway St., Muncy, PA 17756
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
11/26/2029
 
8.3

 
8.3

 
7.3

 
—
%
Fullmer's Landscaping, Inc.
(#)
9547 W Third St., Dayton, OH 45417
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/26/2029
 
195.3

 
195.3

 
178.2

 
0.06
%
B.S Carrier LLC and United Truck & Trailer Repair LLC
(#)
3716 Garman Rd, Salem, VA 24153
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/25/2029
 
236.3

 
236.3

 
232.2

 
0.07
%

F-14
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Hurricane Group, Inc.dba Crate Club Group
(#)
101 San Patricio Ave, Ste 860, Guaynabo, PR 00968
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2029
 
50.0

 
50.0

 
44.1

 
0.01
%
S&C Cookies, Inc
(#,^)
1969 Jericho Turnpike, East Northport, NY 11731
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/22/2029
 
56.3

 
56.3

 
49.7

 
0.02
%
Peanut Butter & Co Inc
(#,^)
119 West 57th St., Ste 300, New York, NY 10019
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/22/2029
 
187.5

 
187.5

 
165.3

 
0.05
%
Place Vendome Holding Co. Inc.dba R&F Marketing
(#)
308 Glenwood Rd, Swainsboro, GA 30401
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/22/2044
 
434.7

 
434.7

 
433.0

 
0.13
%
Place Vendome Holding Co Inc.dba R&F Marketing
(#)
610 East Main St., Swainsboro, GA 30401
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/22/2029
 
236.2

 
236.2

 
225.5

 
0.07
%
A&N Design Studios Inc dba Door3 Business Application
(#)
22 Cortlandt St., New York, NY 10007
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/22/2029
 
122.5

 
122.5

 
113.1

 
0.04
%
Cum Laude Enterprises, LLC
(#)
15218 Penn Hills Lane, Houston, TX 77062
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/22/2029
 
19.2

 
19.2

 
18.4

 
0.01
%
Best Choice Meats, Inc,
(#,^)
12646 S Springfield Ave, Alsip, IL 60803
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/22/2044
 
1,344.7

 
1,344.7

 
1,458.1

 
0.45
%
ZUMI LLC dba Allstate Insurance
(#,^)
1537 W 79th St, Chicago, IL 60620
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/22/2029
 
12.0

 
12.0

 
12.3

 
—
%
Weeping Willow Kennel Inc
(#,^)
6041 Hammond School Rd, Salisbury, MD 21804
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2029
 
4.5

 
4.5

 
4.7

 
—
%
Coral Springs Family Wellness LLC
(#)
2902 North University Drive, Coral Springs, FL 33065
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2030
 
59.1

 
59.1

 
52.9

 
0.02
%
Semplice Cafe LLC
(#,^)
209 N Main St., Breckenridge, CO 80424
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/21/2029
 
18.0

 
18.0

 
16.2

 
0.01
%
The Rollin' Trapp LLC
(#,^)
1731 Prevatt Rd, Dothan, AL 36301
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/21/2029
 
8.0

 
8.0

 
7.5

 
—
%
Pen's Electric Company
(#)
504 Fairfax Ave, Nashville, TN 37212
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 6.5%
 
11/21/2029
 
12.5

 
12.5

 
12.8

 
—
%
Cobb Roofing LLC
(#,^)
8101 NW 10th St, Oklahoma City, OK 73127
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/21/2029
 
53.7

 
53.7

 
47.3

 
0.01
%
Cable Management LLC
(#,^)
290 Pratt St., Meriden, CT 06450
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/20/2029
 
137.5

 
137.5

 
127.2

 
0.04
%
AMH Construction, Inc.
(#,^)
30 South Ivey Lane, Orlando, FL 32811
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
11/20/2029
 
75.0

 
75.0

 
73.9

 
0.02
%
AMH Construction, Inc.
(#,^)
30 South Ivey Lane, Orlando, FL 32811
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
11/20/2044
 
275.0

 
275.0

 
299.6

 
0.09
%
AD Learning Group, LLC dba The Learning Experience & AD Learning NH LL
(#,^)
181 Shunpike Rd, Cromwell, CT 06416
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/18/2029
 
137.5

 
137.5

 
121.2

 
0.04
%

F-15
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Ryan & Selena LLC dba Head of the Class Learning Center
(#,^)
1836 Kathleen Rd, Lakeland, FL 33805
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/18/2044
 
445.5

 
445.5

 
477.1

 
0.15
%
SSH Princeton LLC dba Stumpy's Hatchet House of Princeton
(#)
745 Alexander Rd, Ste 1-3, Princeton, NJ 08540
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/15/2030
 
91.0

 
91.0

 
80.4

 
0.02
%
MToxins Venom Lab LLC
(#,^)
717 Oregon St., Oshkosh, WI 54902
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/15/2044
 
101.3

 
101.3

 
106.3

 
0.03
%
Champions Of Diversity Media Inc dba Champions of Diversity: Politics
(#,^)
5100 Transamerica Drive, Columbus, OH 43228
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/15/2044
 
72.5

 
72.5

 
79.4

 
0.02
%
Lindsley Excavating LLC
(#,^)
92 Town Line Rd, Fulton, NY 13069
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/15/2029
 
192.5

 
192.5

 
186.3

 
0.06
%
The Pinnacle Development Group Inc dba The Goddard School
(#)
105 Springside Drive, Akron, OH 44333
 
Social Assistance
 
Term Loan
 
Prime plus 6.5%
 
11/14/2029
 
12.5

 
12.5

 
12.8

 
—
%
Rockin Robin Music Lessons LLC
(#,^)
9029 Hwy 6 Ste 160, Missouri City, TX 77459
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/14/2029
 
9.3

 
9.3

 
8.2

 
—
%
Bucklin Sumner & Associates LLC dba Bucklin Sumner & Associates LLC
(#)
650 NE Holladay St. Ste 1600, Portland, OR 97232
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 6.5%
 
11/14/2029
 
12.5

 
12.5

 
12.8

 
—
%
Winning Sales Plan Inc
(#,^)
17811 Fairhaven Gateway, Cypress, TX 77433
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/14/2029
 
50.0

 
50.0

 
52.5

 
0.02
%
Sean McNamara
(#)
5639 Wood Lane, Allentown, PA 18106
 
Nonstore Retailers
 
Term Loan
 
Prime plus 6.5%
 
11/14/2029
 
12.5

 
12.5

 
12.8

 
—
%
Ninth Avenue, LLC
(#)
5000 W Empire Place, Rm 916, Sioux Falls, SD 57106
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/14/2030
 
62.5

 
62.5

 
56.6

 
0.02
%
Adrienne's Gourmet Foods, Imagine Baking, Inc
(#,^)
1034 Hancock St., Sandusky, OH 44870
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/12/2029
 
529.4

 
529.4

 
523.1

 
0.16
%
Two Roses Salon 1, Inc.dba National Fluid Power Institute and NFPI
(#,^)
908 S Jefferson St., Amarillo, TX 79101
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/12/2029
 
395.0

 
395.0

 
371.1

 
0.12
%
Ameen Enterprises, LLC dba Bargain Town
(#,^)
1111 E Washington St., Stephenville, TX 76401
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/12/2029
 
125.0

 
125.0

 
127.5

 
0.04
%
Adrienne's Gourmet Foods, Imagine Baking Inc
(#,^)
1034 Hancock St., Sandusky, OH 44870
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/12/2044
 
406.2

 
406.2

 
456.7

 
0.14
%
Potomac Nail Spa Corporation
(#,^)
14901 Potomac Town Place, Woodbridge, VA 22191
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/12/2029
 
52.1

 
52.1

 
46.2

 
0.01
%
Steven French dba French Woodworking
(#,^)
1101 Horizon Drive Ste 101, Fairfield, CA 94533
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/12/2044
 
62.5

 
62.5

 
70.3

 
0.02
%
SSD Designs LLC
(#,^)
486 Vance St, Forest City, NC 28043
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/12/2030
 
350.0

 
350.0

 
330.8

 
0.10
%

F-16
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
NJ Floats, Inc
(#)
327 Rte 202/206, Bedminster Township, NJ 07921
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/12/2045
 
26.3

 
26.3

 
29.5

 
0.01
%
James Richard Farkas Jr. dba Lil Black Bear Inn
(#,^)
8072 State Rd 46 E, Nashville, TN 47448
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/12/2044
 
109.3

 
109.3

 
115.5

 
0.04
%
HH Wireless Connect LLC
(#,^)
48267 Deer Trail Drive, Canton, MI 48187
 
Electronics and Appliance Stores
 
Term Loan
 
Prime plus 2.75%
 
11/12/2029
 
8.3

 
8.3

 
7.3

 
—
%
Integrated Vascular Services LLC
(#,^)
1452 Franklin Ave, Salem, OR 44460
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/8/2029
 
80.0

 
80.0

 
71.0

 
0.02
%
Airbar Inc
(#,^)
5 N Station Plaza, Great Neck, NY 11021
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/8/2029
 
21.6

 
21.6

 
19.1

 
0.01
%
East River Plumbing, LLC
(#,^)
997 E Loop, Priest River, ID 83856
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/8/2044
 
50.0

 
50.0

 
54.4

 
0.02
%
Link Rec of Minong, Inc
(#,^)
304 Business Hwy 53, Minong, WI 54859
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/7/2044
 
393.8

 
393.8

 
431.5

 
0.13
%
WE MAKE DIFFERENCES, LLC
(#,^)
1380 Main St., Waltham, MA 02451
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/7/2029
 
6.3

 
6.3

 
6.3

 
—
%
Link Rec of Minong, Inc
(#,^)
304 Business Hwy 53, Minong, WI 54859
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/7/2029
 
856.3

 
856.3

 
764.8

 
0.24
%
Dear Valley Sports Shop LLC
(#)
507 Bamboo Rd, Boone, NC 28607
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 6.5%
 
11/7/2029
 
12.5

 
12.5

 
12.8

 
—
%
Lake Pontchartrain Properties, LLC
(#,^)
6001-6201 France Rd, New Orleans, LA 70126
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/7/2044
 
1,150.0

 
1,150.0

 
1,292.8

 
0.40
%
21 Air, LLC, 21 Cargo Inc, JW Aviation LLC, Freighter 27044 LLC
(#,^)
3650 NW 82 Ave, Doral, FL 33166
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/6/2029
 
1,025.0

 
1,025.0

 
903.8

 
0.28
%
C&P Trading and Sales Inc
(#,^)
950 Peninsula Corporate Cir, Boca Raton, FL 33487
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/31/2029
 
249.1

 
249.1

 
219.8

 
0.07
%
Sunburst Trout Farm, LLC
(#,^)
314 Industrial Park Drive, Waynesville, NC 28786
 
Fishing, Hunting and Trapping
 
Term Loan
 
Prime plus 2.75%
 
10/31/2044
 
232.4

 
232.4

 
257.9

 
0.08
%
11900 Marshfield Station Inc
(#,^)
11900 S Marshfield Ave, Calumet Park, IL 60827
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/31/2044
 
1,250.0

 
1,250.0

 
1,370.0

 
0.43
%
D & H Construction Services, Inc.
(#,^)
711 Hospital St., Richmond, VA 23219
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/31/2029
 
139.2

 
139.2

 
127.5

 
0.04
%
Automotive Solutions, LLC
(#,^)
1910 W. Dupont Rd, Fort Wayne, IN 46818
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/31/2044
 
297.2

 
297.2

 
322.0

 
0.10
%
Sunburst Trout Farm, LLC
(#,^)
314 Industrial Park Dr, Waynesville, NC 28786
 
Fishing, Hunting and Trapping
 
Term Loan
 
Prime plus 2.75%
 
10/31/2029
 
67.1

 
67.1

 
70.5

 
0.02
%
Automotive Standard, LLC
(#,^)
4028 Coldwater Rd, Fort Wayne, IN 46805
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/31/2044
 
137.3

 
137.3

 
149.9

 
0.05
%
Mariscos El Oceano, Inc.
(#,^)
5960 S Archer Ave, Chicago, IL 60638
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/31/2044
 
124.9

 
124.9

 
137.9

 
0.04
%

F-17
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Maine Service Corp
(#,^)
59-24 22nd St., Maspeth, NY 11378
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/31/2029
 
124.3

 
124.3

 
130.6

 
0.04
%
Guru Kirpa, Inc
(#,^)
3006 New Castle Ave, New Castle, DE 19720
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/31/2044
 
195.3

 
195.3

 
206.0

 
0.06
%
MJ Group, Inc
(#,^)
26691 Loma Verde, Mission Viejo, CA 92691
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2029
 
21.2

 
21.2

 
18.8

 
0.01
%
Dub Industries LLC
(#,^)
4112 Veiled Falls Drive, Pflugerville, TX 78660
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
10/31/2029
 
70.6

 
70.6

 
68.0

 
0.02
%
Fave Realty, Inc.
(#,^)
217-84 Hempstead Ave, Jamaica, NY 11429
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
10/31/2044
 
116.9

 
116.9

 
131.4

 
0.04
%
Kerzner Contracting Corp
(#,^)
1620 Ocean Ave, Bohemia, NY 11716
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/31/2029
 
111.9

 
111.9

 
98.7

 
0.03
%
Jessie's Radiator and Automotive
(#,^)
1777 N Ventura Ave, Ventura, CA 93001
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/31/2029
 
15.7

 
15.7

 
15.0

 
—
%
The Committed Pig LLC
(#,^)
28 West Park Place, Morristown, NJ 07090
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/31/2029
 
277.2

 
277.2

 
291.3

 
0.09
%
L& F Gullo Service Corp
(#,^)
520 Main St, Westbury, NY 11590
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/31/2029
 
174.0

 
174.0

 
153.4

 
0.05
%
ABC Sandblasting, LLC
(#,^)
14029 56th St. NW, Williston, ND 58801
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/31/2029
 
243.6

 
243.6

 
219.8

 
0.07
%
Paul Wintner dba P & R Props
(#,^)
23901 Calabasas Rd, Calabasas, CA 91302
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
10/30/2029
 
55.9

 
55.9

 
49.3

 
0.02
%
Blue Agave & Brothers, LLC dba Blue Apachie Mexican Restaurant and Blu
(#,^)
905 Savoy Rd, Youngsville, LA 70592
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/30/2029
 
87.0

 
87.0

 
77.8

 
0.02
%
BGB Leasing Inc and BGB Leasing Co.
(#,^)
50 Industrial Park Rd, Princeton, KY 42445
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/30/2029
 
1,153.6

 
1,153.6

 
1,082.5

 
0.34
%
BGB Leasing Co.
(#,^)
50 Industrial Park Rd, Princeton, KY 42445
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/30/2044
 
89.9

 
89.9

 
101.1

 
0.03
%
Plastic Depot, Inc
(#,^)
363 East Alondra Blvd, Gardena, CA 90248
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/30/2029
 
157.4

 
157.4

 
138.9

 
0.04
%
Lightning Strike Distributing, LLC dba Jedidiah's Jerky & Gournet Snac
(#,^)
9912 Arizona Dr, Mohave Valley, AZ 86440
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
10/30/2029
 
64.6

 
64.6

 
57.9

 
0.02
%
OWL Inc,
(#,^)
5300 S Orange Blossom Trail, Orlando, FL 32839
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/28/2029
 
211.3

 
211.3

 
186.3

 
0.06
%
Marnon Vending LLC dba Naturals 2 Go San Antonio
(#,^)
6713 Biscay Hbr, San Antonio, TX 78249
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
10/28/2029
 
7.9

 
7.9

 
7.5

 
—
%
Corple Enterprises, Inc
(#,^)
17887 US-380, Ponder, TX 76259
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/28/2029
 
155.9

 
155.9

 
156.5

 
0.05
%
Proximo Consulting Services Inc
(#,^)
2500 Plaza 5, Jersey City, NJ 07311
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/28/2029
 
74.6

 
74.6

 
65.8

 
0.02
%

F-18
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Perisseia Physicians LLC
(#,^)
1644 Lebanon Rd, Lawrenceville, GA 30043
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/28/2044
 
399.4

 
399.4

 
419.2

 
0.13
%
Diamond Solutions LLC
(#,^)
8321 E Gelding Drive, Scottsdale, AZ 85260
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/25/2029
 
12.7

 
12.7

 
11.2

 
—
%
Four Ace Electrical Services Corporation
(#,^)
3723 Far Niente Way, Sacramento, CA 95834
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/25/2029
 
11.9

 
11.9

 
10.7

 
—
%
Landmark Ventures USA, Inc
(#,^)
475 Park Ave S, 25th Fl, New York, NY 10016
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
10/25/2029
 
104.4

 
104.4

 
92.1

 
0.03
%
iLoka Inc. dba NewCloud Networks
(#,^)
160 Inverness Drive W Ste 150, Englewood, CO 80112
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/25/2029
 
99.4

 
99.4

 
104.5

 
0.03
%
Exclusive Physicians PLLC dba EPIC Primary Care,PLLC
(#,^)
18463 Livernois Ave, Detroit, MI 48221
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/25/2029
 
124.3

 
124.3

 
110.5

 
0.03
%
IV Purpose Inc
(#)
1489 Fulton St., Brooklyn, NY 11216
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/25/2029
 
26.1

 
26.1

 
24.3

 
0.01
%
Jbang LLC, WM Bang LLC, Bang Investments LLC
(#)
125 Westchester Ave, White Plains, NY 10601
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/25/2029
 
20.0

 
20.0

 
21.0

 
0.01
%
Sultan's Palace L.L.C.
(#,^)
8125 West Sahara Ave, Ste 300, Las Vegas, NV 89117
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/24/2029
 
21.0

 
21.0

 
19.3

 
0.01
%
Fimac Inc dba American Educational Services
(#,^)
26300 La Alameda Ste 200, Mission Viejo, CA 92691
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/23/2029
 
22.4

 
22.4

 
19.9

 
0.01
%
Pyle Garage Doors OKC, INC dba Precision Door Service OKC
(#,^)
8860 S Sunnylane Rd, Oklahoma City, OK 73135
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/22/2029
 
14.7

 
14.7

 
13.0

 
—
%
James Clark and Company, Inc.
(#)
8885 Haven Ave, Ste 120, Rancho Cucamonga, CA 91730
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
10/22/2029
 
12.4

 
12.4

 
12.7

 
—
%
Todd's Car Wash, LLC
(#,^)
5505 Johnston St., Lafayette, LA 70506
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/18/2044
 
343.4

 
343.4

 
386.0

 
0.12
%
UNIQUE PAVER INSTALLATIONS, INC.
(#,^)
4930 Mars Hill Rd, Bogart, GA 30622
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/17/2029
 
22.5

 
22.5

 
20.7

 
0.01
%
Owens Family and Cosmetic Dentistry PLLC
(#,^)
403 E College St., Pulaski, TN 38478
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/17/2029
 
270.8

 
270.8

 
246.8

 
0.08
%
Roughcut LLC
(#,^)
41540 National Rd, Belmont, OH 43718
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/17/2029
 
468.6

 
468.6

 
492.4

 
0.15
%
Pine Mountain Residential LLC
(#)
10240 Cosmopolitan Circle, Parker, CO 80134
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 6.5%
 
10/16/2029
 
12.4

 
12.4

 
12.7

 
—
%
Powerlift Dumbwaiters, Inc
(#)
2444 Georgia Slide Rd, Georgetown, CA 95634
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 6.5%
 
10/16/2029
 
12.5

 
12.5

 
12.7

 
—
%
Naroh Manufacturing, LLC
(#,^)
185 Gus Hipp Blvd, Rockledge, FL 32955
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/15/2029
 
18.6

 
18.6

 
17.3

 
0.01
%

F-19
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Chavero's Auto Mart, LLC
(#)
1364 E Palma Vista Drive, Palmview, TX 78572
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 6.5%
 
10/11/2029
 
12.5

 
12.5

 
12.8

 
—
%
The Cow Harbor Beer Company LLC dba Sand City Brewing Co.
(#)
19 Scudder Ave, Northport, NY 11768
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/11/2030
 
91.0

 
91.0

 
90.8

 
0.03
%
Glenda D Brewer dba Bargain Store
(#)
107 Tabernacle Church Rd, Candor, NC 27229
 
General Merchandise Stores
 
Term Loan
 
Prime plus 6.5%
 
10/11/2029
 
12.4

 
12.4

 
12.7

 
—
%
S&D Beauty Spa Inc dba Elite Nails, dba Bella's Nails &dba Onyx Nail b
(#,^)
5604 Slide Rd, Lubbock, TX 79414
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/11/2029
 
155.4

 
155.4

 
139.1

 
0.04
%
Q2 Ventures, LLC
(#,^)
2805 W Arimo Rd, Arimo, ID 83214
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/8/2029
 
176.5

 
176.5

 
177.5

 
0.06
%
Paketo LLC dba West Loop UPS Store
(#,^)
623 W Lake St., Chicago, IL 60661
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
10/4/2029
 
16.4

 
16.4

 
14.7

 
—
%
Joseph P Fusco DDS PC
(#,^)
77 N Centre Ave, Rockville Centre, NY 11570
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029
 
65.5

 
65.5

 
57.9

 
0.02
%
International Protection Group, LLC
(#,^)
481 8th Ave Ste 1130, New York, NY 10001
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029
 
81.6

 
81.6

 
80.6

 
0.03
%
A Child's Dream Educational Center LLC
(#,^)
4127 NW 34th St., Gainesville, FL 32605
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/30/2044
 
179.6

 
179.6

 
194.6

 
0.06
%
AV Strategy, Inc
(#,^)
9402 American Eagle Way, Orlando, FL 32837
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029
 
257.1

 
257.1

 
241.9

 
0.08
%
In Power Motors, LLC, In-Power Motors II LLC, In-Power Motors III LLC
(#,^)
2301 W. Buckeye Rd, Phoenix, AZ 85009
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2044
 
623.5

 
623.5

 
656.8

 
0.20
%
MVE, Inc dba Mid-Valley Engineering
(#,^)
1117 L St., Modesto, CA 95354
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029
 
1,226.1

 
1,226.1

 
1,114.6

 
0.35
%
SPIRE Manufacturing Solutions LLC
(#,^)
1440 Newport Rd, Colorado Springs, CO 80916
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2044
 
1,014.1

 
1,014.1

 
1,140.1

 
0.35
%
Meldi Maa, Inc dba The River Complex
(#,^)
74 S Main St., Woonsocket, RI 02895
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2044
 
422.8

 
422.8

 
463.2

 
0.14
%
50 Taps, LLC dba Colorado Taproom & Grill
(#,^)
19539 Hess Rd, Ste 101, Parker, CO 80134
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029
 
76.6

 
76.6

 
68.4

 
0.02
%
Crown Waste Corp
(#,^)
1 Plainview Rd, Bethpage, NY 11714
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029
 
49.4

 
49.4

 
46.1

 
0.01
%
Bev's Sweets LLC
(#,^)
3778 Hwy 254, Cleveland, GA 30528
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2044
 
213.3

 
213.3

 
232.8

 
0.07
%
DG Business Solutions, Inc
(#,^)
11008 Rene St., Lenexa, KS 66215
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029
 
222.5

 
222.5

 
197.7

 
0.06
%
A Child's Dream Educational Center LLC
(#,^)
4127 NW 34th St., Gainsville, FL 32605
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029
 
186.8

 
186.8

 
165.3

 
0.05
%
Atlantic Pacific Hospitality Solutions Inc dba North Beach Bistro
(#,^)
725 Atlantic Blvd, Atlantic Beach, FL 32233
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029
 
9.3

 
9.3

 
8.2

 
—
%

F-20
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Heart and Vascular Associates of Tampa, LLC
(#,^)
17 David Boulevard, Tampa, FL 33606
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2044
 
775.0

 
775.0

 
803.1

 
0.25
%
Universe Appliance Repairs Inc.
(#,^)
3790 Merrick Rd, Seaford, NY 11783
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/27/2044
 
586.1

 
586.1

 
604.1

 
0.19
%
Aztec Machine & Repair Inc, Cranrd & Material
(#,^)
1715 N 1st St, Bloomfield, NM 87413
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/27/2044
 
710.8

 
710.8

 
744.4

 
0.23
%
Wagner & Sons Inc
(#,^)
22365 Alydar Drive, Lexington Park, MO 20653
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/27/2029
 
18.5

 
18.5

 
16.4

 
0.01
%
Zima Dining Inc. dba Country Kitchen
(#,^)
1497 N Mt. Vernon Ave, Colton, CA 92324
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/27/2029
 
62.3

 
62.3

 
65.4

 
0.02
%
Double H Services, LLC, C&T Oil Field Services, LLC and Brian S. Holma
(#,^)
3721 North 162nd St., Garber, OK 73701
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
9/27/2029
 
1,013.5

 
1,013.5

 
953.1

 
0.30
%
Cherry and Candlewood Inc dba Aamco
(#,^)
3029 South St., Long beach, CA 90805
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/27/2044
 
432.2

 
432.2

 
485.9

 
0.15
%
Universe Appliance Repairs Inc.
(#,^)
3790 Merrick Rd, Seaford, NY 11783
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/27/2029
 
655.1

 
655.1

 
607.0

 
0.19
%
Titan Laser Screed Concrete Services, LLC
(#,^)
8908 Wildlife Lane, Sanford, FL 32771
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/27/2029
 
49.4

 
49.4

 
44.8

 
0.01
%
Total Pallet Consolidation LLC
(#,^)
2800 Swanee Ave, Buford, GA 30618
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/27/2029
 
18.5

 
18.5

 
16.5

 
0.01
%
Stiegelbauer Associates Inc.
(#,^)
63 Flushing Ave Unit 342, Brooklyn, NY 11205
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/27/2029
 
198.1

 
198.1

 
175.0

 
0.05
%
Zmetra Clearspan Structures LLC
(#,^)
2 Old Worcester Rd, Webster, MA 01571
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/27/2044
 
436.9

 
436.9

 
491.1

 
0.15
%
Hoagie Barmichaels Inc
(#,^)
1101 River Rd, New Windsor, NY 12553
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/27/2044
 
112.7

 
112.7

 
115.7

 
0.04
%
Santa Fe Flooring LLC
(#,^)
3711 Paseo Del Norte NE, Albuquerque, NM 87113
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/26/2029
 
493.2

 
493.2

 
450.1

 
0.14
%
MeShare Inc.
(#,^)
1401 Interstate Drive, Champaign, IL 61822
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2029
 
1,236.0

 
1,236.0

 
1,157.7

 
0.36
%
Adam's Construction & General Contracting LLC
(#,^)
7808 N Custer Rd, Freesoil, MI 49411
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
9/26/2029
 
68.2

 
68.2

 
62.4

 
0.02
%
Anderson's Outdoor Adventures, LLC
(#,^)
4060 SW County Rd 232, Bell, FL 32619
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/25/2029
 
22.2

 
22.2

 
22.5

 
0.01
%
Byler, Wolfe, Lutsch and Kampfer CPAs, Inc
(#,^)
360 East State St., Salem, OH 44460
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2044
 
53.4

 
53.4

 
54.1

 
0.02
%
luv 2 Play Nor Cal, LLC
(#,^)
82 Clarksville Rd, Folsom, CA 95682
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/25/2029
 
111.7

 
111.7

 
100.3

 
0.03
%
Quality Machine of Iowa, Inc
(#,^)
1040 4th Ave, Audubon, IA 50025
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/25/2029
 
67.1

 
67.1

 
70.4

 
0.02
%
Flamingo Bowl, Inc
(#,^)
3301 N 23rd St., McAllen, TX 78501
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/24/2029
 
201.5

 
201.5

 
190.6

 
0.06
%

F-21
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Unified Utility Services LLC
(#,^)
206 Frankie Lane, Ladson, SC 29456
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/20/2044
 
157.6

 
157.6

 
177.0

 
0.05
%
Standard Real Estate Services LLC
(#)
500 W Silver Spring Dr. #K 200, Glendale, WI 53217
 
Real Estate
 
Term Loan
 
Prime plus 6.5%
 
9/19/2029
 
12.4

 
12.4

 
12.6

 
—
%
Host Marketing, LLC
(#)
206 Bell Lane Ste B, West Monroe, LA 71291
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
9/18/2029
 
12.4

 
12.4

 
12.6

 
—
%
Payne's Enviromental Service, LLC dba Bamaco
(#,^)
5617 Causeway Boulevard, Tampa, FL 33619
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/18/2044
 
521.0

 
521.0

 
545.4

 
0.17
%
Vancole Investments, Inc. dba Smoothie King #913 &;Dream Developmenf G
(#,^)
876 Virginia Ave, Hapeville, GA 30354
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/17/2029
 
11.9

 
11.9

 
10.5

 
—
%
Win Health Institute
(#,^)
711 E Valley Rd, Basalt, CO 81621
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/17/2029
 
7.4

 
7.4

 
6.8

 
—
%
Natalie Hart LLC dba Lady of Luxury &dba Country Sugar Events, dba Que
(#)
1702 Fawn Gate St, San Antonio, TX 78248
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2029
 
33.4

 
33.4

 
33.7

 
0.01
%
Game Station, Inc.
(#,^)
2917 1st Ave SE, Cedar Rapids, IA 52402
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/16/2029
 
20.0

 
20.0

 
18.9

 
0.01
%
Bay Bowl Inc dba Shasta Lanes
(#,^)
11093 Black Marble Way, Redding, CA 96003
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/13/2044
 
536.2

 
536.2

 
602.3

 
0.19
%
Oak Park Social LLC
(#)
14691 W 11 Mile Rd, Oak Park, MI 48237
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/12/2045
 
96.9

 
96.9

 
105.5

 
0.03
%
The Steel Method LLC dba Sneeze It
(#,^)
250 Passaic Ave Ste 200, Fairfield, NJ 07004
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/12/2029
 
166.9

 
166.9

 
147.4

 
0.05
%
New Flow Plumbing and Rooter Inc.
(#,^)
6718 Katherin Ave, Van Nuys, CA 91405
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/12/2029
 
49.4

 
49.4

 
43.9

 
0.01
%
ACSS CPA, LLC
(#,^)
1016 S Texas Blvd, Weslaco, TX 78599
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/12/2044
 
39.9

 
39.9

 
42.6

 
0.01
%
Miami Squeeze Inc dba Miami Squeeze, LLC
(#,^)
18315 W Dixie Hwy, North Miami Beach, FL 33160
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/11/2029
 
114.2

 
114.2

 
106.2

 
0.03
%
Covert Recordings LLC
(#,^)
31-65 138th St., Apt 3K, Flushing, NY 11354
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2029
 
11.8

 
11.8

 
12.0

 
—
%
Family Insight, P.C.
(#,^)
3433 Brambleton Ave, Ste 104A, Roanoke, VA 24018
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2029
 
245.4

 
245.4

 
247.6

 
0.08
%
Prime Precision Machining, LLC
(#,^)
845 Mandoline Ave, Madison Heights, MI 48071
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/11/2029
 
206.9

 
206.9

 
190.5

 
0.06
%
Prime Precision Machining, LLC
(#,^)
845 Mandoline Ave, Madison Heights, MI 48071
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
9/11/2044
 
267.9

 
267.9

 
284.9

 
0.09
%
Softcare247, LLC
(#)
4191 Naco Perrin Blvd, San Antonio, TX 78217
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
9/11/2029
 
12.4

 
12.4

 
12.6

 
—
%

F-22
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Body on Cue Health and Fitness LLC
(#,^)
129 A Orpha Drive, Middlebury, IN 46840
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/6/2029
 
44.5

 
44.5

 
39.8

 
0.01
%
Eco Electric LLC
(#,^)
5380 Cameron St, Las Vegas, NV 89118
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/5/2029
 
65.8

 
65.8

 
57.9

 
0.02
%
SVT Masonry Limited Liability Company
(#,^)
1208 Houghton Lane, Bennington, VT 05201
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/5/2029
 
75.4

 
75.4

 
74.4

 
0.02
%
Smokin AZ, LLC dba Dickey's Barbecue Pit AZ
(#,^)
1914 S Power Rd, Ste 101, Mesa, AZ 85206
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/5/2029
 
65.5

 
65.5

 
58.6

 
0.02
%
Philly Games Inc.dba Queen & Rock Game Cafe
(#,^)
607-609 S 2nd St., Philadelphia, PA 19147
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/5/2029
 
61.8

 
61.8

 
54.7

 
0.02
%
Thawk LLC
(#,^)
1110 Willow Glen Drive, Yuba City, CA 95991
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2029
 
8.1

 
8.1

 
7.2

 
—
%
No Push Backs, LLC
(#)
2223 Dungan Ave, Bensalem, PA 19020
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 6.5%
 
8/30/2029
 
12.2

 
12.2

 
12.4

 
—
%
Dog House Sportfishing Charters Inc
(#)
83413 Overseas Hwy, Islamorada, FL 33036
 
Scenic and Sightseeing Transportation
 
Term Loan
 
Prime plus 6.5%
 
8/30/2029
 
12.3

 
12.3

 
12.5

 
—
%
3C Consumer Network & Designs LLC
(#,^)
7676 Hillmont St., Ste 109, Houston, TX 77040
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
8/29/2029
 
14.7

 
14.7

 
13.5

 
—
%
Camror LTD dba Jersey Mike's
(#,^)
5946 Meijer Drive, Cincinnati, OH 45150
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/29/2030
 
87.5

 
87.5

 
91.4

 
0.03
%
Esquire Mini Mart LLC & Morgan Store Building LLC
(#,^)
12595 S Somerton Ave, Yuma, AZ 85365
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
8/29/2029
 
50.4

 
50.4

 
49.0

 
0.02
%
Groton Bowling Center and Entertainment Inc
(#,^)
27 Kings Hwy, Groton, CT 06340
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/29/2044
 
942.4

 
942.4

 
1,010.2

 
0.31
%
Crown Heights Bunch O Bagels & More Inc & 361 Bagel Holding LLC
(#,^)
361 Troy Ave, Brooklyn, NY 11213
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
8/29/2029
 
39.3

 
39.3

 
41.3

 
0.01
%
Double Scoop Ice Cream, LLC
(#,^)
2970 Stonecrest Pass, Lithonia, GA 30038
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/29/2044
 
96.4

 
96.4

 
102.7

 
0.03
%
The BMF Media Group LLC
(#,^)
50 West 23rd St., 7th fl, New York, NY 10010
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/29/2029
 
368.7

 
368.7

 
324.6

 
0.10
%
DB Talak LLC
(#,^)
2018 SE 6th Ave, Portland, OR 97214
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/28/2029
 
86.0

 
86.0

 
90.3

 
0.03
%
HRS2, LLC
(#,^)
5410 Pipers Creek Court, Sugar Land, TX 77479
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/28/2029
 
227.6

 
227.6

 
224.5

 
0.07
%
Khari E. J. Myers dba Khari Imagery & 190 Minerva LLC
(#,^)
190 Minerva St., Tonawanda, NY 14150
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2044
 
59.8

 
59.8

 
67.2

 
0.02
%
Linsey Schwertdfeger,, Inc.
(#,^)
740 Dennery Rd, San Diego, CA 92154
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/28/2029
 
69.7

 
69.7

 
62.4

 
0.02
%
Blue Eagle Transport Inc.,Golden Eagle Tran and Green Eagle Transpor
(#,^)
377 Boston Post Rd, Milford, CT 06460
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
8/28/2029
 
444.2

 
444.2

 
407.5

 
0.13
%

F-23
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
The Hometown Welcome Program, Inc & Fredric Anthony Gushwa
(#,^)
107 S Nottawa St, Sturgis, MI 49091
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/27/2029
 
96.0

 
96.0

 
90.2

 
0.03
%
Maryland Urgent Care, Inc.
(#,^)
9831 Greenbelt Rd Ste 208 Unit H-2, Lanham, MD 20706
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/27/2044
 
46.0

 
46.0

 
49.9

 
0.02
%
ADA Internacional Inc
(#,^)
10891 La Reina Rd, Ste 100, Delray Beach, FL 33446
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/26/2029
 
22.1

 
22.1

 
19.5

 
0.01
%
Crystal S. Prado dba Crystal Clear Accounting
(#)
34099 Tuscan Creek Way, Temecula, CA 92592
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
8/26/2029
 
3.2

 
3.2

 
3.2

 
—
%
JLT Foods, LLC
(#,^)
3294 Long Meadow Ct, West Bloomfield Township, MI 48324
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/23/2029
 
20.6

 
20.6

 
18.2

 
0.01
%
PJT Logistics, Inc.
(#,^)
2-4 Commerce Way, Auburn, NY 13021
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/23/2029
 
49.2

 
49.2

 
51.6

 
0.02
%
Elite Motors LLC
(#,^)
1046-1050 Orange Ave, West Haven, CT 06516
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
8/23/2029
 
86.0

 
86.0

 
90.3

 
0.03
%
SRJ construction Corp
(#,^)
8358 W Oakland Park Blvd. #203E, Sunrise, FL 33351
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/23/2029
 
11.1

 
11.1

 
9.9

 
—
%
The Pet Stop, LLC
(#,^)
106 S Washington St., Pleasantville, IA 50225
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/23/2029
 
7.4

 
7.4

 
6.7

 
—
%
MS Integrated Psychotherapy & Counseling, LLC
(#,^)
1157 Main St., Clifton, NJ 07011
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/22/2029
 
73.0

 
73.0

 
68.8

 
0.02
%
The Roux Southern Kitchen, LLC
(#,^)
252 FM 3162, Sandia, TX 78383
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/22/2029
 
17.8

 
17.8

 
18.4

 
0.01
%
MB Nursery LLC dba The Garden Center
(#,^)
15562 HWY-South, Whitehouse, TX 75791
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/21/2029
 
91.1

 
91.1

 
94.3

 
0.03
%
Metro R Services Inc. and Metal & Roof Supplies, Inc.
(#,^)
20 Universal Place, Carlstadt, NJ 07072
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/21/2029
 
190.5

 
190.5

 
185.1

 
0.06
%
Auto Unique LLC
(#,^)
305 W Main St., Mayo, FL 32066
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
8/20/2044
 
12.3

 
12.3

 
13.8

 
—
%
William Martinez dba Bad Ass Coffee of Hawaii
(#)
14101 Main St., Ste 4101, Hesperia, CA 92345
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/20/2029
 
22.5

 
22.5

 
20.2

 
0.01
%
Signature Rooms, Inc.
(#,^)
2066 Route 112, Medford, NY 11763
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
8/19/2029
 
165.9

 
165.9

 
174.1

 
0.05
%
Accent Home Services LLC dba Benjamin Franklin Plumbing of Kansas City
(#,^)
7748 Troost Ave, Kansas City, MO 64131
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/15/2029
 
110.6

 
110.6

 
105.9

 
0.03
%
American Healthy Vending, Inc
(#,^)
5951 NW 151 St., Hialeah, FL 33014
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/15/2029
 
104.5

 
104.5

 
96.6

 
0.03
%
AJN Innovations LLC dba Burgerim
(#)
6704 Main St., Miami Lakes, FL 33014
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/15/2030
 
24.6

 
24.6

 
22.7

 
0.01
%

F-24
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Accelerate Educational Solutions, LLC dba Tutor My Success
(#,^)
135 Clove Branch Rd, Hopewell Jct, NY 12533
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
8/14/2029
 
17.0

 
17.0

 
15.0

 
—
%
Ranson Excavating, Inc
(#,^)
8343 Kaula Drive, Fair Oaks, CA 95628
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/13/2029
 
14.7

 
14.7

 
13.0

 
—
%
KM Electrical Services, Inc
(#,^)
4348 Waialae Ave Unit 315, Honolulu, HI 96816
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/12/2029
 
76.2

 
76.2

 
67.3

 
0.02
%
Love Playing LLC
(#)
2200 Eastridge Loop, San Jose, CA 95122
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/9/2030
 
99.6

 
99.6

 
94.6

 
0.03
%
Elixir Enterprises, LLC dba Guilford Renee's
(#,^)
637 Boston Post Rd, Guilford, CT 06437
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
8/8/2029
 
19.2

 
19.2

 
17.0

 
0.01
%
Suite Luxury, Inc
(#,^)
1410 Pine Ridge Rd, Ste 13, Naples, FL 34108
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
8/7/2029
 
18.4

 
18.4

 
16.3

 
0.01
%
A & S Services LLC dba Kona Ice of Troy
(#)
3888 Lightner Rd, Vandalia, OH 45377
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 6.5%
 
8/7/2029
 
12.3

 
12.3

 
12.5

 
—
%
Accord Law, APC
(#,^)
82555 Grass Flat Lane, Indio, CA 92203
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/2/2029
 
7.4

 
7.4

 
6.5

 
—
%
Leader Engineering-Fabrication, Inc.
(#,^)
695 Independence DrIive, Napoleon, OH 43545
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/2/2029
 
123.0

 
123.0

 
129.0

 
0.04
%
Billy Auto Inc
(#,^)
632 N Broadway, Amityville, NY 11701
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/31/2044
 
323.6

 
323.6

 
334.9

 
0.10
%
East Coast Flight Services, Inc and Aviation Consulting Enterprise, LL
(#,^)
27603 Parkway Rd, Easton, MD 21601
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/31/2029
 
562.2

 
562.2

 
516.2

 
0.16
%
Healthcare Holdings of America, LLC, Senior Market Advisors, Inc, CHA
(#,^)
6201 Centennial Blvd, Nashville, TN 37209
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/31/2029
 
433.9

 
433.9

 
426.3

 
0.13
%
Living Spring Home Health Inc.
(#,^)
18350 Kedzie Ave Ste 204, Homewood, IL 60430
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/31/2029
 
132.2

 
132.2

 
124.4

 
0.04
%
Genecco Produce, Inc. & Leo Genecco & Sons, Inc.
(#,^)
1850 Rochester Rd, Canadaigua, NY 14424
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/31/2029
 
753.2

 
753.2

 
729.4

 
0.23
%
Joseph Centonze dba Off Kilter Kilts
(#,^)
27720 Ave Scott, Santa Clarita, CA 91355
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
7/31/2029
 
8.0

 
8.0

 
7.1

 
—
%
Canyon Lake Kids Academy, LLC
(#,^)
130 Charter Oak Drive, Canyon Lake, TX 78133
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/31/2044
 
97.8

 
97.8

 
105.3

 
0.03
%
Quick and Quality Services dba Bella Roma Pasta & Pizza & Farshad Fari
(#,^)
28940 Golden Lantern, Laguna Niguel, CA 92677
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2029
 
11.1

 
11.1

 
10.4

 
—
%
Humd, LLC dba La Rosa Chicken and Grill
(#)
3111 N. University Drive, Coral Springs, FL 33065
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/31/2030
 
134.3

 
134.3

 
122.5

 
0.04
%
St. Francis Home Health Inc
(#,^)
5246 SW 8th St 103B, Coral Gables, FL 33134
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/31/2029
 
73.3

 
73.3

 
64.6

 
0.02
%
La Mount Group LLC
(#,^)
3111 Princeton Rd, Hamilton, OH 45011
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2029
 
249.3

 
249.3

 
219.5

 
0.07
%

F-25
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Gray Rock Quarry, LLC and William E Dailey III
(#,^)
54 West Milton Rd, Milton, VT 05468
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
7/31/2044
 
448.8

 
448.8

 
437.8

 
0.14
%
Jbelis Stop N' Go, LLC dba Planet Smoothie
(#,^)
2565 E 17th St, Ammons, ID 83406
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/30/2029
 
19.1

 
19.1

 
17.0

 
0.01
%
Grad Street LLC
(#)
2437 Corinth Ave Apt 130, Los Angeles, CA 90064
 
Nonstore Retailers
 
Term Loan
 
Prime plus 6.5%
 
7/30/2029
 
12.3

 
12.3

 
12.5

 
—
%
Dant A Sandras, D.D.S. LLC
(#,^)
13373 Hwy 3235, Larose, LA 70373
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/30/2029
 
210.7

 
210.7

 
190.4

 
0.06
%
Roman Tint Inc.
(#,^)
1436 Ayala Dr, Unit M, Rialto, CA 92376
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/30/2029
 
8.1

 
8.1

 
7.4

 
—
%
Platt & Associates, LLC dba Flag Staff Apparel, Platt & Associates, LL
(#,^)
288 North Industrial Park Drive, Liberty, MS 39645
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/30/2044
 
56.0

 
56.0

 
61.8

 
0.02
%
Aeromax Industries, Inc, HITM, Inc and TMCB LLC
(#,^)
9027 Canoga Ave, Canoga Park, CA 91301
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/30/2044
 
785.5

 
785.5

 
812.0

 
0.25
%
Hodges Family Entertainment LLC dba Space Cadets Indoor Playground
(#)
611 Greenville Blvd SE, Greenville, NC 27858
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/30/2029
 
15.2

 
15.2

 
14.4

 
—
%
Micheal Birch and Tracy M. Pierce
(#,^)
E 2947 H-44, Traunik, MI 49891
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
7/29/2044
 
54.4

 
54.4

 
59.4

 
0.02
%
Moore Chiropractic Center, P.A.
(#,^)
936 Roosevelt Trail Unit 1 & 2, Windham, ME 04062
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/26/2029
 
8.9

 
8.9

 
9.1

 
—
%
Sou's LLC
(#,^)
739 NE MLK Boulevard, Portland, OR 97221
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/26/2029
 
5.8

 
5.8

 
5.5

 
—
%
Power Associates Inc.
(#,^)
2766 West Good CT, Boise, ID 83702
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
7/26/2029
 
14.7

 
14.7

 
12.9

 
—
%
Dan Dahlin Inc.
(#,^)
16465 MN-65, Ham Lake, MN 55304
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/26/2044
 
407.1

 
407.1

 
457.2

 
0.14
%
Franklin Care Pharmacy Incorporated
(#,^)
520 N Franklintown Rd, Baltimore, MD 21223
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
7/25/2029
 
53.0

 
53.0

 
55.6

 
0.02
%
A&W ALF, LLC dba A & W Assisted Living Facility
(#,^)
6600 Liberty Rd, Gwynn Oak, MD 21207
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
7/24/2044
 
99.6

 
99.6

 
109.9

 
0.03
%
Lawrence Adeyemo & Co LLC
(#)
209-34 112 Ave, Queens Village, NY 11429
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
7/19/2029
 
9.8

 
9.8

 
10.0

 
—
%
Hardrock Alpha Enterprises, LLC
(#,^)
5101 Stine Rd, Bakersfield, CA 93313
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/19/2029
 
15.4

 
15.4

 
13.9

 
—
%
700 Services Inc.dba 700 Credit Repair
(#,^)
1201 N Goliad St., Rockwall, TX 75087
 
Credit Intermediation and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/19/2029
 
7.3

 
7.3

 
6.5

 
—
%
Bonfire Hot Yoga LLC
(#,^)
3665 SW Hall Blvd, Beaverton, OR 97005
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
7/18/2029
 
8.1

 
8.1

 
7.3

 
—
%
JDM2 Water Station LLC
(#,^)
125 Chestnut Hill Drive, York, PA 17408
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/18/2029
 
204.6

 
204.6

 
194.5

 
0.06
%

F-26
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Ameritube, LLC
(#,^)
1000 N Hwy 77, Hillsboro, TX 76645
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/18/2029
 
116.1

 
116.1

 
121.8

 
0.04
%
The Bean Coffee Co. LLC
(#)
112 South Main St., Spring Hill, KS 66083
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 6.5%
 
7/17/2029
 
12.3

 
12.3

 
12.5

 
—
%
Baton Rouge Cargo Services Inc
(#,^)
6013 McRaven Rd, Jackson, MS 39209
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/17/2044
 
291.2

 
291.2

 
308.2

 
0.10
%
Garage Floor Coating of MN.com,LLC
(#,^)
6701 West 23rd St., St. Louis Park, MN 55426
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/16/2044
 
993.7

 
993.7

 
1,036.1

 
0.32
%
Bouquet Canyon Kennels
(#,^)
29973 Bouquet Canyon Rd, Santa Clarita, CA 91390
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
7/16/2044
 
299.9

 
299.9

 
308.9

 
0.10
%
Adam Family Bowl Inc
(#,^)
1504 Chestnut St., Mishawaka, IN 46545
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/16/2044
 
132.4

 
132.4

 
142.7

 
0.04
%
Beacon Metal Fabricators, Inc.
(#,^)
5425-D Hamilton Ave, Cleveland, OH 44114
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/12/2029
 
68.4

 
68.4

 
65.6

 
0.02
%
VGI Medical LLC
(#,^)
10401 S Belcher Rd, Largo, FL 33771
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/12/2044
 
324.8

 
324.8

 
364.8

 
0.11
%
Last Touch, LLC
(#,^)
1612 Jackson St., Spirit Lake, IA 51360
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/11/2044
 
101.1

 
101.1

 
105.8

 
0.03
%
D DeGregoria LLC dba The UPS Store 4235 Massapequa
(#,^)
4940 Merrick Rd, Massapequa Park, NY 11762
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
7/10/2029
 
77.5

 
77.5

 
69.6

 
0.02
%
Menskha Inc
(#)
88 High St., Mountclair, NJ 07042
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 6.5%
 
7/10/2029
 
12.3

 
12.3

 
12.5

 
—
%
Nash-Delphia LLC
(#,^)
2135 Gallatin Pike N, Store 4, Madison, TN 37115
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
7/2/2029
 
14.5

 
14.5

 
12.8

 
—
%
Southern Specialties Transportation LLC
(#,^)
116 Toledo Drive, Lafayette, LA 70506
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/28/2029
 
166.5

 
166.5

 
163.8

 
0.05
%
Nevada Recycling and Salvage LTD, AMCB LLC
(#,^)
1085 Telegraph St, Reno, NV 89502
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/28/2044
 
1,245.5

 
1,245.5

 
1,278.8

 
0.40
%
Baobab Asset Management LLC
(#,^)
3 Greenwich Office Park Ste 102, Greenwich, CT 06831
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/28/2029
 
48.7

 
48.7

 
42.3

 
0.01
%
Balboa Fashion LLC
(#,^)
1016 S. Towne Ave, Unit 123, Los Angeles, CA 90021
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2029
 
7.3

 
7.3

 
6.3

 
—
%
Crestview Ridge Farms LLC
(#,^)
1172 Co Rd 956, Ashland, OH 44805
 
Crop Production
 
Term Loan
 
Prime plus 2.75%
 
6/28/2044
 
536.1

 
536.1

 
570.2

 
0.18
%
Specialty Surgery Center, Inc.
(#,^)
5505 Peachtree Dunwoody Rd #640,645, Atlanta, GA 30342
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2029
 
1,241.9

 
1,241.9

 
1,149.5

 
0.36
%
K & K Restaurant LLC
(#,^)
6607 S Central Ave, Phoenix, AZ 85042
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/28/2044
 
134.3

 
134.3

 
146.6

 
0.05
%
Kim Howard Corp dba NPN Machine Tools
(#,^)
9130 Wayfarer Ln, Houston, TX 77075
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2029
 
206.6

 
206.6

 
215.5

 
0.07
%

F-27
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Port Huron Ophthalmology, PLLC dba Black River Optical
(#,^)
1033 River St., Port Huron, MI 48060
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2029
 
14.6

 
14.6

 
12.7

 
—
%
Anderson Companies LLC
(#,^)
3015 S White Horse Pike, Hammonton, NJ 08037
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2044
 
203.1

 
203.1

 
215.2

 
0.07
%
Richmond Street Partners, LLC
(#,^)
200 E Chestnut St, Chicago, IL 60611
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
6/28/2029
 
93.0

 
93.0

 
81.6

 
0.03
%
Sundown Audio, LLC
(#,^)
514 West 21St St., Newton, NC 28658
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2044
 
903.8

 
903.8

 
933.7

 
0.29
%
NJ Floats Inc
(#,^)
66 Twin Oaks Rd, Bridgewater, NJ 08807
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2044
 
175.0

 
175.0

 
195.2

 
0.06
%
Upul's Travel Service & Tours Inc
(#,^)
654 Shopping Lane, Covina, CA 91723
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2044
 
348.1

 
348.1

 
345.9

 
0.11
%
Good News Cafe, LLC
(#,^)
694 Main St. S, Woodbury, CT 06798
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/28/2044
 
248.6

 
248.6

 
256.7

 
0.08
%
H2O Mobile Group, Inc. dba Fantasea Scuba
(#,^)
3781 Tamiami Trail, Port Charlotte, FL 33952
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2029
 
45.9

 
45.9

 
40.5

 
0.01
%
Upul's Travel Service & Tours Inc
(#,^)
654 Shoppers Lane, Covina, CA 91723
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2029
 
267.4

 
267.4

 
232.4

 
0.07
%
Big Picture Group LLC
(#,^)
110 S Fairfax Ste 355, Fairfax, CA 90036
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2029
 
146.1

 
146.1

 
127.0

 
0.04
%
5161 LLC
(#,^)
1478 E Mountain Drive, Santa Barbara, CA 93108
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/28/2029
 
1,154.3

 
1,154.3

 
1,090.0

 
0.34
%
Jian Yang and Kanger House LLC
(#,^)
48 Horse Hill Rd, Cedar Knolls, NJ 07927
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
6/27/2029
 
116.9

 
116.9

 
102.0

 
0.03
%
Advance Transit LLC
(#,^)
574-614 Tonnelle Ave, Jersey City, NJ 07307
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/28/2044
 
757.5

 
757.5

 
814.0

 
0.25
%
BB Services, LLC
(#,^)
580 39 Rd, Palisade, CO 81526
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/27/2029
 
110.1

 
110.1

 
98.8

 
0.03
%
Ailky Corporation & Wyspen
(#,^)
352 Bedford St., Lakeville, MA 02347
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/27/2029
 
47.4

 
47.4

 
41.2

 
0.01
%
Boucherie US Inc
(#,^)
251 Little Falls Drive, Wilmington, DE 19807
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/27/2029
 
1,144.7

 
1,144.7

 
994.9

 
0.31
%
Pawfection Pet Services LLC
(#,^)
177 W Cottonwood Ln Ste 12, Casa Grande, AZ 85122
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/27/2029
 
10.2

 
10.2

 
8.9

 
—
%
Tim's Truck Capital & Auto Sales, Inc
(#,^)
904 Suncook Valley Hwy, Epsom, NH 03234
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/27/2029
 
206.6

 
206.6

 
215.4

 
0.07
%
Moon Landscaping, Inc, Moon Group, Inc moon Nursery, Inc, Moon Site Ma
(#,^)
145 Moon Rd, Chesapeake City, MD 21915
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/27/2029
 
1,220.1

 
1,220.1

 
1,185.3

 
0.37
%
Crescent Event Productions, Inc
(#,^)
1327 Wood Branch Drive, Charlotte, NC 28273
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/27/2029
 
340.3

 
340.3

 
305.9

 
0.09
%

F-28
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
S & T Hardware Inc
(#,^)
2300 Nooseneck Hill, Coventry, RI 02816
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/27/2044
 
200.3

 
200.3

 
223.8

 
0.07
%
Shooter's Gun Club, LLC
(#)
2429 Iowa St. Ste B-D, Lawrence, KS 66046
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/27/2030
 
131.6

 
131.6

 
118.7

 
0.04
%
Soft Touch Tissue & Paper LLC
(#)
1491 Hammond, Bangor, MA 04401
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/26/2029
 
113.3

 
113.3

 
118.5

 
0.04
%
Soft Touch Tissue & Paper LLC
(#,^)
1491 Hammond St., Bangor, ME 04401
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/26/2044
 
233.8

 
233.8

 
261.2

 
0.08
%
Tekoa Enterpises, Inc
(#,^)
1033 Cannon Bridge Rd, Cordova, SC 29039
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/26/2029
 
53.0

 
53.0

 
48.7

 
0.02
%
Kaz Ramen, L.L.C.
(#,^)
22413 Barton Rd, Grand Terrace, CA 92313
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/26/2029
 
21.9

 
21.9

 
19.1

 
0.01
%
Selective Automotive & Accessories Group, Inc
(#,^)
2221 Pelham Parkway, Pelham, AL 35124
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/26/2029
 
243.2

 
243.2

 
225.7

 
0.07
%
Child Care Ventures LLC dba Childcare Adventures ELC
(#,^)
3542 Glendale Ave, Toledo, OH 43614
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
6/26/2044
 
146.7

 
146.7

 
148.2

 
0.05
%
JFK Transportation Inc
(#,^)
4 Mechanic St., Natick, MA 01760
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/26/2029
 
105.2

 
105.2

 
95.0

 
0.03
%
Lynx Inspection Technologies LLC
(#,^)
8101 Miller Rd 2, Houston, TX 77049
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
6/26/2044
 
574.0

 
574.0

 
641.2

 
0.20
%
All-City Towing LLC, Jeffrey James Piller
(#,^)
1213 W Mallory Ave, Milwaukee, WI 53221
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/26/2029
 
393.5

 
393.5

 
376.0

 
0.12
%
RWBB Enterprises, LLC
(#,^)
4120 7th Ave, Kenosha, WI 53140
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/26/2044
 
75.6

 
75.6

 
81.4

 
0.03
%
Perfect Water LLC
(#,^)
183 Russ St., San Francisco, CA 94103
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/26/2029
 
70.5

 
70.5

 
66.1

 
0.02
%
Paradise Towing & Recovery Inc
(#,^)
1115 S Homer Boulevard, Sanford, NC 27330
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/25/2029
 
103.5

 
103.5

 
99.8

 
0.03
%
Vanchoc Transport Inc
(#,^)
137 3rd St, Brooklyn, NY 11231
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2029
 
42.4

 
42.4

 
39.6

 
0.01
%
Spartan Technology Solutions, Inc
(#,^)
125 Venture Blvd, Spartanburg, SC 29306
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2044
 
485.8

 
485.8

 
500.2

 
0.16
%
Professional Tire Limited Liability Company
(#,^)
6655 Country Rd 32, Norwich, NY 13815
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/25/2044
 
138.7

 
138.7

 
145.1

 
0.05
%
Paradise Towing & Recovery Inc
(#,^)
1115 S. Horner Boulevard, Sanford, NC 27330
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/25/2044
 
73.1

 
73.1

 
81.7

 
0.03
%
567 Logistics, LLC
(#,^)
1924 Ruffin Mill Rd, Colonial Heights, VA 23834
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/25/2029
 
48.6

 
48.6

 
44.0

 
0.01
%
Worldwide Capital Management Inc.
(#,^)
6 Venture Ste 305, Irvine, CA 92618
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2029
 
141.0

 
141.0

 
122.5

 
0.04
%

F-29
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Krsto, LLC dba Italian Butter Breadsticks
(#,^)
4241 E McNicols Rd, Detroit, MI 48213
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/24/2044
 
189.7

 
189.7

 
202.4

 
0.06
%
Sweets By Karla LLC
(#,^)
3273 South John Young Pkwy, Kissimmee, FL 34746
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/24/2029
 
12.5

 
12.5

 
10.9

 
—
%
Scissor Kids Inc
(#,^)
63 Hebron Ave, Ste F, Glastonbury, CT 06033
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/24/2029
 
15.8

 
15.8

 
13.9

 
—
%
Elite Excavating Services LLC
(#,^)
11 Rolling Ridge Dr Drive, Milton, PA 17847
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/21/2029
 
18.8

 
18.8

 
17.6

 
0.01
%
Peninsula Self Defense LLC
(#,^)
2766 Bay Rd, Redwood City, CA 94063
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/21/2029
 
5.1

 
5.1

 
4.6

 
—
%
Port Diesel L.L.C.
(#)
3212 Alex Trask Drive, Castle Hayne, NC 28429
 
Repair and Maintenance
 
Term Loan
 
Prime plus 6.5%
 
6/21/2029
 
12.3

 
12.3

 
12.2

 
—
%
Small Batch Creations Inc. dba The Office Bar & Grill
(#,^)
295 E Washington Ave, Sunnyvale, CA 94086
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/21/2029
 
58.2

 
58.2

 
50.6

 
0.02
%
LuLuBelle's Mountain Banana Bread LLC
(#)
1063 Carousel Rd, Lake Arrowhead, CA 92352
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/21/2045
 
76.9

 
76.9

 
85.8

 
0.03
%
William Rose Inc
(#,^)
1 Grace Cove Rd, New Shoreham, RI 02807
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/21/2044
 
87.0

 
87.0

 
82.5

 
0.03
%
Campuscuts LLC
(#)
930 Robtrice Ct, Edmond, OK 73430
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 6.5%
 
6/21/2029
 
7.3

 
7.3

 
7.3

 
—
%
Gribben & Associates, Inc
(#,^)
18201 Von Karman Ste 300, Irvine, CA 92612
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/21/2029
 
701.8

 
701.8

 
609.9

 
0.19
%
AA Horseplay, LLC
(#)
34565 Ranch Drive, Brownsville, OR 97327
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 6.5%
 
6/20/2029
 
12.2

 
12.2

 
12.1

 
—
%
Central Texas Hygiene, LLC
(#,^)
10201 McKalla Place, Austin, TX 78758
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/20/2029
 
85.6

 
85.6

 
74.4

 
0.02
%
Beck's Pub & Grill LLC
(#,^)
N6630 WI-49, Weyauwega, WI 54983
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/19/2044
 
69.6

 
69.6

 
75.0

 
0.02
%
Bader Furniture Company Inc.
(#,^)
704 N Liberty St., Shamokin, PA 17872
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
6/19/2029
 
7.3

 
7.3

 
7.6

 
—
%
Zion Motors Inc
(#,^)
6949 Wall Triana Hwy, Madison, AL 35757
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/19/2044
 
60.4

 
60.4

 
62.9

 
0.02
%
Providence Management Environmental, LLC, Tindol Energy Group, LLC
(#,^)
6570 W Hwy 67, Cleburne, TX 76033
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2029
 
263.4

 
263.4

 
265.0

 
0.08
%
International Institute for Learning Inc.
(#,^)
110 E 59th St ,31st floor, New York, NY 10022
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2029
 
291.7

 
291.7

 
253.5

 
0.08
%
Bonadi Inc. dba Polished Salon
(#)
9858 W Sample Rd, Coral Springs, FL 33065
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 6.5%
 
6/17/2029
 
12.2

 
12.2

 
12.2

 
—
%
American Demolition, Inc
(#,^)
401 N Kuner Rd, Brighton, CO 80601
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/17/2029
 
182.3

 
182.3

 
190.1

 
0.06
%

F-30
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
JLM Consulting LP
(#,^)
3981 E Dunrobin Dr., Springfield, MO 65809
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/17/2029
 
19.2

 
19.2

 
16.7

 
0.01
%
3 Rusty Nails, LLC dba The Gathering Place at 3 Rusty Nails
(#,^)
3830 Doctor M.L.K. Jr Blvd, Anderson, IN 46013
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
6/14/2044
 
87.0

 
87.0

 
94.2

 
0.03
%
Comarco Quality Pork Products Inc, Comarco Pork Products of FL LLC
(#,^)
501 Jackson St, Camden, NJ 08104
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/14/2029
 
301.6

 
301.6

 
281.3

 
0.09
%
A & S Services LLC dba Kona Ice of Troy
(#,^)
3888 Lightner Rd, Vandalia, OH 45377
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/14/2044
 
44.8

 
44.8

 
48.0

 
0.01
%
Kego 2 LLC dba Jon Smith Subs 80025
(#,^)
2001 W. Southlake Blvd Ste 143, Southlake, TX 76092
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/14/2029
 
104.1

 
104.1

 
93.5

 
0.03
%
Law Office of Paula Padilla
(#)
2211 E Highland Ave Ste 130, Phoenix, AZ 85016
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
6/13/2029
 
4.9

 
4.9

 
4.9

 
—
%
Picon Motors LLC dba The New Young's Motors
(#,^)
199-211 Central Ave, Orange, NJ 07080
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/12/2029
 
218.8

 
218.8

 
218.9

 
0.07
%
GT Performance Plus Inc
(#,^)
4210 College St., Beaumont, TX 77707
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/11/2044
 
98.8

 
98.8

 
106.3

 
0.03
%
Ivesters Transportation, Inc
(#,^)
4299 South 2675 West, Roy, UT 84067
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/11/2029
 
243.5

 
243.5

 
218.7

 
0.07
%
GT Performance Plus Inc
(#,^)
4210 College St., Beaumont, TX 77707
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/11/2029
 
74.5

 
74.5

 
65.7

 
0.02
%
Independent Transport, LLC dba Independent Water
(#,^)
3739 E Ridgeway Rd, Orange, CA 92867
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/10/2029
 
198.6

 
198.6

 
187.4

 
0.06
%
Archer Cleaners Inc
(#)
1514 W 33rd St., Chicago, IL 60608
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 6.5%
 
6/10/2029
 
12.2

 
12.2

 
12.1

 
—
%
Smith and Son Plumbing, LLC
(#,^)
15922 Eldorado Parkway Ste 500-1579, Frisco, TX 75035
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/10/2029
 
80.2

 
80.2

 
72.8

 
0.02
%
Neely Motorsports, Inc dba Earl's Store #1;Earl's Performance Plumbing
(#,^)
15825-15827 Hawthorne Blve, Lawndale, CA 90260
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/7/2044
 
240.6

 
240.6

 
255.7

 
0.08
%
J&A Elliott Company
(#,^)
1118 Thornberry Dr, Clarksville, TN 37043
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/7/2029
 
10.2

 
10.2

 
10.5

 
—
%
Throop Family Holding Inc dba Klamath Basin Metals and Supply, dba Rog
(#,^)
7130 Crater Lake Hwy, White City, OR 97503
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/7/2029
 
38.9

 
38.9

 
35.8

 
0.01
%
Johnny's Boy LLC
(#,^)
127 East King St., Martinsburg, WV 25401
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/7/2044
 
100.7

 
100.7

 
106.2

 
0.03
%
Allison K. Chipak dba Still Photography
(#)
195 Terrace Place, Apt. 2, Brooklyn, NY 11218
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
6/6/2029
 
12.2

 
12.2

 
12.1

 
—
%
Skin Beauty Bar Inc
(#,^)
749 8th St., Washington, DC 20003
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/6/2029
 
5.1

 
5.1

 
4.4

 
—
%

F-31
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Pura Water Vending LLC
(#,^)
4427 Mixedwood Drive, Ladson, SC 29456
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/5/2029
 
66.2

 
66.2

 
62.4

 
0.02
%
Preferred Manufacturing Services Inc
(#,^)
4261 Business Drive, Cameron Park, CA 95682
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/5/2029
 
461.8

 
461.8

 
481.6

 
0.15
%
Jamestown Quick Stop LLC
(#,^)
3097 24th Ave, Hudsonville, MI 49426
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/5/2044
 
69.3

 
69.3

 
72.1

 
0.02
%
Oasis Senior Advisors Franchise Systems, LLC
(#,^)
24870 Burnt Pine Drive, Bonita Springs, FL 34134
 
Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
 
Term Loan
 
Prime plus 2.75%
 
6/4/2029
 
303.8

 
303.8

 
306.5

 
0.10
%
Italian Heritage Tile and Stone Inc
(#,^)
4748 Hopyard Rd, Pleasanton, CA 94588
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/4/2029
 
85.1

 
85.1

 
74.8

 
0.02
%
Evoke Growth Advisory LLC
(#,^)
2600 Brookwood Way Dr. #311, Rolling Meadows, IL 60008
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/3/2029
 
7.3

 
7.3

 
6.3

 
—
%
Morey Publishing LLC
(#,^)
6901 Jericho Turnpike, Syosset, NY 11791
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/31/2029
 
60.4

 
60.4

 
52.9

 
0.02
%
G.S.A.T. Restoration Inc. dba Paul Davis Restoration & Remodeling of G
(#,^)
1450 Oakbrook Dr, Norcross, GA 30093
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/31/2029
 
113.6

 
113.6

 
101.3

 
0.03
%
V & M Transportation LLC
(#,^)
1307 27th St. Apt B, North Bergen, NJ 07047
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/31/2029
 
12.8

 
12.8

 
11.1

 
—
%
Martin Inventory Management, LLC
(#,^)
304 1/2 Main St., Edgefield, SC 29824
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/31/2029
 
48.3

 
48.3

 
49.3

 
0.02
%
Dynamic Dental Corporation
(#,^)
3760 NW 126th Ave, Coral Springs, FL 33065
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/31/2029
 
60.4

 
60.4

 
53.0

 
0.02
%
Inside & Out Maintenance LLC
(#,^)
1698 SW Pancoast St., Port St Lucie, FL 34987
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/30/2029
 
96.8

 
96.8

 
84.7

 
0.03
%
Aspen Welding LLC
(#,^)
28803 US-6, Rifle, CO 81650
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/30/2044
 
406.8

 
406.8

 
432.0

 
0.13
%
SSD Designs, LLC
(#,^)
486 Vance St., Forest City, NC 28043
 
Chemical Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/30/2044
 
422.2

 
422.2

 
465.1

 
0.14
%
AGR, Inc
(#,^)
2-255555 Kaumualii Hwy, Kalaheo, HI 96741
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2044
 
781.2

 
781.2

 
856.3

 
0.27
%
Brooklyn Breakfast Shop LLC
(#,^)
7707 S IH 35 Frontage Rd, Austin, TX 78744
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2029
 
4.8

 
4.8

 
4.5

 
—
%
Canela Media Inc
(#,^)
2715 Palomino Circle, La Jolla, CA 92037
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/29/2029
 
114.8

 
114.8

 
103.9

 
0.03
%
PD Financial LLC
(#,^)
364 Parsippany Rd, Unit 7-B, Parsippany, NJ 07054
 
Credit Intermediation and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
5/28/2044
 
48.7

 
48.7

 
51.8

 
0.02
%
SV Enterprise LLC dba Haagen-Dazs
(#,^)
1885 Briargate Pkwy #D-413, Colorado Springs, CO 80920
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/24/2029
 
89.5

 
89.5

 
77.9

 
0.02
%
MCM Design LLC
(#)
5926 Vinings Vintage Way, Mableton, GA 30126
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
5/23/2029
 
9.8

 
9.8

 
9.7

 
—
%

F-32
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Top Notch Roofing, Inc
(#,^)
46 Cherry St., Milton, VT 05468
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/23/2029
 
118.9

 
118.9

 
106.6

 
0.03
%
2820 US HWY 98 N LLC dba Total Package Car Wash
(#)
2820 US Hwy 98 N, Lakeland, FL 33805
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/23/2029
 
43.0

 
43.0

 
44.9

 
0.01
%
Clowers Trucking By Faith LLC
(#)
705 E Brookwood PL, Valdosta, GA 31601
 
Truck Transportation
 
Term Loan
 
Prime plus 6.5%
 
5/23/2029
 
12.1

 
12.1

 
12.0

 
—
%
McGuckin & Pyle Inc
(#,^)
120 Corporate Ln, New Bern, NC 28562
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/23/2044
 
306.3

 
306.3

 
325.4

 
0.10
%
ES&A, INC., A LAW CORPORATION
(#,^)
1003 Bishop St., Honolulu, HI 96813
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/22/2029
 
108.8

 
108.8

 
95.4

 
0.03
%
Gratitude Training, LLC
(#,^)
1901 N Federal Hwy #212, Pompano Beach, FL 33062
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/22/2029
 
72.5

 
72.5

 
63.1

 
0.02
%
Bloomquist Communications Inc. dba FastSigns 42501
(#,^)
131 East Trinity Place, Decatur, GA 30030
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/22/2029
 
14.5

 
14.5

 
12.8

 
—
%
Anchor Up Fitness and Nutrition, LLC
(#,^)
2464 US-29, Pensacola, FL 32505
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/21/2029
 
19.6

 
19.6

 
18.3

 
0.01
%
BD Branson Victorian LLC dba Branson Surrey Inn
(#,^)
430 a/k/a 450 S Hwy 165, Branson, MO 65616
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/17/2029
 
247.6

 
247.6

 
258.2

 
0.08
%
Covalent Holding LLC
(#,^)
18 W Chestnut St. Unit 2F, Chicago, IL 60610
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
5/17/2029
 
234.9

 
234.9

 
223.0

 
0.07
%
FibAire Communications, LLC Dba AireBeam
(#,^)
13589 S. Sunland Gin Rd, Arizona City, AZ 85123
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
5/17/2029
 
53.7

 
53.7

 
51.1

 
0.02
%
Kappa Investments LLC dba Buddy's Home Furnishings
(#,^)
365 Lowe's Drive Ste H, Danville, VA 24540
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
5/17/2029
 
419.3

 
419.3

 
366.0

 
0.11
%
AMP Trucking Inc
(#,^)
1030 Gettysburg Ave, Clovis, CA 93161
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/16/2029
 
252.1

 
252.1

 
219.1

 
0.07
%
CJNR LLC dba Chenney Bear Cafe, Elma Lodge & Suites, Parkhurst Motel,
(#,^)
208 East Main St., Elma, WA 98541
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/16/2029
 
18.1

 
18.1

 
18.9

 
0.01
%
Cut To The Chase 502 LLC
(#,^)
6903 Lakegreen Ct, Louisville, KY 40291
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/16/2029
 
3.3

 
3.3

 
3.0

 
—
%
Aim High Leadership Center Four Inc.
(#,^)
97-08 Rockaway Blvd, Jamaica, NY 11417
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/16/2029
 
85.8

 
85.8

 
76.3

 
0.02
%
Zeb, LLC dba Papa John's
(#,^)
10235 W Roosevelt Rd, Westchester, IL 60154
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/16/2029
 
48.3

 
48.3

 
42.6

 
0.01
%
Two Pie Lovers LLC dba Pizza Outpost
(#,^)
302 E. Millitary Hwy U1122, Brackettville, TX 78832
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/10/2044
 
43.5

 
43.5

 
46.8

 
0.01
%
The Lobster Pot Inc
(#,^)
119 Hope St., Bristol, RI 02809
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/10/2044
 
367.1

 
367.1

 
396.7

 
0.12
%

F-33
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Crystal D. Walls dba Crystal's Cleaning Service
(#)
10862 Nichols Blvd, Olive Branch, MS 38654
 
Administrative and Support Services
 
Term Loan
 
Prime plus 6.5%
 
5/9/2029
 
9.9

 
9.9

 
9.8

 
—
%
Aloha To Go LLC
(#,^)
5903 Seminole Boulevard, Seminole, FL 33772
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/9/2029
 
14.9

 
14.9

 
13.0

 
—
%
Blue Country Firearms LLC
(#,^)
221 N Main St, Kingsfisher, OK 73750
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/8/2044
 
20.9

 
20.9

 
21.2

 
0.01
%
Folklore Music Exchange LLC
(#,^)
617 Tennessee Ave, Charleston, WV 25302
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
5/6/2029
 
5.0

 
5.0

 
4.3

 
—
%
NYM Solutions Inc.dba NYM Solutions, Inc
(#)
1250 NW 7th St. Ste 201, Miami, FL 33125
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 6.5%
 
5/6/2029
 
12.2

 
12.2

 
12.1

 
—
%
Global Enterprises LLC dba Verdi Pizza
(#,^)
3111 S Valley View Blvd, Las Vegas, NV 89102
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/3/2029
 
20.2

 
20.2

 
17.5

 
0.01
%
EPIFAB,LLC
(#,^)
1341 Brooks St. Unit D, Ontario, CA 91762
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/3/2029
 
20.6

 
20.6

 
18.9

 
0.01
%
Art Amore Studios, LLC
(#,^)
6507 Jester Blvd, Austin, TX 78750
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/3/2029
 
5.4

 
5.4

 
4.7

 
—
%
Mark Garvin dba Tipsy Canyon Winery
(#,^)
150 Upper Joe Creek Rd, Manson, WA 98831
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/3/2044
 
105.6

 
105.6

 
117.8

 
0.04
%
Life View Prenatal Imagery, LLC
(#,^)
312 79th Ave North, Myrtle Beach, SC 29572
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/3/2029
 
5.9

 
5.9

 
5.3

 
—
%
Modern Trousseau, LLC
(#,^)
125 Bradley Rd, Woodbridge, CT 06525
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
5/1/2029
 
302.1

 
302.1

 
296.8

 
0.09
%
Disability Resolution P.A.
(#)
1619 Malon Bay Drive, Orlando, FL 32828
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
4/30/2029
 
4.3

 
4.3

 
4.3

 
—
%
DeVega Juice Co, - East Cobb, LLC dba Clean Juice Johnson Ferry
(#,^)
1205 Johnson Ferry Rd Ste 124, Marietta, GA 30068
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029
 
61.8

 
61.8

 
61.3

 
0.02
%
Midlothian Hardware, Inc dba Grills True Value
(#,^)
475 West 147th St, Midlothian, IL 60445
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
4/29/2029
 
38.4

 
38.4

 
40.1

 
0.01
%
Pellegrin Marine Transportation, LLC
(#,^)
117 Country Village Drive, Raceland, LA 70394
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/26/2029
 
121.6

 
121.6

 
111.7

 
0.03
%
Sona USA, Inc
(#,^)
15280 NW 79th Ct Ste 109, Miami Lakes, FL 33016
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
4/26/2029
 
158.6

 
158.6

 
146.3

 
0.05
%
Benevolent International Inc
(#,^)
2781 Saturn St. Ste F, Brea, CA 82821
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
4/26/2029
 
75.7

 
75.7

 
65.8

 
0.02
%
ASM Partners LLC
(#,^)
1619 Roberts Drive SE, Mableton, GA 30126
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/26/2029
 
234.7

 
234.7

 
221.3

 
0.07
%
Jones Roger Sherman Inn, Inc.
(#,^)
195 Oenoke Ridge, New Canaan, CT 06840
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/25/2029
 
140.6

 
140.6

 
146.6

 
0.05
%

F-34
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Alan Russell Moldof CPA dba Al Russell Moldof CPA
(#)
15105 John J Delaney Dr. #D 170, Charlotte, NC 28277
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
4/25/2029
 
4.8

 
4.8

 
4.8

 
—
%
La Dolce Vita LLC.
(#,^)
196 N. Holiday Rd, Miramar Beach, FL 32550
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/25/2044
 
467.7

 
467.7

 
509.3

 
0.16
%
La Dolce Vita, LLC, La Dolce Vita Watersports LLC, LDV Golf Cart & Bil
(#,^)
196 N. Holiday Rd, Miramar Beach, FL 32550
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/25/2029
 
480.5

 
480.5

 
440.7

 
0.14
%
Kenzington LLC
(#,^)
324 Main St South, Stillwater, MN 55082
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
4/24/2029
 
3.1

 
3.1

 
2.7

 
—
%
Quality Living Medical Alert, LLC
(#,^)
1882 Capital Circle NE, Ste 104, Tallahassee, FL 32308
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/24/2029
 
52.9

 
52.9

 
49.7

 
0.02
%
ER & DC McPherson Holdings, LLC
(#,^)
6957 W Broward Blvd., Plantation, FL 33317
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/19/2029
 
46.5

 
46.5

 
40.9

 
0.01
%
All My Best Inc.
(#,^)
4320 Anthony Court Ste 1,2,3, Rocklin, CA 95677
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/19/2029
 
60.1

 
60.1

 
54.3

 
0.02
%
Expert Building Services LLC
(#,^)
74 Roosevelt St., Pequannock Township, NJ 07440
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
4/17/2029
 
19.6

 
19.6

 
17.0

 
0.01
%
Rello, Inc. dba ID Salon
(#)
8063 Jericho Turnpike, Woodbury, NY 11797
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 6.5%
 
4/17/2029
 
5.8

 
5.8

 
5.8

 
—
%
Bottles on Broadway, LLC
(#,^)
1083 N Broadway, North Massapequa, NY 11758
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/17/2029
 
123.7

 
123.7

 
109.5

 
0.03
%
2Choice2Friends dba 2 N 1 Salad Bar and Grill
(#)
901 W Braker Lane, Austin, TX 78758
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 6.5%
 
4/17/2029
 
12.1

 
12.1

 
12.0

 
—
%
Modern Demo & Services LLC
(#,^)
10161 W Park Run Drive, Las Vegas, NV 89145
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/17/2029
 
120.1

 
120.1

 
105.9

 
0.03
%
Pranamji Inc dba Ohara's Beverage Spot
(#,^)
2300 Levit Rd, Lorain, OH 44052
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/16/2044
 
46.9

 
46.9

 
48.5

 
0.02
%
Cormac Enterprises, Inc
(#,^)
1205 38th Ave North, Myrtle Beach, SC 29577
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/16/2029
 
21.6

 
21.6

 
19.1

 
0.01
%
Bill Berger LLC
(#,^)
8728 Tireman Ave, Detroit, MI 48204
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
4/12/2029
 
8.7

 
8.7

 
7.5

 
—
%
Southern Gulf Construction, Inc.
(#,^)
367 Pine Island Rd, North Fort Myers, FL 33903
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/12/2029
 
106.9

 
106.9

 
103.6

 
0.03
%
J.T. ONeill Company, LLC
(#,^)
19972 Willowin Farm Lane, Purceville, VA 20132
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
4/12/2029
 
9.4

 
9.4

 
8.1

 
—
%
Gilpin Enterprises, LLC dba Jon Smith Subs
(#,^)
17790 State Rd 54, Lutz, FL 33458
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/12/2029
 
76.0

 
76.0

 
67.9

 
0.02
%
CK Heating and Cooling LLC
(#,^)
10017 Pebble Beach Drive, St. Louis, MO 63114
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/12/2029
 
19.7

 
19.7

 
17.2

 
0.01
%

F-35
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Samco Food Corp dba C-Town Supermarket
(#,^)
1761 Nostrand Ave, Brooklyn, NY 11226
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/12/2029
 
95.5

 
95.5

 
83.0

 
0.03
%
P. Moss Enterprises, LLC dba Garage Experts-Mid Atlantic
(#,^)
3563 South River Terrace, Edgewater, MD 21037
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/12/2029
 
42.3

 
42.3

 
38.1

 
0.01
%
Engineered Edibles, LLC
(#,^)
7926 Santa Fe Drive, Overland Park, KS 66204
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/12/2029
 
8.7

 
8.7

 
7.5

 
—
%
VC Media Partners LLC
(#,^)
22120 Clarendon St., Woodland Hills, CA 91367
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/12/2029
 
122.3

 
122.3

 
106.6

 
0.03
%
Maxiflex LLC
(#,^)
512 Verret St., New Orleans, LA 70114
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/11/2029
 
60.1

 
60.1

 
62.6

 
0.02
%
VRGE Strategies LLC
(#,^)
1155 15th St NW, Washington, DC 20005
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/10/2029
 
131.0

 
131.0

 
113.8

 
0.04
%
Georgetown Milling Co, LLC
(#,^)
9001 Wentworth Springs Rd, Georgetown, CA 95634
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/9/2029
 
12.3

 
12.3

 
11.1

 
—
%
FRAJOVI Urban Air, LLC dba Urban Air Trampoline& Adventure Park
(#,^)
1256 Indian Head Rd, Toms River, NJ 08755
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
1/8/2030
 
575.0

 
575.0

 
583.3

 
0.18
%
Marnon Enterprise LLC
(#,^)
6713 Biscay Hbr, San Antonio, TX 78249
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
4/5/2029
 
4.6

 
4.6

 
4.0

 
—
%
Bose and Avinder, Inc.and Carmel and Preet Inc
(#,^)
28201 Date Palm Drive, Cathedral City, CA 92234
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
4/5/2029
 
55.3

 
55.3

 
57.6

 
0.02
%
Ren Investment Group Inc dba True Positon Manufacturing
(#,^)
40 Sandra Drive, South Windsor, CT 06074
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
829.1

 
829.1

 
732.4

 
0.23
%
J Brothers Enterprises, LLC
(#,^)
1101 NW 12TH Ave, Ava, MO 65608
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2044
 
639.5

 
639.5

 
650.0

 
0.20
%
La Favorita Radio Network
(#,^)
4043 Geer Rd, Hughson, CA 95326
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
358.9

 
358.9

 
323.0

 
0.10
%
EJ & James Transport LLC
(#,^)
3100 Drewsky Lane Unit 108, Fort Mills, SC 29715
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
9.0

 
9.0

 
8.4

 
—
%
Royalty Freight Inc.
(#,^)
3728 W McKinley Ave, Fresno, CA 93772
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
413.5

 
413.5

 
385.0

 
0.12
%
Reliable Power Group Inc. dba Batteries + bulbs Pensacola
(#,^)
6895 N. 9th Ave Ste B, Pensacola, FL 32504
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
95.5

 
95.5

 
83.1

 
0.03
%
Key HR Associates, Inc dba Parents Choice for Kids
(#,^)
3150 West Park Drive, Burnsville, MN 55306
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/29/2044
 
449.9

 
449.9

 
463.0

 
0.14
%
Bright Freight Solution, LLC
(#,^)
1112 N Main St, Manteca, CA 95336
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
1,158.3

 
1,158.3

 
1,058.5

 
0.33
%
Hamsons Inc.
(#,^)
4900 Hopyard Rd, Pleasanton, CA 94588
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
179.1

 
179.1

 
155.4

 
0.05
%

F-36
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Pizzaplex L3C
(#,^)
4458 West Vernor Hwy, Detroit, MI 48209
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
42.8

 
42.8

 
38.0

 
0.01
%
Bhatti LLC dba Auntie Ann's & Bhatti LLC 1
(#,^)
7219 Silver Mist Ave, North Chesterfield, VA 23237
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
157.9

 
157.9

 
137.0

 
0.04
%
NuBe Business Group LLC
(#,^)
2140 44th St SE, Ste 201, Grand Rapids, MI 49508
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2044
 
40.6

 
40.6

 
45.4

 
0.01
%
StillBasi Holdings, Inc. dba Buxton Auto Transport
(#,^)
9371 Jackson Rd, Sacramento, CA 95826
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
286.6

 
286.6

 
261.1

 
0.08
%
Felipe Antonio Del Valle M.D. P.A.
(#,^)
7190 SW 87th Ave Ste 203, Miami, FL 33173
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
14.3

 
14.3

 
12.4

 
—
%
Raven's Place LLC
(#,^)
13031 S Western Ave, Blue Island, IL 60406
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/29/2044
 
681.6

 
681.6

 
709.8

 
0.22
%
Stillwater Ventures, LLC
(#,^)
8272 W. Sunset Blvd, Los Angeles, CA 90048
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
397.5

 
397.5

 
376.2

 
0.12
%
Iredell Oral & Facial Surgery, P.C. dba Johnson Oral Surgery
(#,^)
229 Medical Park Rd, Ste 310, Mooresville, NC 28117
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2044
 
820.8

 
820.8

 
837.5

 
0.26
%
Outtasight Careers, LLC dba Gecko Hospitality
(#,^)
109 W Fern St., Tampa, FL 33604
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
49.7

 
49.7

 
43.1

 
0.01
%
Turtle Shirts, LLC
(#,^)
10241 Metro Pkwy# 108, Ft Myers, FL 33966
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
51.4

 
51.4

 
45.5

 
0.01
%
Bayco Enterprises, Inc
(#,^)
128 Cowesett Ave, West Warwick, RI 02893
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/29/2044
 
197.0

 
197.0

 
219.9

 
0.07
%
Peak Performance Associates LLC dba Nova Hypnosis and Wellnes
(#,^)
1485 Chain Bridge Rd #304-305, McLean, VA 22101
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
57.3

 
57.3

 
49.8

 
0.02
%
Knoxville Room Service
(#,^)
10670 Parkside Drive, Knoxville, TN 37922
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
6.4

 
6.4

 
5.8

 
—
%
Complete Care IT LLC
(#,^)
4801 South University Drive Ste 125, Davie, FL 33328
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
50.2

 
50.2

 
43.6

 
0.01
%
Skaggs RV Outlet ,LLC
(#,^)
301 Commerce Drive, Elizabethtown, KY 42701
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/28/2029
 
238.9

 
238.9

 
248.7

 
0.08
%
J.C. Pallet Company, Inc.
(#,^)
18427 New Kent Hwy, Barhamsville, VA 23011
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2029
 
429.9

 
429.9

 
412.3

 
0.13
%
Cleland Pharmacy LLC
(#,^)
202 S First St., Wakeeney, KS 67672
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
3/28/2029
 
21.5

 
21.5

 
22.4

 
0.01
%
Four Seasons Laser Center Inc.
(#,^)
4720 NW 2nd Ave Unit D104-105, Boca Raton, FL 33498
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/28/2029
 
14.3

 
14.3

 
13.9

 
—
%
Planet X Tobacco & Gift, LLC
(#,^)
900 W Northern Lights Blvd, Anchorage, AK 99503
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/28/2044
 
283.3

 
283.3

 
306.1

 
0.09
%

F-37
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Children First Home Health Care, Inc. dba Health Calls
(#,^)
1220 Broadcasting Rd Ste 202, Wyomissing, PA 19610
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/28/2029
 
131.7

 
131.7

 
114.2

 
0.04
%
RG Productions LLC
(#,^)
2414 W Battlefield Ste H, Springfield, MO 65807
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/28/2029
 
148.8

 
148.8

 
138.2

 
0.04
%
GS Bath Inc
(#,^)
5335 E. Kaviland Ave, Fresno, CA 93725
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/28/2029
 
298.6

 
298.6

 
276.4

 
0.09
%
Custom Vinyl Products LLC
(#,^)
260 Enterprise Drive, Newport News, VA 23603
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2044
 
1,003.8

 
1,003.8

 
1,056.1

 
0.33
%
Cocomo Joe's LLC
(#,^)
3949 New Rd, Youngstown, OH 44515
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/28/2029
 
3.3

 
3.3

 
3.1

 
—
%
PA Sobol Partners LLC dba Sobal
(#,^)
206 Rohrerstown Rd, Lancaster, PA 17603
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/28/2029
 
48.9

 
48.9

 
43.9

 
0.01
%
Cinco Fit LLC dba Cinco Fit
(#,^)
23010 Highland Knolls Blvd, Ste G, Katy, TX 77494
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/27/2029
 
157.6

 
157.6

 
136.8

 
0.04
%
Ocean Trans LLC and Dehal Trucking LLC
(#,^)
1415 W Anderson St., Stockton, CA 95206
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2029
 
71.1

 
71.1

 
74.1

 
0.02
%
Danielle Vance LPC, LLC dba Danielle Vance MA, LPC
(#,^)
2543 Eliot St., Denver, CO 80211
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/27/2029
 
5.4

 
5.4

 
4.7

 
—
%
DC AG, LLC dba Big B Sales
(#,^)
674 LA- 8, Sicily Island, LA 71368
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/27/2044
 
582.8

 
582.8

 
602.4

 
0.19
%
Heritage Hills Athletics 1, LLC and Heritage Hills Athletics 1, LLC
(#,^)
2880 Carol Rd, East York, PA 17402
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2044
 
1,239.3

 
1,239.3

 
1,301.4

 
0.40
%
District 5 Boutique LLC
(#,^)
317 N Farview Ave, Paramus, NJ 07652
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/26/2029
 
119.4

 
119.4

 
103.6

 
0.03
%
J & C May Properties, LLC
(#,^)
315 Sylamore Ave, Mountain View, AR 72560
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/22/2044
 
1,124.0

 
1,124.0

 
1,105.0

 
0.34
%
Virginia Industrial Plastics, Inc.
(#,^)
2454 NE Side Hwy, Elkton, VA 22827
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/22/2044
 
294.0

 
294.0

 
327.8

 
0.10
%
Skyways, LTD
(#,^)
350 15th St. NW, Huron, SD 57350
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/22/2029
 
788.5

 
788.5

 
690.1

 
0.21
%
Gary Krause dba Gary Krause Landscaping & Design
(#,^)
489 Hamilton Rd, Jacksonville, OR 97530
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/22/2029
 
5.7

 
5.7

 
5.3

 
—
%
Virginia Industrial Plastics, Inc.
(#,^)
2454 NE Side Hwy, Elkton, VA 22827
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/22/2029
 
258.7

 
258.7

 
269.3

 
0.08
%
The Karate Dojo LLC
(#,^)
21 S Hope Chapel Rd, Jackson, NJ 08527
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2029
 
4.3

 
4.3

 
3.7

 
—
%
Pitman Holding LLC
(#,^)
1116 E Main St, Richmond, VA 23219
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/21/2029
 
7.2

 
7.2

 
6.5

 
—
%
American Trails Transport, LLC
(#,^)
8704 Grand Ave, Billings, MT 59106
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/21/2029
 
52.5

 
52.5

 
48.3

 
0.01
%

F-38
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Dependable Lawn Care, Inc.
(#,^)
2320 138th St., Blue Island, IL 60406
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2029
 
500.2

 
500.2

 
459.0

 
0.14
%
Dependable Lawn Care, Inc.
(#,^)
2320 138th St., Blue Island, IL 60406
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2044
 
189.1

 
189.1

 
207.4

 
0.06
%
Mega Trucking LLC and Olyimpian Industries LLC
(#,^)
5979 NW 151st St, Miami Lakes, FL 33014
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/20/2029
 
383.0

 
383.0

 
360.6

 
0.11
%
Michigan Neurosurgical Institute P.C.
(#,^)
9400 S Saginaw St., Unit 1, Grand Blanc, MI 48439
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/20/2029
 
173.2

 
173.2

 
150.9

 
0.05
%
Sound Manufacturing Inc
(#,^)
1 Williams Lane, Old Saybrook, CT 06475
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/20/2029
 
47.8

 
47.8

 
41.4

 
0.01
%
Michigan Neurosurgical Institute, P.C.,,Optical Spine,LLC, MNI Great L
(#,^)
9400 S Saginaw St., Unit 1, Grand Blanc, MI 48439
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/20/2044
 
352.0

 
352.0

 
361.5

 
0.11
%
Frontline Selling LLC
(#,^)
6505 Shiloh Rd #300,310,320, Alpharetta, GA 30005
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/19/2029
 
298.6

 
298.6

 
310.6

 
0.10
%
Game Station, Inc.
(#,^)
2917 1st Ave SE, Cedar Rapids, IA 52402
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/19/2029
 
250.8

 
250.8

 
230.4

 
0.07
%
Marvellous Print & Ship LLC
(#,^)
605 W Main St., Oxford, KS 67119
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/19/2029
 
3.2

 
3.2

 
2.8

 
—
%
Panetcarne Inc.dba Jersey Mike's Subs Greenfield
(#,^)
23077 Greenfield Rd, Southfield, MI 48075
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2029
 
88.9

 
88.9

 
78.9

 
0.02
%
Stepping Stones Children's Academy LLC
(#,^)
1655 E Warm Springs Rd, Las Vegas, NV 89119
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/15/2044
 
371.8

 
371.8

 
393.9

 
0.12
%
Vanchoc Transport Inc
(#,^)
137 3rd St, Brooklyn, NY 11231
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/15/2029
 
83.7

 
83.7

 
72.7

 
0.02
%
B & W Towing LLC
(#,^)
701 Addison Rd, Painted Post, NY 14870
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/15/2029
 
54.9

 
54.9

 
56.7

 
0.02
%
Screening Services Group, LLC
(#,^)
8670 Wilshire Blvd, Beverly Hills, CA 90211
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
3/14/2029
 
268.9

 
268.9

 
240.0

 
0.07
%
Space Express, LLC
(#,^)
2775 Burris Rd, Davie, FL 33314
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2029
 
143.4

 
143.4

 
127.6

 
0.04
%
Mill Creek Early Childhood Program LLC
(#,^)
510 South Batavia Ave, Batavia, IL 60510
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/11/2029
 
60.9

 
60.9

 
53.0

 
0.02
%
Precise Air Systems, Inc
(#,^)
5467 W San Fernando Rd, Los Angeles, CA 90039
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/8/2029
 
251.2

 
251.2

 
220.9

 
0.07
%
Alpine Remediation, Inc, T & M Holdings, LLC
(#,^)
14252 W 44th Ave Unit F, Golden, CO 80403
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/8/2029
 
83.7

 
83.7

 
78.1

 
0.02
%
Kalloren Provel LLC
(#,^)
6919 Oak Ridge Commerce Way, Austell, GA 30168
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/8/2044
 
281.3

 
281.3

 
298.0

 
0.09
%

F-39
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
D & S Village Hardware LLC dba Cedar Mountain Country Store & Samantha
(#,^)
3695 Movie Ranch Rd, Duck Creek, UT 84762
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/8/2044
 
200.0

 
200.0

 
215.9

 
0.07
%
Wildflour Bakery & Cafe LLC
(#,^)
5137 Clareton Dr #100,110,120, Agoura Hills, CA 91301
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/8/2029
 
83.6

 
83.6

 
72.5

 
0.02
%
SG Welch Inc dba Sparks Auto Service
(#,^)
19138 Molalla Ave, Oregon City, OR 97045
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/8/2029
 
59.7

 
59.7

 
52.9

 
0.02
%
Seeds of Knowledge Creative Learning Center LLC
(#,^)
15101 West McNichols Rd, Detroit, MI 48235
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/7/2044
 
22.3

 
22.3

 
24.0

 
0.01
%
Doble Rentals, L.L.C , Doble Rentals 2, LLC, Doble Rentals 3, LLC
(#,^)
487 Elizabeth Lake Rd, Waterford, MI 48328
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/4/2029
 
150.5

 
150.5

 
130.6

 
0.04
%
Midwest Expediated Carrier Corporation
(#,^)
2200 N Stonington Ave #120, Hoffman Estates, IL 60169
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/1/2029
 
14.3

 
14.3

 
12.4

 
—
%
Monkey Bones LLC
(#,^)
3361 Dayton Xenia Rd, Beavercreek, OH 45432
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2044
 
19.3

 
19.3

 
21.5

 
0.01
%
Wooter Apparel, Inc
(#,^)
727 Page Ave., Staten Island, NY 10307
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
2/28/2029
 
47.5

 
47.5

 
42.0

 
0.01
%
NY Scoops LLC dba Cool Suppliers and Breakneck Road LLC
(#,^)
20 Silver Fox Lane, Sussex, NJ 07461
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/28/2029
 
48.4

 
48.4

 
46.5

 
0.01
%
KSW Agency Inc.
(#,^)
330 Milltown Rd, Ste 22E, East Brunswick, NJ 08816
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
2/28/2029
 
14.3

 
14.3

 
14.9

 
—
%
Woodard Electric Services, Inc.
(#,^)
1600 Carter Cove Rd, Hayesville, NC 28904
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/28/2029
 
20.5

 
20.5

 
18.1

 
0.01
%
Shah Medical Center SC & Heeena Shyamani
(#,^)
484 Summit St, Elgin, IL 60120
 
Hospitals
 
Term Loan
 
Prime plus 2.75%
 
2/28/2044
 
251.3

 
251.3

 
247.6

 
0.08
%
Legacy Roof Contractors LLC
(#,^)
32091 Broken Branch Circle, Spanish Fort, AL 36527
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/28/2044
 
297.1

 
297.1

 
305.0

 
0.09
%
Matrix Z LLC
(#)
800 SW 21st Terrace, Ft Lauderdale, FL 33312
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 6.5%
 
2/27/2029
 
12.0

 
12.0

 
11.9

 
—
%
Merdad Dentistry PLLC dba Easy Dental Care
(#,^)
7522 Old Linton Hall Rd, Gainesville, VA 20155
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/26/2029
 
15.0

 
15.0

 
13.0

 
—
%
Harbor Management Company Inc dba Jamba Juice
(#,^)
5501 Josh Birmingham Pkwy Concourse A, Charlotte, NC 28208
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/22/2029
 
142.5

 
142.5

 
125.1

 
0.04
%
EasyBooks, Inc.
(#,^)
949 Turquoise St., San Diego, CA 92109
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/22/2029
 
5.7

 
5.7

 
4.9

 
—
%
Mia Restoration Inc dba PuroClean and Puroclean of Morristown NJ
(#,^)
3633 B Hill Rd, Parsippany, NJ 07054
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
2/21/2029
 
39.2

 
39.2

 
35.1

 
0.01
%

F-40
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Gomez Advanced Wellness Center, Inc.
(#,^)
2418 Central Ave, Charlotte, NC 28205
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/21/2044
 
148.6

 
148.6

 
156.5

 
0.05
%
Citiline Cafe At Jacobs Plaza, LLC dba Citiline Cafe
(#,^)
12140 Wickchester Ln STE 130, Houston, TX 77079
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/20/2029
 
46.6

 
46.6

 
40.4

 
0.01
%
Bowl 360 Inc.
(#,^)
98-18 Rockaway Blvd, Ozone Park, NY 11417
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/19/2029
 
154.5

 
154.5

 
144.3

 
0.04
%
Bowl 360 Inc.
(#,^)
98-18 Rockaway Blvd, Far Rockaway, NY 11417
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/19/2029
 
132.5

 
132.5

 
115.5

 
0.04
%
Rob Barletta's Hockey School, Inc
(#,^)
2130 Providence Hwy, Walpole, MA 02081
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
2/19/2029
 
103.3

 
103.3

 
107.6

 
0.03
%
Outler Transportation Services,LLC
(#,^)
3775 Carriage Downs CT SW, Snellville, GA 30039
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/19/2029
 
42.7

 
42.7

 
37.8

 
0.01
%
M & M Burgers Inc dba Checkers
(#,^)
530 Willis Ave, Bronx, NY 10455
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2029
 
109.4

 
109.4

 
97.0

 
0.03
%
Integris Roofing, Inc
(#,^)
1174 Yellostone Drive, Lake Arrowhead, CA 92532
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/15/2029
 
21.4

 
21.4

 
18.5

 
0.01
%
Tony Herring & Associates, Inc
(#,^)
211 West Camellia Drive, Slidell, LA 70458
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
2/14/2029
 
14.2

 
14.2

 
14.8

 
—
%
Gateway Veterinary Services, P.C. dba Liberty Animal Clinic
(#,^)
9212 Liberty Ave, Ozone Park, NY 11417
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/14/2044
 
137.0

 
137.0

 
152.8

 
0.05
%
Par-Man, Inc. dba Rockstar Tattoo
(#,^)
450 Fremont St #109 and 113, Las Vegas, NV 89101
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
2/14/2029
 
59.5

 
59.5

 
52.2

 
0.02
%
KHSE Parks, Inc.
(#,^)
600 West Charles St., Matthews, NC 28105
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
2/14/2029
 
78.4

 
78.4

 
68.0

 
0.02
%
Precedence Enterprises LLC dba Spartan Junk Removal
(#,^)
8101 Sandy Spring Rd Ste 250N, Laurel, MD 20707
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
2/8/2029
 
15.6

 
15.6

 
14.3

 
—
%
Pamletics LLC dba F45
(#,^)
22015 IH 10 West, San Antonio, TX 78249
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/8/2029
 
3.6

 
3.6

 
3.4

 
—
%
Shepherd Fitness, LLC dba Workout Anytime Ooltewah
(#,^)
9408 Apison Pike, Ste 11, Ooltewah, TN 37363
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/8/2029
 
160.2

 
160.2

 
147.0

 
0.05
%
EJGR Corp dba Brite Energy Solutions
(#,^)
87 Main St Upper Lvl, Hastings-on-Hudson, NY 10706
 
Utilities
 
Term Loan
 
Prime plus 2.75%
 
2/8/2029
 
59.4

 
59.4

 
51.7

 
0.02
%
Creative Counseling Nashville PLLC
(#,^)
4119 Gallatin Pike, Nashville, TN 37216
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/7/2029
 
2.1

 
2.1

 
1.8

 
—
%
Better Dayz PT, Inc. dba Physical Therapy Now
(#,^)
2804 NE 8th St. #203-206, Homestead, FL 33033
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/7/2029
 
21.4

 
21.4

 
18.7

 
0.01
%
D & G Elite Construction, Inc.
(#,^)
217 Goldenrod Ave, Franklin Square, NY 11010
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/6/2029
 
123.6

 
123.6

 
128.7

 
0.04
%

F-41
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
RIHAHN INC dba RDBL, INC.
(#,^)
1397 McGuire Rd, Lamar, AR 72846
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
2/5/2029
 
6.6

 
6.6

 
6.8

 
—
%
Hernando Beach Motel Inc.,The Purple Cow House of Pancake Inc
(#,^)
4291 Shoal Line Boulevard, Hernando Beach, FL 34607
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
2/1/2029
 
14.2

 
14.2

 
14.8

 
—
%
Jesus and Son's Landscape Contractors, LLC
(#,^)
4371 Durham Court, Denver, CO 80239
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
2/1/2029
 
54.6

 
54.6

 
48.8

 
0.02
%
Employer Resource Services LLC dba Data Pool
(#,^)
500 Research Rd, Richmond, VA 23236
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/31/2029
 
35.7

 
35.7

 
30.9

 
0.01
%
MYC Motors Inc
(#,^)
3808 Vegas Drive, Las Vegas, NV 89108
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
1/30/2044
 
74.3

 
74.3

 
82.8

 
0.03
%
FNF LLC dba WineStyles
(#,^)
11109 Old Seward Hwy, Anchorage, AK 99515
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
1/22/2029
 
233.8

 
233.8

 
203.0

 
0.06
%
IGWT Coffee, LLC dba PJ's Coffee of New Orleans
(#,^)
414 Union St, Nashville, TN 37219
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/18/2029
 
77.9

 
77.9

 
67.6

 
0.02
%
MMC Investors, LLC dba Clean Juice
(#,^)
2879 W 95th St. Ste 195, Naperville, IL 60564
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/18/2029
 
83.8

 
83.8

 
74.2

 
0.02
%
Hilco Athletics & Graphics Inc
(#,^)
55 Green Hill St., West Warwick, RI 02816
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/16/2044
 
68.2

 
68.2

 
76.0

 
0.02
%
CMLCLEARWATERBEACH.LLC dba Cousins Maine Lobster
(#,^)
309 Coronado Drive, Clearwater Beach, FL 33767
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/11/2029
 
84.7

 
84.7

 
74.5

 
0.02
%
Fluid Connections LLC dba BurgerIM
(#,^)
174 El Cerrito Plaza, El Cerrito, CA 94530
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/11/2029
 
59.1

 
59.1

 
54.6

 
0.02
%
HSR Tacos LLC dba California Tortilla
(#,^)
11694 Sudley Manor Drive, Manassas, VA 20109
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/11/2029
 
51.5

 
51.5

 
44.7

 
0.01
%
Rashed and Shabila LLC
(#,^)
14865 Hwy 92, Woodstock, GA 30188
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
1/4/2029
 
21.2

 
21.2

 
19.7

 
0.01
%
Romain Tower Inc. David Romaine, Sugar Land Crane and Rigging, LLC
(#,^)
215 S Persimmon St., Tomball, TX 77375
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028
 
223.4

 
223.4

 
193.8

 
0.06
%
The Chop House Inc.
(#,^)
191 Old Tower Hill Rd., South Kingstown, RI 02879
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/31/2043
 
552.0

 
552.0

 
572.4

 
0.18
%
Capitol Fitness Inc. dba Anytime Fitness Shelby
(#,^)
49045 Van Dyke Ave, Shelby Charter Township, MI 48317
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/28/2028
 
17.1

 
17.1

 
15.5

 
—
%
Omega Funeral and Cremation Services,LLC
(#,^)
9503 Kenwood Rd, Cincinnati, OH 45242
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043
 
339.3

 
339.3

 
353.6

 
0.11
%
American Rewinding of NC Inc dba MTS
(#,^)
1825 N Rocky River Rd, Monroe, NC 28110
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/28/2028
 
402.6

 
402.6

 
368.3

 
0.11
%
Superior Concepts Acquisition Corp
(#,^)
1710 Tiles Court, Grand Haven, MI 49417
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043
 
504.4

 
504.4

 
509.3

 
0.16
%
Superior Concepts Acquisition Corp
(#,^)
1710 Tiles Ct, Grand Haven, MI 49417
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2028
 
112.6

 
112.6

 
102.7

 
0.03
%

F-42
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Galt Insurance Group of Bonita Springs, LLC & Bonita Safety Institut
(#,^)
10911 Bonita Beach Rd SE #104A & 104B, Bonita Springs, FL 34135
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043
 
18.6

 
18.6

 
20.7

 
0.01
%
Nix and Nix Funeral Home North Inc,
(#,^)
1621 W. Dauphin St., Philadelphia, PA 19132
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043
 
566.0

 
566.0

 
614.5

 
0.19
%
Fave Realty Inc.
(#,^)
74 Larkfield Rd, East Northport, NY 11731
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
12/27/2043
 
122.2

 
122.2

 
136.3

 
0.04
%
Medworxs Inc.
(#,^)
6857 Timbers Drive, Evergreen, CO 80439
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2028
 
9.9

 
9.9

 
8.5

 
—
%
East Breeze LLC dba Historic Springdale Pub and Eatery
(#,^)
32302 E Historic Columbia Riv Hwy, Corbett, OR 97019
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/27/2043
 
126.9

 
126.9

 
136.0

 
0.04
%
Children First Home Health Care Inc
(#,^)
1220 Broadcasting Rd Ste 202, Wyomissing, PA 19610
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2028
 
282.4

 
282.4

 
267.0

 
0.08
%
Green Valley Landscape Management Inc. dba Apopka Mower and Equipment
(#,^)
2975 W Orange Blossom Trail, Apopka, FL 32712
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2043
 
459.9

 
459.9

 
473.8

 
0.15
%
Reservations Unlimited LLC
(#)
312 W Main St., Red River, NM 87558
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
12/26/2043
 
140.8

 
140.8

 
151.2

 
0.05
%
Timios Enterprises Corp dba Palm Court
(#,^)
1912 N Arlington Hts Rd, Arlington Heights, IL 60004
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/24/2043
 
700.4

 
700.4

 
739.5

 
0.23
%
RM Hawkins LLC
(#,^)
5141 Topaz Drive, Colorado Springs, CO 80918
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/24/2028
 
281.6

 
281.6

 
260.3

 
0.08
%
BD Branson Victorian LLC dba Branson Victorian Inn
(#,^)
450 South Hwy 165, Branson, MO 65616
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/24/2043
 
492.5

 
492.5

 
530.6

 
0.16
%
Royalty Freight Inc
(#,^)
3728 W McKinley Ave, Fresno, CA 93722
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
91.7

 
91.7

 
79.4

 
0.02
%
Kyle M Walker DDS, PC
(#,^)
1402 W Park Ave, Orange, TX 77630
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
105.8

 
105.8

 
91.6

 
0.03
%
The Law Office of Jared E. Shapiro, P.A
(#,^)
7777 Glades Rd Ste 100, Boca Raton, FL 33434
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
10.6

 
10.6

 
9.2

 
—
%
Burgess and Dudley, Incorporated
(#,^)
24462 NW 9th Place, Newberry, FL 32669
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
223.5

 
223.5

 
203.1

 
0.06
%
Diamond Estates LLC
(#,^)
110 Court St Ste 1, Cromwell, CT 06416
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
70.5

 
70.5

 
61.1

 
0.02
%
Fifth Wheel Truck Stop 001, Inc.
(#,^)
3767 South Golden State Blvd, Fresno, CA 93725
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
100.0

 
100.0

 
86.6

 
0.03
%
Sesolinc GRP, Inc.
(#,^)
806 Randy Lowery Rd, Statesboro, GA 30461
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
352.3

 
352.3

 
329.7

 
0.10
%
ETS Tree Service Inc and Eastern Tree Service, Inc
(#,^)
4813 Pinson Valley Parkway, Birmingham, AL 35215
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
216.1

 
216.1

 
200.4

 
0.06
%

F-43
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
D.A.F.S Transport, LLC
(#,^)
207 S. Teresa St., Monahans, TX 79756
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
620.1

 
620.1

 
613.0

 
0.19
%
Precision Bytes LLC dba Tower Connect
(#,^)
607 West Magnolia Ave, Fort Worth, TX 76104
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
121.9

 
121.9

 
105.6

 
0.03
%
Accel Compression Inc.,Accel Workover Services Inc dba Mica Tool & Tur
(#,^)
4500 S Country Rd, Odessa, TX 79768
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/21/2044
 
169.0

 
169.0

 
188.7

 
0.06
%
LP Industries, Inc and Playground Packages, LLC
(#,^)
2040 Norwood, Lenoir, NC 28645
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
88.6

 
88.6

 
77.0

 
0.02
%
Cammarata Associates LLC
(#,^)
5 Greentree Center, Marlton, NJ 08053
 
Credit Intermediation and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
70.4

 
70.4

 
61.0

 
0.02
%
Baseline Health, LLC & Baseline Health Management, LLC
(#,^)
1101 Stewart Ave Ste 104, Garden City, NY 11530
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
111.6

 
111.6

 
98.8

 
0.03
%
C&D Trucking & Equipment Service, Inc.
(#,^)
4015 Jennings Rd, Cleveland, OH 44109
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/21/2043
 
116.0

 
116.0

 
129.3

 
0.04
%
Roots N Shoots, LLC & Yardplus LLC
(#,^)
86 Boston Rd, Chelmsford, MA 01824
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028
 
50.7

 
50.7

 
45.0

 
0.01
%
Healthy and Fresco LLC
(#,^)
1671 Belle Isle Ave, Ste 110 #C, Mt Pleasant, SC 29464
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/20/2029
 
43.2

 
43.2

 
38.8

 
0.01
%
Flashii App, Inc.
(#,^)
75 E Santa Clara St, San Jose, CA 95113
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028
 
58.7

 
58.7

 
60.2

 
0.02
%
Graff Excavating, Inc
(#,^)
803 E State St., Toledo, IA 52342
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028
 
183.7

 
183.7

 
161.8

 
0.05
%
Alaska Motor Home Inc
(#,^)
6633 Brayton Drive, Anchorage, AK 99507
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028
 
281.8

 
281.8

 
264.0

 
0.08
%
Local Liberty Inc dba The Wardsboro Country Store
(#,^)
23 Main St., Wardsboro, VT 05355
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/20/2043
 
153.7

 
153.7

 
164.8

 
0.05
%
Yellow Fin Marine Services LLC, K Marine XI, LLC K Marine VIII, LLC
(#,^)
2043 Coteau Rd, Houma, LA 70364
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028
 
543.4

 
543.4

 
537.8

 
0.17
%
Hotel Compete, LLC
(#,^)
223 W Jackson Blvd, Chicago, IL 60606
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028
 
58.7

 
58.7

 
50.8

 
0.02
%
CK Green Partners, LLC dba Reis and Irvy"s Columbus
(#,^)
5010 Augusta Drive, Westerville, OH 43082
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/20/2029
 
178.3

 
178.3

 
168.3

 
0.05
%
Marlin Lighting LLC
(#,^)
7207 B Lockport Pl, Lorton, VA 22079
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/19/2028
 
95.6

 
95.6

 
82.8

 
0.03
%
The Cromer Company
(#,^)
9800 NW 78th Ave, Hialeah Gardens, FL 33016
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/19/2028
 
469.7

 
469.7

 
408.5

 
0.13
%
Sheldon T Banks and Sheldon T Banks LLC dba Serenity Funeral chapel ll
(#)
G-2340 West Carpenter Rd, Flint, MI 48505
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/19/2044
 
416.5

 
416.5

 
446.5

 
0.14
%

F-44
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Goodson's Garden, LLC dba Always Goldies Florist
(#,^)
1812 Pulaski Hwy Ste A, Edgewood, MD 21040
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/19/2028
 
11.3

 
11.3

 
10.0

 
—
%
JejoJesi Corp dba Dukunoo Jamaican Kitchen, Dunkunoo
(#,^)
316 NW 24th St., Miami, FL 33180
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/19/2029
 
70.1

 
70.1

 
65.2

 
0.02
%
Accent Comfort Services, LLC
(#,^)
5035 W. W.T. Harris Blvd Ste C, Mecklenburg, NC 28269
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/19/2028
 
64.7

 
64.7

 
56.5

 
0.02
%
Cordoba Foods LLC, Multi Logistics Network Inc, Karina Mena
(#,^)
4477 E 11th Ave, Hialeah, FL 33013
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028
 
298.3

 
298.3

 
271.7

 
0.08
%
Healthy Human, LLC
(#,^)
1007 Johnnie Dodds Blvd, Ste 123, Mt Pleasant, SC 29464
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028
 
117.4

 
117.4

 
101.7

 
0.03
%
Sound Contracting LLC
(#,^)
148 Holmgren Place, Girdwood, AK 99587
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2043
 
195.3

 
195.3

 
203.7

 
0.06
%
Stony Creek Wellness Group, LLC
(#,^)
264 Church St, Guilford, CT 06437
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/14/2043
 
97.7

 
97.7

 
105.0

 
0.03
%
Sound Contracting LLC
(#,^)
148 Holmgren Place, Girdwood, AK 99587
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028
 
39.2

 
39.2

 
36.5

 
0.01
%
Alpha Omega Trucking LLC
(#,^)
14432-14452 Stateline Rd, Brookings, OR 97415
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028
 
65.9

 
65.9

 
68.5

 
0.02
%
YBL Restaurant Group LLC dba Tropisueno
(#,^)
75 Yerba Buena Lane, San Francisco, CA 94103
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/14/2029
 
359.1

 
359.1

 
314.4

 
0.10
%
Alpha Landscape Contractors, Inc
(#,^)
2823 Fllintstone Rd, Millers, MD 21102
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/14/2029
 
313.4

 
313.4

 
287.1

 
0.09
%
Ventures TBD LLC dba The Bottle Tree
(#,^)
102 Davis St., Belmont, NC 28012
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/14/2043
 
97.7

 
97.7

 
101.0

 
0.03
%
Mediterranean Tastes Inc dba Mediterranean Tastes Since 1974
(#,^)
196-15 Northern Blvd, Flushing, NY 11318
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028
 
14.8

 
14.8

 
12.9

 
—
%
Peanut Butter & Co., Inc.
(#,^)
119 West 57th St., Ste 300, New York, NY 10019
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028
 
234.9

 
234.9

 
203.5

 
0.06
%
L&M Services, LLC
(#,^)
560 Main St., Milford, UT 84751
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2043
 
197.9

 
197.9

 
208.5

 
0.06
%
Aero Consulting and Engineering Inc
(#,^)
7941 NW 3rd St., Plantation, FL 33324
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028
 
14.1

 
14.1

 
12.2

 
—
%
Fitness Orlando LLC & Fitness Orlando Oviedo, LLC
(#,^)
160 Tuskawilla Rd Ste 1214, Winter Springs, FL 32708
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/14/2028
 
258.8

 
258.8

 
234.8

 
0.07
%
Tapia Auto Care, LLC dba Shoreline Quick Lube and Car Wash
(#,^)
2 Center Rd, Old Saybrook, CT 06475
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/13/2043
 
967.3

 
967.3

 
992.6

 
0.31
%

F-45
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
D for Dream LLC dba Blo Blow Dry Bar Inc
(#,^)
460 East 3rd Ave, New York, NY 10016
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/13/2029
 
70.9

 
70.9

 
61.7

 
0.02
%
United States Plastic Equipment LLC
(#,^)
4447 OH-303, Mantua, OH 44255
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/13/2028
 
137.1

 
137.1

 
118.8

 
0.04
%
Burton Realty Co., Inc dba Anchor Realty, Northeast
(#,^)
2200 Michener St Ste 12, Philadelphia, PA 19115
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
12/13/2028
 
284.6

 
284.6

 
246.6

 
0.08
%
The Miller Center for Esthetic Excellence,
(#,^)
22 Old Short Hills Rd, Livingston, NJ 07039
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2043
 
384.3

 
384.3

 
378.2

 
0.12
%
Plan B Burger LLC
(#,^)
484 Farmington Ave, Hartford, CT 06105
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/13/2029
 
986.6

 
986.6

 
899.9

 
0.28
%
OC Helicopters LLC
(#,^)
19711 Campus Drive Ste 260, Santa Ana, CA 92707
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/13/2028
 
84.7

 
84.7

 
88.1

 
0.03
%
Tier1 Solutions LLC
(#,^)
1000 Essington Rd Ste 111, Joliet, IL 60435
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/12/2029
 
9.6

 
9.6

 
8.3

 
—
%
Behind The Scenes Chicago, LLC dba Paramount Events
(#,^)
1750 W Lake St, Chicago, IL 60612
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/12/2029
 
240.8

 
240.8

 
235.1

 
0.07
%
Mateo Enterprise Inc dba El Milagro Market
(#,^)
575 Panama Lane, Bakersfield, CA 93307
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/12/2043
 
118.8

 
118.8

 
122.7

 
0.04
%
Mateo Enterprise Inc dba El Milagro Market
(#,^)
575 Panama Lane, Bakerfield, CA 93307
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
1/12/2029
 
56.4

 
56.4

 
48.9

 
0.02
%
Ashwood Food Services, Incorporated dba Jake Rooney's
(#,^)
119 Brooks Rd, Harwich Port, MA 02646
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/12/2029
 
63.4

 
63.4

 
58.0

 
0.02
%
Ashwood Food Services Inc. dba Jake Rooney's
(#,^)
119 Brooks Rd, Harwich Port, MA 02646
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/12/2043
 
212.8

 
212.8

 
231.0

 
0.07
%
Airstrike Firefighters LLC
(#,^)
18115 62nd Ave NE, Kenmore, WA 98028
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
12/12/2028
 
1,174.3

 
1,174.3

 
1,112.0

 
0.35
%
Anglin Cultured Stone Products LLC dba Anglin Construcion
(#)
877 Salem Church Rd, Newark, DE 19702
 
Specialty Trade Contractors
 
Term Loan
 
8.25%
 
1/12/2029
 
60.8

 
60.8

 
56.8

 
0.02
%
Duck's Nuts Inc dba Pet Place Market
(#,^)
212 Bendigo Blvd. N, North Bend, WA 98045
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
1/11/2029
 
40.6

 
40.6

 
37.9

 
0.01
%
Hilltop Wine Shop, Inc dba Hiltop Wine Shop
(#,^)
7505 Highland Rd, White Lake, MI 48383
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/11/2043
 
126.7

 
126.7

 
133.2

 
0.04
%
TFE Resources ,LTD
(#,^)
11 Easter Court Ste G, Owings Mills, MD 21117
 
Utilities
 
Term Loan
 
Prime plus 2.75%
 
1/11/2029
 
561.4

 
561.4

 
503.9

 
0.16
%
Oregon Medical Training Private Career School Inc.
(#,^)
1126 Gateway Loop Ste 108, Springfield, OR 97702
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
1/11/2029
 
37.6

 
37.6

 
32.6

 
0.01
%
Googlyoogly, LLC dba Bi-Rite Supermarket
(#,^)
10867 W Jefferson Ave, River Rouge, MI 46218
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/11/2043
 
200.9

 
200.9

 
207.7

 
0.06
%
White Wilson & Associates LLC
(#,^)
16238 Louis Ave., South Holland, IL 60473
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2043
 
42.1

 
42.1

 
43.4

 
0.01
%

F-46
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
EMES Supply, LLC
(#,^)
35622 Vine St., EastLake, OH 44095
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
1/11/2029
 
117.8

 
117.8

 
104.7

 
0.03
%
B&B Bodega of Delray LLC
(#,^)
190 NE 2nd Ave, Delray Beach, FL 33444
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
1/11/2029
 
14.5

 
14.5

 
12.7

 
—
%
Team Henry, LLC dba Kelly Automotive of Deltona
(#,^)
1290 Doyle Rd, Deltona, FL 32725
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/10/2043
 
387.2

 
387.2

 
398.6

 
0.12
%
ZLM Services LLC
(#,^)
51343 Oro Rd, Shelby Township, MI 33444
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/10/2029
 
37.6

 
37.6

 
32.6

 
0.01
%
Food Service Industry Consultants Inc.
(#,^)
1465 Kelly Johnson Blvd, Colorado Springs, CO 80920
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/7/2029
 
67.2

 
67.2

 
58.5

 
0.02
%
Shining Star Kids, Inc. dba Brain Balance
(#,^)
17323 Ventura Blvd, Encino, CA 91316
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
1/7/2029
 
82.3

 
82.3

 
71.9

 
0.02
%
3SIXO Motorsports LLC dba 3SIXO Motorsports Shop
(#,^)
217 W Main St., Centralia, WA 98531
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
1/6/2029
 
94.6

 
94.6

 
82.6

 
0.03
%
CET Inc
(#,^)
4709 N El Capitan Ave Ste 205, Fresno, CA 93722
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/6/2029
 
1,154.6

 
1,154.6

 
1,045.1

 
0.32
%
Metro R Services Inc. and Metal & Roof Supplies Inc.
(#,^)
20 Universal Place, Carlstadt, NJ 07072
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
1/6/2029
 
195.0

 
195.0

 
203.0

 
0.06
%
Unique Home Solutions Inc. and Unique Home Solutions of Ohio
(#,^)
5550 Progress Rd, Indianapolis, IN 46241
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
1/5/2029
 
234.9

 
234.9

 
244.6

 
0.08
%
Levine Daycare Inc dba Kids R Kids
(#,^)
415 Woodbury Rd, Orlando, FL 32828
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/5/2029
 
253.7

 
253.7

 
233.7

 
0.07
%
Consulting Solutions, Inc and Mark Luciani
(#,^)
3000 N Federal Hwy Ste 1, Fort Lauderdale, FL 33306
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/5/2029
 
54.4

 
54.4

 
47.2

 
0.01
%
Little West LLC, 340 Group LLC, Retail West LLc, Andrew W Walker, Cass
(#,^)
342 South La Brea Ave, Los Angeles, CA 90036
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/5/2029
 
82.4

 
82.4

 
72.4

 
0.02
%
The Altitude Group LLC
(#,^)
949 A Clint Moore Rd, Boca Raton, FL 33487
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
1/4/2029
 
130.9

 
130.9

 
114.3

 
0.04
%
Access Staffing, LLC
(#,^)
360 Lexington Ave 8th Fl, New York, NY 10017
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/4/2029
 
182.5

 
182.5

 
158.4

 
0.05
%
Jay Carlton's, LLC dba Jay Birds Rotisserie & Grill
(#,^)
24480 W 10 Mile RD, Southfield, MI 48033
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/4/2029
 
37.2

 
37.2

 
34.8

 
0.01
%
Swantown Inn and Spa, LLC
(#,^)
1431 11th Ave SE, Olympia, WA 98501
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
1/3/2029
 
12.7

 
12.7

 
13.2

 
—
%
York Concrete Corp
(#,^)
1 Plumb CT., Huntington Station, NY 11746
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/3/2043
 
197.9

 
197.9

 
217.9

 
0.07
%
Hernando Beach Motel LLC,The Purple Cow House o APancake AInc.
(#,^)
4291 Shoal Line Boulevard, Hernando Beach, FL 34607
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/30/2043
 
222.4

 
222.4

 
247.8

 
0.08
%

F-47
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Tammy's Place LLC
(#,^)
235 North Mosby Ave, Littleton, NC 27850
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2044
 
436.0

 
436.0

 
481.7

 
0.15
%
Microplex Co, Third Market LLC
(#,^)
244 Spokane Ave, Whitefish, MT 59937
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/30/2028
 
154.1

 
154.1

 
133.7

 
0.04
%
Luxury Furniture, Inc.dba Venicasa & Luxe Home Interiors
(#,^)
13762 W State Rd 84, Davie, FL 33325
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/30/2028
 
116.8

 
116.8

 
115.4

 
0.04
%
Cabrera's Auto Services LLC
(#,^)
2206 N Central Ave, Chicago, IL 60639
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/30/2043
 
80.2

 
80.2

 
85.3

 
0.03
%
Water Station Holdings LLC
(#,^)
1104 N Keystone Ave, Indianapolis, IN 46201
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/30/2028
 
647.3

 
647.3

 
613.3

 
0.19
%
Albert M. Quashie, DDS, PC
(#,^)
3331 Toledo Terrace Ste 308, Hyattsville, MD 20782
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/29/2043
 
64.4

 
64.4

 
67.1

 
0.02
%
JJB Production LLC
(#,^)
458 N 7th St., Newark, NJ 07107
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/29/2028
 
6.9

 
6.9

 
6.0

 
—
%
Albert M Quashie, DDS, PC
(#,^)
3331 Toledo Terrace Ste 308, Hyattsville, MD 20782
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/29/2028
 
81.8

 
81.8

 
77.7

 
0.02
%
Sky Wonder Pyrotechnics, LLC dba Sky Wonder Fire and Safety Gear Up Te
(#,^)
3626 CR 203, Liverpool, TX 77577
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/28/2043
 
429.3

 
429.3

 
478.2

 
0.15
%
Level Up Gaming, Inc
(#,^)
1132 Creighton Rd, Pensacola, FL 32504
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
11/28/2043
 
89.0

 
89.0

 
90.5

 
0.03
%
Extreme Granite Corp
(#,^)
251 NW 1st St., Deerfield Beach, FL 33441
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043
 
185.4

 
185.4

 
202.6

 
0.06
%
True Love Christian Academy LLC
(#,^)
466 E Raines Rd, Memphis, TN 38109
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043
 
41.5

 
41.5

 
45.5

 
0.01
%
BEK Holdings LLC, Veseli Fine Art Galleries, LLC, Trusted.com LLC, Exe
(#,^)
12930 Worldgate Drive, Herndon, VA 20170
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
1,188.9

 
1,188.9

 
1,221.9

 
0.38
%
Best Global Alternative North, LLC
(#,^)
69 Lewis Ave, Atlantic Beach, NY 11509
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
81.7

 
81.7

 
70.8

 
0.02
%
M.A.W. Enterprises LLC dbaY-Not Pizza
(#,^)
45 E Main St., New Palestine, IN 46163
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
21.0

 
21.0

 
19.4

 
0.01
%
Thames Aquatic Club, LLC
(#,^)
14 Iron St., Ledyard, CT 06339
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
10/21/2029
 
42.8

 
42.8

 
44.8

 
0.01
%
On Call Electrical of Georgia LLC
(#,^)
2120 Plaster Bridge Rd NE, Atlanta, GA 30324
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/20/2043
 
656.9

 
656.9

 
682.6

 
0.21
%
Commonwealth Warehouse Inc
(#,^)
11013 Kenwood Rd., Cincinnati, OH 45242
 
Warehousing and Storage
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028
 
395.5

 
395.5

 
371.0

 
0.12
%
High Desert Transport, Inc.
(#,^)
2015 Woodspring Terrace, Henderson, NV 89012
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/19/2028
 
71.0

 
71.0

 
64.0

 
0.02
%
K & A Automotive Inc
(#,^)
2070 Nooseneck Hill Rd, Coventry, RI 02816
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/19/2043
 
120.8

 
120.8

 
131.2

 
0.04
%

F-48
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Beau & HB Inc dba Beau's Billiard, Bowling & Arcade
(#,^)
100 Village Rd, Port Lavaca, TX 77979
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/16/2029
 
41.1

 
41.1

 
40.7

 
0.01
%
Cocomo Joe's LLC
(#,^)
3949 New Rd, Youngstown, OH 44515
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2028
 
0.6

 
0.6

 
0.5

 
—
%
Saunders Management LLC dba Northern Light Espresso Bar and Cafe
(#,^)
536 Spruce St, Scranton, PA 18503
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/16/2028
 
37.9

 
37.9

 
39.4

 
0.01
%
Beau & HB Inc dba Beau's Billard, Bowling & Arcade
(#,^)
100 Village Rd, Port Lavaca, TX 77979
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/16/2043
 
69.7

 
69.7

 
73.2

 
0.02
%
Cali Fit Meals
(#,^)
3450 E Orangethrope Ave, Anaheim, CA 92806
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2028
 
58.4

 
58.4

 
50.8

 
0.02
%
Allegro Assisted Living Services of Texas LLC
(#,^)
3400 Remington Dr, Plano, TX 75023
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
11/15/2043
 
93.9

 
93.9

 
104.6

 
0.03
%
Schafer Fisheries Inc.
(#,^)
21985 Waller Rd, Fulton, IL 61252
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/14/2028
 
47.0

 
47.0

 
48.8

 
0.02
%
Salon Femi LLC
(#,^)
1107 Broad St., Bloomfield, NJ 07003
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/9/2028
 
7.0

 
7.0

 
6.7

 
—
%
US Dedicated LLC
(#,^)
13410 SE 26th Circle, Vancouver, WA 98683
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/9/2028
 
392.2

 
392.2

 
346.7

 
0.11
%
Jinwoo Sushi Inc
(#,^)
6590 Sugarloaf Pkwy, Duluth, GA 30097
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/9/2028
 
20.7

 
20.7

 
21.5

 
0.01
%
McNeill Stokes
(#,^)
5372 Whitehall Pl SE, Mableton, GA 30126
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2028
 
6.3

 
6.3

 
5.5

 
—
%
Vancole Investments, Inc. dba Smoothie King #913
(#,^)
876 Virginia Ave, Hapeville, GA 30354
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/7/2044
 
414.5

 
414.5

 
427.7

 
0.13
%
JN Thompson Ent,Inc.
(#,^)
400 5th Ave S Ste 100, Naples, FL 34102
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/7/2028
 
377.5

 
377.5

 
340.1

 
0.11
%
JP Dhillon's Foods LLC
(#,^)
840 El Paseo de Saratoga, San Jose, CA 95130
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/1/2029
 
91.9

 
91.9

 
79.9

 
0.02
%
Modutech Marine Inc
(#,^)
2218 Marine View Drive, Tacoma, WA 98422
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/1/2028
 
350.4

 
350.4

 
364.3

 
0.11
%
Peter Thomas Roth Labs LLC and June Jacobs Labs, LLC
(#,^)
460 Park Ave, Fl 16, New York, NY 10022
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/1/2028
 
303.5

 
303.5

 
262.9

 
0.08
%
Steele Security, LLC dba Signal 88 Security of San Antonio
(#,^)
11230 West Ave Ste 2210, San Antonio, TX 78213
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2028
 
103.2

 
103.2

 
90.7

 
0.03
%
Abington Caregivers, LLC
(#,^)
7804 Montgomery Ave Unit 3-6, Elkins Park, PA 19027
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/30/2043
 
123.9

 
123.9

 
132.1

 
0.04
%
Organic Juice Bar Wexford LLC dba The OJB "The Organic Juice Bar"
(#,^)
1500 Village Run Rd, Wexford, PA 15090
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2029
 
76.4

 
76.4

 
67.8

 
0.02
%
C.A.T.I. Armor, LLC
(#,^)
435 Packard Hwy, Charlotte, MI 48813
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/30/2043
 
207.9

 
207.9

 
216.7

 
0.07
%

F-49
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
UK, LLC dba Pita Pit
(#,^)
20038 West Valley HWY, Kent, WA 98032
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/30/2029
 
57.9

 
57.9

 
51.9

 
0.02
%
JAL Group, Inc. dba Brainy Boulevard Daycare
(#,^)
3340-3342 West Bryn Mawr Ave, Chicago, IL 60659
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/29/2028
 
53.9

 
53.9

 
47.4

 
0.01
%
Ohio Gold & Pawn LLC, Our New Building LLC and Corey Fischer
(#,^)
3970 Everhard Rd NW, Canton, OH 44709
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
10/26/2028
 
136.9

 
136.9

 
142.4

 
0.04
%
Reliant Trucking Inc.
(#,^)
7197 Koamano St, Honolulu, HI 96825
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/25/2028
 
123.4

 
123.4

 
114.0

 
0.04
%
The Face Place, LLC dba Classic Aesthetics
(#,^)
4268 Cahaba Heights CT Ste 115, Vestavia, AL 35243
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/25/2028
 
9.3

 
9.3

 
8.1

 
—
%
Bellas Sports Pub, Inc dba Brewmasters Tavern
(#,^)
1152 Main St., Coventry, RI 02816
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/24/2043
 
68.5

 
68.5

 
75.6

 
0.02
%
Shovels and Whiskey LLC
(#,^)
446 SE Washington St, Hillsboro, OR 97123
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
10/16/2043
 
75.6

 
75.6

 
82.0

 
0.03
%
Hackstaff Restaurants LLC
(#,^)
248 W 1st St. Ste 201, Reno, NV 89501
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2029
 
147.6

 
147.6

 
131.1

 
0.04
%
TA Coleman, LLC dba Tom's Truck Shop
(#,^)
2101 Route 610, Woodbine, NJ 08270
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/12/2028
 
5.4

 
5.4

 
5.1

 
—
%
Cater To You Agency, LLC, dba Cater To You
(#,^)
1319 Sherrick Rd SE, Canton, OH 44707
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/11/2043
 
22.3

 
22.3

 
23.2

 
0.01
%
Faydon, Inc
(#,^)
1905 W Baker St., Ste A, Plant City, FL 33567
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
10/10/2028
 
69.6

 
69.6

 
72.0

 
0.02
%
MB Click It Photography, LLC
(#,^)
100 Manchester Ranch Place, Aynor, SC 29511
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/10/2043
 
37.9

 
37.9

 
40.7

 
0.01
%
Wellfleet Consulting Inc.
(#,^)
2275 Research Blvd Ste 500, Rockville, MD 20850
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/9/2028
 
13.9

 
13.9

 
12.1

 
—
%
Apps Inc and Market Share Inc.
(#,^)
80 Main St., Old Saybrook, CT 06475
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
10/5/2028
 
88.2

 
88.2

 
76.4

 
0.02
%
Moore Care LLC
(#,^)
8550 United Plaza Blvd., Baton Rouge, LA 79809
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/4/2028
 
48.3

 
48.3

 
41.8

 
0.01
%
JAM Media Solutions LLC
(#,^)
11 Netherwood Terrace, East Orange, NJ 07017
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2028
 
811.9

 
811.9

 
728.8

 
0.23
%
SwabCo Inc.
(#,^)
2341 East Ellis St., Leveland, TX 79336
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
9/28/2043
 
928.1

 
928.1

 
977.9

 
0.30
%
Rami Technology USA, LLC
(#,^)
10400 NW 33rd St., Miami, FL 33172
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/28/2028
 
165.9

 
165.9

 
145.4

 
0.05
%
Mellow Sweets, Inc dba Jaafer Sweets & Marwan Hamdan
(#,^)
4825 North Kedzie Ave, Chicago, IL 60625
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/28/2028
 
53.0

 
53.0

 
46.3

 
0.01
%
Burd Brothers Inc.
(#,^)
4005 Borman Drive, Batavia, OH 45103
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/28/2028
 
494.2

 
494.2

 
471.5

 
0.15
%

F-50
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
A-1 Van Sevices, Inc.
(#,^)
154 Sandy Creek Rd, Verona, PA 15147
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/28/2028
 
97.7

 
97.7

 
95.3

 
0.03
%
Throop Family Holdings, Inc
(#,^)
7130 Crater Lake, White City, OR 97603
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/28/2043
 
635.0

 
635.0

 
661.2

 
0.21
%
La Venezia Corporation dba La Venezia Ballroom & Robertos Lounge
(#,^)
4646 SE 11th Place, Cape Coral, FL 33904
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/28/2043
 
325.9

 
325.9

 
348.9

 
0.11
%
LG Law Center, Inc
(#,^)
15452 Amar Rd, La Puente, CA 91744
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2028
 
13.8

 
13.8

 
12.4

 
—
%
Blackwater Diving, LLC
(#,^)
112 Forrest Rd, Morgan City, LA 70380
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
9/27/2028
 
735.8

 
735.8

 
656.9

 
0.20
%
Quality Electric & Data
(#,^)
85 Franklin Rd Unit 9B, Dover, NJ 07801
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/27/2028
 
93.5

 
93.5

 
89.3

 
0.03
%
Blue Seven, LLC
(#,^)
11111 San Jose Blvd, Ste 70, Jacksonville, FL 32223
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/27/2029
 
55.5

 
55.5

 
50.4

 
0.02
%
Action Barricade Company, LLC and Barricade Holding LLC
(#,^)
1802 N 27th Ave, Phoenix, AZ 85009
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2028
 
286.5

 
286.5

 
274.7

 
0.09
%
Quality Electric & Data Inc.
(#,^)
85 Franklin RD Unit 9B, Dover, NJ 07801
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/27/2043
 
128.4

 
128.4

 
131.7

 
0.04
%
Catherine Brandon, PSY.D., Inc dba Kenneth A Deluca, PH.D., & Associat
(#,^)
35888 Center Ridge Rd #5-6, North Ridgeville, OH 44039
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2028
 
109.2

 
109.2

 
95.1

 
0.03
%
TFR Transit Inc, The Free Ride Inc, South Florida Free Ride Inc.,Tag-A
(#,^)
777 S Flagler Dr. Ste 800W, West Palm Beach, FL 33401
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/27/2028
 
115.0

 
115.0

 
107.7

 
0.03
%
Dentistry By Design, P.C
(#,^)
315 Walt Whitman Rd, #204/5, South Huntington, NY 11746
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2028
 
13.8

 
13.8

 
12.3

 
—
%
US Shipping Trans Inc, Esteem Trucking Inc
(#,^)
16102 Sweetwater Court, Lathrop, CA 95330
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2028
 
777.1

 
777.1

 
760.7

 
0.24
%
Above and Beyond Preschool LLC
(#,^)
672-678 Camellia Drive, Royal Palm Beach, FL 33411
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/26/2043
 
544.7

 
544.7

 
587.1

 
0.18
%
LTS School, Inc.
(#,^)
3731 NW 9th Ave, Deerfield Beach, FL 33064
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2043
 
99.6

 
99.6

 
111.0

 
0.03
%
Anglin Cultured Stone Products LLC dba Anglin Construction
(#,^)
877 Salem Church Rd, Newark, DE 19702
 
Construction of Buildings
 
Term Loan
 
8.25%
 
9/26/2028
 
95.5

 
95.5

 
81.1

 
0.03
%
Ace Auto Recovery, Inc.
(#,^)
1209 North Lane Ave, Jacksonville, FL 32254
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2043
 
157.7

 
157.7

 
168.5

 
0.05
%
Bhatti LLC, Bhatti 3 LLC, dba Auntie Annes
(#,^)
7219 Silver Mist Ave, North Chesterfield, VA 23237
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/25/2028
 
115.3

 
115.3

 
103.9

 
0.03
%
Newsome Mobile Notary LLC
(#,^)
8153 12th Ave SW, Seattle, WA 98106
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2028
 
4.8

 
4.8

 
4.2

 
—
%

F-51
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Steadfast Support Services, LLC
(#,^)
1432 Crooked Stick Drive, O'Fallon, MO 63366
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
9/25/2028
 
9.7

 
9.7

 
8.4

 
—
%
Phillip Ramos Upholstery Inc.
(#,^)
3835 Elm St., Denver, CO 80207
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/24/2028
 
14.2

 
14.2

 
12.3

 
—
%
DC Lofty, LLC,
(#,^)
301 I St. NW, Washington, DC 20001
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/21/2028
 
20.7

 
20.7

 
18.1

 
0.01
%
Southern Services and Equipment, Inc
(#,^)
321 Bayou Rd, Saint Bernard, LA 70085
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/21/2028
 
402.2

 
402.2

 
381.0

 
0.12
%
Southern Services and Equipment, Inc.
(#,^)
321 Bayou Rd, Saint Bernard, LA 70085
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/21/2043
 
207.9

 
207.9

 
211.6

 
0.07
%
MillClem Corporation & Monticello Corporation
(#,^)
16660 Oak St., Dillwyn, VA 22936
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/21/2043
 
326.0

 
326.0

 
362.8

 
0.11
%
The Garden Club, LLC
(#,^)
125 South DuBuque St., Iowa City, IA 52240
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/21/2028
 
6.2

 
6.2

 
5.4

 
—
%
 D & D Optics Inc dba Sterling Optical
(#,^)
1487 East LaSalle Drive, Bismark, ND 58503
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028
 
49.7

 
49.7

 
43.9

 
0.01
%
Tables and Bars Services, Inc and Tables and Bars Rentals, LLC
(#,^)
5051 Peachtree Corners Cir #200, Norcross, GA 30092
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2028
 
16.6

 
16.6

 
15.4

 
—
%
Sommer Auto Sales, Inc
(#,^)
8670 E. Main St., Reynoldsburg, OH 43068
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/20/2028
 
329.4

 
329.4

 
341.5

 
0.11
%
Super Station Inc
(#,^)
8855 N Country Rd 25A, Pique, OH 45356
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/19/2043
 
207.4

 
207.4

 
230.8

 
0.07
%
Dash Point Distributing LLC, Dash Point Logistics LLC and Sara Consal
(#,^)
35000 Pacific Hwy, Federal Way, WA 98003
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/19/2028
 
432.2

 
432.2

 
374.0

 
0.12
%
Watearth Inc
(#,^)
445 S Figuerora Ste 3128, Los Angeles, CA 90071
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/19/2028
 
20.7

 
20.7

 
17.9

 
0.01
%
Lewis River Golf Course, Inc.
(#,^)
3209 Lewis River Rd, Woodland, WA 98674
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/19/2043
 
491.9

 
491.9

 
547.5

 
0.17
%
C3 Capital, Inc
(#,^)
10010 N. Hampton Cove Lane, Indianapolis, IN 46236
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/19/2028
 
621.2

 
621.2

 
598.5

 
0.19
%
M&P RV LLC dba M&P RV
(#,^)
10 Century Lane, Dillsburg, PA 17019
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/19/2043
 
110.7

 
110.7

 
122.3

 
0.04
%
DB Talak LLC
(#,^)
2018 SE 6th Ave, Portland, OR 97214
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/18/2043
 
149.5

 
149.5

 
157.4

 
0.05
%
E & G Enterprises LLC dba Comfort Keepers
(#,^)
220 Middle St., Franklin, VA 23851
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/18/2028
 
5.5

 
5.5

 
4.8

 
—
%
Glendale Grill Inc, Roddy Cameron, Jr & John K Symasko
(#,^)
65 Glendale St., Easthampton, MA 01027
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/17/2043
 
172.2

 
172.2

 
182.3

 
0.06
%
Pastel de Feira LLC dba Original Pastel De Feira
(#,^)
4244 Pine Ridge CT, Weston, FL 33331
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/17/2028
 
5.6

 
5.6

 
5.2

 
—
%

F-52
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Culmination Motorsports, Inc.
(#,^)
160 W 91st Ave Unit B, Anchorage, AK 99515
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2043
 
550.5

 
550.5

 
608.3

 
0.19
%
Baby's on Broadway LLC
(#,^)
47 E Broadway, Little Falls, MN 56345
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/14/2028
 
46.0

 
46.0

 
43.0

 
0.01
%
L&M Equipment, Inc
(#,^)
Mile 2.5 Alaska Peninsula Hwy, Naknek, AK 99633
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/14/2043
 
1,229.8

 
1,229.8

 
1,314.4

 
0.41
%
Innovim LLC
(#,^)
6401 Golden Triangle Dr. #200, Greenbelt, MD 20770
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/14/2028
 
115.0

 
115.0

 
99.4

 
0.03
%
J & C Garcia LLC
(#,^)
26 Broad St., Alexander City, AL 35010
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/14/2028
 
68.1

 
68.1

 
60.4

 
0.02
%
QBS, LLC dba Sterling Optical Exton
(#,^)
211 W Lincoln Hwy, Exton, PA 19341
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/14/2028
 
74.7

 
74.7

 
65.3

 
0.02
%
Rihahn Inc. dba RDBL, Inc
(#,^)
1397 McGuire Rd, Lamar, AR 72846
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
9/14/2028
 
126.2

 
126.2

 
117.5

 
0.04
%
Underground Productions LLC dba 31 Escape
(#,^)
1731 Decatur Hwy, Fultandale, AL 35068
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/13/2043
 
97.2

 
97.2

 
108.2

 
0.03
%
Brewster Marketplace Pharmacy & Hardware, LLC
(#,^)
811 Old Hwy 97, Brewster, WA 98812
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/13/2028
 
80.5

 
80.5

 
69.6

 
0.02
%
Innovative Network Solutions Inc
(#,^)
31567 West 10 Mile Rd, Farmington Hills, MI 48336
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2028
 
113.9

 
113.9

 
101.9

 
0.03
%
TPE Midstream LLC, Dasahm Company, S & S Ventures LLC and TPE Supply L
(#,^)
7799 South Regency Drive, Tulsa, OK 74131
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/13/2028
 
243.8

 
243.8

 
228.9

 
0.07
%
Rancho Paving, Inc
(#,^)
339 Cypress Lane, El Cajon, CA 92020
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/10/2028
 
172.5

 
172.5

 
170.4

 
0.05
%
Pool Guard of LA
(#,^)
10866 Washington Blvd, Apt. #24, Culver City, CA 90232
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/7/2028
 
20.7

 
20.7

 
18.0

 
0.01
%
Dr. G's Urgent Care LLC
(#,^)
1425 S Congress Ave, Delray Beach, FL 33445
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/7/2028
 
20.7

 
20.7

 
18.0

 
0.01
%
Pelican Executives Suites, LLC
(#,^)
2200 Colorado Ave Ste 131, Santa Monica, CA 90404
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/7/2028
 
285.7

 
285.7

 
247.0

 
0.08
%
NY Tent, LLC dba Tent Company of New York LLC, NY Tent Parent LLC, Dav
(#,^)
140141 Lakeland Ave, Bohemia, NY 11716
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/7/2028
 
296.7

 
296.7

 
281.1

 
0.09
%
MurlinComputerCompany LLC dba Murlin Computer,
(#,^)
3000 Erika Ave, Sedalia, MO 65301
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/7/2028
 
14.3

 
14.3

 
12.8

 
—
%
Asheville Spine and Nerve Institute PC
(#,^)
190 Broadway St., Ste 205, Asheville, NC 28801
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/7/2043
 
89.6

 
89.6

 
98.7

 
0.03
%

F-53
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Trolley Express Philly, Inc dba Shuttlebee &Honeybee Transportation LL
(#,^)
3401 Market St. Ste 200, Philadelphia, PA 19104
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/6/2028
 
11.7

 
11.7

 
10.7

 
—
%
LACCRB LLC dba PostNet
(#,^)
3250 Retail Dr Ste 120, Carson City, NV 89706
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/30/2028
 
14.0

 
14.0

 
12.3

 
—
%
Living Centers Inc. dba Veranda House Senior Living
(#,^)
5129 E 5th St, Katy, TX 77493
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
8/31/2043
 
414.4

 
414.4

 
461.2

 
0.14
%
National Stone LTD and NSI Group Inc
(#)
804-810 W Shady Grove Rd, Grand Prairie, TX 75050
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
8/31/2044
 
270.0

 
270.0

 
301.7

 
0.09
%
XL Soccer World Orlando. LLC, XL Soccer World Saco LLC, XL Sports Worl
(#,^)
825 Courtland St., Orlando, FL 32804
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/30/2043
 
442.1

 
442.1

 
492.1

 
0.15
%
Stat Constructor L.P
(#,^)
9573 US Hwy 220, Stoneville, NC 27048
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/30/2028
 
95.2

 
95.2

 
98.8

 
0.03
%
Extreme Engineering, Inc.
(#,^)
598 Oliver Dr, Troy, MI 48084
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/29/2028
 
114.7

 
114.7

 
100.2

 
0.03
%
Kotyark LLC dba Gibsonton Motel
(#,^)
11545 US Hwy 41S, Gibsonton, FL 33534
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
8/29/2043
 
81.1

 
81.1

 
90.2

 
0.03
%
ARVAmethod LLC
(#,^)
516 N Ogden Ave #150, Chicago, IL 60642
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/29/2028
 
2.2

 
2.2

 
1.9

 
—
%
Greenfield Hill Wines & Spirits, LLC
(#,^)
65 Hillside Rd, Fairfield, CT 06824
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
8/29/2028
 
84.1

 
84.1

 
73.6

 
0.02
%
Graphish Studio, Inc.
(#,^)
231 Main St., Stamford, CT 06901
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2028
 
6.9

 
6.9

 
5.9

 
—
%
JFK Transportation Inc
(#,^)
4 Mechanic St, Natick, MA 01760
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/28/2028
 
147.9

 
147.9

 
130.7

 
0.04
%
Atlas Geo-Constructors LLC
(#,^)
3466 Thomasville Rd, Winston-Salem, NC 27107
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/24/2028
 
68.5

 
68.5

 
68.2

 
0.02
%
Montana Life Group, LLC
(#,^)
8 N 9th Ave, Bozeman, MT 59715
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/24/2028
 
6.9

 
6.9

 
5.9

 
—
%
Finn & Emma LLC
(#,^)
1275 Bloomfield Ave Bldg 5 Unit 28B, Fairfield, NJ 07004
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
8/24/2028
 
113.4

 
113.4

 
98.1

 
0.03
%
Wearware Inc dba FlyWire Cameras
(#,^)
2204 Blackmoor Park Lane, Lexington, KY 40509
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/24/2028
 
20.6

 
20.6

 
18.2

 
0.01
%
Evans and Paul LLC, Evans & Paul Unlimited Corp
(#,^)
140 Dupont St., Plainview, NY 11803
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/24/2028
 
79.9

 
79.9

 
71.5

 
0.02
%
Zash LLC dba Papa Murphy's take 'N' Bake Pizza
(#,^)
2303 White Bear Ave, Maplewood, MN 55025
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/23/2028
 
38.6

 
38.6

 
35.6

 
0.01
%
Buffalo Biodiesel Inc.
(#,^)
225 Sawyer Ave, Tonawanda, NY 14150
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/21/2028
 
1,134.1

 
1,134.1

 
1,125.0

 
0.35
%

F-54
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
 Ginekis Enterprises, Inc dba Locanda Veneta
(#,^)
8638 W Third St., Los Angeles, CA 90048
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/20/2028
 
78.5

 
78.5

 
68.3

 
0.02
%
Wilkie J. Stadeker DDS
(#,^)
123 Marble Mill Rd, Ste B, Marietta, GA 30060
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/17/2028
 
38.8

 
38.8

 
33.6

 
0.01
%
Geo Tek Alaska, Inc
(#,^)
2756 Commercial Drive, Anchorage, AK 99501
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/17/2044
 
125.9

 
125.9

 
133.8

 
0.04
%
ATI Jet, Inc.
(#,^)
7007 Boeing Drive, El Paso, TX 79925
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/16/2028
 
196.7

 
196.7

 
187.6

 
0.06
%
Lewins Law, P.C.
(#,^)
7920 Belt Line Rd Ste 650, Dallas, TX 75254
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/16/2028
 
16.4

 
16.4

 
14.2

 
—
%
GS Bath Inc
(#,^)
5335 E Kaviland Ave, Fresno, CA 93725
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/15/2028
 
525.3

 
525.3

 
520.5

 
0.16
%
Pamletics LLC dba F45
(#,^)
22015 IH 10 West, San Antonio, TX 78257
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/14/2028
 
40.1

 
40.1

 
36.7

 
0.01
%
L.A. Insurance Agency GA 10 LLC
(#,^)
6655 Tara Blvd Ste 401, Jonesboro, GA 30236
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/10/2028
 
10.3

 
10.3

 
8.9

 
—
%
David D. Sullivan dba DMS Construction
(#,^)
6400 Charwood Place, Bakersfield, CA 93306
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/9/2028
 
12.3

 
12.3

 
10.7

 
—
%
Crystal Shores Inc. dba Shorewood Laundromat
(#,^)
700 West Jefferson St., Shorewood, IL 60404
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/9/2028
 
20.4

 
20.4

 
18.5

 
0.01
%
Palanuk & Associates, Inc.dba Wolfpk
(#,^)
28110 SE Fern Drive, Boring, OR 97009
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/8/2028
 
93.8

 
93.8

 
81.9

 
0.03
%
Mercedes Cab Company, Inc
(#,^)
35 Alden St., Providence Town, MA 02657
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/7/2028
 
118.8

 
118.8

 
106.6

 
0.03
%
CJNR, LLC
(#,^)
208 East Main St., Elma, WA 98541
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
8/7/2043
 
119.6

 
119.6

 
133.2

 
0.04
%
Ron's Pool and Spa Services LLC
(#,^)
1419 NE 30th St., Pompano, FL 33064
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/3/2028
 
3.4

 
3.4

 
3.0

 
—
%
20th Century Lanes, Inc dba West Seattle Bowl
(#,^)
4505 39 Ave SW, Seattle, WA 98116
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/3/2028
 
102.8

 
102.8

 
100.6

 
0.03
%
Alma Jacobsen,ODD Family Eye Care & Contact Lens LLC
(#,^)
1700 Nottingham Way Ste 12A, Hamilton, NJ 08619
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
8/3/2028
 
55.1

 
55.1

 
48.5

 
0.02
%
Millwork Unlimited, Incorporated
(#,^)
8264 Pine Cay Rd, Wellington, FL 33414
 
Wholesale Electronic Markets and Agents and Brokers
 
Term Loan
 
Prime plus 2.75%
 
8/2/2028
 
6.9

 
6.9

 
5.9

 
—
%
Accel Compression Inc., Accel Workover Services, Inc
(#,^)
4500 S Country Rd, Odessa, TX 79765
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
8/1/2043
 
305.8

 
305.8

 
316.8

 
0.10
%
Samy Optical LLC dba Site for Sore Eyes
(#,^)
1350 Travis Blvd Ste 1507A, Fairfield, CA 94533
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/1/2028
 
101.7

 
101.7

 
88.0

 
0.03
%
Accel Compression Inc., Accel Workover Services Inc. dba Mica Tool & T
(#,^)
4500 S. Country Rd 1310, Odessa, TX 79765
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
8/1/2028
 
422.7

 
422.7

 
409.5

 
0.13
%

F-55
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
CSL Services Inc
(#,^)
7905 Browning Rd, Ste.312,314,316, Pennsauken, NJ 08109
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/27/2028
 
496.8

 
496.8

 
460.0

 
0.14
%
Nunez Enterprises Corporation dba La Casa
(#,^)
3330 Piedmont RD NE, Atlanta, GA 30305
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/26/2028
 
7.5

 
7.5

 
6.5

 
—
%
Sandlot Sports Inc dba Play it Again Sports
(#,^)
814 N Main St., Leominster, MA 01453
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
7/26/2028
 
17.0

 
17.0

 
14.7

 
—
%
Summitsoft Corporation
(#,^)
11105 Mockingbird Drive, Omaha, NE 68137
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
7/26/2028
 
117.4

 
117.4

 
102.0

 
0.03
%
Relevant Elephant ,LLC
(#,^)
ON320 Woodvale St, Winfield, IL 60190
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/25/2028
 
8.2

 
8.2

 
7.1

 
—
%
Fitness Central, Inc dba Fitness Central
(#,^)
4335 PA Route 309, Schnecksville, PA 18078
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
7/25/2028
 
56.7

 
56.7

 
50.3

 
0.02
%
HAVL Enterprises Inc dba FedEx
(#,^)
1447 Lake George Drive, Lake Mary, FL 32746
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
7/24/2028
 
17.8

 
17.8

 
18.5

 
0.01
%
Top Shelf Towing and Road Service, LLC
(#,^)
25 Sycamore St., Carnegie, PA 15106
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/24/2028
 
11.9

 
11.9

 
10.4

 
—
%
TR Nails, LLC dba Simple Nails
(#,^)
158 Great Rd, Bedford, MA 01730
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
7/20/2028
 
56.6

 
56.6

 
49.0

 
0.02
%
ZA Trucking LLC
(#,^)
5945 York Way, East Lansing, MI 48823
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/17/2028
 
9.3

 
9.3

 
8.8

 
—
%
674 Club LLC
(#,^)
674 N Orleans, Chicago, IL 60654
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/17/2043
 
256.9

 
256.9

 
285.9

 
0.09
%
Mother's Cantina LLC dba Mother's Cantina
(#,^)
2810 Philadephia Ave Unit #10, Ocean City, MD 21842
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/13/2028
 
62.4

 
62.4

 
55.1

 
0.02
%
Smart-tel Communications LLC
(#,^)
9720 W. Colfax Ave Ste 100, Lakewood, CO 80215
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/13/2028
 
20.4

 
20.4

 
21.2

 
0.01
%
HQTRONICS LLC
(#,^)
10135 S Roberts Rd Ste 209, Palos Hills, IL 60465
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/13/2028
 
56.7

 
56.7

 
49.0

 
0.02
%
Smoove Move Productions, LLC dba Smoove Move Productions
(#,^)
3932 North 16th St., Omaha, NE 68110
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
7/12/2028
 
9.6

 
9.6

 
9.9

 
—
%
Talent Logistix, LLC, Pinpoint Staffing LLC & ITC 2.0 LLC
(#,^)
6350 Shadeland Ave, Indianpolis, IN 46220
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/3/2028
 
56.7

 
56.7

 
51.0

 
0.02
%
Vital Inspection Professionals, Inc. dba VIP
(#,^)
180 Airpark Industrial Rd, Alabaster, AL 35007
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/3/2028
 
282.4

 
282.4

 
272.0

 
0.08
%
Deal to Win Inc
(#,^)
575 Underhill Blvd Ste 216, Syosset, NY 11791
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/3/2028
 
113.4

 
113.4

 
98.1

 
0.03
%

F-56
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
US Cargo Express, LLC
(#,^)
4735 22 Mile Rd, Utica, MI 48317
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/2/2043
 
86.9

 
86.9

 
96.8

 
0.03
%
M J Losito Electrical Contractor's, Inc
(#,^)
98 Wooster St., Bethel, CT 06801
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2028
 
46.7

 
46.7

 
43.6

 
0.01
%
Bio-Haz Solutions, Inc
(#,^)
23 Tonolli Rd, Nesquehoning, PA 18240
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2029
 
236.8

 
236.8

 
239.9

 
0.07
%
Bio-Haz Solutions, Inc.
(#,^)
23 Tonoli Rd, Nesquehoning, PA 18240
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
5/29/2044
 
365.2

 
365.2

 
382.2

 
0.12
%
Critter Cabana, LLC dba Critter Cabana
(#,^)
516 East Main St., Newberg, OR 97132
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/28/2028
 
75.5

 
75.5

 
69.2

 
0.02
%
Corptek Solutions LLC
(#,^)
2363 N Hwy 287 Ste 111, Mansfield, TX 76063
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2028
 
42.8

 
42.8

 
39.2

 
0.01
%
Julie Cooper-Bierman dba Forever Shopper
(#,^)
7435 Piute Creek Dr, Corona, CA 92881
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/27/2028
 
14.5

 
14.5

 
13.2

 
—
%
National Dredging Services of North Florida, Inc.
(#,^)
1537 Northwest Main Blvd., Lake City, FL 32055
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/27/2028
 
48.2

 
48.2

 
50.5

 
0.02
%
Darnoc Enterprises Inc, Setira Paul Inc dba Conrad's Famous Bakery, In
(#,^)
299 Utica Ave, Brooklyn, NY 11203
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/27/2043
 
347.4

 
347.4

 
385.0

 
0.12
%
InUSA Ventures, Inc
(#,^)
508 Hyacinthus Court, San Ramon, CA 94582
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/27/2028
 
45.1

 
45.1

 
41.2

 
0.01
%
National Dredging Services of North Florida, Inc.
(#,^)
1537 Northwest Main Blvd., Lake City, FL 32055
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/27/2043
 
28.3

 
28.3

 
32.1

 
0.01
%
RLW4 Builders LLC
(#,^)
152 Tuckahoe Lane, Southhampton, NY 11968
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
6/27/2043
 
980.0

 
980.0

 
1,112.0

 
0.35
%
Nick's Country Kitchen, LLC
(#,^)
3 Flanders RD, Building #1, Bethlehem, CT 06751
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/27/2028
 
20.3

 
20.3

 
18.8

 
0.01
%
Bengals, Inc. dba Royal Liquor Mart
(#,^)
3714 E State St., Rockford, IL 61108
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/26/2043
 
104.1

 
104.1

 
113.1

 
0.04
%
Peter Thomas Roth Labs LLC, & June Jacobs Labs, LLC,
(#,^)
460 Park Ave, Fl 16, New York, NY 10022
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
6/26/2028
 
833.7

 
833.7

 
783.0

 
0.24
%
Sun Pools, Inc
(#,^)
130 Holiday LN, Albany, KY 42602
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/25/2043
 
299.9

 
299.9

 
308.5

 
0.10
%
DPF Filters Inc.
(#,^)
2832 Golden State Blvd., Madera, CA 93637
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/25/2028
 
62.0

 
62.0

 
58.0

 
0.02
%
Sun Pools, Inc dba Sun Fiberglass Pools
(#,^)
130 Holiday Lane, Albany, KY 42602
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/25/2028
 
704.2

 
704.2

 
665.2

 
0.21
%
Mr. Lube, Inc
(#,^)
721 E Westpoint Drive., Wasilla, AK 99654
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/22/2043
 
654.6

 
654.6

 
698.2

 
0.22
%
Mr. Lube, Inc.
(#,^)
721 E. West Point Drive, Wasilla, AK 99654
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/22/2028
 
542.6

 
542.6

 
534.1

 
0.17
%

F-57
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
The Desert House Assisted Living ,LLC dba The Desert House Assisted Li
(#,^)
11055 E Grove St, Mesa, AZ 85208
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
6/22/2043
 
77.1

 
77.1

 
85.5

 
0.03
%
Sushi Prime, LLC and Vasilia Investments
(#,^)
32 SE 2nd Ave, Delray Beach, FL 33444
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/22/2028
 
248.3

 
248.3

 
238.5

 
0.07
%
Judy E. Moncrief C.P.A LLC
(#,^)
910 Pierremont Rd, Ste311, Shreveport, LA 71106
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2028
 
8.3

 
8.3

 
7.6

 
—
%
Martha Beauty Supply And Braiding, Inc.
(#,^)
538 E Boughton Rd, Bolingbrook, IL 60440
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2043
 
138.8

 
138.8

 
157.3

 
0.05
%
Independent Life LLC
(#,^)
4955 S Durango Dr. #124, Las Vegas, NV 89113
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/21/2028
 
112.9

 
112.9

 
103.4

 
0.03
%
York Woods Tree Service, LLC dba York Woods Tree and Products, LLC
(#,^)
300 Harold Dow Hwy, Elliot, ME 03903
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/21/2043
 
238.6

 
238.6

 
257.7

 
0.08
%
York Woods Tree Service, LLC dba York Woods Tree and Products, LLC
(#,^)
300 Harold Dow Hwy, Eliot, ME 03903
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/21/2028
 
128.4

 
128.4

 
128.2

 
0.04
%
Lilo Holdings LLC
(#,^)
933 Port Reading Ave, Port Reading, NJ 07064
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/20/2028
 
16.9

 
16.9

 
15.8

 
—
%
Colovic Hackettstown Dairy LLC
(#,^)
22 Route 57, Hackettstown, NJ 07840
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/19/2043
 
269.9

 
269.9

 
304.6

 
0.09
%
Mid America Motorworks, Inc and Yager Holdings L.P
(#,^)
2900 North 3rd St., Effingham, IL 62401
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/19/2043
 
494.4

 
494.4

 
560.4

 
0.17
%
Jones Roger Sherman Inn, Inc.
(#,^)
195 Oenoke Ridge, New Canaan, CT 06840
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/19/2028
 
395.7

 
395.7

 
414.3

 
0.13
%
Schumacker Recreation, LLC
(#,^)
5325 S University Drive, Davie, FL 33328
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/18/2028
 
135.2

 
135.2

 
141.5

 
0.04
%
Allen Theatre and Back Stage Cafe LLC
(#,^)
36 East. Main St., Annville, PA 17003
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
6/18/2043
 
123.5

 
123.5

 
137.8

 
0.04
%
Softrol Systems Inc dba Softrol Systems
(#,^)
1100 Northpoint Pkwy SE, Acworth, GA 30102
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/15/2028
 
794.7

 
794.7

 
736.6

 
0.23
%
Oil Palace Inc.
(#,^)
10408 Hwy 64 E, Tyler, TX 75707
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/15/2043
 
142.2

 
142.2

 
161.4

 
0.05
%
Venzix Ventures Inc. dba Venzix
(#,^)
750 Legend Oak Drive, Fountain, CO 80817
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/15/2028
 
11.9

 
11.9

 
11.9

 
—
%
Dianne Williams and Louis Williams dba Sweetlips Store
(#,^)
3870 Sweet Lips Rd, Henderson, TN 38340
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/15/2043
 
45.3

 
45.3

 
50.0

 
0.02
%
Northway Exit 29 Campground, Inc dba Adirondacks Jellystone Parks & Pa
(#,^)
4035 Blue Ridge Rd, North Hudson, NY 12855
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/15/2043
 
211.9

 
211.9

 
240.2

 
0.07
%

F-58
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Barrett Appliance Distributors Inc. dba Barrett Appliance and Home Pr
(#,^)
1760 Swan Lake Rd, Bossier City, LA 71111
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/14/2043
 
614.2

 
614.2

 
641.2

 
0.20
%
Barrett Appliance Distributors, Inc dba Barrett Appliance and Home Pr
(#,^)
1760 Swan Lake Rd, Bossier City, LA 71111
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/14/2028
 
468.7

 
468.7

 
450.0

 
0.14
%
E & J Sims Co. LLC
(#,^)
28 Broad St., Bloomfield, NJ 07003
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/14/2028
 
45.1

 
45.1

 
42.6

 
0.01
%
Tele Tax Express Inc
(#,^)
166 Getty Ave, Paterson, NJ 07503
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/14/2028
 
20.3

 
20.3

 
20.4

 
0.01
%
Team Sandy Blanton Realty, Inc
(#,^)
1225 West Gregory St, Pensacola, FL 32502
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
6/14/2043
 
95.6

 
95.6

 
101.3

 
0.03
%
Mastiff Studios LLC
(#,^)
2919 West Colorado Ave, Colorado Springs, CO 80904
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/13/2043
 
41.9

 
41.9

 
47.1

 
0.01
%
Ciasom LLC dba Mosaic
(#,^)
1040-1042 Richard Ave, Santa Clara, CA 95050
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/11/2028
 
162.2

 
162.2

 
149.3

 
0.05
%
Skyways LTD,Jet 60 LLC,Mendean Jonath, Inc,Jet AOG, Inc & Jonathan Men
(#,^)
426 15th St. NW, Huron, SD 57350
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/8/2043
 
370.6

 
370.6

 
396.9

 
0.12
%
Beyond Grooming LLC and Michelle McWatters
(#,^)
1200 Old Martindale Rd, San Marcos, TX 78666
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/8/2043
 
42.1

 
42.1

 
47.3

 
0.01
%
Camp K-9 Pet Resort & Spa, Inc.
(#,^)
18501 Le Claire Ave, Tinley Park, IL 60478
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/8/2028
 
7.4

 
7.4

 
6.9

 
—
%
Icebox Cafe, L.C. and Icebox Cafe at Doral,LLC
(#,^)
1855 Purdy Ave, Miami Beach, FL 33139
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/8/2028
 
713.4

 
713.4

 
664.6

 
0.21
%
Applied Behavioral Consulting, Inc
(#,^)
422 Blooming Grove Tpke, New Windsor, NY 12553
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
6/7/2043
 
49.0

 
49.0

 
54.8

 
0.02
%
H S Corporation dba Lake Anna Lodge
(#,^)
5152 Courthouse Rd, Spotsylvania, VA 22551
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/7/2043
 
128.6

 
128.6

 
145.8

 
0.05
%
Anurag, LLC dba Oakwood Package Store
(#,^)
191-195 Oakwood Ave, West Hartford, CT 06107
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/6/2043
 
135.0

 
135.0

 
144.7

 
0.04
%
Sowells Consulting Engineers, LLC
(#,^)
13430 Northwest Freeway #260, Houston, TX 77040
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/6/2028
 
20.3

 
20.3

 
18.7

 
0.01
%
Hardway Inc and A F C Leasing, Inc
(#,^)
12533 S. 73rd East Place, Bixby, OK 74008
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/6/2028
 
265.0

 
265.0

 
242.5

 
0.08
%
Funtime ,LLC dba Indoor Playgrounds International
(#,^)
13200 West Foxfire Drive Ste 144, Surprise, AZ 85378
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/5/2028
 
225.4

 
225.4

 
206.5

 
0.06
%
SSD Designs LLC
(#,^)
10840 Bay Hill Club Drive, Charlotte, NC 28277
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2028
 
66.9

 
66.9

 
61.8

 
0.02
%
BTD Feed & Nutrition, LLC dba Thomaston Feed Cheshire
(#,^)
943 South Main St., Cheshire, CT 06410
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/1/2028
 
46.3

 
46.3

 
42.4

 
0.01
%

F-59
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Mastrocinque Restaurant Management Company LLC dba Santionii's Itali
(#,^)
3535 Hwy 17 Unit 14-15, Fleming Island, FL 32003
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/1/2028
 
56.5

 
56.5

 
57.5

 
0.02
%
Awan Business Management Group LLC, Awan Sign Company lLLC &Awan Promo
(#,^)
14429 South Wallin Drive, Plainfield, IL 60544
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/31/2043
 
270.8

 
270.8

 
298.3

 
0.09
%
Seraj Wireless, LLC
(#,^)
132 Madison Ave, Albany, NY 12202
 
Electronics and Appliance Stores
 
Term Loan
 
Prime plus 2.75%
 
5/31/2028
 
111.9

 
111.9

 
117.1

 
0.04
%
Brooks Seaplane Service Inc and Lunt Enterprises LLC
(#,^)
105 Northern Blvd, Coeur d'Alene, ID 83814
 
Scenic and Sightseeing Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/31/2028
 
132.3

 
132.3

 
121.1

 
0.04
%
SSMV LLC dba Burgerim
(#,^)
115 Pelham Rd, Ste 1, Greenville, SC 29615
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/30/2028
 
59.6

 
59.6

 
58.7

 
0.02
%
Eagle Aggregate Transportation, LLC
(#,^)
4401 N I-35 Ste 113, Denton, TX 76207
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/30/2028
 
78.5

 
78.5

 
74.9

 
0.02
%
Crowley Ventures, LLC
(#,^)
665 Worthington Rd, Westerville, OH 43082
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2028
 
66.8

 
66.8

 
62.0

 
0.02
%
Iloka, Inc dba New Cloud Networks
(#,^)
160 Inverness Drive W Ste 150, Englewood, CO 80112
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2028
 
223.7

 
223.7

 
215.7

 
0.07
%
Dream Spa LLC and Dream Spa Greenwich LLC
(#,^)
1220 Post Rd East, Westport, CT 06880
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2028
 
89.5

 
89.5

 
82.8

 
0.03
%
Broadalbin Properties LLC dba Broadalbin Hotel & 1854 Pub & Eatery
(#,^)
59 West Main St, Broadalbin, NY 12025
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
10/25/2043
 
199.4

 
199.4

 
226.5

 
0.07
%
Adow Pools LLC
(#,^)
393 Glenbrook Rd, Stamford, CT 06906
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2028
 
156.6

 
156.6

 
146.5

 
0.05
%
Ocean Breeze Holdings, LLC, Ocean Beach Resort LLC & Ocean Breeze LanC
(#,^)
3 Williams Ave, Mystic, CT 06355
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/25/2043
 
1,245.1

 
1,245.1

 
1,411.3

 
0.44
%
Starship, LLC dba Tint World Smyrna
(#,^)
2274 S Atlanta Rd SE, Smyrna, GA 30080
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/25/2043
 
96.6

 
96.6

 
107.9

 
0.03
%
DMA Equipment LLC
(#,^)
700 Lee St., Elk Grove Village, IL 60007
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/24/2043
 
255.7

 
255.7

 
275.6

 
0.09
%
Seaside Acupuncture LLC
(#,^)
1041 Johnnie Dodds Blvd #2C, Mt Pleasant, SC 29464
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/24/2043
 
48.9

 
48.9

 
53.6

 
0.02
%
Chem-Flotronics, Inc.
(#,^)
195 Paterson Ave, Little Falls, NJ 07424
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/22/2028
 
89.5

 
89.5

 
83.5

 
0.03
%
Yakov Levy M.D., P.C.
(#,^)
70-31 108th St., Forest Hills, NY 11375
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2028
 
32.8

 
32.8

 
30.3

 
0.01
%
Mark A Espinoza, DDS PLLC dba Central Dental Care
(#,^)
9315 N Central Ave, Phoenix, AZ 85020
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2028
 
54.6

 
54.6

 
49.9

 
0.02
%

F-60
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
JVLS LLC dba Vaccines 2 Go
(#,^)
4060 Johns Creek Parkway Ste H, Suwanee, GA 30024
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/17/2028
 
7.4

 
7.4

 
6.8

 
—
%
On Stage Enterprises LLC, On Stage Theaters Branson, LLC, On Stage Th
(#,^)
4570 W Post Rd, Ste 100, Las Vegas, NV 89118
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
5/17/2028
 
223.7

 
223.7

 
204.8

 
0.06
%
Clore Construction LLC
(#,^)
21220 FM 1420, Harlingen, TX 78550
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
5/16/2028
 
134.1

 
134.1

 
128.8

 
0.04
%
Joshua One Limited Liability Company dba Genesis Personal Fitness
(#,^)
28 North State St. Unit 100, Newtown, PA 18940
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/16/2043
 
314.4

 
314.4

 
336.4

 
0.10
%
James T. Hendel dba Autotexx Mobile Auto Repair
(#,^)
5857 Hwy 101 N, Rockmart, GA 30153
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/15/2028
 
6.7

 
6.7

 
7.0

 
—
%
Fireplace Outlet Inc
(#,^)
8216 Main St., Williamsville, NY 14221
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
5/15/2028
 
20.1

 
20.1

 
21.1

 
0.01
%
Galore Salon & Extension Lounge Inc dba Pretty Chic Hair & Lashes
(#,^)
5714 Edmondson Pike Ste 24, Nashville, TN 37211
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/14/2028
 
4.0

 
4.0

 
3.7

 
—
%
Circle and Square, Inc dba Stamford Kumon
(#,^)
50 Forest St. Ste 902, Stamford, CT 06901
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/11/2028
 
38.0

 
38.0

 
34.8

 
0.01
%
Bote Virginia Beach, Inc. dba Bote Virginia Beach
(#,^)
1080 Nimmo Pkwy Ste 104, Virginia Beach, VA 23454
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
5/11/2028
 
10.1

 
10.1

 
9.3

 
—
%
Daniel Woodward, DC PLLC dba Doc's Body Shop
(#,^)
3084 N Goliad St., Ste 114, Rockwall, TX 75087
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/11/2028
 
36.8

 
36.8

 
33.7

 
0.01
%
Adhara, LLC
(#,^)
18123 E Appleway Ave, Spokane Valley, WA 99016
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/11/2043
 
42.9

 
42.9

 
47.0

 
0.01
%
Baby Gentry's Childcare & Learning Academy
(#,^)
4203 Shenandoah Drive, Dayton, OH 45417
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/10/2028
 
10.1

 
10.1

 
9.3

 
—
%
P & M Entertainment, LLC dba Luv 2 Play
(#,^)
35 Lafayette Rd, Ste 8, North Hampton, NH 03862
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/10/2028
 
108.6

 
108.6

 
103.2

 
0.03
%
Buy Gitomer Inc., Gitgo LLC.,GitGo Archives, LLC, and Jeffrey Gitomer
(#,^)
310 Arlington Ave Unit 329, Charlotte, NC 28203
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/9/2043
 
711.1

 
711.1

 
806.0

 
0.25
%
Whitetail Nurseries Inc
(#,^)
2050 S. Beltline Rd, Mesquite, TX 75181
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/9/2028
 
239.4

 
239.4

 
236.0

 
0.07
%
Oculi Entertainment Inc
(#,^)
2000 W. Magnolia Blvd, Ste 100, Burbank, CA 91506
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
5/8/2028
 
19.9

 
19.9

 
18.3

 
0.01
%
Schmaltz Operations LLC dba Companion Camp
(#,^)
3408 Castle Rock Farm Rd, Pittsboro, NC 27312
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/7/2028
 
53.7

 
53.7

 
53.0

 
0.02
%
Container Shipping, LLC
(#,^)
533 Nova Rd Ste 213B, Ormond Beach, FL 32174
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/4/2028
 
44.7

 
44.7

 
41.0

 
0.01
%

F-61
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Wilbur Standford Jr Trucking and Excavating, LLC
(#,^)
7505 North Chases Lake Rd, Watson, NY 13343
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/3/2028
 
214.8

 
214.8

 
215.6

 
0.07
%
McIntosh Trail Management Service Organization, Inc.
(#,^)
747 South Hill St., Griffin, GA 30223
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/1/2028
 
85.0

 
85.0

 
89.0

 
0.03
%
Olmsted LLC and 626 Van LLC dba Maison Yaki
(#,^)
659 Vanderbilt Ave, Brooklyn, NY 11238
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/1/2029
 
220.4

 
220.4

 
207.4

 
0.06
%
Metropolitan Solutions Inc.
(#,^)
1420 Chestnut St., Portsmouth, VA 23704
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2043
 
173.3

 
173.3

 
178.5

 
0.06
%
Brenden Kehren Development LLC
(#,^)
14689 Gemara Rd, Sparta, WI 54656
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2028
 
2.7

 
2.7

 
2.4

 
—
%
Saltamontes Tire Company, LLC
(#,^)
1955 Boston Ave, Brodgeport, CT 06604
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/30/2043
 
100.2

 
100.2

 
110.1

 
0.03
%
Corona Dance, LLC dba Huracan Dance Studio
(#,^)
480 West Main St., Stamford, CT 06902
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
4/30/2028
 
10.6

 
10.6

 
9.7

 
—
%
Sunlinc Inc
(#,^)
170 Canterbury Court, East Windsor, NJ 08520
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2028
 
8.7

 
8.7

 
7.9

 
—
%
Rory James Contracting LLC
(#,^)
33 Bennett Place, Amityville, NY 11701
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
4/27/2028
 
14.3

 
14.3

 
13.1

 
—
%
Suraj Enterprises, Inc.
(#,^)
11720 W. Airport Rd, Meadows Place, TX 77477
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/27/2028
 
277.6

 
277.6

 
271.3

 
0.08
%
Little Angels Daycare and Learning Center LLC
(#,^)
4551 Summit Boulevard, West Palm Beach, FL 33415
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/27/2043
 
157.1

 
157.1

 
178.0

 
0.06
%
Kastoria Inc. dba Bantam Pizza
(#,^)
768 Bantam Rd, Bantam, CT 06750
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/27/2028
 
13.3

 
13.3

 
12.3

 
—
%
RWT Corporation dba Welding Works
(#,^)
32 New Rd, Madison, CT 06443
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/26/2028
 
461.5

 
461.5

 
439.2

 
0.14
%
Pledge 4 Hope LLC
(#,^)
53 Bayberry Loop South, Purvis, MS 39475
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
4/26/2028
 
13.3

 
13.3

 
12.2

 
—
%
Matrix Z, LLC
(#,^)
800 SW 21st Terrace, Ft Lauderdale, FL 33312
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/26/2028
 
68.0

 
68.0

 
69.2

 
0.02
%
K&S Hardware LLC
(#,^)
1865 W Wayzata Blvd, Long Lake, MN 55356
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
4/26/2028
 
20.0

 
20.0

 
18.3

 
0.01
%
LMH Optics LLC dba Sterling Optical
(#,^)
1272 Smallwood Dr West, Waldorf, MD 20603
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/26/2028
 
44.4

 
44.4

 
40.7

 
0.01
%
RWT Corporation dba Welding Works
(#,^)
32 New Rd, Madison, CT 06443
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/26/2043
 
207.8

 
207.8

 
215.1

 
0.07
%
Joe & Sons Service, Inc
(#,^)
855 Atwood Ave, Cranston, RI 02920
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/24/2028
 
100.0

 
100.0

 
104.6

 
0.03
%
Spitnale's Garage LLC
(#,^)
3761 Mahoning Ave, Youngstown, OH 44515
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2043
 
59.0

 
59.0

 
64.3

 
0.02
%

F-62
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Just for Boats LLC
(#,^)
459 Dupre Rd, McClellanville, SC 29458
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2043
 
17.2

 
17.2

 
19.4

 
0.01
%
Nando LLC dba Tall Timbers Banquet and Conference Center
(#,^)
13831 National Rd SW, Reynoldsburg, OH 43068
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/20/2028
 
18.0

 
18.0

 
16.9

 
0.01
%
Rosemarie Products Company LLC
(#,^)
5400 Crooked Tree Drive, Mason, OH 45040
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
4/18/2028
 
13.3

 
13.3

 
12.2

 
—
%
James L Shoemaker APCC
(#,^)
221 W Judge Perez Drive, Chalmette, LA 70043
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/18/2028
 
14.3

 
14.3

 
13.1

 
—
%
A New Dawn Psychotherapy Associates, LLC
(#,^)
308 E Broad St., Bethlehem, PA 18018
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/18/2043
 
85.5

 
85.5

 
91.3

 
0.03
%
Veterinary Preventive Care, LLC
(#,^)
945 Riverview Ct, Xenia, OH 45385
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/18/2028
 
41.5

 
41.5

 
39.3

 
0.01
%
Means Enterprises LLC
(#,^)
4150 Legacy Drive N Ste 412, Frisco, TX 75034
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
4/18/2028
 
6.7

 
6.7

 
6.2

 
—
%
Southern HVAC LLC
(#,^)
119 Ouachita 212, Camden, AZ 71701
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/17/2043
 
22.0

 
22.0

 
23.3

 
0.01
%
Southern Oaks Athletic Club, LLC
(#,^)
15253 Shenandoah Ave, Baton Rouge, LA 70817
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/17/2043
 
358.7

 
358.7

 
400.5

 
0.12
%
Southern HVAC LLC
(#,^)
119 Ouachita 212, Camden, AR 71701
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/17/2028
 
35.2

 
35.2

 
34.4

 
0.01
%
1301 Starks Inc.
(#,^)
1301 West Atkinson Ave, Milwaukee, WI 53206
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/16/2028
 
20.0

 
20.0

 
20.7

 
0.01
%
Patricia A. Freeman & Samuel C. Freeman dba Teenas Pizza
(#,^)
35 E Main St., Pekin, IN 47165
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/13/2043
 
42.5

 
42.5

 
46.5

 
0.01
%
Precision Components Group Inc
(#,^)
190 Doty Circle, West Springfield, MA 01089
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/11/2028
 
20.0

 
20.0

 
19.7

 
0.01
%
Sexy Nails Center LLC
(#,^)
57 Passaic St., Garfield, NJ 07026
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/10/2043
 
197.9

 
197.9

 
221.7

 
0.07
%
Mark Baker
(#,^)
1653 Evalie Dr, Fairfield, OH 45014
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/9/2028
 
10.7

 
10.7

 
10.1

 
—
%
Innovation Transport LLC
(#,^)
1 International Blvd, Ste 400, Mahwah, NJ 07495
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/6/2028
 
45.5

 
45.5

 
44.9

 
0.01
%
Newsome Mobile Notary LLC
(#,^)
8153 12th Ave SW, Seattle, WA 98106
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/5/2028
 
4.7

 
4.7

 
4.3

 
—
%
Shree Lakshminarayyn Grocery Stores LLC
(#,^)
3307 Charles St., Rockford, IL 61108
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
4/5/2043
 
117.3

 
117.3

 
129.2

 
0.04
%
Bean City Bar and Grill LLC
(#,^)
N 2505 Bean City Rd, New London, WI 54961
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/4/2043
 
80.8

 
80.8

 
90.5

 
0.03
%
Alaska Industrial Paint LLC
(#,^)
229 Whitney Rd, Unit B, Anchorage, AK 99501
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/30/2043
 
217.7

 
217.7

 
239.1

 
0.07
%

F-63
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Fifth Wheel Truck Stop 001
(#,^)
3767 S Golden State Blvd, Fresno, CA 93725
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/30/2043
 
1,126.5

 
1,126.5

 
1,188.2

 
0.37
%
Alaska Industrial Paint LLC
(#,^)
229 Whitney Rd, Unit B, Anchorage, AK 99501
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028
 
110.1

 
110.1

 
112.5

 
0.03
%
Michael S Brown Physical Therapy, P.C
(#,^)
300 Hempstead Tpke Ste. 3 & 4, Hempstead, NY 11552
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028
 
89.4

 
89.4

 
81.9

 
0.03
%
Romancing the Stone
(#,^)
140 Centre of New England Blvd, Coventry, RI 02816
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/30/2043
 
340.3

 
340.3

 
369.3

 
0.11
%
B&C Texas Leasing Inc.,M & W Hot Oill, Inc
(#,^)
8124 Sprague Rd, Odessa, TX 79764
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2043
 
263.5

 
263.5

 
281.3

 
0.09
%
Master Roofing and Siding Inc.
(#,^)
25 Robert Pitt Dr Ste 213, Monsey, NY 10952
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028
 
233.8

 
233.8

 
214.0

 
0.07
%
Boulevard Books Inc.
(#,^)
1195 Castleton Ave, Staten Island, NY 10310
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/30/2043
 
87.1

 
87.1

 
98.8

 
0.03
%
GQ Investments,LLC
(#,^)
5772 Miami Lakes Drive East, Miami, FL 33014
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028
 
185.7

 
185.7

 
173.4

 
0.05
%
B&C Texas Leasing Inc and M&W Hot Oil, Inc.
(#,^)
8124 Sprague Rd, Odessa, TX 73764
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028
 
864.6

 
864.6

 
854.1

 
0.27
%
Payne's Environmental Services LLC
(#,^)
5617 Causeway Blvd, Tampa, FL 33619
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028
 
200.0

 
200.0

 
196.1

 
0.06
%
Technical Ordnance Solutions,LLC
(#,^)
9950 Business Cir. Ste 13, Naples, FL 34112
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2028
 
1,138.5

 
1,138.5

 
1,049.3

 
0.33
%
America's Little Leaders Academy, Inc
(#,^)
2570 NW 152nd Terrace, Opa-Locka, FL 33054
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/30/2043
 
22.0

 
22.0

 
24.4

 
0.01
%
Kaz Wellness, LLC dba Grounded Wellness Center
(#,^)
104 Clover Court, Bartlett, IL 60103
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2028
 
14.0

 
14.0

 
13.4

 
—
%
Hot Shot Services, Inc and TFB, Ltd Co
(#,^)
4111 Ellison St. NE, Albuquerque, NM 87109
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2043
 
390.4

 
390.4

 
442.5

 
0.14
%
Lou & Choo Enterprises Inc.
(#,^)
2101 W Hunting Park Ave, Philadelphia, PA 19140
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/28/2044
 
105.8

 
105.8

 
113.1

 
0.04
%
Cartwright Termite & Pest Control Inc. and Cartwright Termite &Pest Co
(#,^)
1376 Broadway, El Cajon, CA 92021
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/28/2028
 
205.3

 
205.3

 
199.9

 
0.06
%
Corning Lumber Company Inc & Frank R Close & Son Inc dba True Valley C
(#,^)
111 E. Laurel St., Willows, CA 95988
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/28/2028
 
77.2

 
77.2

 
80.7

 
0.03
%
Clancy 15 LLC and Allied Molded Products LLC
(#,^)
1145 13th Ave East, Palmetto, FL 34221
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2043
 
210.3

 
210.3

 
223.7

 
0.07
%
Clancy 15 LLC and Allied Molded Products LLC
(#,^)
1145 13th Ave E, Palmetto, FL 34221
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2028
 
136.7

 
136.7

 
134.0

 
0.04
%

F-64
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Montage Mountain Resorts, LP
(#,^)
1000 Montage Mountain Rd, Scranton, PA 18505
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/28/2043
 
1,220.0

 
1,220.0

 
1,382.9

 
0.43
%
K.C. Communications, Inc.
(#,^)
2715 Saturn St., Brea, CA 92821
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
3/27/2028
 
55.1

 
55.1

 
57.6

 
0.02
%
Towing Professionals of Arizona Inc dba Shamrock Towing, All Valley Im
(#,^)
2801 W Osborn Rd, Phoenix, AZ 85017
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/26/2028
 
132.3

 
132.3

 
125.7

 
0.04
%
Towing Professionals of Arizona Inc dba Shamrock Towing & All Valley I
(#,^)
2801 W Osborn Rd, Phoenix, AZ 85017
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/26/2043
 
525.8

 
525.8

 
543.3

 
0.17
%
Cable Management, LLC
(#,^)
200 Pratt St., Meriden, CT 06450
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028
 
87.3

 
87.3

 
86.0

 
0.03
%
Aque Investment Group LLC
(#,^)
3838 N Sam Houston Pkwy E, Houston, TX 77032
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028
 
234.2

 
234.2

 
244.8

 
0.08
%
All Regional Recyclers of Wood LLC dba ARROW
(#,^)
104 Wooster St., Bethal, CT 06801
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028
 
115.8

 
115.8

 
113.9

 
0.04
%
Denton BioFuels LLC and Amercian BioSource, LLC
(#,^)
624 W University Dr. #359, Denton, TX 76201
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028
 
86.0

 
86.0

 
82.9

 
0.03
%
Sunshine Tents and Event Rentals LLC
(#,^)
2322 SW 58th Terrace, West Park, FL 33023
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028
 
53.2

 
53.2

 
55.6

 
0.02
%
Shweiki Media Inc dba Study Breaks Magazine
(#,^)
4954 Space Center Drive, San Antonio, TX 78218
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028
 
66.2

 
66.2

 
68.7

 
0.02
%
New York Label & Box Corp
(#,^)
50 Oval Drive, Islandia, NY 11749
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/23/2043
 
1,220.0

 
1,220.0

 
1,330.7

 
0.41
%
Sofasco, Inc
(#,^)
182 Garber Lane, Winchester, VA 22602
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/23/2043
 
97.6

 
97.6

 
103.1

 
0.03
%
Kajun Martial Arts LLC
(#,^)
36546 Mission St., Prairieville, LA 70769
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028
 
19.9

 
19.9

 
18.5

 
0.01
%
GeoTek Alaska, Inc
(#,^)
2756 Commercial Drive, Anchorage, AK 99501
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2043
 
829.6

 
829.6

 
906.9

 
0.28
%
RTSP Union LLC
(#,^)
2438 Route 22 East, Union, NJ 07083
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
9/20/2028
 
1,107.2

 
1,107.2

 
1,071.5

 
0.33
%
Rexco Foods LLC dba Papa John's
(#,^)
18640 Fm 1488 Ste C, Magnolia, TX 77354
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/20/2028
 
37.5

 
37.5

 
34.3

 
0.01
%
Cest Chic Concepts, LLC dba Salon Cest Chic
(#,^)
15231 Hall Station Rd Unit 104, Bowie, MD 20721
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/19/2028
 
9.9

 
9.9

 
9.3

 
—
%
Petroleum Equipment & Services, Inc
(#,^)
5631 Silverado Way Unit G, Anchorage, AK 99518
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
3/16/2028
 
220.6

 
220.6

 
230.5

 
0.07
%
Camerabots Media, LLC
(#,^)
4501 Ford Ave Ste 207, Alexandria, VA 22302
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
3/16/2028
 
13.3

 
13.3

 
12.4

 
—
%

F-65
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Bear Bones, Inc.
(#,^)
43 Libson St., Lewiston, ME 04240
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/15/2043
 
22.0

 
22.0

 
24.5

 
0.01
%
Rojenco II,Inc.
(#,^)
4357 Shore Drive, Virginia Beach, VA 23455
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/15/2043
 
75.3

 
75.3

 
83.2

 
0.03
%
Rojenco, Inc. dba Buggy Bathe Auto Wash Lube & Detail Shoppe
(#,^)
2217 Richmond Rd, Williamsburg, VA 23188
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/15/2043
 
506.5

 
506.5

 
559.2

 
0.17
%
CTD Operations Inc
(#,^)
219 Saint Nazaire Rd STE G, Broussard, LA 70518
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2028
 
58.7

 
58.7

 
54.6

 
0.02
%
Rojenco II, Inc.
(#,^)
4357 Shore Drive, Virginia Beach, VA 23455
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/15/2043
 
392.8

 
392.8

 
433.6

 
0.13
%
Rojenco, Inc. dba The Buggy Bathe Auto Wash Lube & Detail Shoppe
(#,^)
2217 Richmond Rd, Williamsburg, VA 23188
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/15/2043
 
75.3

 
75.3

 
83.2

 
0.03
%
Summit Insights Group LLC
(#,^)
19 Briant Parkway, Summit, NJ 07901
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/14/2028
 
40.0

 
40.0

 
36.5

 
0.01
%
Dante Ultimate Cleaning Service LLC
(#,^)
16969 River Park Dr, Covington, LA 70345
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/9/2028
 
9.0

 
9.0

 
8.7

 
—
%
SRG Waterfront LLC
(#,^)
88 District Square SW, Washington, DC 20005
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/9/2028
 
264.7

 
264.7

 
245.0

 
0.08
%
2b Mom Inc dba Mom's the Word Maternity
(#,^)
3150 18th St., Ste 435, San Francisco, CA 94110
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
3/9/2028
 
85.9

 
85.9

 
78.6

 
0.02
%
Bee Kidz Funzone Inc
(#,^)
10301 Southern Blvd, Royal Palm Beach, FL 33411
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/9/2028
 
177.5

 
177.5

 
167.2

 
0.05
%
Integrity Machinery Moving, LLC
(#,^)
9125 North Time Oil Rd, Portland, OR 97203
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/8/2028
 
19.9

 
19.9

 
20.7

 
0.01
%
Treft Systems Inc
(#,^)
1050 Kings Hwy N Ste 107, Cherry HIll, NJ 08034
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/8/2028
 
13.2

 
13.2

 
12.2

 
—
%
Play4Fun dba Luv 2 Play
(#,^)
13722 Jamboree Rd, Irvine, CA 92602
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/7/2028
 
158.4

 
158.4

 
150.8

 
0.05
%
Unpainted Arizona, LLC dba Westside Bowl
(#,^)
2617 Mahoning Ave, Youngstown, OH 44509
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/7/2043
 
102.3

 
102.3

 
111.0

 
0.03
%
Espinoza & Salinas Group Ltd dba Credit 360 Consulting
(#,^)
17806 IH 10 Ste 300, San Antonio, TX 78257
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/2/2028
 
4.4

 
4.4

 
4.1

 
—
%
BC Bishop Enterprises LLC dba 9Round Pooler
(#,^)
105-107 Grand Central Blvd, Pooler, GA 31322
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/2/2028
 
7.4

 
7.4

 
6.9

 
—
%
Stepping Stones Childrens Academy
(#,^)
720 Rancho Del Norte Drive, Las Vegas, NV 89031
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/2/2043
 
248.4

 
248.4

 
276.1

 
0.09
%
Connie Engelbrecht
(#,^)
20640 Raven Drive, Eagle River, AK 99577
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/28/2028
 
2.6

 
2.6

 
2.4

 
—
%

F-66
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Merciful Heavenly Homes, LLC
(#,^)
401 Dillar's Mill Rd, Tyner, NC 27980
 
Nursing and Residential Care Facilities
 
Term Loan
 
8%
 
2/28/2043
 
62.9

 
62.9

 
59.7

 
0.02
%
Urban Fitness Group LLC dba Crunch Fitness Group LLC
(#,^)
2800 S IH-35 Ste 220, Round Rock, TX 78681
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2028
 
196.2

 
196.2

 
205.0

 
0.06
%
The Law Offices of Samuel R Miller LLC
(#,^)
7405 Lake Worth Rd, Lake Worth, FL 33467
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2043
 
116.0

 
116.0

 
131.3

 
0.04
%
Carey Collision Repairs Inc.
(#,^)
295 D Bucheimer Rd, Fredrick, MD 21701
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
2/27/2028
 
65.7

 
65.7

 
61.5

 
0.02
%
Purely Seed LLC
(#,^)
11515 Lake Lane Ste 102, Chisago, MN 55013
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/26/2028
 
109.5

 
109.5

 
100.0

 
0.03
%
Betty's Catering Corp, Betty's Decoration & Wedding Center Inc.
(#,^)
94-33 Corona Ave, Corona, NY 11373
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/26/2043
 
348.4

 
348.4

 
394.5

 
0.12
%
Carries Cakes and Catering, Inc dba Carrie's Cakes and Confections
(#,^)
4308 Holland Rd, Virginia Beach, VA 23452
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/23/2028
 
4.3

 
4.3

 
4.0

 
—
%
Jackpine Technologies Corporation
(#,^)
Mill & Main Building 2 Ste 640, Maynard, MA 01754
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/22/2028
 
56.9

 
56.9

 
57.5

 
0.02
%
Crossfit iQ LLC
(#,^)
346 Pike Rd, Bay 8-9, West Palm Beach, FL 33411
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/21/2028
 
37.2

 
37.2

 
34.9

 
0.01
%
Wellfleet Consulting Inc.
(#,^)
2275 Research Blvd Ste 500, Rockville, MD 20850
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/21/2028
 
13.1

 
13.1

 
12.0

 
—
%
New View Media Group LLC
(#,^)
1 Old Wolfe Rd Ste 205, Budd Lake, NJ 07828
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/16/2028
 
72.3

 
72.3

 
75.5

 
0.02
%
Town & Country Transportation Co.
(#,^)
191-193 Arch St., New Britain, CT 06051
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/16/2028
 
58.4

 
58.4

 
61.0

 
0.02
%
Lulinjett LLC dba All American Printing & Design
(#,^)
4621 Bayshore Rd, Fort Myers, FL 33917
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/14/2043
 
103.7

 
103.7

 
117.4

 
0.04
%
Margab Inc dba Smoothie King
(#,^)
14200 SW 8th St Unit #102, Miami, FL 33184
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/13/2028
 
11.2

 
11.2

 
10.5

 
—
%
JumboMarkets, Inc.
(#,^)
15500 SW Trail Drive, Indiantown, FL 34956
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/13/2028
 
181.7

 
181.7

 
171.5

 
0.05
%
Tony Herring & Associates, Inc.
(#,^)
211 West Camellia Drive, Slidell, LA 70458
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
2/9/2028
 
7.2

 
7.2

 
7.5

 
—
%
Quality Machine of Iowa, Inc
(#,^)
1040 4th Ave, Audubon, IA 50025
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/9/2028
 
1,144.4

 
1,144.4

 
1,129.6

 
0.35
%
Start "UP "Dreams, Inc dba SDC Concrete and Start"UP" Dream Constructi
(#,^)
30521 134th St SE, Sultan, WA 98294
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/9/2028
 
65.7

 
65.7

 
63.2

 
0.02
%
Apps Inc., Market Share, and Singular Leaseholdings LLC
(#,^)
800 Village Walk #159, Guilford, CT 06437
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
2/8/2028
 
458.2

 
458.2

 
418.6

 
0.13
%

F-67
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
De La Vega LLC dba De La Vega Deland and De La Vega Oviedo
(#,^)
128 North Woodland Blvd, Deland, FL 32720
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/7/2028
 
68.9

 
68.9

 
65.3

 
0.02
%
Macrotech Integrated Management Solutions dba Extreme Lawn Care
(#,^)
2425 Durrance LN, Ormond Beach, FL 32174
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
2/5/2028
 
10.5

 
10.5

 
11.0

 
—
%
Midlothian Hardware Inc dba Grills True Value
(#,^)
4751 West 147th St., Midlothian, IL 60445
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
2/2/2028
 
13.1

 
13.1

 
13.7

 
—
%
M&R Wong LLC
(#,^)
1345 North Shepherd Dr, Houston, TX 77008
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
2/1/2028
 
10.4

 
10.4

 
9.5

 
—
%
Chace Building Supply of CT Inc.,
(#,^)
90 Route 171, Woodstock, CT 06281
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
1/31/2043
 
292.2

 
292.2

 
330.8

 
0.10
%
Rocco'sLandscaping LLC
(#,^)
151 Kitts Lane, Newington, CT 06111
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/31/2043
 
73.0

 
73.0

 
82.6

 
0.03
%
USA General Investment LLC dba Braniff Paint and Body Shop
(#,^)
2290 NW 21st Terrace, Miami, FL 33142
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2028
 
13.0

 
13.0

 
12.2

 
—
%
WydeBodi, LLC dba Wyde Bodi Auto Tags
(#,^)
706 North 37th St., Philadelphia, PA 19104
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/30/2043
 
46.2

 
46.2

 
50.9

 
0.02
%
New Phaze Packaging Inc
(#,^)
9533 Irondale Ave, Los Angeles, CA 91311
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/26/2043
 
933.6

 
933.6

 
1,053.4

 
0.33
%
Parati USA Inc
(#,^)
1018 Wilt Ave, Ridgefield, NJ 07657
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
1/25/2028
 
14.7

 
14.7

 
13.5

 
—
%
Concrete Services LLC and James Ward
(#,^)
24 County Rd 901, Jemison, AL 35085
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
1/25/2028
 
86.9

 
86.9

 
83.8

 
0.03
%
Southside BBQ Corp
(#,^)
16032 South Hwy 16, Cherokee, TX 76832
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/25/2028
 
16.9

 
16.9

 
17.7

 
0.01
%
Flair Interiors, Inc dba Giant Don's Flooring America
(#,^)
7725 Old Seward Hwy, Anchorage, AK 99502
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
1/24/2028
 
119.5

 
119.5

 
124.9

 
0.04
%
Tier1 Solutions LLC
(#,^)
1000 Essington Rd, Juliet, IL 60435
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/23/2028
 
6.5

 
6.5

 
6.1

 
—
%
Weeping Willow Kennels, Inc.
(#,^)
6041 Hammond School Rd, Salisbury, MD 21804
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2028
 
9.1

 
9.1

 
9.5

 
—
%
Lavish Specs Inc
(#,^)
262 Glen St., Glen Cove, NY 11542
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/19/2028
 
6.5

 
6.5

 
6.0

 
—
%
Friend Contractors, LLC
(#,^)
1950 Mill Bay Rd, Kodiak, AK 99615
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
1/19/2043
 
226.3

 
226.3

 
246.1

 
0.08
%
MedWorxs Inc.
(#,^)
6857 Timbers Dr., Evergreen, CO 80439
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/18/2028
 
68.5

 
68.5

 
62.5

 
0.02
%
Lou & Choo Enterprises Inc dba Lou & Choo Lounge
(#,^)
2101,2103,2105 W Hunting Park Ave, Philadelphia, PA 19140
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/18/2043
 
111.9

 
111.9

 
121.0

 
0.04
%

F-68
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Specialized Dairy Processors LLC and Nathaly Zapata
(#,^)
2200 N Commerce Parkway, Weston, FL 33326
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/16/2028
 
56.5

 
56.5

 
51.6

 
0.02
%
Human Resource Time Manager LLC
(#,^)
2737 Humphrey St., East Elmhurst, NY 11369
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/8/2028
 
13.4

 
13.4

 
14.0

 
—
%
Impress Therapeutic Massage LLC
(#,^)
3145 Suntree Blvd Ste 102, Rockledge, FL 32955
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/8/2043
 
61.4

 
61.4

 
68.1

 
0.02
%
Sandfree Systems LLC
(#,^)
116 Cricket Ave Ste B, Ardmore, PA 19003
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
1/5/2028
 
6.5

 
6.5

 
6.8

 
—
%
Crad Holding LLC dba Neighborhood Laundry of Bloomfield
(#,^)
60 Dodd St., Bloomfield, NJ 07003
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/5/2028
 
54.3

 
54.3

 
50.0

 
0.02
%
Social Link LLC
(#,^)
41 Peabody St., Nashville, TN 37210
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/29/2027
 
9.7

 
9.7

 
8.9

 
—
%
Farec, Inc
(#)
30250 W Nine Mile Rd, Farmington, MI 48336
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
7.5%
 
12/29/2042
 
242.4

 
242.4

 
223.3

 
0.07
%
Morrocco Method, Inc
(#,^)
800 Farroll Rd, Grover Beach, CA 93433
 
Chemical Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/27/2042
 
707.3

 
707.3

 
785.3

 
0.24
%
Anglin Cultured Stone Products LLC
(#,^)
877 Salem Church Rd, Newark, DE 19702
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/27/2042
 
630.5

 
630.5

 
660.5

 
0.20
%
Muckamuck Trucks, Inc.
(#,^)
510 S Spring St., Ukiah, CA 95482
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027
 
11.8

 
11.8

 
11.7

 
—
%
O'Rourke's Diner, LLC
(#,^)
728 Main St., Middleton, CT 06457
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027
 
3.2

 
3.2

 
3.2

 
—
%
Dudeck Enterprise LLC dba Detail Garage Las Vegas
(#,^)
2360 S Rainbow Blvd Ste 3, Las Vegas, NV 89146
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027
 
14.0

 
14.0

 
14.6

 
—
%
Anderson Farms Inc
(#)
271 West Hwy 30, Burley, ID 83318
 
Truck Transportation
 
Term Loan
 
7.5%
 
12/22/2027
 
1,084.7

 
1,084.7

 
914.2

 
0.28
%
Medical Plaza of Boro Park PC
(#,^)
1266 51St 1st Floor, Brooklyn, NY 11219
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027
 
53.9

 
53.9

 
49.2

 
0.02
%
Landmark Ventures USA Inc
(#,^)
475 Park Ave S 25th Fl, New York, NY 10016
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027
 
53.9

 
53.9

 
49.2

 
0.02
%
Salida Family Chiropractic-PPLC dba Salida Sport and Spine
(#,^)
203 G St., Salida, CO 81201
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027
 
10.4

 
10.4

 
9.4

 
—
%
Lab Partner, LLC and Beechtree Diagnostics, LLP and Cottonwood Diag
(#,^)
12351 Gateway Park Place, Draper, UT 84020
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027
 
671.4

 
671.4

 
620.0

 
0.19
%
Jacliff Investments Inc dba International Heal
(#,^)
2355 South 1070 West, Ste D, Salt Lake City, UT 84119
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
12/22/2027
 
43.1

 
43.1

 
39.3

 
0.01
%
Blue Lagoon Resort, LLC dba Hill View Cottages
(#,^)
3670 Lake Shore Drive, Lake George, NY 12845
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/21/2042
 
181.1

 
181.1

 
204.8

 
0.06
%

F-69
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
CT Auto Spa LLC
(#,^)
39 Albany Turnpike, West Simsbury, CT 06092
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/21/2027
 
189.3

 
189.3

 
197.2

 
0.06
%
DHD Enterprise LLC dba Edible Arrangements #1699
(#,^)
828 Washington Ave, Miami Beach, FL 33139
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/21/2027
 
19.7

 
19.7

 
18.7

 
0.01
%
DBMS Consulting, Inc.
(#,^)
164 W 83rd St. #CF1 & CF2, New York, NY 10024
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2027
 
64.7

 
64.7

 
63.8

 
0.02
%
Best Quality Home Care LLC
(#,^)
317 S Berry St., Centralia, WA 98531
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
12/19/2027
 
6.2

 
6.2

 
5.7

 
—
%
Auto Excellance of Fort Myers Inc.
(#,^)
3105 Fowler St., Fort Myers, FL 33901
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/19/2042
 
103.3

 
103.3

 
116.8

 
0.04
%
Legion Bowl, Inc & Legion Pub Inc
(#,^)
661 Park St., Cranston, RI 02910
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/15/2042
 
324.6

 
324.6

 
367.1

 
0.11
%
1-0 Granny's Helpful Hands, LLC
(#,^)
705 East Lake St., Minneapolis, MN 55407
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027
 
19.4

 
19.4

 
17.9

 
0.01
%
Ocean Trans LLC & Dehal Trucking LLC
(#,^)
1415 W. Anderson St., Stockton, CA 95206
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/15/2042
 
598.7

 
598.7

 
628.5

 
0.20
%
JMD Aviation Holdings, LLC
(#,^)
8050 NW 90th St., Medley, FL 33166
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027
 
431.3

 
431.3

 
447.5

 
0.14
%
Capital Containers LLC
(#,^)
7610 Auburn Blvd #4B, Citrus Heights, CA 95610
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027
 
19.4

 
19.4

 
18.1

 
0.01
%
Peanut Butter & Co., Inc
(#,^)
119 West 57th St., Ste 300, New York, NY 10019
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/15/2027
 
194.1

 
194.1

 
177.0

 
0.05
%
Atlas Geo-Constructors, LLC
(#,^)
3466 Thomasville Rd, Winston Salem, NC 27107
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027
 
262.3

 
262.3

 
261.2

 
0.08
%
KR Calvert & Co, LLC
(#,^)
113 Seaboard Lane #C-270, Franklin, TN 37067
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027
 
435.9

 
435.9

 
399.0

 
0.12
%
Royalty Freight Inc
(#,^)
3728 W Mckinley Ave, Fresno, CA 93722
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027
 
587.9

 
587.9

 
536.2

 
0.17
%
AADJ Empire Inc and AADJ Galaxy Inc.
(#,^)
1599 Post Rd, Warwick, RI 02888
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/14/2042
 
176.1

 
176.1

 
187.8

 
0.06
%
Heung Kyun Im
(#,^)
6235 Conlan Bay Drive, Houston, TX 77041
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027
 
13.3

 
13.3

 
12.2

 
—
%
Hana Pastries Enterprises LLC dba Hana Kitchens, Hana Pastries, Inc. d
(#,^)
34 35th St., Brooklyn, NY 11232
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027
 
83.2

 
83.2

 
84.8

 
0.03
%
LP Industries Inc. dba Childforms
(#,^)
2040 Norwood St. SW, Lenoir, NC 28645
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027
 
64.9

 
64.9

 
65.1

 
0.02
%
Beale Street Blues Company Inc.dba B.B. King's Club-Memphis
(#,^)
149 Monroe Ave, Memphis, TN 38103
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027
 
869.2

 
869.2

 
798.7

 
0.25
%
Barcade Holdings, LLC ,Barcade LLC,& Barcade New Haven LLC
(#,^)
148 West 24th St., New York, NY 10011
 
Management of Companies and Enterprises
 
Term Loan
 
Prime plus 2.75%
 
12/14/2027
 
54.4

 
54.4

 
50.4

 
0.02
%

F-70
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Nichols Fire and Security LLC
(#,^)
1906 Vanderhorn Drive, Memphis, TN 38134
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2042
 
85.0

 
85.0

 
92.2

 
0.03
%
Hardway Inc & AFC Leasing Inc
(#,^)
12533 S. 73rd E. Place, Bixby, OK 74008
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2027
 
778.6

 
778.6

 
710.1

 
0.22
%
Clore Construction LLC
(#,^)
21220 FM 1420, Harlingen, TX 78550
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027
 
398.5

 
398.5

 
393.7

 
0.12
%
A-1 Van Services Inc
(#,^)
154 Sandy Creek Rd, Verona, PA 15147
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027
 
620.7

 
620.7

 
618.2

 
0.19
%
Sky Way Enterprises, Inc, A-Liner-8-Aviation, Inc, Kissimmee Aviation
(#,^)
3031 Patrick St, Kissimmee, FL 34741
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027
 
446.7

 
446.7

 
407.4

 
0.13
%
Jai Ganeshai LLC, Mahiveera 1 LLC, Mahiveera 2 LLC & KSVP LLC
(#,^)
1120 Wren School Rd, Piedmont, SC 29673
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027
 
43.0

 
43.0

 
39.2

 
0.01
%
Big Picture Group LLC
(#,^)
110 S. Fairfax Ave, Los Angeles, CA 90036
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027
 
324.7

 
324.7

 
307.8

 
0.10
%
The Ohio Valley Group Inc dba Ohio Valley Landscapes & Design
(#,^)
16965 Park Circle Drive, Chagrin Falls, OH 44023
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/12/2027
 
12.9

 
12.9

 
12.2

 
—
%
LPB LPB Property Management Inc dba Wilderness View Cabins & Ellijay C
(#,^)
498 Wilderness View, Chatsworth, GA 30705
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
12/12/2042
 
97.2

 
97.2

 
109.7

 
0.03
%
Clear Sound Communications, Inc
(#,^)
680 Old Medford Ave, Medford, NY 11763
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2027
 
3.2

 
3.2

 
3.0

 
—
%
AV Strategy Inc
(#,^)
9402 American Eagle Way Ste 100, Orlando, FL 32837
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2027
 
381.7

 
381.7

 
370.4

 
0.11
%
JVLS LLC dba Vaccines 2 Go
(#,^)
4060 Johns Creek Pkwy, Ste H, Suwanee, GA 30024
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/7/2027
 
12.9

 
12.9

 
11.8

 
—
%
Kim Howard Corp dba NPN Machine Tools
(#,^)
9130 Wayfarer Lane, Houston, TX 77075
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/7/2042
 
562.5

 
562.5

 
635.3

 
0.20
%
IHC Hardware Inc.
(#,^)
614 Broad St., Story City, IA 50248
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/6/2042
 
97.2

 
97.2

 
102.5

 
0.03
%
ODS Inc
(#,^)
626 N Delsea Drive, Glassboro, NJ 08028
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/6/2027
 
42.3

 
42.3

 
40.6

 
0.01
%
Oil Palace, Inc.
(#,^)
10408 Hwy 64 E, Tyler, TX 75707
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/4/2042
 
961.7

 
961.7

 
1,087.7

 
0.34
%
Healthcare Interventions, Inc dba Brightstar Healthcare of & Brightsta
(#,^)
5300 W Atlantic Ave Ste 501, Delray Beach, FL 33484
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/4/2027
 
12.9

 
12.9

 
11.8

 
—
%

F-71
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Linda Jean Howard Riley dba The Rusty Bolt
(#,^)
22345 W. Rt 66, Seligman, AZ 86337
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/1/2042
 
20.4

 
20.4

 
23.1

 
0.01
%
Salud Bar & Grill LLC
(#,^)
1413 Bushwick Ave, Brooklyn, NY 11207
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/1/2027
 
48.5

 
48.5

 
44.5

 
0.01
%
Utara LLC
(#,^)
214 Pine St, Sandpoint, ID 83864
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/1/2027
 
20.1

 
20.1

 
19.3

 
0.01
%
Square1 Partners, LLC
(#,^)
1088 Greenbriar Lane, Northbrook, IL 60062
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
12/1/2027
 
54.3

 
54.3

 
49.5

 
0.02
%
Fortress Verve Inc, Maurice R. Margules and Antonie C. Reinhard
(#,^)
1 Jackson St., Troy, NY 12180
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027
 
112.3

 
112.3

 
115.4

 
0.04
%
WTI Distribution Inc
(#,^)
14277 Ramona Ave, Chino, CA 91710
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027
 
34.2

 
34.2

 
33.5

 
0.01
%
Create- A- Stitch, Inc
(#,^)
3585 SW 10th St., Pompano Beach, FL 33069
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/30/2042
 
84.9

 
84.9

 
95.1

 
0.03
%
Frontier Sand LLC
(#,^)
305 Country Hwy AA, New Auburn, WI 54757
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027
 
463.6

 
463.6

 
468.2

 
0.15
%
Skin Beauty Bar Inc. and Tameka J. Mathis
(#,^)
749 8th St. SE 2nd Fl, Washington, DC 20003
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027
 
7.7

 
7.7

 
7.2

 
—
%
J. Venture Holdings, LLC
(#,^)
2285 St. Andrews Ave, Zachary, LA 70791
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2027
 
10.7

 
10.7

 
11.1

 
—
%
Clearwater Transportation LTD dba Thrifty Car Rental, Dollar Rent A Ca
(#,^)
8790 Crownhill Blvd, San Antonio, TX 78209
 
Rental and Leasing Services
 
Term Loan
 
8.25%
 
11/29/2027
 
153.7

 
153.7

 
130.9

 
0.04
%
OPH Lexington, Inc
(#,^)
235 Walton Ave, Lexington, KY 40502
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/29/2042
 
188.3

 
188.3

 
212.9

 
0.07
%
Our Playhouse Preschool, LLC
(#,^)
3501 NC Hwy 54 W, Chapel hill, NC 27516
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/29/2042
 
231.7

 
231.7

 
262.0

 
0.08
%
Beacon Brewing LLC and C' Sons, LLC
(#,^)
700 Lincoln St., Lagrange, GA 30204
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/27/2042
 
123.2

 
123.2

 
139.3

 
0.04
%
JMD Corporation dba Dart's True Value
(#,^)
121 South Main St., Payette, ID 83661
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/22/2027
 
16.0

 
16.0

 
15.7

 
—
%
Webtez Inc dba Mod Vans
(#,^)
1673 Donlon St., Ste 202, Ventura, CA 93003
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/22/2027
 
59.9

 
59.9

 
54.9

 
0.02
%
Step Up Academy of the Arts, LLC
(#,^)
2258A Wigwam Parkway, Henderson, NV 89074
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/22/2027
 
13.5

 
13.5

 
12.3

 
—
%
Cali Fit Meals
(#,^)
3450 E Orangethrope Ave, Anaheim, CA 92806
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/21/2027
 
19.3

 
19.3

 
18.9

 
0.01
%
Grumpy's Restaurant Company, LLC
(#,^)
834 Kingsley Ave, Orange Park, FL 32073
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/21/2027
 
60.9

 
60.9

 
55.7

 
0.02
%
PB Market LLC dba Pure Barre
(#,^)
164-C Market St, Charleston, SC 29401
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2027
 
92.9

 
92.9

 
84.9

 
0.03
%

F-72
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
B Lam LLC
(#,^)
9419 Kenwood Rd, Cincinnati, OH 45242
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/20/2042
 
175.9

 
175.9

 
195.3

 
0.06
%
TPE Midstream LLC, Dasham Company dba Sahm Co & S & S Ventures Inc.
(#,^)
7799 South Regency Drive, Tulsa, OK 74131
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
11/17/2027
 
161.8

 
161.8

 
161.7

 
0.05
%
Maya Motel, LLC dba Town House Motel
(#,^)
1701 Washington Ave, Waco, TX 76701
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/17/2042
 
55.3

 
55.3

 
62.6

 
0.02
%
SSI Refrigerated Express Inc. and Robert M Stallone
(#,^)
1001 E. Cooley Drive Ste 102, Colton, CA 92324
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/17/2027
 
53.4

 
53.4

 
49.8

 
0.02
%
Jacob's Towing, Inc.dba Jacob's Automotive Locksmith & Jacob's Auto Re
(#,^)
558 West Main St., Lebanon, OH 45036
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/17/2027
 
42.8

 
42.8

 
40.7

 
0.01
%
Southern Specialty Contractor, LLC & Ronald David Holbrook Jr.
(#,^)
1990 Flippen Rd, Stockbridge, GA 30281
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/17/2027
 
45.4

 
45.4

 
41.8

 
0.01
%
Murf & Sons LLC
(#,^)
3821 Pleasant Hill Rd, Store #B-107, Kissimmee, FL 34746
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/16/2027
 
142.4

 
142.4

 
131.7

 
0.04
%
H & H Hotshot Services, Inc.
(#,^)
5455 N. 51st Ave Ste 30, Glendale, AZ 85301
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
11/16/2027
 
59.9

 
59.9

 
56.9

 
0.02
%
J R Wholesale Tires & Auto Center, LLC
(#,^)
822 Cameron Lane, Lugoff, SC 29078
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/15/2042
 
13.1

 
13.1

 
14.8

 
—
%
Auto Rx LLC,J&P Auto Repair Inc
(#,^)
91 & 95 Woodbury Rd, Hicksville, NY 11801
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/15/2042
 
190.4

 
190.4

 
214.5

 
0.07
%
Marcaco LLC
(#,^)
124 Lincoln Ave, Colonie, NY 12205
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/15/2042
 
609.4

 
609.4

 
680.2

 
0.21
%
Paramount Dance Studios Inc. and Homestead Dance Supply
(#,^)
112 N Krome Ave, Homestead, FL 33033
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
10/14/2043
 
457.5

 
457.5

 
501.6

 
0.16
%
Wing King at the Gardens LLC
(#,^)
4235 S Fort Apache Rd, Ste 250, Las Vegas, NV 89147
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/10/2027
 
8.3

 
8.3

 
7.6

 
—
%
Linqserv Inc.
(#,^)
1555 Lyell Ave, Rochester, NY 14606
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/9/2027
 
285.6

 
285.6

 
297.9

 
0.09
%
Hofgard & Co, Inc dba Hofgard Benefits and James Marsh
(#,^)
400 S. McCaslin Blvd, Ste 201, Louisville, CO 80027
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/8/2027
 
12.8

 
12.8

 
11.7

 
—
%
JNP Delivery Inc
(#,^)
4500 North Providence # 7, Appleton, WI 54913
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
11/7/2027
 
95.8

 
95.8

 
92.7

 
0.03
%
His Loving Hands Christian Academy, Inc.
(#,^)
15020 Harrison St., Miami, FL 33176
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/6/2042
 
89.0

 
89.0

 
98.9

 
0.03
%
S & S Auto Body Shop Inc.
(#,^)
5001 W. Clay St., Richmond, VA 23230
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/3/2042
 
160.1

 
160.1

 
180.0

 
0.06
%

F-73
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Sterling Campbell Insurance Agency, Inc
(#,^)
36359 N Gantzel Rd Ste 102, San Tan Valley, AZ 85140
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/3/2027
 
6.4

 
6.4

 
5.9

 
—
%
Top Quality Dent Service LLC
(#,^)
1541 Vapor Trail, Colorado Springs, CO 80905
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/2/2027
 
5.2

 
5.2

 
4.8

 
—
%
 Edge Studios Inc Radiant Yoga LLC
(#,^)
448 Howe Ave, Sacramento, CA 95825
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/1/2027
 
56.6

 
56.6

 
52.8

 
0.02
%
Rachael Reel dba Rachel Reel Insurance Age
(#,^)
208 Bank St., Lenoir, TN 37771
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
10/31/2027
 
6.4

 
6.4

 
5.8

 
—
%
Berza TLG,LLC dba The Little Gym of Lake Charles
(#,^)
1301 E McNeese St., Ste 201, Lake Charles, LA 70607
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/31/2027
 
36.0

 
36.0

 
33.5

 
0.01
%
Die Hard Used Car Sales
(#,^)
1668 West Grand Ave, Phoenix, AZ 85007
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/30/2042
 
54.6

 
54.6

 
61.8

 
0.02
%
The Five Lakes LLC
(#,^)
13705 Holmes Rd, Kansas City, MO 64154
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
10/30/2042
 
460.3

 
460.3

 
520.6

 
0.16
%
Ashore Ventures Inc dba PuroClean Professional Restoration
(#,^)
909 SE Everett Mall Way Ste A-140, Everett, WA 98208
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/27/2027
 
12.4

 
12.4

 
11.6

 
—
%
Blue Eagle Transport Inc , Golden Eagle Transport, Inc & Green Eagle T
(#,^)
377 Boston Post Rd Unit B, Milford, CT 06460
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
10/27/2027
 
31.8

 
31.8

 
29.8

 
0.01
%
Sage Oil LLC
(#,^)
8913 Egyptian Ave, Las Vegas, NV 89143
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/27/2027
 
8.5

 
8.5

 
7.9

 
—
%
Suzie LLC dba Tony D's Restaurant
(#,^)
92 Huntington St., New London, CT 06320
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/25/2042
 
84.8

 
84.8

 
94.9

 
0.03
%
Grand Blanc Lanes, Inc.
(#,^)
5301 S. Saginaw Rd, Flint, MI 48507
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/25/2027
 
12.7

 
12.7

 
13.3

 
—
%
Schafer Fisheries Inc
(#,^)
21985 Waller Rd, Fulton, IL 61252
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/25/2027
 
29.7

 
29.7

 
31.0

 
0.01
%
Action Physical Therapy Yoga and Wellness Center Inc.
(#,^)
5811 S Westnedge Ave, Portage, MI 49002
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/24/2027
 
19.2

 
19.2

 
19.4

 
0.01
%
Looky Enterprises, LLC
(#,^)
1175 Surlington Ave, Ste 101, Leland, NC 28451
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/18/2027
 
56.5

 
56.5

 
52.8

 
0.02
%
Island Refrigeration & AC Inc
(#,^)
3201 Flagler Ave, Unit 510 & 511, Key West, FL 33040
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/18/2042
 
130.0

 
130.0

 
142.4

 
0.04
%
Blueridge Armor LLC
(#,^)
1495 Hwy 74-A Bypass, Ste 150192, Spindale, NC 28160
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/17/2027
 
7.0

 
7.0

 
6.8

 
—
%
H and K Dry Cleaning LLC ,Quintero Shopping Center LLC,Aqua Laundry, L
(#,^)
1227 Burnside Ave, East Hartford, CT 06108
 
Electronics and Appliance Stores
 
Term Loan
 
7.9375%
 
10/17/2042
 
62.4

 
62.4

 
59.1

 
0.02
%

F-74
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Albas Bar & Grill LLC
(#,^)
221 Self Main St., Homer City, PA 15748
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/13/2042
 
43.9

 
43.9

 
46.5

 
0.01
%
Cortez Landscaping, LLC
(#,^)
4 Powder Rd, Norwalk, CT 06854
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/13/2027
 
16.3

 
16.3

 
15.7

 
—
%
On Call Services LLC
(#,^)
15060 281St Ave NW, Zimmerman, MN 55398
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/13/2027
 
15.5

 
15.5

 
16.2

 
0.01
%
Crawfordsville Fitness LLC dba Planet Fitness
(#,^)
1632 Bush Lane, Crawfordsville, IN 47933
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/13/2027
 
105.4

 
105.4

 
98.5

 
0.03
%
JD Ventures LLC and JD Roof Co LLC
(#,^)
2101 Hillshire Circle, Memphis, TN 38133
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/12/2027
 
19.3

 
19.3

 
18.0

 
0.01
%
Pro Anderson, LLC
(#,^)
1092 Hampton Inn Way, Ste 400, Jacksonville, NC 28546
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/11/2027
 
45.9

 
45.9

 
42.5

 
0.01
%
Sandbox Ventures LLC
(#,^)
1857 A Elmdale Ave, Glenview, IL 60026
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/11/2027
 
16.2

 
16.2

 
16.3

 
0.01
%
Eye Optique Inc.
(#,^)
10800 Alpharetta Hwy, Ste 220, Roswell, GA 30076
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
10/5/2027
 
12.7

 
12.7

 
11.6

 
—
%
Ains Holding Company LLC
(#,^)
121 Fulton St., New York, NY 10038
 
Management of Companies and Enterprises
 
Term Loan
 
Prime plus 2.75%
 
10/2/2027
 
72.1

 
72.1

 
67.3

 
0.02
%
Becky Lou Corp dba Rent A Center
(#,^)
3578 Route 611 Ste 210, Bartonsville, PA 18321
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
10/2/2027
 
77.3

 
77.3

 
74.7

 
0.02
%
Threads of Time LLC
(#,^)
207 S Buchanan St., Danville, IL 61832
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042
 
133.0

 
133.0

 
143.8

 
0.04
%
Miechella Suzette Decker
(#,^)
3515 Main St., Exmore, VA 23350
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042
 
97.5

 
97.5

 
110.3

 
0.03
%
Harco Metal Products Inc
(#,^)
7895 E Acoma Drive Ste 102, Scottsdale, AZ 85260
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042
 
476.9

 
476.9

 
499.5

 
0.16
%
Sashshel Corporation
(#,^)
676 Franklin Blvd, Somerset, NJ 08873
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042
 
205.8

 
205.8

 
232.8

 
0.07
%
Dan Cline Transport Inc.
(#,^)
501 State Drive, Mount Vernon, MO 65712
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2030
 
886.0

 
886.0

 
841.9

 
0.26
%
Chicago American Manufacturing LLC, Dockside Steel ProcessingLLC and S
(#,^)
4500 W 47th St., Chicago, IL 60632
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042
 
1,211.0

 
1,211.0

 
1,328.4

 
0.41
%
Nicholson Lumber Co Inc.
(#,^)
377 Main St., Nicholson, PA 18446
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/28/2030
 
192.1

 
192.1

 
199.5

 
0.06
%
Rhode Island Tennis Management LLC
(#,^)
636 Centerville Rd, Warwick, RI 02886
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2042
 
371.3

 
371.3

 
400.7

 
0.12
%
National Media Services, Inc
(#,^)
5091 Lexington Blvd, Fort Meyers, FL 33919
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2027
 
15.8

 
15.8

 
14.4

 
—
%

F-75
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Pets A Go Go LLC
(#,^)
589 North State Rd, Briarcliff Manor, NY 10510
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2042
 
192.7

 
192.7

 
213.1

 
0.07
%
Rhode Island Tennis Management LLC
(#,^)
636 Centerville Rd, Warwick, RI 02886
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2042
 
533.2

 
533.2

 
575.4

 
0.18
%
Complete Care IT LLC
(#,^)
4801 South University Drive, Ste 125, Davie, FL 33328
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2027
 
12.4

 
12.4

 
11.3

 
—
%
Technologist Inc
(#,^)
1820 N Fort Myer Drive Ste 530, Arlington, VA 22209
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/27/2027
 
215.5

 
215.5

 
224.5

 
0.07
%
Inspirations Food Design, Inc
(#,^)
1338 Memorial Ave, West Springfield, MA 01089
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/26/2042
 
455.9

 
455.9

 
497.0

 
0.15
%
Rollins Construction & Trucking LLC
(#,^)
893 South 120 East, Milford, UT 84751
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
9/26/2027
 
278.9

 
278.9

 
285.8

 
0.09
%
KB Waterjet Cutting LLC
(#,^)
4330 Parker Lane, Addis, LA 70710
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/22/2027
 
8.6

 
8.6

 
8.2

 
—
%
JPS Arthur Kill Rd Bakery Corp dba Aunt Butches of Brooklyn
(#,^)
4864 Arthur Kill Rd #102,103,104,105, Staten Island, NY 10309
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/22/2027
 
18.9

 
18.9

 
17.4

 
0.01
%
Sallee Pro-Custom Fabrication Shop LLC
(#,^)
8865 North County Rd 600 W, Scipio, IN 47273
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/21/2027
 
7.6

 
7.6

 
7.9

 
—
%
Sound Manufacturing, Inc. & Monster Power Equipment, Inc.
(#,^)
51 Donnelley Rd, Old Saybrook, CT 06475
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027
 
168.0

 
168.0

 
167.0

 
0.05
%
Insight Diagnostic Technologist Services
(#,^)
2030 Forest Ave, Ste 110, San Jose, CA 95128
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027
 
262.8

 
262.8

 
248.3

 
0.08
%
Commonwealth Diagnostics International, Inc
(#,^)
1 Holyoke Sq., Salem, MA 01970
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027
 
1,063.3

 
1,063.3

 
1,107.2

 
0.34
%
Imagine By Carleen, Inc.
(#,^)
1404 Del Prado Blvd S Unit 100, 105, Cape Coral, FL 33904
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027
 
6.3

 
6.3

 
6.4

 
—
%
NY Tent LLC & NY Tent Parent, LLC dba Tent Company of New York
(#,^)
1401 Lakeland Ave, Bohemia, NY 11716
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027
 
867.3

 
867.3

 
868.1

 
0.27
%
CR Park Incorporated dba Define Body and Mind
(#,^)
49 W. Allandale Ave, Allendale, NJ 07401
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027
 
68.7

 
68.7

 
65.2

 
0.02
%
Alpha Preparatory Academy LLC
(#,^)
4462 Mink Livsey Rd, Snellville, GA 30039
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042
 
157.2

 
157.2

 
169.1

 
0.05
%
Montessori Community School
(#,^)
123 South Navarra Drive, Scotts Valley, CA 95066
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042
 
284.7

 
284.7

 
308.1

 
0.10
%
Denek Contracting Inc and Denek Leasing LLC
(#,^)
451 E. Wilson Ave, Pontiac, MI 48341
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042
 
203.0

 
203.0

 
229.4

 
0.07
%
Max Home Deliveries, Inc
(#,^)
77 Van Buren St., Port Jefferson Station, NY 11776
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027
 
67.5

 
67.5

 
65.0

 
0.02
%

F-76
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
CIS BIG DOG, LLC
(#,^)
8920 US HWY, 62 WEST, Cynthiana, KY 41031
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/19/2027
 
54.7

 
54.7

 
56.9

 
0.02
%
Stone's Construction and Remodeling, LLC
(#,^)
5210 Kaylin Drive, Akron, OH 44319
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/19/2027
 
4.4

 
4.4

 
4.0

 
—
%
Party By Design Inc.
(#,^)
61 Strafello Drive, Avon, MA 02322
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/18/2042
 
1,185.5

 
1,185.5

 
1,271.0

 
0.39
%
Li Family Spokane LLC
(#,^)
21 E. Lincoln Rd, Spokane, WA 99208
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2042
 
372.0

 
372.0

 
413.2

 
0.13
%
Clinton Food Market LLC
(#,^)
196 East Main St., Clinton, CT 06413
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/15/2042
 
253.8

 
253.8

 
275.1

 
0.09
%
Tarleton & Family Landscaping, LLC
(#,^)
125 E Center St., Midland Park, NJ 07432
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027
 
70.2

 
70.2

 
66.0

 
0.02
%
Alaska Motor Home Inc
(#,^)
6633 Brayton Dr, Anchorage, AK 99507
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2027
 
279.3

 
279.3

 
254.3

 
0.08
%
Fox Valley Rentals & Investments, LLC
(#,^)
2906 E. Newberry St., Appleton, WI 54915
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 3.75%
 
9/13/2027
 
6.4

 
6.4

 
6.6

 
—
%
Nails By Mercede LLC
(#,^)
2994 and 2996 Edgewater Drive, Orlando, FL 32804
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2027
 
12.0

 
12.0

 
11.8

 
—
%
Town & Country Transportation Co. and Popco, LLC.
(#,^)
191 Arch St., New Britain, CT 06051
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/12/2042
 
163.7

 
163.7

 
185.0

 
0.06
%
Rajbai Maa Inc. dba Nara Lounge
(#,^)
244-252 Atwells Ave, Providence, RI 02903
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/12/2042
 
377.5

 
377.5

 
399.0

 
0.12
%
Health & Performance Center, LLC
(#,^)
1862 Craigshire Rd, Saint Louis, MO 63146
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2027
 
17.2

 
17.2

 
15.6

 
—
%
Morgan Lynn Kerstetter dba Catherine School of Dance
(#,^)
315 Mill St. 3rd Fl, Danville, PA 17821
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/11/2027
 
6.3

 
6.3

 
6.6

 
—
%
Foxtail, LLC and Tottly New Services Corp
(#,^)
1481 Highland Ave, Cheshire, CT 06410
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/8/2042
 
281.8

 
281.8

 
306.3

 
0.10
%
Echelon Planning Group, LLC dba Echelon Financial Services and Echelon
(#,^)
5 Greenleaf Drive, Unit 201, Portsmouth, NH 03801
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/8/2027
 
6.3

 
6.3

 
6.5

 
—
%
Crazy Beatz Productions LLC
(#,^)
20014 NE 138th St., Kearney, MO 64060
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 3.75%
 
9/7/2027
 
4.5

 
4.5

 
4.4

 
—
%
South Fulton Landscape & Nursery, Inc.
(#,^)
3415 Enon Rd, College Park, GA 30349
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/7/2042
 
96.9

 
96.9

 
109.4

 
0.03
%
Dreaming Big Learning Center Inc
(#,^)
3301 W Oak St, Kissimmee, FL 34741
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/5/2042
 
362.2

 
362.2

 
393.0

 
0.12
%
Big Coop's Trucking LLC
(#,^)
3066 Misty Creek Drive., Swartz, MI 48473
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/1/2027
 
85.0

 
85.0

 
83.8

 
0.03
%

F-77
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Blue EagleTransport Inc, Greeneagle Transport Inc & Golden Eagle Tran
(#,^)
377 Boston Post Rd, Milford, CT 06460
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
8/31/2027
 
321.1

 
321.1

 
300.6

 
0.09
%
Busby Outdoor LLC
(#,^)
1734 Wansley Rd, Laurel, MS 39440
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
8/29/2042
 
684.7

 
684.7

 
684.2

 
0.21
%
Busby Outdoor LLC
(#,^)
1734 Wansley Rd, Laurel, MS 39440
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
8/29/2042
 
537.9

 
537.9

 
537.5

 
0.17
%
Lake County Tow LLC
(#,^)
15409 Country Rd 565A, Clermont, FL 34711
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/25/2042
 
84.5

 
84.5

 
91.3

 
0.03
%
Parlay Disributors LLC
(#,^)
20 Medford Ave, Ste 104, Patchogue, NY 11772
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
8/25/2027
 
93.1

 
93.1

 
86.0

 
0.03
%
InUSA Ventures Inc dba InUSA Services
(#,^)
3015 San Pablo Ave, Ste 511, Berkeley, CA 94702
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/24/2027
 
20.9

 
20.9

 
19.0

 
0.01
%
Genuine Ventures LLC and Seaweed Ventures LLC
(#,^)
432 S Franklin St, Juneau, AK 99801
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/24/2030
 
495.8

 
495.8

 
491.3

 
0.15
%
R & R Strength & Conditioning Corp dba Crossfit Light House Point
(#,^)
3701 NE 12th St., Pompano Beach, FL 33064
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/23/2042
 
79.8

 
79.8

 
90.1

 
0.03
%
Delicias de Minas Restaurant, LLC
(#,^)
168-170 McWhorter St., Newark, NJ 07105
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/22/2027
 
172.0

 
172.0

 
176.3

 
0.05
%
Damiano Global Corp
(#,^)
333 Birch Hills Drive, Rochester, NY 14622
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/21/2027
 
18.8

 
18.8

 
18.6

 
0.01
%
L&V Auto Sales, Inc.
(#,^)
1504 West Franklin Blvd., Gastonia, NC 28052
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
8/21/2027
 
15.0

 
15.0

 
15.7

 
—
%
Tier1 Solutions LLC
(#,^)
1000 Essington Rd Ste. 109 & 111, Joliet, IL 60435
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/18/2027
 
15.7

 
15.7

 
14.8

 
—
%
Tony Herring & Associates, Inc
(#,^)
211 West Camellia Drive, Slidell, LA 70458
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
8/17/2027
 
6.3

 
6.3

 
5.7

 
—
%
Chester's World Enterprise LLC
(#,^)
140 W Alameda Drive, Ste 104, Tempe, AZ 85282
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/16/2027
 
18.8

 
18.8

 
17.9

 
0.01
%
D'Amato & Sons Construction, Inc.
(#,^)
117 Oak St., Amityville, NY 11701
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/11/2027
 
6.9

 
6.9

 
6.6

 
—
%
L & J Corporate Services Inc
(#,^)
866 NW 110th Ave, Coral Springs, FL 33071
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/4/2027
 
6.1

 
6.1

 
5.6

 
—
%
Furniture Masters Limited Liability Company
(#,^)
160 Mount Pleasant Ave, Newark, NJ 07104
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/3/2027
 
7.5

 
7.5

 
6.8

 
—
%
HMG Strategy LLC,
(#,^)
191 Post Rd W., Westport, CT 06880
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/2/2027
 
41.3

 
41.3

 
37.6

 
0.01
%
Hope Health Care, LLC
(#,^)
2945 Main St., Stratford, CT 06614
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
7/31/2027
 
8.7

 
8.7

 
7.9

 
—
%
Raffi's Inc dba Atlantic Auto Center
(#,^)
1809 Roane St., Richmond, VA 23222
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/31/2027
 
11.8

 
11.8

 
12.3

 
—
%

F-78
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Royal Blue Investments, Inc. and Cleland Pharmacy LLC
(#,^)
202 S. 1st St., Wakeeny, KS 67672
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
7/31/2042
 
51.1

 
51.1

 
57.0

 
0.02
%
Sharon G McMillen, MA Psychologist, Inc.
(#,^)
216 West Main St, Kingwood, WV 26537
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2027
 
15.4

 
15.4

 
14.0

 
—
%
HQTRONIC LLC
(#,^)
10135 S. Roberts Rd Ste 209, Palos Hills, IL 60465
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/27/2027
 
18.7

 
18.7

 
17.0

 
0.01
%
Oberon IT, Inc.
(#,^)
1404 W. Walnut Hill Lane, Irving, TX 75038
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/26/2027
 
181.4

 
181.4

 
174.7

 
0.05
%
Gilles Peress Studio LLC
(#,^)
76 Lafayette Ave, Brooklyn, NY 11217
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/25/2027
 
53.5

 
53.5

 
48.7

 
0.02
%
Obok LLC
(#,^)
2720 S. Havana St., Unit H, Aurora, CO 80014
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/21/2027
 
9.9

 
9.9

 
9.7

 
—
%
Lil Tots' Learning Center LLC
(#,^)
3042 S 78th St, Tampa, FL 33619
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/21/2042
 
28.9

 
28.9

 
32.7

 
0.01
%
Ocean Trans LLC
(#,^)
760 W. Charter Way, Stockton, CA 95206
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/21/2027
 
32.2

 
32.2

 
29.3

 
0.01
%
Matrix Z LLC
(#,^)
800 SW 21st Terrace, Fort Lauderdale, FL 33312
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 3.75%
 
7/19/2027
 
6.3

 
6.3

 
6.7

 
—
%
Aitheras Aviation Group, LLC(OH) , Aitheras Aviation Group, LLC(FL)
(#,^)
2301 N Marginal Rd, Cleveland, OH 44114
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/18/2027
 
683.6

 
683.6

 
626.4

 
0.19
%
Wildflour Bakery & Cafe, LLC
(#,^)
5137 Clareton Dr. #100, 110, 120, Agoura Hills, CA 91301
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/17/2027
 
18.6

 
18.6

 
19.4

 
0.01
%
Koep Companies dba Pipestone True value
(#,^)
207 East Main St., Pipestone, MN 56164
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/14/2042
 
315.0

 
315.0

 
335.4

 
0.10
%
Rocks Auto Exchange LLC
(#,^)
518 East Main St., Westfield, IN 46074
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/13/2027
 
10.9

 
10.9

 
9.9

 
—
%
McCord Holdings, Inc. dba Fast Signs 176101
(#,^)
7640 N. Wickham Rd, Melbourne, FL 32940
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/7/2027
 
15.5

 
15.5

 
14.5

 
—
%
Thrifty Market Inc dba Thrifty Foods
(#,^)
702 10th St., Wheatland, WY 82201
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/6/2027
 
87.8

 
87.8

 
83.5

 
0.03
%
New Chicago Wholesale Bakery Inc.
(#,^)
795 Touhy Ave, Elk Grove Village, IL 60007
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027
 
12.3

 
12.3

 
12.7

 
—
%
The Country House Restaurant, LLC and Pelton Real Estate, LLC
(#,^)
677 US Route 7, Pittsford, VT 05763
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2042
 
48.1

 
48.1

 
55.4

 
0.02
%
J. T. O'Neill Company, L.L.C
(#,^)
19972 Willowin Farm Lane, Purcellville, VA 20132
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027
 
12.3

 
12.3

 
12.1

 
—
%
Hamilton & Associates Real Estate and Investments Firm LLC
(#,^)
11776 West Sample Rd, Coral Springs, FL 33065
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
6/30/2042
 
52.1

 
52.1

 
59.3

 
0.02
%

F-79
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
JWH Designs, LLC
(#,^)
1111 Boston Post Rd, Rye, NY 10580
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027
 
87.3

 
87.3

 
85.4

 
0.03
%
J&M Civil Construction Services LLC
(#,^)
1221 County Rd 4371, Decatur, TX 76234
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027
 
79.7

 
79.7

 
77.9

 
0.02
%
Best Bees Company
(#,^)
839 Albany St., Boston, MA 02119
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027
 
18.5

 
18.5

 
18.1

 
0.01
%
Stiegelbauer Associates Inc.
(#,^)
63 Flushing Ave, #101, Bldg 280, Brooklyn, NY 11205
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027
 
253.9

 
253.9

 
267.5

 
0.08
%
Ocean Trans LLC and Dehal Trucking LLC
(#,^)
760 W. Charter Way, Stockton, CA 95206
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027
 
514.4

 
514.4

 
502.2

 
0.16
%
Intellixion LLC
(#,^)
7447 Egan Dr, Ste 110 A, Savage, MN 55378
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027
 
3.1

 
3.1

 
3.0

 
—
%
Malhame & Company Publishers & Importers Inc.
(#,^)
180 Orville Rd, Bohemia, NY 11780
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027
 
73.9

 
73.9

 
72.2

 
0.02
%
Greensboro Plastic Surgical Associates, PA
(#,^)
2716 Henry St., Greensboro, NC 27405
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2042
 
557.7

 
557.7

 
630.0

 
0.20
%
Oakhill Farms, LLC
(#,^)
15 Carl St., Johnston, RI 02919
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2030
 
87.9

 
87.9

 
94.9

 
0.03
%
Akal Express Inc. dba Truck Trailer Service Stop
(#,^)
2901 I 40 West, Vega, TX 79092
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/28/2042
 
57.8

 
57.8

 
66.5

 
0.02
%
Foxhop Fitness, LLC
(#,^)
4211 NW Federal Hwy, Jensen Beach, FL 34957
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/28/2027
 
76.5

 
76.5

 
75.2

 
0.02
%
Old Dominion Transportation Group, Inc.
(#,^)
1308 Devils Reach Rd, Woodbridge, VA 22192
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/28/2027
 
831.8

 
831.8

 
823.0

 
0.26
%
Citibin, Inc.
(#,^)
254 36th St., Unit 25, Brooklyn, NY 11232
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/27/2027
 
102.8

 
102.8

 
100.4

 
0.03
%
Auxiliary Systems Inc.,Sharrick Company, LLC & KMN, LLC
(#,^)
211 East 25th St., Norfolk, VA 23504
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/27/2030
 
215.7

 
215.7

 
230.7

 
0.07
%
WB Cleaners Inc. DBA $2.75 Cleaners
(#,^)
5101 University Park Way, Winston-Salem, NC 27106
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/27/2027
 
13.5

 
13.5

 
14.2

 
—
%
Ains Holding Company, LLC
(#,^)
122 West 26th St., New York, NY 10011
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/26/2027
 
887.7

 
887.7

 
878.3

 
0.27
%
Four Seasons Laser Center Inc.
(#,^)
4720 NW 2nd Ave Units D-104 - 105, Boca Raton, FL 33498
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2042
 
211.4

 
211.4

 
239.4

 
0.07
%
Rustic LLC
(#,^)
4779 State Rd AA, Tebbetts, MO 65080
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2042
 
15.7

 
15.7

 
16.9

 
0.01
%
Northern Industries, LLC
(#,^)
W 5585 Dehart Drive, Tomahawk, WI 54484
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/23/2042
 
55.6

 
55.6

 
64.4

 
0.02
%
Vella Construction Enterprises, Inc. dba Vella Construction
(#,^)
318 28th Ave, San Mateo, CA 94403
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
6/23/2027
 
18.5

 
18.5

 
18.1

 
0.01
%

F-80
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Birches Group, LLC
(#,^)
228 East 45th St. 12th FL South, New York, NY 10017
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2027
 
41.1

 
41.1

 
40.1

 
0.01
%
Scarlet Spartan Inc.dba FastSigns of Brighton
(#,^)
533 W. Grand River Ave, Brighton, MI 48116
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2027
 
24.0

 
24.0

 
24.0

 
0.01
%
Don G. Timpton DDS & Associates PA and Indsaad Properties,LLC
(#,^)
11535 Carmel Cmns Blvd #200, Charlotte, NC 28226
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/16/2042
 
385.8

 
385.8

 
429.2

 
0.13
%
JAM Media Solutions, LLC
(#,^)
4744 Tackawanna St., Philadelphia, PA 19124
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2027
 
26.6

 
26.6

 
26.0

 
0.01
%
All Regional Recyclers of Wood LLC dba ARROW,Superior Carting,LLC dba
(#,^)
104 Wooster St., Bethel, CT 06801
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2042
 
299.3

 
299.3

 
337.1

 
0.10
%
ESA 365 Corp and Lucathor Realty LLC
(#,^)
2420 Grand Ave, Baldwin, NY 11520
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042
 
21.7

 
21.7

 
24.7

 
0.01
%
Hull's Kitchen, LLC and HK Too, LLC
(#,^)
19 Hull Shore Dr, Hull, MA 02045
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042
 
92.8

 
92.8

 
107.4

 
0.03
%
Tele Tax Express Inc., El Rancho Paiso, LLC and Nestor Romero
(#,^)
577 Main Ave, Paterson, NJ 07055
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042
 
89.1

 
89.1

 
102.2

 
0.03
%
Susan Hughes dba Aloha Junction B and B
(#,^)
19-4037 Olapalapa Rd, Volcano, HI 96785
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042
 
59.7

 
59.7

 
69.2

 
0.02
%
Yachting Solutions LLC
(#,^)
229 Commercial St., Rockport, ME 04856
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/12/2027
 
97.6

 
97.6

 
99.9

 
0.03
%
Refoleen Inc dba Spice and Tea Exchange
(#,^)
849 E Commerce St. Ste 121, San Antonio, TX 78205
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/8/2027
 
2.9

 
2.9

 
2.8

 
—
%
SCW, LLC dba Arthur Murray Dance Studio
(#,^)
2383 Old Dixwell Ave, Hamden, CT 06518
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2042
 
140.6

 
140.6

 
159.2

 
0.05
%
Skydive California, LLC
(#,^)
25001 S Kasson Rd, Tracy, CA 95301
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2027
 
45.2

 
45.2

 
47.6

 
0.01
%
Speaker City, Inc.and Speaker Town, LLC dba Rollin Thunder
(#,^)
246 East Belt Boulevard, Richmond, VA 23224
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/1/2042
 
44.0

 
44.0

 
50.2

 
0.02
%
Sage Oil LLC
(#,^)
8913 Egyptian Ave, Las Vegas, NV 89143
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/31/2027
 
18.3

 
18.3

 
18.0

 
0.01
%
Ricnet III, Inc. dba Edible Arrangements
(#,^)
716 Foxcroft Ave, Martinsburg, WV 25401
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/31/2027
 
12.3

 
12.3

 
12.1

 
—
%
Funtime, LLC and Universal Entertainment Group LLC
(#,^)
13200 W. Foxfire Dr #144, Surprise, AZ 85387
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/31/2027
 
54.0

 
54.0

 
53.2

 
0.02
%
Impact Grounds Maintenance and Design, Inc.dba Impact Landscaping and
(#,^)
6291 Chittenden Rd, Boston Heights, OH 44236
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/31/2042
 
76.4

 
76.4

 
87.9

 
0.03
%

F-81
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Haroon Baig,Inc.dba US1 Petrol
(#,^)
1280-1290 Dixwell Ave, Hamden, CT 06514
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/31/2042
 
253.8

 
253.8

 
294.0

 
0.09
%
Chet Lemon Enterprises LLC dba All American Sports
(#,^)
1544 Lane Park Cutoff, Tavares, FL 32778
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/26/2042
 
761.9

 
761.9

 
882.5

 
0.27
%
Hurricane Group, Inc.
(#,^)
312 West Fourth St., Carson City, NV 89703
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
5/26/2027
 
61.1

 
61.1

 
59.7

 
0.02
%
Eagle Wood Works LLC
(#,^)
1448 Horsehead Rd, Lugoff, SC 29078
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/26/2027
 
9.8

 
9.8

 
9.9

 
—
%
Mitchell Auto Repair, LLC and and C&M Mitchell, LLC
(#,^)
8641 Ashwood Dr, Capital Heights, MD 20743
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/26/2042
 
190.8

 
190.8

 
218.0

 
0.07
%
Swantown Inn & Spa LLC
(#,^)
1431 11th Ave SE, Olympia, WI 98501
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/26/2042
 
122.2

 
122.2

 
141.1

 
0.04
%
Jung Design Inc.
(#,^)
10857 Pine Bluff Drive, Fisher, IN 46037
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027
 
7.3

 
7.3

 
7.2

 
—
%
Beyond Waves A Unique Salon LLC and Lori Ann Carlson
(#,^)
2290 Foxon Rd Route 80, North Branford, CT 06471
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027
 
12.2

 
12.2

 
12.0

 
—
%
Locavore LLC dba Paloma Restaurant
(#,^)
401 S. Guadalupe St., Santa Fe, NM 87501
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027
 
40.8

 
40.8

 
40.6

 
0.01
%
Abdul Naushad MD PC dba Advanced Pain Centers
(#,^)
2865 James Boulevard, Poplar Bluff, MO 63901
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2042
 
379.0

 
379.0

 
434.6

 
0.13
%
Innovim, LLC
(#,^)
6401 Golden Triangle Dr. Ste 200, Greenbelt, MD 20770
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/24/2027
 
275.1

 
275.1

 
268.6

 
0.08
%
Gill Express Inc. and Gill Express 2 LLC
(#,^)
2372 Walnut Ave, Livingston, CA 95334
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/23/2042
 
325.7

 
325.7

 
367.0

 
0.11
%
Prestige Construction of Florida, LLC
(#,^)
1404 Yorktown St. Ste E, Deland, FL 34944
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/23/2042
 
323.4

 
323.4

 
361.8

 
0.11
%
 Iron Men Home Repair, Inc. and Ironmen House Lifting Inc.
(#,^)
132 North Wellwood Ave, Lindenhurst, NY 11757
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/19/2042
 
560.0

 
560.0

 
636.9

 
0.20
%
Hayden Trucking LLC
(#,^)
11540 Eagle Vista Drive, Fort Worth, TX 76179
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027
 
170.5

 
170.5

 
174.3

 
0.05
%
Tres K Deli,Grocery,Fruit and Meat Inc.
(#,^)
125 West Tremont Ave, Bronx, NY 10453
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027
 
6.7

 
6.7

 
6.8

 
—
%
Waterford Plumbing Co, Inc.
(#,^)
2425 W. Cuyler Ave, Chicago, IL 60618
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/18/2027
 
40.8

 
40.8

 
40.2

 
0.01
%
Mr. B's Bicycles & Mopeds, Inc.
(#,^)
1870 S. 4th Ave, Yuma, AZ 85364
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
5/18/2042
 
141.1

 
141.1

 
160.1

 
0.05
%
Bay Car Wash LLC
(#,^)
952 S Commercial St & W Magnolia, Aransas Pass, TX 78336
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2042
 
116.1

 
116.1

 
132.2

 
0.04
%

F-82
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Computech Computers Inc.
(#,^)
40-24 76th St., Office #2B, Elmhurst, NY 11373
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/17/2027
 
40.8

 
40.8

 
39.8

 
0.01
%
5 Stars Learning Center Inc
(#,^)
14 Paine Ave, Irvington, NJ 07111
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/16/2042
 
59.4

 
59.4

 
67.4

 
0.02
%
Batter & Company,LLC dba Batter Co. Dessert Collection
(#,^)
1741 N.W. 33rd St., Pompano Beach, FL 33064
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/16/2027
 
43.8

 
43.8

 
43.3

 
0.01
%
Arco Electrical Contractors Inc. dba Arco Construction Group
(#,^)
22-24 South Seventh St., Elizabeth, NJ 07202
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/16/2027
 
291.2

 
291.2

 
294.6

 
0.09
%
Band Sawn Lumber,LLC and Nathan Ryan Adams
(#,^)
1873 State Hwy 29, Johnstown, NY 12095
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/15/2042
 
110.8

 
110.8

 
124.6

 
0.04
%
Sanderson Distribution Inc.
(#,^)
100 Daniel Drive, Alamo, CA 94507
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/12/2027
 
8.6

 
8.6

 
8.4

 
—
%
SG Linke LLC
(#,^)
413 N Alfaya Trail P11, Orlando, FL 32828
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
8.25%
 
5/12/2027
 
67.9

 
67.9

 
65.9

 
0.02
%
B G F Bobby Q's Inc
(#,^)
447 N. Main St., Freeport, NY 11520
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/11/2027
 
6.1

 
6.1

 
6.4

 
—
%
Estelle Finkel Educational Associates,LLC
(#,^)
125 West Mt. Pleasant Ave, Livingston, NJ 07039
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/11/2027
 
99.4

 
99.4

 
97.0

 
0.03
%
Labmates,LLC
(#,^)
141 Watertown Rd, Thomaston, CT 06787
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
5/10/2027
 
81.5

 
81.5

 
84.2

 
0.03
%
NHS, LLC
(#,^)
212 N Douglas Ave, Ellsworth, KS 67439
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/9/2042
 
21.1

 
21.1

 
23.2

 
0.01
%
Innovation Transport, LLC
(#,^)
1 International Blvd, Mahwah, NJ 07495
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/9/2027
 
63.6

 
63.6

 
65.6

 
0.02
%
NHS, LLC
(#,^)
212 N Douglas Ave, Ellsworth, KS 67439
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/9/2027
 
72.1

 
72.1

 
72.1

 
0.02
%
Benchmark Building, Inc.
(#,^)
1439 Stargazer Terrace, Sanford, FL 32771
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/5/2027
 
18.3

 
18.3

 
17.9

 
0.01
%
Cable Management LLC
(#,^)
290 Pratt St., Meriden, CT 06450
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
5/3/2027
 
46.7

 
46.7

 
47.9

 
0.01
%
Fine Arts Center of Easley, Inc. dba Midtown Music
(#,^)
117 S. Pendleton St., Easley, SC 29640
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
5/2/2042
 
113.5

 
113.5

 
131.5

 
0.04
%
Love and Glory Learning Center, Inc.
(#,^)
4911 N. 42nd St., Tampa, FL 33610
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/28/2042
 
74.9

 
74.9

 
84.5

 
0.03
%
JMA Inc. dba Primecut and Mezzo; Primecut at Marquee
(#,^)
393 Charles St., Providence, RI 02904
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/27/2042
 
213.2

 
213.2

 
246.9

 
0.08
%
Sneads Ferry Foods, Inc. dba DQ Grill & Chill
(#,^)
920 Hwy 210, Sneads Ferry, NC 28460
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/27/2042
 
611.4

 
611.4

 
689.0

 
0.21
%

F-83
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Asheville's Fun Depot, LLC
(#,^)
7 Roberts Rd, Asheville, NC 28803
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/26/2027
 
70.7

 
70.7

 
74.5

 
0.02
%
Resident Research, LLC
(#,^)
4400 Morris Park Drive Ste M, Charlotte, NC 28277
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
4/24/2027
 
71.8

 
71.8

 
70.2

 
0.02
%
Getting Even LLC dba The Zoo Health Club
(#,^)
377 South Willow St., Ste B 2-1, Manchester, NH 03103
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/21/2027
 
6.1

 
6.1

 
6.0

 
—
%
Ralph's Hair Salon, Inc.
(#,^)
175 NW 14th St., Homestead, FL 33030
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/21/2042
 
48.0

 
48.0

 
54.8

 
0.02
%
Condron Brothers LLC DBA Luv 2 Play
(#,^)
4790 La Sierra Ave, Riverside, CA 92505
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/19/2027
 
96.6

 
96.6

 
96.9

 
0.03
%
Butternuts Beer and Ale LLC
(#,^)
4021 Hwy 51, Garrattsville, NY 13342
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/12/2027
 
59.6

 
59.6

 
62.8

 
0.02
%
Landmark Ventures USA, Inc.
(#,^)
475 Park Ave South 25th Fl, New York, NY 10016
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027
 
150.5

 
150.5

 
146.9

 
0.05
%
Golden Hen Inc. dba Cafe
(#,^)
468 W. Cheltenham Ave, Philadelphia, PA 19126
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027
 
52.0

 
52.0

 
51.1

 
0.02
%
Applied Integrated Technologies, Inc.
(#,^)
7120 Samuel Morse Drive #150, Columbia, MD 21046
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027
 
100.4

 
100.4

 
98.0

 
0.03
%
Bear Trail Lodge LLC
(#,^)
Mile 1 Bear Trail Rd, King Salmon, AK 99613
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042
 
531.0

 
531.0

 
613.1

 
0.19
%
Citizens Lanes, LLC
(#,^)
5100 Goodson Connector Rd, Union City, GA 30291
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042
 
607.2

 
607.2

 
703.3

 
0.22
%
The Altitude Group, LLC and Core Home Security, LLC
(#,^)
949 Clint Moore Rd, Unit 949A, Boca Raton, FL 33487
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027
 
35.5

 
35.5

 
34.7

 
0.01
%
Schafer Fisheries Inc.
(#,^)
21985 Waller Rd, Fulton, IL 61252
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2042
 
238.6

 
238.6

 
276.4

 
0.09
%
KWG Industries LLC dba Peterson & Marsh Metal Industries
(#,^)
330 Roycefield Rd, Unit B, Hillsborough, NJ 08844
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2027
 
24.1

 
24.1

 
25.2

 
0.01
%
Sea Smoke Barbeque, Corp and Danwen LLC
(#,^)
20 Island Farm Rd, Oak Bluffs, MA 02557
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/30/2042
 
227.2

 
227.2

 
258.5

 
0.08
%
Gauri Hospitality Group LLC dba Microtel Inns & Suites by Wyndham
(#,^)
1221 Kentucky Mills Drive, Louisville, KY 40299
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/29/2042
 
1,015.1

 
1,015.1

 
1,174.2

 
0.36
%
H and H Hotshot Services, Inc. dba AA Hotshot & Logistics
(#,^)
5455 N 51st St., #30, Glendale, AZ 85301
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2030
 
84.5

 
84.5

 
84.3

 
0.03
%
Douglas K. Soderblom . dba Loma Linda Optometry
(#,^)
25815 Barton Rd, Unit C104, Loma Linda, CA 92354
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2027
 
80.3

 
80.3

 
80.4

 
0.02
%

F-84
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Discount Price, LLC dba Robert's Market
(#,^)
2 Hill Rd, Franklin, NH 03235
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/29/2042
 
198.2

 
198.2

 
226.4

 
0.07
%
New England Country Day School, Inc. and Thomas D. Walker
(#,^)
27 Kenosia Ave, Danbury, CT 06810
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/28/2042
 
362.6

 
362.6

 
411.6

 
0.13
%
Heil & Hornik LLC dba Elysium Tennis
(#,^)
7637 C. Commerce Place, Plain City, OH 43064
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/27/2042
 
893.0

 
893.0

 
1,012.2

 
0.31
%
Pecos Entertainment LLC dba State Theater and Pecos Inn LLC
(#,^)
421 S. Oak St., Pecos, TX 79772
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
3/27/2042
 
394.3

 
394.3

 
456.7

 
0.14
%
Robert Dixon PA dba Law Offices of Robert Dixon
(#,^)
4501 NW 2nd Ave, Miami, FL 33127
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/24/2042
 
409.6

 
409.6

 
473.4

 
0.15
%
Denton Bio Fuels LLC and American Bio Source LLC
(#,^)
624 W. University Dr. Ste 359, TX, TX 76201
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2027
 
45.7

 
45.7

 
46.1

 
0.01
%
Color Graphic Press, Inc.
(#,^)
42 Main St., Nyack, NY 10960
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/23/2027
 
96.3

 
96.3

 
101.3

 
0.03
%
JBK Truck Trailer and Bus Inc.
(#,^)
8669 South State Rd 67, Camby, IN 46113
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/23/2042
 
85.2

 
85.2

 
96.5

 
0.03
%
Executive Fitness & Nutrition Inc.
(#,^)
8610 Roosevelt Ave Ste 2, Jackson Heights, NY 11372
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/23/2027
 
16.4

 
16.4

 
17.2

 
0.01
%
Baton Rouge Cargo Services Inc. and 6507 Westport, LLC
(#,^)
6507 Westport Ave, Shreveport, LA 71129
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/22/2042
 
618.0

 
618.0

 
708.6

 
0.22
%
Vehicle Safety Supply LLC
(#,^)
707 Femimore Rd, Mamaroneck, NY 10543
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/21/2027
 
18.1

 
18.1

 
17.6

 
0.01
%
J Sivilis LLC dba Pet Wants
(#,^)
3883 Catalina Dr, Cocoa, FL 32926
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/17/2027
 
3.9

 
3.9

 
3.9

 
—
%
Reservoir International LLC
(#,^)
502 Parks McMillan Drive, Raeford, NC 28376
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/16/2027
 
79.8

 
79.8

 
81.1

 
0.03
%
The Purple Cow House of Pancake Inc
(#,^)
6 & 10 Skowhegan Rd, Fairfield, ME 04937
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/16/2042
 
154.4

 
154.4

 
178.6

 
0.06
%
Texcor, Inc.dba Texas Corral,Texas Coral Restaurants II, Inc. T.C.
(#,^)
5880 US Hwy6, Portage, IN 46368
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/16/2027
 
241.4

 
241.4

 
253.9

 
0.08
%
1MTX LLC and Sunrise Transportation and Logistics, LLC and Mustafa
(#,^)
6510 North Broadway, Saint Louis, MO 63147
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/13/2027
 
543.7

 
543.7

 
529.9

 
0.16
%
Dwayne Bernard Tate
(#,^)
1238 Woodcliff Court SW, Lilburn, GA 30047
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/10/2027
 
8.4

 
8.4

 
8.5

 
—
%
Elegant Occasions, LLC dba E Productions
(#,^)
3650 Coral Ridge Drive Units 103-104, Coral Springs, FL 33065
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/10/2042
 
565.7

 
565.7

 
641.9

 
0.20
%
E & P Holdings 1 LLC and Evans & Paul Unlimited Corp. and Evans
(#,^)
140 Dupont St., Plainview, NY 11803
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/9/2027
 
100.2

 
100.2

 
98.9

 
0.03
%

F-85
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Anthony LLC dba Star of Woodward Market
(#,^)
5730 Woodward Ave, Detroit, MI 48202
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/9/2042
 
110.9

 
110.9

 
128.3

 
0.04
%
Allegro Assisted Living Of Texas
(#,^)
3400 Remington Drive, Plano, TX 75023
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
3/6/2027
 
77.0

 
77.0

 
81.0

 
0.03
%
Podium Auto Sales Inc and RRS Property, LLC
(#,^)
246 S Dixie Hwy, Pompano Beach, FL 33060
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/3/2042
 
87.2

 
87.2

 
98.6

 
0.03
%
Getting Even LLC dba The Zoo Health Club
(#,^)
377 S Willow St. Unit B2-1, Manchester, NH 03103
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2027
 
76.6

 
76.6

 
76.3

 
0.02
%
SSI Refrigerated Express Inc. and Robert M Stallone dba SSI Express
(#,^)
1001 E. Cooley Drive Ste 102, Colton, CA 92324
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/28/2027
 
182.3

 
182.3

 
177.6

 
0.06
%
Weeping Willow Kennels, Inc and Aileen N Black
(#,^)
6041 Hammond School Rd, Salisbury, MD 21804
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2042
 
134.4

 
134.4

 
153.4

 
0.05
%
Teracore Inc.
(#,^)
3300 Holcomb Bridge Rd Ste 226, Norcross, GA 30092
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2027
 
130.2

 
130.2

 
126.9

 
0.04
%
McNally Enterprises Inc.
(#,^)
1010 N. Grove St., Anaheim, CA 92806
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2027
 
51.2

 
51.2

 
51.0

 
0.02
%
Total Document Solutions Inc and,TDS Services, LLC
(#,^)
2515 North Shiloh Drive, Fayetteville, AR 72704
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/27/2030
 
268.7

 
268.7

 
276.3

 
0.09
%
TMJ Pizza Mesa LLC dba Rosati's Pizza Restaurant
(#,^)
2235 S. Power Rd Ste 118, Mesa, AZ 85209
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/24/2027
 
59.8

 
59.8

 
62.1

 
0.02
%
3W Enterprises LLC
(#,^)
2727 Industrial Parkway, Elkhart, IN 46516
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
2/24/2042
 
62.8

 
62.8

 
72.1

 
0.02
%
B & J Bicycle Shop Inc.
(#,^)
1620 E. Sample Rd, Pompano Beach, FL 33064
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
2/24/2027
 
5.3

 
5.3

 
5.6

 
—
%
DER Services, LLC dba A.K.A. Sports
(#,^)
34904 W. B. Michigan Ave, Wayne, MI 48184
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
2/17/2042
 
38.4

 
38.4

 
44.5

 
0.01
%
Ameritube, LLC and Ravone Properties, LLC
(#,^)
1000 N State Hwy 77, Hillsboro, TX 76645
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/14/2042
 
177.8

 
177.8

 
205.7

 
0.06
%
Baton Rouge Cargo Services Inc. and 2808 Court Street, LLC
(#,^)
2808 Court St., Port Allen, LA 70767
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/10/2042
 
237.5

 
237.5

 
272.3

 
0.08
%
Maximo Canot dba Wash and Dry Laundrymat
(#,^)
34 Morningside Ave, Yonkers, NY 10703
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/10/2042
 
132.1

 
132.1

 
151.7

 
0.05
%
Sushiya Inc.
(#,^)
72 S. Main St, Hanover, NH 03755
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/10/2027
 
14.9

 
14.9

 
14.8

 
—
%
Marvic Enterprises Inc dba Jordan's Liquor
(#,^)
199 Taunton Ave, East Providence, RI 02914
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/10/2042
 
210.2

 
210.2

 
240.3

 
0.07
%
Harrison Logging Company LLC
(#,^)
255 Ray Crain Rd, Indian Mound, TN 37079
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
2/9/2027
 
84.5

 
84.5

 
84.8

 
0.03
%

F-86
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
8 Minute Oil Change Auto Repair & Tire Center and Jumir L.L.C.
(#,^)
174-176 Mountain Ave, Springfield, NJ 07081
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
2/7/2042
 
315.7

 
315.7

 
355.0

 
0.11
%
DBMS Consulting, Inc.
(#,^)
164 W 83rd St. #CF1 & CF2, New York, NY 10024
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/1/2042
 
177.5

 
177.5

 
199.7

 
0.06
%
Brandco, LLC
(#,^)
2151 Consulate Drive Ste 21, Orlando, FL 32837
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/31/2027
 
34.5

 
34.5

 
33.6

 
0.01
%
Chidlren's House Learning, Inc and Tarps Investment Group
(#,^)
720 Wilbraham Rd, Springfield, MA 01109
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2042
 
308.0

 
308.0

 
349.3

 
0.11
%
Fave Realty Inc.
(#,^)
1875 Grand Ave, Baldwin, NY 11510
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
1/30/2042
 
52.2

 
52.2

 
59.5

 
0.02
%
SRC Publishing LLC
(#,^)
8690 Waterford Bend St., Las Vegas, NV 89123
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/27/2027
 
17.7

 
17.7

 
17.3

 
0.01
%
ZMKNY Tires Inc dba Houston International Tires
(#,^)
12444 Market ST, Houston, TX 77015
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
1/27/2042
 
103.2

 
103.2

 
119.4

 
0.04
%
House of Bread & Coffee Corp dba Casa Do Pao
(#,^)
22829 State Rd 7, Boca Raton, FL 33428
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/27/2042
 
167.2

 
167.2

 
185.7

 
0.06
%
Fox Valley Rentals & Investments LLC and Brian M Tomaszewski
(#,^)
2906 E. Newberry St., Appleton, WI 54915
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/20/2042
 
40.7

 
40.7

 
46.1

 
0.01
%
Jolibe LLC and Jolibe Atelier LLC
(#,^)
325 West 38th St. Studio 1704-1706, New York, NY 10018
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/18/2027
 
8.3

 
8.3

 
8.2

 
—
%
Eickmann Management Group LLC dba Jimmy Johns of Dundee
(#,^)
568 Techumseh St., Dundee, MI 48131
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/17/2027
 
78.5

 
78.5

 
82.3

 
0.03
%
Fullbro Trust dba Menemsha Blues
(#,^)
2 Basin Rd, Chilmark, MA 02535
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
1/13/2027
 
17.8

 
17.8

 
18.7

 
0.01
%
Echelon Enterprises, Inc
(#,^)
16701 E. Iliff Ave, Aurora, CO 80013
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
1/10/2027
 
38.6

 
38.6

 
40.6

 
0.01
%
Fort Smith Wings Inc. dba Wing Stop
(#,^)
8624 Rogers Ave, Fort Smith, AR 72903
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/28/2026
 
15.2

 
15.2

 
15.2

 
—
%
Jacliff Investments Inc. dba International health Technologies
(#,^)
2355 South 1070 West, Salt Lake City, UT 84119
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
12/23/2026
 
97.6

 
97.6

 
95.0

 
0.03
%
Metropolitan Solutions Group Inc.
(#,^)
1420 Chestnut St., Portsmouth, VA 23704
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/19/2041
 
262.8

 
262.8

 
292.4

 
0.09
%
Means Enterprises LLC dba FastFrame Frisco
(#,^)
4112-4150 Legacy Dr./5729 Leabanon Rd #412, Frisco, TX 75034
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/16/2026
 
17.6

 
17.6

 
17.2

 
0.01
%

F-87
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Soon Im. Chin dba Stan C-Store
(#,^)
4014 E Stan Schlueter Loop, Killeen, TX 76542
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041
 
203.1

 
203.1

 
233.4

 
0.07
%
Elita 7, LLC
(#,^)
16 Marble St., Worcester, MA 01603
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041
 
680.9

 
680.9

 
777.5

 
0.24
%
Techni-Pro Institute LLC
(#,^)
414 NW 35th St., Boca Raton, FL 33431
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/15/2026
 
148.3

 
148.3

 
146.6

 
0.05
%
New Chicago Wholesale Bakery, Inc.
(#,^)
795 Touhy Ave, Elk Grove Village, IL 60007
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041
 
433.2

 
433.2

 
487.7

 
0.15
%
Sempco, Inc.
(#,^)
51-55 Lake St. Unit #2-6, Nashua, NH 03060
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041
 
40.1

 
40.1

 
46.4

 
0.01
%
HMG Strategy, LLC
(#,^)
191 Post Rd West, Westport, CT 06880
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/14/2026
 
38.6

 
38.6

 
37.5

 
0.01
%
Trison Enterprises Inc.dba Lee's Automotive
(#,^)
13281 Aurora Ave N, Seattle, WA 98311
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041
 
389.4

 
389.4

 
443.0

 
0.14
%
AGG Management Team LLC dba Chevron
(#,^)
2615 S Dixie Hwy, West Palm Beach, FL 33401
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041
 
274.8

 
274.8

 
317.4

 
0.10
%
Wayfarer Bicycle LLC
(#,^)
118-120 Ocean Ave, New London, CT 06320
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/13/2041
 
88.4

 
88.4

 
98.9

 
0.03
%
Success Advertising Inc. dba Success Communivstion
(#,^)
26 Eastmans Rd, Parsippany, NJ 07054
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2041
 
445.8

 
445.8

 
512.9

 
0.16
%
Roast Beef Levittown LLC dba Arby's
(#,^)
2080 Hempstead Turnpike, East Meadow, NY 11554
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/13/2026
 
165.9

 
165.9

 
174.1

 
0.05
%
Myndshft Technologies LLC
(#,^)
3440 Gannett Ave, Des Moines, IA 50321
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/9/2026
 
605.4

 
605.4

 
602.3

 
0.19
%
Recycling Revolution,LLC
(#,^)
4190 Collins Rd, Unadilla, GA 31091
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/9/2041
 
88.7

 
88.7

 
100.1

 
0.03
%
Mack Team Enterprises Inc.dba The UPS Store #6815
(#,^)
38200 Ave of the States, Fort Gordon, GA 30905
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
12/9/2026
 
15.9

 
15.9

 
15.9

 
—
%
Imagine By Carleen Inc.
(#,^)
1404 Del Prado Blvd. #100, 105, Cape Coral, FL 33990
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2041
 
50.2

 
50.2

 
56.9

 
0.02
%
Hanson's Greeks LLC
(#,^)
8132 N. 87th Place, Ste A, Scottsdale, AZ 85258
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2026
 
8.8

 
8.8

 
9.2

 
—
%
New Life Hospital LLC
(#,^)
17400 Red Oak Drive, Houston, TX 77090
 
Hospitals
 
Term Loan
 
Prime plus 2.75%
 
12/8/2041
 
1,166.4

 
1,166.4

 
1,347.6

 
0.42
%
Yachting Solutions LLC
(#,^)
229 Commercial St., Rockport, ME 04856
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/7/2029
 
60.7

 
60.7

 
63.2

 
0.02
%
Lilo Holdings LLC
(#,^)
933 Port Reading Ave, Port Reading, NJ 07064
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/5/2026
 
12.6

 
12.6

 
12.7

 
—
%
Noso Development LLC
(#,^)
4 Walker Way, Albany, NY 12205
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/1/2026
 
58.6

 
58.6

 
57.0

 
0.02
%

F-88
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Quick Ship, LLC
(#,^)
448 W. 19th St, Houston, TX 77008
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026
 
8.1

 
8.1

 
7.9

 
—
%
Sharaz Shah DBA Thomas Jewelers
(#,^)
714 Greenville Blvd, Ste 0043, Greenville, NC 27858
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026
 
6.3

 
6.3

 
6.1

 
—
%
Studio Find It Georgia, Inc.
(#,^)
1415 Constitution Rd SE, Atlanta, GA 30316
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026
 
5.8

 
5.8

 
5.7

 
—
%
RD Management, LLC
(#,^)
2302 N. Kings Hwy, Myrtle Beach, SC 29572
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026
 
165.4

 
165.4

 
161.9

 
0.05
%
Imaginarium Foods LLC,
(#,^)
751 N. Cable Rd, Lima, OH 45805
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2042
 
358.5

 
358.5

 
409.0

 
0.13
%
Pebble Wood Lane, LLC and Good Sam's Assisted Living Resiidence,LLC
(#,^)
1 Pebble Wood Lane, Palm Coast, FL 32164
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
11/30/2041
 
64.7

 
64.7

 
74.8

 
0.02
%
Usman Jalil, LLC dba Food Mart
(#,^)
147 N Washington St., Plainville, CT 06062
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/29/2041
 
223.9

 
223.9

 
250.0

 
0.08
%
Access Staffing, LLC
(#,^)
360 Lexington Ave 8th Fl, New York, NY 10017
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/29/2026
 
914.3

 
914.3

 
889.1

 
0.28
%
CRK Mens, LLC dba Spiff for Men
(#,^)
750 Third Ave, New York, NY 10017
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026
 
84.6

 
84.6

 
83.2

 
0.03
%
Hafa Adai Signs and Graphics LLC dba Fastsigns of Auburn -#281901
(#,^)
1835 Auburn Way N Ste B, Auburn, WA 98002
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026
 
46.4

 
46.4

 
45.5

 
0.01
%
WPN Recycling Company LLC
(#,^)
5101 Andard Ave, Baltimore, MD 21226
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026
 
17.4

 
17.4

 
18.3

 
0.01
%
Merchant Coterie, Inc.
(#,^)
400 East 52nd St. Apt 14F, New York, NY 10022
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026
 
96.7

 
96.7

 
94.1

 
0.03
%
Bouquet Restaurant LLC
(#,^)
519 Main St., Covington, KY 41011
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/22/2041
 
92.8

 
92.8

 
107.0

 
0.03
%
JBK Truck Trailer and Bus Inc.
(#,^)
8669 S State Rd 67, Camby, IN 46113
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/22/2041
 
396.2

 
396.2

 
449.0

 
0.14
%
6E Technologies LLC
(#,^)
11001 West 120th Ave, Ste 400, Broomfield, CO 80020
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/22/2026
 
122.4

 
122.4

 
124.5

 
0.04
%
Broms Asset Management LLC
(#,^)
215 East 79th St. Apt 9E, New York, NY 10075
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/22/2026
 
96.6

 
96.6

 
93.9

 
0.03
%
Skaggs RV Outlet LLC
(#,^)
301 Commerce Drive, Elizabethtown, KY 42701
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/21/2026
 
77.4

 
77.4

 
81.2

 
0.03
%
Catherine Christine Morin dba Purr-Fect Pets
(#,^)
1915 North Austin Ave, Georgetown, TX 78626
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/17/2026
 
14.5

 
14.5

 
14.1

 
—
%
Stratmar Systems Inc dba Stratmar Retail Services
(#,^)
109 Willett Ave, Port Chester, NY 10573
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/16/2026
 
53.0

 
53.0

 
55.6

 
0.02
%

F-89
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Hoosier Health Plus, LLC
(#,^)
520 East 8th St., Anderson, IN 46012
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/15/2026
 
91.7

 
91.7

 
94.3

 
0.03
%
J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value
(#,^)
640 Dubois St., Du Bois, PA 15801
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026
 
170.5

 
170.5

 
177.7

 
0.06
%
J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value
(#,^)
640 Dubois St., Dubois, PA 15801
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/10/2041
 
438.5

 
438.5

 
500.8

 
0.16
%
Panther Ironworks and Rigging Solutions LLC
(#,^)
1028 Washburn Switch Rd, Shelby, NC 28150
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026
 
123.0

 
123.0

 
124.1

 
0.04
%
Hackensack Steel Corporation and Luzerne Ironworks Inc
(#,^)
300 Sly St., Swoyersville, PA 18709
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026
 
191.0

 
191.0

 
200.4

 
0.06
%
Big Apple Entertainment Partners LLC
(#,^)
1221 Brickell Ave, Ste 2660, Miami, FL 33131
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026
 
135.4

 
135.4

 
131.7

 
0.04
%
Dyer Properties, LLC and Bayview Pharmacy, Inc.
(#,^)
3844 Post Rd, Warwick, RI 02886
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
11/9/2041
 
229.1

 
229.1

 
258.0

 
0.08
%
MIK LLC dba Firehouse Subs
(#,^)
17250 Royalton Rd, Strongsville, OH 44136
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026
 
168.8

 
168.8

 
165.2

 
0.05
%
Fine Line Interiors, Inc.
(#,^)
2530 SW 30th Ave, Hallandale Beach, FL 33009
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/4/2041
 
63.5

 
63.5

 
73.4

 
0.02
%
131 Miles LLC and Ohm Shubh Laxmi, LLC. dba Mr Hero
(#,^)
13215 Miles Ave, Cleveland, OH 44105
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/3/2041
 
120.6

 
120.6

 
137.9

 
0.04
%
Veracruz Shabo, LLC, Waterfalls Quick Lube LLC
(#,^)
1325 Broad St., Central Falls, RI 02863
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/1/2041
 
115.6

 
115.6

 
132.0

 
0.04
%
Glocecol LLC
(#,^)
10302 NW S River Drive, Bay #18, Miami, FL 33178
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/1/2026
 
58.0

 
58.0

 
60.9

 
0.02
%
Bloomquist Communications Inc.
(#,^)
131 East Trinity Place, Decatur, GA 30030
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2026
 
46.0

 
46.0

 
44.7

 
0.01
%
Moolchan Enterprises LLC dba Staying Green
(#,^)
5370 State Rd 84 Bay 3, Davie, FL 33314
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2026
 
8.4

 
8.4

 
8.8

 
—
%
Woodstock Enterprises Corp dba True Scent Candle Co
(#,^)
191 2nd Ave, Warwick, RI 02888
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/31/2041
 
84.6

 
84.6

 
94.7

 
0.03
%
FibAire Communications, LLC
(#,^)
13590 S Sunland Gin Rd, #E, Arizona City, AZ 85123
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
10/27/2026
 
82.6

 
82.6

 
83.5

 
0.03
%
Elite Structures Inc
(#,^)
401 Old Quitman Rd, Abel, GA 31620
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/27/2029
 
191.3

 
191.3

 
202.5

 
0.06
%
Blakeslee Arpaia Chapman Inc and Chapman Construction Services LLC
(#,^)
200 North Branford Rd, Branford, CT 06405
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
10/24/2026
 
325.7

 
325.7

 
341.8

 
0.11
%

F-90
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Worldwide Estate, Inc. dba Washington Heights Manor
(#,^)
10620 W. Greenwood Ter, Milwaukee, WI 53224
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
10/21/2041
 
213.9

 
213.9

 
247.1

 
0.08
%
Gold Wind Logistics LLC
(#,^)
2830 Beech Daly Rd, Inkster, MI 48141
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/20/2041
 
167.2

 
167.2

 
193.2

 
0.06
%
Speaker City, Inc. dba Rollin Thunder
(#,^)
246 East Belt Boulevard, Richmond, VA 23224
 
Electronics and Appliance Stores
 
Term Loan
 
Prime plus 2.75%
 
10/14/2041
 
119.2

 
119.2

 
136.0

 
0.04
%
Maine Service Corp
(#,^)
59-22 55th St., Maspeth, NY 11378
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/13/2026
 
126.1

 
126.1

 
130.6

 
0.04
%
Justin Partlow
(#,^)
100 Independence Place, Ste 414, Tyler, TX 75703
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
10/13/2026
 
14.9

 
14.9

 
14.5

 
—
%
Reliable Recovery Services LLC
(#,^)
2401 West Mcdowell Rd, Phoenix, AZ 85009
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/7/2026
 
86.2

 
86.2

 
86.8

 
0.03
%
Wyspen Corporation dba Charlestown Ace
(#,^)
5 Austin St., Charlestown, MA 02129
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/3/2026
 
27.6

 
27.6

 
26.8

 
0.01
%
Ailky Corporation
(#,^)
352 Beford St., Lakeville, MA 02347
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/3/2026
 
181.6

 
181.6

 
179.3

 
0.06
%
Adelwerth Bus Corp.
(#,^)
423 Montauk Hwy, Eastport, NY 11941
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2041
 
230.3

 
230.3

 
259.7

 
0.08
%
JJA Transportation Management Inc.
(#,^)
15 Church St., Upland, PA 19015
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2026
 
39.8

 
39.8

 
38.7

 
0.01
%
Seaway LLC and Reklaw LLC dba Allure Lounge
(#,^)
415 -417 Halsey Drive, Newark, NJ 07102
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2041
 
130.4

 
130.4

 
150.6

 
0.05
%
Adelwerth Bus Corporation, Transportation Leasing Corp.
(#,^)
423 Montauk Hwy, Eastport, NY 11941
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029
 
545.1

 
545.1

 
574.0

 
0.18
%
Graphics,Type and Color Enterprises Inc dba Clubflyers.com
(#,^)
2300 NW 7th Ave, Miami, FL 33127
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
9/28/2041
 
821.5

 
821.5

 
949.1

 
0.29
%
Beadon Inc
(#,^)
2601 Old Ocean City Rd, Salisbury, MD 21804
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/28/2026
 
17.0

 
17.0

 
17.8

 
0.01
%
CD Game Exchange Inc.
(#,^)
3719 N Mississippi, Portland, OR 97227
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/28/2026
 
17.5

 
17.5

 
17.0

 
0.01
%
Kyle M Walker DDS, PC
(#,^)
1402 West Park Ave, Orange, TX 77630
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026
 
175.0

 
175.0

 
172.6

 
0.05
%
Reynolds Fence & Guardrail Inc.
(#,^)
9320 Machado Drive, Indian Trail, NC 28079
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026
 
476.8

 
476.8

 
491.8

 
0.15
%
Luv 2 Play Nor Cal, LLC dba Luv 2 Play
(#,^)
82 Clarksville Rd, Folsom, CA 95630
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026
 
39.9

 
39.9

 
39.7

 
0.01
%
Sarah S Olelewe MD Inc
(#,^)
11704 &11712 Hawthorne Blvd, Hawthorne, CA 90250
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2041
 
277.5

 
277.5

 
314.8

 
0.10
%

F-91
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
TPFC,LLC dbaThe Picture Frame Company
(#,^)
5957 Glenway Ave, Cincinnati, OH 45238
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/26/2041
 
55.7

 
55.7

 
63.3

 
0.02
%
Ridge Road Equestrian LLC dba Ricochet Ridge Ranch
(#,^)
24201 N Hwy 1, Fort Bragg, CA 95437
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
9/26/2026
 
6.8

 
6.8

 
7.1

 
—
%
PeopleBest Inc.
(#,^)
19442 Mesa Drive, Villa Park, CA 92861
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2026
 
11.4

 
11.4

 
11.0

 
—
%
Wrecking Crew Media LLC
(#,^)
229 Commercial Ave, Pittsburgh, PA 15212
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/21/2026
 
37.9

 
37.9

 
36.8

 
0.01
%
Cuppiecakes LLC
(#,^)
313 S Main St., McGregor, TX 76557
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/21/2041
 
21.3

 
21.3

 
24.1

 
0.01
%
Consulting Solutions Inc. and Mark Luciani
(#,^)
3000 N Federal Hwy 1-1A, Fort Lauderdale, FL 33306
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2026
 
17.1

 
17.1

 
17.5

 
0.01
%
Benoit's Towing and Recovery LLC
(#,^)
301 Tabor Rd, Swanton, VT 05488
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/20/2026
 
9.1

 
9.1

 
8.9

 
—
%
Atlantic Alarm Systems and Services LLC
(#,^)
165 Amboy Rd, Bldg G, Ste 703, Morganville, NJ 07734
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/14/2026
 
11.7

 
11.7

 
11.6

 
—
%
Marquis Cattle Company
(#,^)
805 US Hwy 87, Belt, MT 59412
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
9/13/2026
 
38.2

 
38.2

 
40.1

 
0.01
%
Metropet Dog Center, Inc
(#,^)
2057 West Shore Rd, Warwick, RI 02889
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2041
 
103.6

 
103.6

 
118.0

 
0.04
%
Bingham Enterprises, Inc and Full Belli Deli and Sausage Company
(#,^)
209 South Front St., Townsend, MT 59644
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/12/2041
 
78.2

 
78.2

 
87.7

 
0.03
%
SRA Mechanicial Inc
(#,^)
1186 Ocean Ave, Bayshore, NY 11706
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/6/2041
 
41.3

 
41.3

 
47.7

 
0.01
%
Sandia Enterprises Inc dba Massage Envy Spa
(#,^)
9139 W Stockton Blvd Ste 100, Elk Grove, CA 95758
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/6/2026
 
32.2

 
32.2

 
31.2

 
0.01
%
Animal Intrusion Prevention Systems Holding Company, LLC
(#,^)
1362-1366 W Carrier Pkwy, Grand Prairie, TX 75050
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2026
 
98.7

 
98.7

 
97.2

 
0.03
%
Raem Corporation dba Dryclean Express
(#,^)
557 West Whitney Rd, Fairport, NY 14450
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/29/2041
 
68.6

 
68.6

 
79.0

 
0.02
%
Warren Dale Warrington dba Custom Paint and Body
(#,^)
705 S Market Ave, Fort Pierce, FL 34982
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/26/2041
 
95.8

 
95.8

 
109.5

 
0.03
%
Albert Basse Associates Inc
(#,^)
175 Campanelli Parkway, Stoughton, MA 02072
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026
 
46.3

 
46.3

 
48.5

 
0.02
%
Avery Management Inc. dba Whetstone Upholstery
(#,^)
1122 N Bloulevard, Richmond, VA 23230
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026
 
7.7

 
7.7

 
7.4

 
—
%
Tabadesa Associates Inc.
(#,^)
419 W 49th St. Ste 111, Hialeah, FL 33012
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026
 
16.9

 
16.9

 
16.4

 
0.01
%
TR Companies LLC dba Liberty Rental 4 U
(#,^)
410 N Church Rd, Liberty, MO 64068
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026
 
67.5

 
67.5

 
65.5

 
0.02
%

F-92
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Rosmel Pools Inc
(#,^)
9300 NW 25th St. Ste 103, Miami, FL 33172
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026
 
16.9

 
16.9

 
16.6

 
0.01
%
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
(#,^)
726-740 South Fleming St., Sebastian, FL 32958
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2041
 
492.0

 
492.0

 
566.5

 
0.18
%
Luv 2 Play Temecula, LLC
(#,^)
26469 Ynez Rd, Temecula, CA 92591
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/15/2026
 
45.0

 
45.0

 
43.7

 
0.01
%
2 Cool Beans LLC dba Menchies's Frozen Yogurt
(#,^)
11331 Thienes Ave, South El Monte, CA 91733
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/11/2026
 
61.9

 
61.9

 
60.0

 
0.02
%
Grayson O Company
(#,^)
6509 Newell Ave, Kannapolis, NC 28082
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/10/2041
 
591.7

 
591.7

 
682.2

 
0.21
%
Paul Belanger dba Paul Belanger Landscaping
(#,^)
2595 Military Ave, Los Angeles, CA 90064
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/9/2026
 
11.2

 
11.2

 
10.9

 
—
%
The Hungry Rhino LLC
(#,^)
47 South Main St., Windsor Locks, CT 06096
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041
 
72.1

 
72.1

 
81.5

 
0.03
%
USA General Investment LLC dba Braniff Paint and Body Shop
(#,^)
2290 NW 21st Terrace, Miami, FL 33142
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2026
 
16.7

 
16.7

 
16.5

 
0.01
%
303 Tower Drive LLC
(#,^)
303 Tower Drive, Ste A, Middletown, NY 10941
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041
 
378.2

 
378.2

 
433.2

 
0.13
%
Little Tree Huggers Child Care LLC
(#,^)
38620 9 Mile Rd, Farmington Hills, MI 48335
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041
 
132.3

 
132.3

 
152.6

 
0.05
%
Big Apple Entertainment Partners LLC dba Ripley's Believe It or Not
(#,^)
1221 Brickell Ave, Ste 2660, Miami, FL 33131
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/28/2026
 
222.8

 
222.8

 
216.2

 
0.07
%
676 Club LP dba The Green Door Tavern/The Drifter
(#,^)
676 and 678 North Orleans ST, Chicago, IL 60654
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041
 
633.1

 
633.1

 
728.1

 
0.23
%
Intrepid Trinity LLC
(#,^)
680 Douglas Ave, Providence, RI 02908
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041
 
59.1

 
59.1

 
67.3

 
0.02
%
Apple Tree NC Inc dba Williams Farm & Garden Center
(#,^)
1309 Old Cherry Point Rd, New Bern, NC 28560
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041
 
321.7

 
321.7

 
362.4

 
0.11
%
EPEC Juice LLC dba Jamba Juice
(#,^)
810 Ninth St., Ste 128, Durham, NC 27705
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026
 
62.0

 
62.0

 
60.2

 
0.02
%
Pinco Pizza LLC dba Jet's Pizza
(#,^)
10845 N. Tatum Blvd Ste A 100, Phoenix, AZ 85028
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026
 
54.7

 
54.7

 
57.3

 
0.02
%
JAG Unit 1, LLC dba Arooga's Grille House and Sports Bar
(#,^)
1 West Main St., Patchogue, NY 11772
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026
 
92.8

 
92.8

 
90.1

 
0.03
%
The Grasso Companies, LLC and Grasso Pavement Maintenance, LLC
(#,^)
485 Pepper St., Norwalk, CT 06468
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
7/26/2026
 
67.3

 
67.3

 
67.8

 
0.02
%
My Sainath Inc dba Motel 6
(#,^)
1008 E Crest Drive, Waco, TX 76705
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
7/22/2041
 
288.6

 
288.6

 
330.9

 
0.10
%

F-93
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Robert G Larson State Farm Insurance
(#,^)
7922 Jamaica Ave, Woodhaven, NY 11421
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/22/2026
 
16.7

 
16.7

 
16.2

 
0.01
%
J and D Resources LLC dba Aqua Science
(#,^)
1923 E 5th St, Tempe, AZ 85281
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2026
 
87.6

 
87.6

 
85.6

 
0.03
%
Robert P Daniels dba Ginger and Friend's Peppermint Village Gift Shop
(#,^)
1502 Hwy 157, Mansfield, TX 76063
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/18/2026
 
11.7

 
11.7

 
11.3

 
—
%
Franklin Firm LLC dba Luv 2 Play
(#,^)
1310 East Stan Schleuter Loop, Killeen, TX 76542
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/15/2041
 
152.1

 
152.1

 
173.2

 
0.05
%
Jacob Rugs LLC dba Rugs Outlet
(#,^)
32879 US Hwy 27, Haines City, FL 33844
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
7/13/2026
 
48.7

 
48.7

 
51.0

 
0.02
%
RM Hawkins LLC dba Pure Water Tech West
(#,^)
5140 Topaz Drive, Colorado Springs, CO 80918
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/7/2026
 
37.0

 
37.0

 
38.3

 
0.01
%
Nevey's LLC dba Stark Food III
(#,^)
6315 W. Fond Du Lac Ave, Milwaukee, WI 53218
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2041
 
278.2

 
278.2

 
326.2

 
0.10
%
Corning Lumber Company Inc and Frank R Close and Son Inc
(#,^)
1314 Sixth St., Orland, CA 95963
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/30/2029
 
160.2

 
160.2

 
173.5

 
0.05
%
Desert Tacos LLC
(#,^)
245 East Bell Rd, Ste A-2, Phoenix, AZ 85022
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026
 
74.5

 
74.5

 
78.0

 
0.02
%
VMA Technologies LLC
(#,^)
120 S Serenata Dr. #332, Ponte Vedra Beach, FL 32082
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026
 
16.5

 
16.5

 
16.8

 
0.01
%
P L H Pharmaco Inc dba Farmacia San Jose
(#,^)
149 48th St., Union City, NJ 07087
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026
 
124.2

 
124.2

 
131.3

 
0.04
%
Martin Inventory Management LLC
(#,^)
304 1/2 Main St., Edgefield, SC 29824
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026
 
18.2

 
18.2

 
19.2

 
0.01
%
WGI, LLC dba Williams Grant Inn
(#,^)
154 High St., Bristol, RI 02809
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/29/2041
 
115.8

 
115.8

 
135.2

 
0.04
%
O.D.S. Inc dba Four Seasons Health & Racquet and Step 'N' Motion, Inc
(#,^)
626 Delsea Drive N, Glassboro, NJ 08028
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/29/2026
 
102.9

 
102.9

 
105.4

 
0.03
%
KWG Industries, LLC dba Peterson & Marsh Metal Industries
(#,^)
330 Roycefield Rd, Unit B, Hillsborough, NJ 08844
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2041
 
287.4

 
287.4

 
336.2

 
0.10
%
E & P Holdings 1 LLC and Evans & Paul LLC
(#,^)
140 Dupont St, Plainview, NY 11803
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2026
 
99.2

 
99.2

 
101.7

 
0.03
%
MaidPro Marin dba MaidPro
(#,^)
98 Jewell St., San Rafael, CA 94901
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2026
 
12.9

 
12.9

 
13.1

 
—
%
JumboMarkets Inc dba Rines Jumbomarkets
(#,^)
15500 SW Trail Drive, Indiantown, FL 34956
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/24/2026
 
36.7

 
36.7

 
37.4

 
0.01
%

F-94
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Island Time Investments, LLC dba Swantown Inn Bed & Breakfast
(#,^)
1431 11th Ave SE, Olympia, WA 98501
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/24/2041
 
95.5

 
95.5

 
112.1

 
0.03
%
Shooting Sports Academy LLC and Jetaa LLC
(#,^)
27 Main St., Monroe, CT 06468
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041
 
470.0

 
470.0

 
544.0

 
0.17
%
Long Island Comedy LLC dba Governors and New York Comedy, LLC
(#,^)
90 A Division Ave, Levittown, NY 11756
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041
 
176.9

 
176.9

 
206.0

 
0.06
%
Visual Advantage LLC dba Signs Now Perryberg
(#,^)
23248 Dunbridge Rd, Perrysburg, OH 43443
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041
 
86.1

 
86.1

 
100.0

 
0.03
%
Bagelicious, LLC
(#,^)
945 S Main St, Cheshire, CT 06410
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/17/2026
 
40.1

 
40.1

 
40.8

 
0.01
%
Blue Eagle Transport Inc, Greeneagle Transport Inc and Golden Eagle
(#,^)
377 Boston Post Rd, Milford, CT 06460
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026
 
396.4

 
396.4

 
403.1

 
0.13
%
NKJ Lusby Donuts LLC
(#,^)
174 Village Center Drive, Lusby, MD 20657
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026
 
16.5

 
16.5

 
16.8

 
0.01
%
Winegirl Wines LLC
(#,^)
222 E Wapato Way, Manson, WA 98831
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026
 
8.3

 
8.3

 
8.7

 
—
%
Jai-Alexia Consulting, Inc.
(#,^)
14660 Paddock Drive, Wellington, FL 33414
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
6/15/2026
 
8.7

 
8.7

 
8.8

 
—
%
Pumpkin Patch Child Care of Southington, LLC and Giuseppe Pugliares
(#,^)
1137 West St., Southington, CT 06489
 
Social Assistance
 
Term Loan
 
Prime plus 2%
 
6/15/2041
 
483.0

 
483.0

 
533.5

 
0.17
%
Refoleen Inc dba Spice and Tea Exchange
(#,^)
849 East Commerce St., Ste 121, San Antonio, TX 78205
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/10/2026
 
63.6

 
63.6

 
64.7

 
0.02
%
Luv 2 Play AZ LLC
(#,^)
15495 Bell Rd, Surprise, AZ 85374
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/10/2026
 
45.9

 
45.9

 
48.4

 
0.02
%
ScimTech Industries Inc dba Archer Aerospace
(#,^)
1021 Linden Ave, Chester Springs, PA 19425
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/6/2026
 
8.8

 
8.8

 
9.0

 
—
%
Larry H. Patterson and Rainbow Movers, Inc
(#,^)
2325 Hollers Ave, Bronx, NY 10475
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/6/2026
 
16.5

 
16.5

 
16.8

 
0.01
%
Solvit Inc and Solvit North Inc
(#,^)
65 Farmington Valley Drive, Plainville, CT 06062
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/3/2026
 
182.8

 
182.8

 
188.4

 
0.06
%
AP5 LLC dba Krauser's Food Store
(#,^)
5 Pond Point Rd, Milford, CT 06460
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/2/2041
 
182.8

 
182.8

 
214.4

 
0.07
%
ATI Jet Inc
(#,^)
7007 Boeing Drive, El Paso, TX 79925
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/31/2026
 
404.9

 
404.9

 
416.7

 
0.13
%
Premier Athletic Center of Ohio, Inc
(#,^)
8957 Kingsridge Drive, Centerville, OH 45459
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/27/2026
 
63.6

 
63.6

 
67.1

 
0.02
%
Angelo Faia dba AVF Construction
(#,^)
55 Arbour Lane, Sewell, NJ 08080
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/27/2041
 
93.8

 
93.8

 
109.1

 
0.03
%

F-95
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Jack Frost Firewood Inc. and David Dubinsky
(#,^)
3168 Holland Rd, Virginia Beach, VA 23453
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/26/2041
 
194.2

 
194.2

 
225.6

 
0.07
%
Mersada Holdings LLC
(#,^)
933 Louise Ave Ste 10122, Charlotte, NC 28204
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
5/26/2026
 
245.5

 
245.5

 
259.0

 
0.08
%
Southwest Division Inc
(#,^)
2103 NE 3rd Terrace, Cape Coral, FL 33909
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
5/26/2026
 
6.0

 
6.0

 
6.2

 
—
%
International Kitchen Supply LLC
(#,^)
3466 North Hwy 11, West Union, SC 29696
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/25/2026
 
135.8

 
135.8

 
140.2

 
0.04
%
Groth Lumber Co. Inc. dba True Value
(#,^)
6747 Pacific Ave, Wright, MN 55798
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/25/2026
 
16.4

 
16.4

 
17.3

 
0.01
%
Island Life Graphics Inc dba FASTSIGNS #576
(#,^)
1925 S 14th St. No. 7, Amelia Island, FL 32034
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/24/2026
 
16.4

 
16.4

 
16.7

 
0.01
%
Powerspec Inc
(#,^)
1 Linsley Place, Metuchen, NJ 08840
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/24/2026
 
63.4

 
63.4

 
64.4

 
0.02
%
Horseshoe Barbecue, LLC
(#,^)
6555,6565,6575 N Sandario Rd, Tucson, AZ 85743
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/23/2029
 
8.7

 
8.7

 
9.4

 
—
%
Pro Auto Repair LLC
(#,^)
204 F St. SW, Quincy, WA 98848
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026
 
5.4

 
5.4

 
5.7

 
—
%
National Air Cargo Holdings Inc
(#,^)
5955 TG Lee Blvd., Ste 500, Orlando, FL 32822
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026
 
909.2

 
909.2

 
959.3

 
0.30
%
Elderfriend Inc dba Granny Nannies dba GN Live Scan
(#,^)
1499 W. Palmetto Park Rd, Ste #115, Boca Raton, FL 33486
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026
 
9.3

 
9.3

 
9.4

 
—
%
J&A Laundromat Inc.
(#,^)
225 East Park Ave, Long Beach, NY 11561
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2026
 
49.1

 
49.1

 
50.3

 
0.02
%
Dedicated Incorporated
(#,^)
2916 North 39th St., Phoenix, AZ 85019
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2041
 
43.8

 
43.8

 
51.1

 
0.02
%
HBA LLC dba Palmetto Twist-Vista
(#,^)
1225-1229 Lincoln St., Columbia, SC 29201
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2026
 
14.1

 
14.1

 
14.4

 
—
%
Studio Find It Georgia Inc
(#,^)
3399 Peachtree Rd NE, Ste 400, Atlanta, GA 30326
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/13/2026
 
16.4

 
16.4

 
16.8

 
0.01
%
FJN Catering Inc
(#,^)
106 Main St., Mineola, NY 11951
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/13/2041
 
247.3

 
247.3

 
290.1

 
0.09
%
Pumpkin Patch Inc and Christine Feliciano and Antonio Feliciano
(#,^)
11 Kirby Rd, Cromwell, CT 06419
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/12/2041
 
124.8

 
124.8

 
145.1

 
0.05
%
Sabir Inc. dba Bear Diner
(#,^)
603 Pulaski Hwy, Bear, DE 19701
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/11/2041
 
116.6

 
116.6

 
136.4

 
0.04
%
Gator D'Lites LLC dba D'Lites Emporium
(#,^)
4216 NW 16th Blvd, Gainsville, FL 32605
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/5/2026
 
16.4

 
16.4

 
16.6

 
0.01
%

F-96
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Keller, Fishback & Jackson LLP
(#,^)
28720 Canwood St., Agoura Hills, CA 91301
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026
 
91.9

 
91.9

 
96.9

 
0.03
%
Marc S. Rosenberg P.C. dba Mammuth and Rosenberg
(#,^)
401 East City Ave Ste 122, Bala Cynwyd, PA 19004
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026
 
16.2

 
16.2

 
16.5

 
0.01
%
Hard Exercise Works Winter Park LLC
(#,^)
11551 University Blvd #4C Bldg 1, Orlando, FL 32817
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026
 
29.3

 
29.3

 
29.8

 
0.01
%
Loriet LLC
(#,^)
5001 Vivienda Way, Sarasota, FL 34235
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026
 
5.4

 
5.4

 
5.5

 
—
%
May-Craft Fiberglass Products Inc
(#,^)
96 Hillsboro Rd, Four Oaks, NC 27524
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041
 
232.8

 
232.8

 
273.2

 
0.08
%
Alpha Omega Trucking LLC
(#,^)
14432-52 State Line Rd, Brookings, OR 97415
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041
 
165.1

 
165.1

 
193.7

 
0.06
%
Warner Home Comfort, LLC dba Smith Piping
(#,^)
1571 Canton Rd., NW, Carrollton, OH 44615
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041
 
77.5

 
77.5

 
90.2

 
0.03
%
Empowerschool LLC and Empower Autism Academy, LLC
(#,^)
1825 Fort View Rd, Austin, TX 78754
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041
 
142.8

 
142.8

 
167.5

 
0.05
%
Costume World Inc
(#,^)
950 S Federal Hwy, Deerfield Beach, FL 33441
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041
 
1,175.8

 
1,175.8

 
1,379.6

 
0.43
%
Pecos Inn LLC dba Econo Lodge
(#,^)
2207 W Third St., Pecos, TX 79772
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041
 
634.1

 
634.1

 
741.8

 
0.23
%
Accent Comfort Services, LLC
(#,^)
5035-C West W. T. Harris Blvd, Charlotte, NC 28269
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/26/2026
 
64.8

 
64.8

 
65.9

 
0.02
%
Automotive Core Recycling, LLC and 828 Old Colony Road, LLC
(#,^)
27-29 Cooper St., Meriden, CT 06053
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/22/2041
 
235.0

 
235.0

 
271.1

 
0.08
%
McIntosh Trail Management Services Organization Inc
(#,^)
747 South Hill St., Griffin, GA 30224
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/22/2041
 
399.8

 
399.8

 
469.1

 
0.15
%
AAA Mill Direct, Inc. dba Carpet Mill Outlets
(#,^)
1 North Armistead Ave, Hampton, VA 23669
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
4/21/2026
 
5.7

 
5.7

 
6.0

 
—
%
Sushiya Inc
(#,^)
72 South Main St., Hanover, NH 03755
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/12/2026
 
63.0

 
63.0

 
64.8

 
0.02
%
KNS Early Learning Academy LLC
(#,^)
57 Merritt St. SE, Marietta, GA 30060
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/6/2041
 
48.0

 
48.0

 
55.7

 
0.02
%
Waterfalls Quick Lube LLC and Veracruz Shabo LLC
(#,^)
1325 Broad St., Central Falls, RI 02863
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/6/2041
 
261.6

 
261.6

 
305.4

 
0.09
%
Christian Soderquist dba Soderquist Plumbing and Heating LLC
(#,^)
7 Oak Drive, Sandy Hook, CT 06482
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041
 
53.2

 
53.2

 
62.5

 
0.02
%
Cameo Carter, MD A Professional Corporation dba The Garden Pediatric
(#,^)
101 East Redlands Blvd, Ste 106, Redlands, CA 92373
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026
 
53.4

 
53.4

 
54.3

 
0.02
%

F-97
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Gill Express Inc and Blue Speed LLC
(#,^)
2372 Walnut Ave, Livingston, CA 95334
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041
 
485.9

 
485.9

 
565.6

 
0.18
%
Dana A. Farley dba Independent Cabinets
(#,^)
5805 NE Minder Rd, Poulsbo, WA 98370
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041
 
61.8

 
61.8

 
72.6

 
0.02
%
Vehicle Safety Supply LLC
(#,^)
15 East 72nd St., Ste 14-H, New York, NY 10021
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026
 
16.0

 
16.0

 
16.3

 
0.01
%
Men of Steel Enterprises LLC and Vogelbacher Properties LLC
(#,^)
2039 US Route 130, Burlington, NJ 08016
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041
 
369.1

 
369.1

 
424.6

 
0.13
%
Wyldewood Cellars, Inc.
(#,^)
951 East 119th St, Mulvane, KS 67120
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2041
 
960.1

 
960.1

 
1,108.3

 
0.34
%
NOSO Development, LLC
(#,^)
4 Walker Way, Albany, NY 12205
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026
 
133.5

 
133.5

 
135.5

 
0.04
%
MTS Car Service LLC
(#,^)
30 Taylor Ave, Norwalk, CT 06850
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026
 
7.5

 
7.5

 
7.6

 
—
%
Beale Street Blues Company-West Palm Beach, LLC dba Lafayette’s-West
(#,^)
550 Rosemary Ave, Ste 236, West Palm Beach, FL 33410
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026
 
66.8

 
66.8

 
68.2

 
0.02
%
Tom Sawyer Country Restaurant LLC and AM 3208 LLC
(#,^)
3208 Forest Hills Boulevard, Palm Springs, FL 33406
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/30/2041
 
243.0

 
243.0

 
284.5

 
0.09
%
Gordon Rogers and Heidi Rogers dba Stone House Motor Inn
(#,^)
162 Danielson Pike, Foster, RI 02825
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026
 
16.2

 
16.2

 
17.1

 
0.01
%
Barrocas Gym LLC dba Snap Fitness
(#,^)
260 West Main St., Avon, CT 06001
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026
 
13.8

 
13.8

 
14.3

 
—
%
Vinmar Inc. dba Locanda Portofino
(#,^)
1110 Montana Ave, Santa Monica, CA 90403
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026
 
57.9

 
57.9

 
58.7

 
0.02
%
Marathon Engineering Corporation
(#,^)
5615 2nd St. W, Lehigh Acres, FL 33971
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2041
 
42.2

 
42.2

 
49.3

 
0.02
%
PHCDC1 LLC dba Quarter + Glory and Public House Collective, Corp.
(#,^)
2017 14th St. NW, Washington, DC 20009
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/28/2026
 
35.6

 
35.6

 
36.7

 
0.01
%
Revolution Physical Therapy LLC dba Apex Network Physical Therapy
(#,^)
2705 Dougherty Ferry Rd #104, St. Louis, MO 63122
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2026
 
16.2

 
16.2

 
16.6

 
0.01
%
International Construction Inc
(#,^)
53955 Gratiot Ave, Chesterfield, MI 48051
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041
 
45.6

 
45.6

 
53.0

 
0.02
%
ActKnowledge, Inc.
(#,^)
365 5th Ave, New York, NY 10016
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/24/2026
 
89.0

 
89.0

 
93.7

 
0.03
%
Precious Care LLC and Precious Care Management LLC
(#,^)
186-06 Union Turnpike, Fresh Meadows, NY 11364
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026
 
396.1

 
396.1

 
402.7

 
0.12
%

F-98
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Media Capital Partners, Inc
(#,^)
809 Cedar Rd, Southport, CT 06890
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026
 
16.0

 
16.0

 
16.2

 
0.01
%
Kekoa Enterprises Inc dba Signarama Sandy
(#,^)
8942 South 700 East, Sandy, UT 84070
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2026
 
35.2

 
35.2

 
35.8

 
0.01
%
ERT Group Inc and Curt's Tools Inspection Inc
(#,^)
5229 142nd Dr. NW, Williston, ND 58801
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
3/18/2041
 
1,186.2

 
1,186.2

 
1,377.1

 
0.43
%
Taylors Zinn Enterprises Inc dba Eons Auto Care Inc
(#,^)
330 West Harden St., Graham, NC 27253
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/18/2041
 
75.7

 
75.7

 
88.7

 
0.03
%
Brian T Rice dba BD Logging
(#,^)
800 3rd St Apt B, St Marys, WV 26170
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
3/17/2026
 
1.3

 
1.3

 
1.4

 
—
%
K Soles Corp dba Max Collections
(#,^)
3208 Oakcliff Industrial St., Doraville, GA 30340
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026
 
16.0

 
16.0

 
16.3

 
0.01
%
R & D Enterprises Inc dba My Pool Man
(#,^)
291 North Texas Ave., Orlando, FL 32805
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/15/2026
 
35.6

 
35.6

 
36.1

 
0.01
%
HEWZ, LLC dba Hard Exercise Works
(#,^)
5684 West Sample Rd, Coral Springs, FL 33071
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/14/2026
 
16.0

 
16.0

 
16.2

 
0.01
%
Accuair Control Systems LLC dba Accuair Suspension
(#,^)
831 Buckley Rd, San Luis Obispo, CA 93401
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026
 
106.8

 
106.8

 
109.1

 
0.03
%
ABCs & 123s Infant and Child Care Center LP
(#,^)
13419 Hwy 290E., Bldg 5, Manor, TX 78653
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026
 
8.0

 
8.0

 
8.1

 
—
%
Dupre Capital LLC dba Fastsigns
(#,^)
215 Quartermaster Court, Jeffersonville, IN 47130
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026
 
41.6

 
41.6

 
42.2

 
0.01
%
Step Up Academy of the Arts LLC
(#,^)
2558 Wigwam Pkwy Ste A, Henderson, NV 89074
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/9/2026
 
5.7

 
5.7

 
5.8

 
—
%
Faith Summit Supply Inc dba Summit Supply and Summit True Value
(#,^)
8584 US Business Hwy 277, Haskell, TX 79521
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/9/2026
 
16.0

 
16.0

 
16.6

 
0.01
%
Swerve Salon LLC
(#,^)
1419 N Wells St., Chicago, IL 60610
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/8/2026
 
56.3

 
56.3

 
57.1

 
0.02
%
J & W Hardwood Flooring Inc
(#,^)
14967 Madison St, Brighton, CO 80602
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/7/2026
 
5.3

 
5.3

 
5.4

 
—
%
Labmates LLC and POV Holdings LLC
(#,^)
141 Watertown Rd, Thomaston, CT 06787
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/4/2041
 
102.5

 
102.5

 
120.1

 
0.04
%
Hueston and Company CPA LLC
(#,^)
8792 East State Rd 70, Ste B, Bradenton, FL 34202
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/4/2026
 
5.8

 
5.8

 
5.9

 
—
%
Almost Home Daycare LLC
(#,^)
35 Copps Hill Rd, Ridgefield, CT 06877
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/3/2026
 
38.4

 
38.4

 
40.4

 
0.01
%
Miles of Smiles Inc
(#,^)
1408 Molalla Ave, Oregon City, OR 97045
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/2/2026
 
67.8

 
67.8

 
69.2

 
0.02
%
The River Beas, LLC dba Subway and Punam Singh
(#,^)
5516 Baltimore Ave, Hyattsville, MD 20781
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2041
 
127.6

 
127.6

 
149.3

 
0.05
%

F-99
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Living Essentials HVAC Corp
(#,^)
42 West St., Apt 24, Randolph, MA 02368
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026
 
10.6

 
10.6

 
10.8

 
—
%
Consulting Solutions, Inc. and Mark Luciani
(#,^)
3000 N Federal Hwy Ste 1, Fort Lauderdale, FL 33306
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026
 
7.9

 
7.9

 
8.3

 
—
%
Powerpits CS1, LLC dba Pita Pit
(#,^)
2008 S Texas Ave, College Station, TX 77840
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026
 
13.2

 
13.2

 
13.6

 
—
%
Drug Detection Laboratories, Inc. and Minh Tran
(#,^)
9700 Business Park Drive, Sacramento, CA 95827
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026
 
13.9

 
13.9

 
14.2

 
—
%
Aaradhya LLC dba Market Square Laundry
(#,^)
7727 Crittenden St., Philadelphia, PA 19118
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/23/2026
 
55.4

 
55.4

 
56.2

 
0.02
%
Blackstones Hairdressing LLC
(#,^)
2 Ave of the Americas, New York, NY 10013
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/23/2026
 
36.9

 
36.9

 
37.5

 
0.01
%
R & K Contracting Inc
(#,^)
3605 NW 31st Ave, Fort Lauderdale, FL 33309
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/18/2026
 
11.1

 
11.1

 
11.7

 
—
%
Ei3 Corporation
(#,^)
136 Summit Ave, Montvale, NJ 07645
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2026
 
230.2

 
230.2

 
242.4

 
0.08
%
B for Blonde, LLC dba Blo Blow Dry Bar
(#,^)
142 East 49th St., New York, NY 10017
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2026
 
44.2

 
44.2

 
44.9

 
0.01
%
Gilmore Heights Dental Holdings, LTD and Chas Rob LLC
(#,^)
2250 Warrensville Center Rd, University Heights, OH 44118
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2029
 
248.0

 
248.0

 
262.7

 
0.08
%
Jersey Shore Marina & Boat Sales, Inc.
(#,^)
841 Route 70 East, Brick, NJ 08724
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/12/2041
 
586.3

 
586.3

 
687.0

 
0.21
%
Base USA, Inc.
(#,^)
2215 NW 2nd Ave, Miami, FL 33127
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
2/2/2026
 
35.3

 
35.3

 
37.1

 
0.01
%
Zouk Ltd dba Palma
(#,^)
28 Cornelia St., New York, NY 10014
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/29/2026
 
15.7

 
15.7

 
16.5

 
0.01
%
SuzyQue's LLC dba SuzyQue's
(#,^)
34 South Valley Rd, West Orange, NJ 07052
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026
 
15.6

 
15.6

 
16.4

 
0.01
%
Wildflour Bakery & Cafe LLC
(#,^)
5137 Clareton Dr., Ste 100, Agoura Hills, CA 91301
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026
 
43.5

 
43.5

 
45.8

 
0.01
%
Tammy Lavertue
(#,^)
24 Wakefield St., Rochester, NH 03867
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026
 
7.8

 
7.8

 
8.2

 
—
%
Gendron Funeral and Cremation Services, Inc.
(#,^)
135 North Lime Ave, Sarasota, FL 34237
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/11/2041
 
103.7

 
103.7

 
121.5

 
0.04
%
Dolarian Realty LLC and OV's Restaurant Inc
(#,^)
34 Old Colony Ave, East Taunton, MA 02718
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/5/2041
 
63.3

 
63.3

 
74.2

 
0.02
%
Lemonberry Food Stores Inc dba Lemonberry Frozen Yogurt
(#,^)
1196 Inverness Lane, Stow, OH 44224
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/29/2025
 
77.5

 
77.5

 
79.4

 
0.02
%

F-100
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
MCF Forte LLC
(#,^)
1245 W Baseline Rd Unit 105, Mesa, AZ 85202
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/29/2025
 
12.9

 
12.9

 
13.1

 
—
%
Panditos LLC dba White Lotus Home
(#,^)
431 Raritan Ave, Highland Park, NJ 08904
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/28/2025
 
11.0

 
11.0

 
11.1

 
—
%
Ridge Road Equestrian LLC dba Ricochet Ridge Ranch Inc
(#,^)
24201 North Hwy 1, Fort Bragg, CA 95437
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/23/2040
 
95.6

 
95.6

 
111.2

 
0.03
%
800 on the Trax LLC and Matrix Z LLC
(#,^)
800 SW 21st Terrace, Fort Lauderdale, FL 33312
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2040
 
228.7

 
228.7

 
265.6

 
0.08
%
Premier Athletic Center of Ohio Inc. and Gates Investments and Wade
(#,^)
8957 Kingsridge Drive, Centerville, OH 45459
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2028
 
694.6

 
694.6

 
748.0

 
0.23
%
Joyce Outdoor Advertising Chicago LLC
(#,^)
2443 West 16th St., Chicago, IL 60608
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2040
 
281.7

 
281.7

 
326.9

 
0.10
%
Hattingh Incorporated dba Prosthetic Care Facility
(#,^)
4415 Woodridge Pkwy, Ste 180, Leesburg, VA 20176
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2025
 
12.4

 
12.4

 
12.8

 
—
%
Labmates LLC
(#,^)
141 Watertown Rd, Thomaston, CT 06787
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040
 
151.5

 
151.5

 
177.3

 
0.06
%
Accent Tag and Label Inc
(#,^)
2201 Rittenhouse St, Des Moines, IA 50321
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040
 
618.2

 
618.2

 
718.8

 
0.22
%
Abbondanza Market LLC dba Hampton Falls Village Market
(#,^)
82 Lafayette Rd, Hampton Falls, NH 03844
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025
 
41.0

 
41.0

 
41.9

 
0.01
%
Trip Consultants U.S.A. Inc.
(#,^)
311 85th St., Brooklyn, NY 11209
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025
 
120.6

 
120.6

 
122.1

 
0.04
%
Abitino's JFK LLC dba Abitino's
(#,^)
Terminal 8 JFK ExpressWay Airport, Jamaica, NY 11430
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2022
 
64.0

 
64.0

 
64.1

 
0.02
%
JAG Unit 1, LLC
(#,^)
1 West Main St., Patchogue, NY 11772
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025
 
172.3

 
172.3

 
174.4

 
0.05
%
Swalm Street LLC and New York Home Health Care Equipment LLC
(#,^)
30 Hopper St., Westbury, NY 11590
 
Ambulatory Health Care Services
 
Term Loan
 
7.5%
 
12/16/2040
 
330.9

 
330.9

 
315.8

 
0.10
%
New York Home Health Care Equipment, LLC
(#,^)
30 Hopper St., Westbury, NY 11590
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025
 
725.1

 
725.1

 
761.0

 
0.24
%
Moments to Remember USA LLC dba Retain Loyalty
(#,^)
1250 Sanders Ave SW, Massillon, OH 44646
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025
 
56.5

 
56.5

 
58.8

 
0.02
%
Evans & Paul LLC and E&P Holdings I LLC
(#,^)
140 Dupont St., Plainview, NY 11803
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2025
 
93.5

 
93.5

 
95.5

 
0.03
%
Basista Family Limited Partnership and UPE, Inc.
(#,^)
3401 Brecksville Rd, Richfield, OH 44286
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/14/2040
 
319.3

 
319.3

 
370.9

 
0.12
%
DC Enterprises Ltd. dba Lakeview True Value
(#,^)
318 North F St., Lakeview, OR 97630
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2025
 
15.5

 
15.5

 
16.2

 
0.01
%

F-101
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Alexandra Afentoulides dba Vi's Pizza Restaurant
(#,^)
1068 Old Colony Rd, Meriden, CT 06450
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/11/2040
 
43.8

 
43.8

 
51.3

 
0.02
%
AGR Foodmart Inc dba Nashua Road Mobil
(#,^)
11 Nashua Rd, Londonderry, NH 03053
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/11/2025
 
15.5

 
15.5

 
16.2

 
0.01
%
Cares, Inc dba Dumpling Grounds Day Care Center
(#,^)
4508 Blakiston St., Philadelphia, PA 19136
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/10/2025
 
5.2

 
5.2

 
5.4

 
—
%
Custom Exteriors, Inc.
(#,^)
2142 Rheem Drive, Ste E, Pleasanton, CA 94588
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/9/2025
 
68.9

 
68.9

 
70.5

 
0.02
%
Sushiya, Inc.
(#,^)
72-74 South Main St., Hanover, NH 03755
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/8/2025
 
74.9

 
74.9

 
76.7

 
0.02
%
LC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC
(#,^)
880 Lowcountry Blvd, Mount Pleasant, SC 29464
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040
 
468.9

 
468.9

 
546.5

 
0.17
%
Japp Business Inc dba Pick and Eat and Japp Drink Corp.
(#,^)
4179 Broadway, New York, NY 10033
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025
 
85.8

 
85.8

 
88.2

 
0.03
%
DWeb Studio, Inc.
(#,^)
10800 E. Bethany Drive, Ste 275, Aurora, CO 80014
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025
 
7.7

 
7.7

 
7.8

 
—
%
Play and Learn Child Care and School Inc
(#,^)
403 S Dillard St, Winter Garden, FL 34787
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/23/2025
 
7.6

 
7.6

 
7.9

 
—
%
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
(#,^)
726-740 S Fleming St., Sebastian, FL 32958
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
8.25%
 
11/23/2040
 
712.8

 
712.8

 
679.7

 
0.21
%
Ronny Ramirez RX Corp dba Naturxheal Family Pharmacy
(#,^)
3105 107th Ave, Doral, FL 33178
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
11/20/2025
 
62.5

 
62.5

 
63.7

 
0.02
%
S.B.B. Enterprises Inc dba Williamston Hardware
(#,^)
139 S Putnam St., Williamston, MI 48895
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/19/2040
 
101.0

 
101.0

 
116.0

 
0.04
%
Key Pix Productions Inc. dba Air Bud Entertainment
(#,^)
22525 Pacific Coast Hwy, Malibu, CA 90265
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
11/18/2040
 
512.1

 
512.1

 
599.2

 
0.19
%
E.S.F.P. LLC dba Volusia Van and Storage
(#,^)
916 South Nova Rd, Ormond Beach, FL 32174
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/11/2025
 
60.9

 
60.9

 
62.1

 
0.02
%
Green Life Lawnscapes LLC dba Green Life Lawn Care
(#,^)
1820 NE Jensen Beach Blvd, Jensen Beach, FL 34957
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/6/2025
 
97.3

 
97.3

 
102.2

 
0.03
%
JumboMarkets Inc dba Rines Jumbomarkets
(#,^)
15500 SW Trail Drive, Indiantown, FL 34956
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/4/2025
 
208.6

 
208.6

 
219.1

 
0.07
%
Financial Network Recovery Inc
(#,^)
250 E Easy St. Ste 1, Simi Valley, CA 93065
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/26/2025
 
27.0

 
27.0

 
27.3

 
0.01
%
ADMO Inc dba Mid States Equipment
(#,^)
16180 Westwoods Business Park, Ellisville, MO 63021
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/8/2025
 
15.1

 
15.1

 
15.4

 
—
%
Recycling Consultants, Inc. and Prairie State Salvage and Recycling In
(#,^)
PO Box 468, Wood River, IL 62095
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2027
 
447.9

 
447.9

 
470.7

 
0.15
%

F-102
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Accent Homes Services LLC dba Benjamin Franklin Plumbing of Kansas City
(#,^)
7748 Troost Ave, Kansas City, MO 64131
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/30/2028
 
51.3

 
51.3

 
55.0

 
0.02
%
SCJEN Management Inc dba Bowl of Heaven
(#,^)
43958 Pacific Common Blvd, Fremont, CA 94538
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025
 
47.9

 
47.9

 
48.5

 
0.02
%
Barub Realty LLC and Barub LLC dba Woodlawn Cabinets
(#,^)
1838 Adee Ave, Baychester, NY 10469
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/30/2040
 
132.4

 
132.4

 
154.9

 
0.05
%
Binky's Vapes LLC
(#,^)
10539 Greenbelt Rd, Ste 102, Lanham, MD 20706
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025
 
15.0

 
15.0

 
15.2

 
—
%
R.H. Hummer Jr., Inc.
(#,^)
2141 P Ave, Williamsburg, IA 52361
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025
 
260.2

 
260.2

 
273.0

 
0.08
%
Greensward of Marco Inc.
(#,^)
54 Marco Lake Drive, Marco Island, FL 34146
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040
 
81.2

 
81.2

 
94.3

 
0.03
%
RIM Investments LLC and RIM Architects LLC
(#,^)
645 G St. Ste 400, Anchorage, AK 99501
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040
 
369.8

 
369.8

 
428.7

 
0.13
%
The Grasso Companies LLC and Grasso Pavement Maintenance LLC Veranda
(#,^)
485 Pepper St., Monroe, CT 06468
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/28/2025
 
340.4

 
340.4

 
356.7

 
0.11
%
Prestigious LifeCare for Seniors LLC
(#,^)
5701 North Pine Island Rd, Tamarac, FL 33321
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025
 
6.5

 
6.5

 
6.8

 
—
%
Daniel W. Stark dba Mountain Valley Lodge and RV Park
(#,^)
223 Hwy 80, Rodeo, NM 88056
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040
 
12.5

 
12.5

 
14.6

 
—
%
Sandlot Ventures LLC and Sandbox Ventures LLC
(#,^)
1857A Elmdale Ave, Glenview, IL 60025
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040
 
413.4

 
413.4

 
477.6

 
0.15
%
Yachting Solutions LLC
(#,^)
229 Commercial St, Rockport, ME 04856
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040
 
892.1

 
892.1

 
1,030.4

 
0.32
%
St Lawrence Hotel Corp and Oheka Catering Inc dba Quality Inn
(#,^)
10 West Orvis St., Massena, NY 13662
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/24/2040
 
579.3

 
579.3

 
672.5

 
0.21
%
Rutledge Enterprises Inc dba BLC Property Management
(#,^)
149 S. 400 East, Greenfield, IN 46140
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/23/2040
 
57.5

 
57.5

 
66.7

 
0.02
%
Finish Strong Inc dba FASTSIGNS St Peters
(#,^)
98 North Hillview Drive, St Peters, MO 63376
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025
 
33.3

 
33.3

 
33.6

 
0.01
%
Sound Manufacturing Inc
(#,^)
51 Donnelley Rd, Old Saybrook, CT 06475
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025
 
33.1

 
33.1

 
33.9

 
0.01
%
IIoka Inc dba New Cloud Networks
(#,^)
160 Inverness Drive W Ste 150, Englewood, CO 80112
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025
 
444.6

 
444.6

 
449.1

 
0.14
%
Vanderhoof LLC dba Soxfords
(#,^)
11 Sellecks Walk, Pound Ridge, NY 10576
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/18/2025
 
10.4

 
10.4

 
10.5

 
—
%
MiJoy Inc dba Imo's Pizza
(#,^)
215 South Kirkwood Rd, Kirkwood, MO 63122
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/18/2025
 
5.5

 
5.5

 
5.5

 
—
%

F-103
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Naeem Khan LTD
(#,^)
260 West 36h St., New York, NY 10018
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/17/2025
 
83.2

 
83.2

 
84.0

 
0.03
%
FirstVitals Health and Wellness Inc
(#,^)
1288 Ala Moana Blvd Ste 27E, Honolulu, HI 96814
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/15/2025
 
100.3

 
100.3

 
101.3

 
0.03
%
Almost Home Daycare LLC
(#,^)
35 Copps Hill Rd, Ridgefield, CT 06877
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2025
 
7.3

 
7.3

 
7.6

 
—
%
Gardner's Wharf Holdings LLC and Gardner's Wharf Seafood Inc
(#,^)
170 Main St., North Kingstown, RI 02852
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/8/2040
 
130.0

 
130.0

 
151.9

 
0.05
%
Empower Autism Academy
(#,^)
11316 Wet Season Drive, Austin, TX 78754
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/4/2040
 
634.9

 
634.9

 
741.7

 
0.23
%
Higher Grounds Community Coffeehouse, LLC
(#,^)
39 Kingstown Rd, Wyoming, RI 02898
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/2/2025
 
5.5

 
5.5

 
5.6

 
—
%
Elite Institute LLC dba Huntington Learning Center
(#,^)
13526 Village Park Drive Ste 214, Orlando, FL 32837
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025
 
10.0

 
10.0

 
10.1

 
—
%
God Be Glorified Inc dba GBG Inc
(#,^)
40 West. 162nd St, South Holland, IL 60473
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/20/2025
 
34.8

 
34.8

 
35.2

 
0.01
%
3000 CSI Property LLC and Consulting Solutions Inc
(#,^)
3000 N Federal Hwy Ste 1, Fort Lauderdale, FL 33306
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/20/2040
 
127.8

 
127.8

 
149.1

 
0.05
%
GDP Gourmet LLC dba Joe and John's Pizza Restaurant
(#,^)
136 New Jersey Ave, Absecon, NJ 08201
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/19/2040
 
134.8

 
134.8

 
156.3

 
0.05
%
Gold Jet Corp.
(#,^)
2472 Broadway, New York, NY 10025
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
8/14/2025
 
47.1

 
47.1

 
48.6

 
0.02
%
SKJ Inc dba Subway
(#,^)
401 S Woodlawn Ave, Bloomington, IN 47401
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/13/2025
 
55.4

 
55.4

 
56.2

 
0.02
%
LP Industries Inc dba Childforms
(#,^)
110 Charleston Drive, Mooresville, NC 28117
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/29/2025
 
81.1

 
81.1

 
84.5

 
0.03
%
Beale Street Blues Company-West Palm Beach LLC
(#,^)
550 Rosemary Ave, Ste 236, West Palm Beach, FL 33401
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/24/2025
 
43.0

 
43.0

 
44.0

 
0.01
%
Smart Artists Inc.
(#,^)
450 West 24th St. Ste 1C, New York, NY 10011
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/23/2025
 
14.6

 
14.6

 
14.8

 
—
%
Free Ion Advisors LLC
(#,^)
322 Evandale Rd, Scarsdale, NY 10583
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/21/2025
 
41.7

 
41.7

 
42.1

 
0.01
%
Murrayville Donuts, Inc dba Dunkin' Donuts
(#,^)
2304 N College Rd, Wilmington, NC 28405
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/15/2040
 
330.7

 
330.7

 
381.5

 
0.12
%
Union 2 LLC dba The Standard
(#,^)
1520 Broadway, Fort Myers, FL 33901
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/10/2025
 
69.3

 
69.3

 
71.7

 
0.02
%
Jonathan E Nichols and Nichols Fire and Security LLC
(#,^)
1906 Vanderhorn Drive, Memphis, TN 38134
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025
 
48.1

 
48.1

 
50.7

 
0.02
%

F-104
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Anglin Cultured Stone Products LLC dba Anglin Construction
(#)
877 Salem Church Rd, Newark, DE 19702
 
Specialty Trade Contractors
 
Term Loan
 
8.25%
 
6/30/2025
 
193.3

 
193.3

 
187.2

 
0.06
%
Thrifty Market, Inc. dba Thrifty Foods
(#,^)
702 10th St, Wheatland, WY 82201
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2030
 
222.7

 
222.7

 
242.3

 
0.08
%
Myclean Inc.
(#,^)
247 West 36th St. 9th Fl, New York, NY 10018
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025
 
10.2

 
10.2

 
10.5

 
—
%
Summit Beverage Group LLC
(#,^)
211 Washington Ave, Marion, VA 24354
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/29/2030
 
235.4

 
235.4

 
256.9

 
0.08
%
SofRep, Inc dba Force 12 Media
(#,^)
930 Tahoe Blvd Ste 802-543, Incline Village, NV 89451
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025
 
42.5

 
42.5

 
43.9

 
0.01
%
Jihan Inc dba ARCO AM/PM and Diana Inc dba Diana's Recycling
(#,^)
13886 Campo Rd, Jamul, CA 91935
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040
 
350.1

 
350.1

 
413.0

 
0.13
%
TJU-DGT Inc dba The Lorenz Cafe
(#,^)
714-718 Lorenz Ave, Pittsburgh, PA 15220
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/26/2029
 
16.1

 
16.1

 
17.5

 
0.01
%
E & G Enterprises LLC dba Comfort Keepers
(#,^)
220 Middle St., Franklin, VA 23851
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025
 
14.4

 
14.4

 
14.9

 
—
%
CEM Autobody LLC dba Dawn's Autobody
(#,^)
7 Division St, Keyport, NJ 07735
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040
 
124.9

 
124.9

 
147.2

 
0.05
%
Ohs Auto Body, Inc. dba Ohs Body Shop
(#,^)
3560 Hwy 93 S, Kalispell, MT 59901
 
Repair and Maintenance
 
Term Loan
 
7.6525%
 
6/25/2040
 
1,123.2

 
1,123.2

 
1,066.2

 
0.33
%
Wolf Enviro Interests, LLC and Enviromax Services Inc
(#,^)
18002 Mueschke Rd, Cypress, TX 77433
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2040
 
227.8

 
227.8

 
266.7

 
0.08
%
Evinger PA One, Inc. dba Postal Annex, Falcon
(#,^)
7661 McLaughlin Rd, Falcon, CO 80831
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025
 
14.4

 
14.4

 
15.1

 
—
%
RJI Services, Inc.
(#,^)
353 E Angeleno Ste G, Burbank, CA 91502
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2025
 
14.2

 
14.2

 
14.7

 
—
%
Real Help LLC dba Real Help Decorative Concrete
(#,^)
2221 Broadway St., Buffalo, NY 14212
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2025
 
34.1

 
34.1

 
35.8

 
0.01
%
KRN Logistics, LLC and Newsome Trucking, Inc
(#)
2262 Hwy 53 W, Jasper, GA 30143
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025
 
343.7

 
343.7

 
359.2

 
0.11
%
PM Cassidy Enterprises, Inc. dba Junk King
(#,^)
960 Matley Lane, Ste 20-21, Bldg B, Reno, NV 89502
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025
 
9.5

 
9.5

 
9.9

 
—
%
Inverted Healthcare Staffing of Florida LLC dba Interim Healthcare
(#,^)
111 N Pompano Beach Blvd., Pompano Beach, FL 33062
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025
 
29.9

 
29.9

 
30.9

 
0.01
%
AM PM Properties, LLC and AM PM Willington, LLC
(#,^)
1308 Stafford Rd, Storrs Mansfield, CT 06268
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/17/2040
 
80.0

 
80.0

 
94.5

 
0.03
%
Mirage Plastering Inc and Mpire LLC and Mpire II LLC
(#,^)
1802 W Grant Rd Ste 114, Tucson, AZ 85745
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040
 
127.8

 
127.8

 
149.2

 
0.05
%

F-105
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Eldredge Tavern LLC dba Gonyea's Tavern
(#,^)
150 Main St., Pascoag, RI 02859
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/8/2040
 
51.8

 
51.8

 
61.3

 
0.02
%
Chitalian Fratelli LLC dba Francesca Brick Oven Pizza and Pasta
(#,^)
234 Rock Rd, Glen Rock, NJ 07452
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/5/2025
 
10.1

 
10.1

 
10.4

 
—
%
ViAr Visual Communications, Inc. dba Fastsigns 281701
(#,^)
4721 University Way NE, Seattle, WA 98105
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/5/2025
 
39.8

 
39.8

 
41.2

 
0.01
%
Video Vault & Tanning LLC and Mosaic Salon LLC
(#)
W7003 Parkview Dr, Ste A-B, Greenville, WI 54942
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/4/2040
 
84.8

 
84.8

 
100.3

 
0.03
%
Medworxs LLC
(#,^)
10901 W. Toller Drive, Littleton, CO 80127
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/3/2025
 
80.2

 
80.2

 
82.9

 
0.03
%
XCESSIVE THROTTLE, INC dba Jake's Roadhouse
(#,^)
5980 Lamar St., Arvada, CO 80003
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2025
 
5.2

 
5.2

 
5.4

 
—
%
Villela CPA PL
(#,^)
777 Brickell Ave, Ste 500, Miami, FL 33131
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/27/2025
 
5.7

 
5.7

 
5.9

 
—
%
Douglas Posey and Sally Watkinson dba Audrey's Farmhouse
(#,^)
2188 Brunswyck Rd, Wallkill, NY 12589
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/20/2040
 
160.1

 
160.1

 
189.0

 
0.06
%
15 McArdle LLC and No Other Impressions Inc
(#,^)
15 McArdle St., Rochester, NY 14611
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/15/2040
 
169.4

 
169.4

 
199.6

 
0.06
%
Guard Dogs MFS LLC
(#,^)
9460 Mistwater Close, Roswell, GA 30076
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/8/2025
 
39.7

 
39.7

 
41.1

 
0.01
%
George S Cochran DDS Inc
(#,^)
1066 Chelsea Ave, Napoleon, OH 43545
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/7/2025
 
90.8

 
90.8

 
93.8

 
0.03
%
South Park Properties LLC and Midlothian Hardware LLC
(#,^)
4751 147th St., Midlothian, IL 60445
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/6/2040
 
44.0

 
44.0

 
52.0

 
0.02
%
Matthew Taylor and Landon Farm LLC
(#,^)
6103 N Church St, Greensboro, NC 27455
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/4/2040
 
92.5

 
92.5

 
108.0

 
0.03
%
Cares Inc dba Dumpling Grounds Day Care Center
(#,^)
4508 Blakiston St., Philadelphia, PA 19136
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/1/2040
 
74.5

 
74.5

 
88.1

 
0.03
%
Orchid Enterprises Inc dba Assisting Hands of Sussex County
(#,^)
274 Spring St., Newton, NJ 07860
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/24/2025
 
9.4

 
9.4

 
9.7

 
—
%
Ragazza Restaurant Group, Inc. dba Bambolina
(#,^)
288 Derby St., Salem, MA 01970
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/21/2025
 
11.3

 
11.3

 
11.7

 
—
%
Diamond Solutions LLC
(#,^)
7655 E Gelding Drive, Ste B2, Scottsdale, AZ 85260
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/21/2025
 
12.1

 
12.1

 
12.5

 
—
%
Giacchino Maritime Consultants Inc
(#,^)
5219 Tamiami Court, Cape Coral, FL 33904
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/17/2025
 
14.1

 
14.1

 
14.6

 
—
%
Sound Coaching Inc
(#,^)
4749 Main St. Ste 3, Bridgeport, CT 06606
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
4/14/2025
 
27.8

 
27.8

 
28.7

 
0.01
%

F-106
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Faramarz Nikourazm dba Car Clinic Center
(#,^)
10707 Shady Trail, Dallas, TX 75220
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/3/2040
 
67.5

 
67.5

 
79.4

 
0.02
%
Mid-South Lumber Co. of Northwest Florida, Inc.
(#,^)
717 W 11th St., Panama City, FL 32402
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040
 
392.6

 
392.6

 
460.0

 
0.14
%
Copper Beech Financial Group LLC
(#,^)
1223 North Church St., Moorestown, NJ 08057
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025
 
77.1

 
77.1

 
80.5

 
0.02
%
Sunset Marine Resort LLC and GoXpeditions LLC and Lavon Gomes
(#,^)
40 Buzzard Ridge Rd, Sequim, WA 98382
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040
 
276.3

 
276.3

 
326.7

 
0.10
%
Shorr Enterprises Inc dba New Design Furniture Manufacturers
(#,^)
3033 NW 28 St., Lauderdale Lakes, FL 33311
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025
 
65.7

 
65.7

 
68.7

 
0.02
%
Shellhorn and Hill Inc dba Total Fleet Service
(#,^)
501 South Market St, Wilmington, DE 19801
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040
 
948.7

 
948.7

 
1,111.7

 
0.35
%
Foresite Realty Partners LLC and Foresite Real Estate Holdings LLC
(#,^)
5600 N River Rd #925, Rosemont, IL 60018
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025
 
763.9

 
763.9

 
787.5

 
0.24
%
Joyce Outdoor Advertising NJ LLC and Joyce Outdoor Advertising LLC
(#,^)
800 James Ave, Scranton, PA 18510
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2040
 
49.4

 
49.4

 
58.3

 
0.02
%
Zero-In Media Inc
(#,^)
1123 Broadway Ste 704, New York, NY 10010
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2025
 
13.9

 
13.9

 
14.3

 
—
%
Loriet LLC
(#,^)
5001 Vivienda Way, Sarasota, FL 34235
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/24/2025
 
7.4

 
7.4

 
7.6

 
—
%
Jaymie Hazard dba Indigo Hair Studio and Day Spa
(#,^)
2016 Warwick Ave, Warwick, RI 02889
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040
 
39.2

 
39.2

 
46.1

 
0.01
%
Shelton Incorporated dba Mrs. Winners
(#,^)
4509 N. Henry Blvd., Stockbridge, GA 30281
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040
 
103.0

 
103.0

 
121.6

 
0.04
%
R & R Security and Investigations Inc dba Pardners Lake Buchanan
(#,^)
15615 State Route 29, Buchanan Dam, TX 78609
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/19/2040
 
78.1

 
78.1

 
92.2

 
0.03
%
MMS Realty, LLC and Molecular MS Diagnostics LLC
(#,^)
1224 Greenwich Ave, Warwick, RI 02886
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2040
 
147.2

 
147.2

 
172.8

 
0.05
%
Royal Crest Motors LLC
(#,^)
769 Amesbury Rd, Haverhill, MA 01830
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040
 
83.5

 
83.5

 
98.3

 
0.03
%
Luigi's on Main LLC and Luigi's Main Street Pizza Inc
(#,^)
491 Montauk Hwy, Eastport, NY 11941
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/4/2025
 
6.9

 
6.9

 
7.3

 
—
%
Baystate Firearms and Training, LLC
(#)
215 Newbury St., Peabody, MA 01960
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025
 
36.3

 
36.3

 
37.5

 
0.01
%
Pace Motor Lines, Inc.
(#,^)
1425 Honeyspot Rd Extension, Stratford, CT 06615
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/26/2025
 
40.0

 
40.0

 
41.9

 
0.01
%
Kingseal LLC dba Desoto Health and Rehab Center
(#,^)
475 Nursing Home Drive, Arcadia, FL 34266
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
2/26/2040
 
1,168.5

 
1,168.5

 
1,379.3

 
0.43
%

F-107
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Nelson Financial Services LLC
(#,^)
20015 N 83rd Place, Scottsdale, AZ 85255
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/24/2025
 
7.6

 
7.6

 
7.8

 
—
%
Kiddie Steps 4 You Inc.
(#,^)
1700 West 63rd St., Chicago, IL 60636
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
2/19/2040
 
56.6

 
56.6

 
66.5

 
0.02
%
Triangle Trash LLC dba Bin There Dump That
(#,^)
188 Northbend Drive, Youngsville, NC 27596
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
2/18/2025
 
45.2

 
45.2

 
47.1

 
0.01
%
Dean 1021 LLC dba Pure Pita
(#,^)
106 Central Ave, Westfield, NJ 07090
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/29/2025
 
53.7

 
53.7

 
55.7

 
0.02
%
Limameno LLC dba Sal's Italian Ristorante
(#,^)
861 Yamato Rd, Bay #2, Boca Raton, FL 33431
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/23/2025
 
50.0

 
50.0

 
51.8

 
0.02
%
Palmabak Inc dba Mami Nora's
(#,^)
4614 Capital Blvd, Raleigh, NC 27604
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/22/2025
 
4.6

 
4.6

 
4.8

 
—
%
Jung Design Inc
(#,^)
10857 Pine Bluff Drive, Fishers, IN 46037
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/20/2022
 
3.0

 
3.0

 
3.0

 
—
%
Grand Blanc Lanes, Inc. and H, H and H, LLC
(#,^)
5301 S Saginaw Rd, Flint, MI 48507
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/31/2039
 
121.0

 
121.0

 
142.8

 
0.04
%
Evans and Paul LLC
(#,^)
140 Dupont St., Plainview, NY 11803
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024
 
145.0

 
145.0

 
152.1

 
0.05
%
First Prevention and Dialysis Center, LLC
(#)
17940 NW 27th Ave, Miami Gardens, FL 33056
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024
 
176.1

 
176.1

 
184.6

 
0.06
%
Bowlerama Inc
(#,^)
3031 New Castle Ave, New Castle, DE 19720
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2039
 
1,095.8

 
1,095.8

 
1,291.5

 
0.40
%
The Lodin Group LLC and Lodin Health Imaging Inc
(#,^)
114-115 Medical Center Ave, Sebring, FL 33870
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039
 
482.5

 
482.5

 
563.8

 
0.17
%
Thermoplastic Services Inc and Paragon Plastic Sheet, Inc
(#,^)
1700 W 4th St., Dequincy, LA 70633
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039
 
455.0

 
455.0

 
536.2

 
0.17
%
Beale Street Blues Company-West Palm Beach, LLC
(#,^)
550 S Rosemary Ave #236, West Palm Beach, FL 33401
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2024
 
111.0

 
111.0

 
115.1

 
0.04
%
B.S. Ventures LLC dba Dink's Market
(#,^)
48649 Hwy 58, Oakridge, OR 97463
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/19/2039
 
48.9

 
48.9

 
57.6

 
0.02
%
The Jewelers Inc. dba The Jewelers of Las Vegas
(#,^)
2400 Western Ave, Las Vegas, NV 89102
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/19/2024
 
735.5

 
735.5

 
757.6

 
0.24
%
Will Zac Management LLC dba Papa John's
(#)
2410 West Jefferson St., Ste B, Joliet, IL 60435
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
12/19/2024
 
88.5

 
88.5

 
86.9

 
0.03
%
MM and M Management Inc dba Pizza Artista
(#,^)
5409 Johnston St., Lafayette, LA 70503
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/19/2025
 
28.7

 
28.7

 
29.8

 
0.01
%
B & W Towing, LLC and Boychucks Fuel LLC
(#,^)
701 Addison Rd, Painted Post, NY 14870
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/17/2039
 
149.7

 
149.7

 
175.4

 
0.05
%
Kemmer LLC and Apples Tree Top Liquors LLC
(#)
1300 S Jackson St., Salem, IN 47167
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/4/2039
 
129.0

 
129.0

 
150.9

 
0.05
%

F-108
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Teamnewman Enterprises LLC dba Newmans at 988 and John H. Newman
(#,^)
988 Hemlock St., Cannon Beach, OR 97110
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/25/2039
 
108.2

 
108.2

 
127.2

 
0.04
%
Modern Manhattan LLC
(#,^)
250 Park Ave South, New York, NY 10003
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024
 
128.4

 
128.4

 
132.4

 
0.04
%
Legacy Estate Planning Inc dba American Casket Enterprises
(#,^)
2176 Route 119 North, Greensburg, PA 15601
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024
 
24.5

 
24.5

 
25.2

 
0.01
%
J&D Resources, LLC dba Aqua Science
(#,^)
1923 E. 5th St., Tempe, AZ 85281
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024
 
440.8

 
440.8

 
454.8

 
0.14
%
DC Real LLC and DC Enterprises LTD dba Lakeview True Value
(#,^)
318 North F St., Lakeview, OR 97630
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/20/2039
 
108.9

 
108.9

 
128.1

 
0.04
%
Heartland American Properties LLC and Skaggs RV Outlet LLC
(#,^)
301 Commerce Drive, Elizabethtown, KY 42701
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/31/2039
 
434.0

 
434.0

 
510.4

 
0.16
%
One Hour Jewelry Repair Inc
(#,^)
6544 Springfield Mall, Springfield, VA 22150
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/14/2024
 
11.8

 
11.8

 
12.2

 
—
%
DNT Storage and Properties LLC
(#,^)
38 Old National Pike, West Alexander, PA 15376
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
10/10/2039
 
92.2

 
92.2

 
108.6

 
0.03
%
Sound Manufacturing Inc
(#,^)
51 Donnelley Rd, Old Saybrook, CT 06475
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/10/2024
 
107.0

 
107.0

 
110.9

 
0.03
%
Doctors Express Management of Central Texas LLC
(#,^)
3614 SW HK Dodgen Loop, Ste F, Temple, TX 76504
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2024
 
3.7

 
3.7

 
3.9

 
—
%
Smith Spinal Care Center P.C. and James C. Smith
(#,^)
1103 Russell Parkway, Warner Robins, GA 31088
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2039
 
26.0

 
26.0

 
30.7

 
0.01
%
Michael Rey Jr. and Lynn J. Williams and GIG Petcare dba Hickory
(#,^)
900 Alpine Rd, Bridgeville, PA 15017
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/3/2039
 
110.5

 
110.5

 
130.1

 
0.04
%
Sumad LLC dba BrightStar Care of Encinitas
(#,^)
680 Fletcher Pkwy, Ste 206, El Cajon, CA 92020
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/2/2024
 
30.6

 
30.6

 
32.0

 
0.01
%
Roccos LLC and Sullo Pantalone Inc dba Rocco's
(#,^)
79 Beach Rd Unit B13-B14, Vineyard Haven, MA 02568
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2039
 
231.2

 
231.2

 
270.9

 
0.08
%
Gordon E Rogers dba Stonehouse Motor Inn
(#,^)
162 Danielson Pike, Foster, RI 02825
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039
 
52.0

 
52.0

 
61.3

 
0.02
%
Andrene's LLC dba Andrene's Caribbean Soul Food Carry Out
(#,^)
308 Kennedy St. NW, Washington, DC 20011
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/23/2024
 
16.0

 
16.0

 
16.4

 
0.01
%
Ryan Crick and Pamela J. Crick and Crick Enterprises Inc
(#,^)
3390 W. Andrew Johnson Hwy, Greeneville, TN 37743
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2039
 
131.9

 
131.9

 
155.2

 
0.05
%
Modern Leather Goods Repair Shop Inc
(#,^)
2 West 32nd St., Ste 401, New York, NY 10001
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2024
 
32.3

 
32.3

 
33.1

 
0.01
%

F-109
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Animal Intrusion Prevention Systems Holding Company, LLC
(#,^)
3330 N Beach St., Fort Worth, TX 76111
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/15/2024
 
166.7

 
166.7

 
172.5

 
0.05
%
Tavern Properties LLC and Wildwood Tavern LLC
(#,^)
6480 West Touhy Ave, Niles, IL 60714
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2039
 
387.5

 
387.5

 
455.0

 
0.14
%
Indy East Smiles Youth Dentistry LLC dba Prime Smile East
(#,^)
5430 E. Washington St., Indianapolis, IN 46219
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2024
 
357.3

 
357.3

 
366.9

 
0.11
%
B&P Diners LLC dba Engine House Restaurant
(#,^)
71 Lafayette St., Unit 1, Salem, MA 01970
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/10/2024
 
45.4

 
45.4

 
46.5

 
0.01
%
Lamjam LLC, Goldsmith Lambros Inc
(#)
7137 Little River Turnpike, Annandale, VA 22003
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024
 
80.4

 
80.4

 
84.0

 
0.03
%
Atlas Auto Body Inc dba Atlas Auto Sales
(#,^)
20 Providence St., West Warwick, RI 02893
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/22/2039
 
46.5

 
46.5

 
54.5

 
0.02
%
Katie Senior Care LLC dba Home Instead Senior Care
(#,^)
222E Eufaula St Ste 220, Norman, OK 73069
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2024
 
59.6

 
59.6

 
61.2

 
0.02
%
Alpha Preparatory Academy LLC
(#,^)
4462 Mink Livsey Rd, Snellville, GA 30039
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039
 
131.5

 
131.5

 
154.8

 
0.05
%
Hamer Road Auto Salvage, LLC and Scott T. Cook and Nikki J. Cook
(#,^)
10463 Hamer Rd, Georgetown, OH 45121
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6%
 
8/8/2039
 
128.7

 
128.7

 
123.1

 
0.04
%
Almost Home Property LLC and Almost Home Daycare LLC
(#,^)
35 Copps Hill Rd, Ridgefield, CT 06877
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/7/2039
 
674.2

 
674.2

 
792.5

 
0.25
%
iFood, Inc. dba Steak N Shake
(#,^)
5900 Duraleigh Rd, Raleigh, NC 27612
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024
 
216.6

 
216.6

 
225.0

 
0.07
%
575 Columbus Avenue Holding Company, LLC and LA-ZE LLC
(#,^)
575 Columbus Ave, New Haven, CT 06519
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/30/2039
 
18.5

 
18.5

 
21.8

 
0.01
%
Honeyspot Investors LLP and Pace Motor Lines Inc
(#,^)
1425 Honeyspot Rd Ext., Stratford, CT 06615
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/24/2039
 
134.9

 
134.9

 
158.7

 
0.05
%
Miss Cranston Diner II, LLC and Miss Cranston II Realty LLC
(#,^)
15 Stonebridge, Cranston, RI 02921
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/17/2039
 
88.2

 
88.2

 
103.6

 
0.03
%
Honeyspot Investors LLP and Pace Motor Lines Inc
(#,^)
1425 Honeyspot Rd Ext., Stratford, CT 06615
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039
 
786.8

 
786.8

 
932.7

 
0.29
%
iFood, Inc. dba Steak N Shake
(#,^)
2840 E Millbrook Rd, Raleigh, NC 27604
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039
 
566.8

 
566.8

 
669.7

 
0.21
%
Lisle Lincoln II Limited Partnership dba Lisle Lanes LP
(#,^)
4920 Lincoln Ave Rte 53, Lisle, IL 60532
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024
 
53.7

 
53.7

 
56.3

 
0.02
%
AMG Holding, LLC and Stetson Automotive, Inc
(#,^)
309 Route 9, Waretown, NJ 08758
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039
 
187.0

 
187.0

 
221.7

 
0.07
%

F-110
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
JPM Investments LLC and Carolina Family Foot Care P.A.
(#)
122 N. Main St., Fuquay Varina, NC 27526
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2039
 
128.4

 
128.4

 
151.8

 
0.05
%
Zinger Hardware and General Merchant Inc
(#)
4001 N Lamar Blvd Ste 300, Austin, TX 78756
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
7.25%
 
6/26/2024
 
41.1

 
41.1

 
40.5

 
0.01
%
Nikobella Properties LLC and JPO Inc dba Village Car Wash
(#)
1372 South US Route 12, Fox Lake, IL 60020
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/25/2039
 
444.1

 
444.1

 
525.1

 
0.16
%
Big Sky Plaza LLC and Strickland, Incorporated
(#,^)
1313 West Park St. #1, Livingston, MT 59047
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/20/2039
 
209.6

 
209.6

 
247.9

 
0.08
%
Sico & Walsh Insurance Agency Inc and The AMS Trust
(#)
106 Concord Ave, Belmont, MA 02478
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/6/2039
 
84.9

 
84.9

 
100.5

 
0.03
%
Sujata Inc dba Stop N Save Food Mart and Dhruvesh Patel
(#,^)
15637 St Clair Ave, Cleveland, OH 44110
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/3/2024
 
9.0

 
9.0

 
9.3

 
—
%
Long Island Barber Institute Inc
(#,^)
266 Greenwich St., Hempstead, NY 11550
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2039
 
49.8

 
49.8

 
58.9

 
0.02
%
Pocono Coated Products, LLC
(#,^)
100 Sweetree St., Cherryville, NC 28021
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024
 
12.0

 
12.0

 
12.5

 
—
%
Jonesboro Health Food Center LLC
(#,^)
1321 Stone St., Jonesboro, AR 72401
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
5/27/2024
 
34.0

 
34.0

 
35.3

 
0.01
%
Hae M. and Jin S. Park dba Buford Car Wash
(#,^)
1163 Buford Hwy, Sugar Hill, GA 30518
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/15/2039
 
148.4

 
148.4

 
175.3

 
0.05
%
The River Beas LLC and Punam Singh
(#,^)
11704 Centurion Way, Potomac, MD 20854
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/8/2039
 
81.0

 
81.0

 
95.8

 
0.03
%
AS Boyals LLC dba Towne Liquors
(#,^)
117 South Broad St., Woodbury City, NJ 08096
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/29/2039
 
97.3

 
97.3

 
115.2

 
0.04
%
Gerami Realty, LC, Sherrill Universal City Corral, LP
(#,^)
2301 Pat Booker Rd, Universal City, TX 78148
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/23/2027
 
53.0

 
53.0

 
57.0

 
0.02
%
Complete Body & Paint, Inc.
(#,^)
32220 Michigan Ave, Wayne, MI 48184
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/23/2039
 
18.6

 
18.6

 
22.0

 
0.01
%
Island Wide Realty LLC and Long Island Partners, Inc.
(#,^)
201-203-205 West Merrick Rd, Valley Stream, NY 11580
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
4/22/2039
 
92.8

 
92.8

 
109.8

 
0.03
%
Wilshire Media Systems Inc
(#,^)
2649 Townsgate Rd #500, Westlake Village, CA 91361
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/17/2024
 
96.9

 
96.9

 
100.8

 
0.03
%
1899 Tavern & Tap LLC and Ale House Tavern & Tap LLC
(#,^)
1899 State Route 35, South Amboy, NJ 08879
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/9/2039
 
100.2

 
100.2

 
118.6

 
0.04
%
Dantanna's Tavern LLC
(#,^)
6615 Roswell Rd NE #30, Sandy Springs, GA 30328
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024
 
87.4

 
87.4

 
91.3

 
0.03
%

F-111
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Little People's Village II LLC and Iliopoulos Realty LLC
(#,^)
6522 Haverford Ave, Philadelphia, PA 19151
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039
 
82.6

 
82.6

 
97.5

 
0.03
%
Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC
(#,^)
4401 N I-35 #113, Denton, TX 76207
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/31/2024
 
365.0

 
365.0

 
381.5

 
0.12
%
Little People's Village II LLC and Iliopoulos Realty LLC
(#,^)
6522 Haverford Ave, Philadelphia, PA 19151
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039
 
91.1

 
91.1

 
107.6

 
0.03
%
Kemmer, LLC and Pitts Package Store, Inc.
(#,^)
201 S. Main St., Salem, IN 47167
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039
 
105.3

 
105.3

 
124.2

 
0.04
%
Hodges Properties LLC and Echelon Enterprises Inc dba Treads Bicycle
(#,^)
16701 E. Iliff Ave, Aurora, CO 80013
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039
 
400.6

 
400.6

 
473.9

 
0.15
%
636 South Center Holdings, LLC and New Mansfield Brass and Aluminum
(#)
636 South Center St., New Washington, OH 44854
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039
 
71.8

 
71.8

 
84.8

 
0.03
%
Cormac Enterprises and Wyoming Valley Beverage Incorporated
(#,^)
63 S Wyoming Ave, Edwardsville, PA 18704
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039
 
98.9

 
98.9

 
116.8

 
0.04
%
Kinisi, Inc. dba The River North UPS Store
(#,^)
301 West Grand Ave, Chicago, IL 60654
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2024
 
5.8

 
5.8

 
6.0

 
—
%
Tortilla King, Inc.
(#,^)
249 23rd Ave, Moundridge, KS 67107
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2029
 
770.6

 
770.6

 
840.4

 
0.26
%
Tortilla King Inc.
(#,^)
249 23rd Ave, Moundridge, KS 67107
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2039
 
41.3

 
41.3

 
48.8

 
0.02
%
R & R Boyal LLC dba Cap N Cat Clam Bar and Little Ease Tavern
(#,^)
3111 & 3135 Delsea Drive, Franklinville, NJ 08322
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039
 
371.8

 
371.8

 
438.7

 
0.14
%
Faith Memorial Chapel LLC
(#,^)
600 9th Ave North, Bessemer, AL 35020
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039
 
190.8

 
190.8

 
225.0

 
0.07
%
952 Boston Post Road Realty, LLC and HNA LLC dba Styles International
(#,^)
952 Boston Post Rd, Milford, CT 06460
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039
 
184.2

 
184.2

 
217.3

 
0.07
%
Summit Beverage Group LLC
(#,^)
211 Washington Ave, Marion, VA 24354
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024
 
177.7

 
177.7

 
185.2

 
0.06
%
96 Mill Street LLC, Central Pizza LLC and Jason Bikakis George Bikaki
(#,^)
96 Mill St., Berlin, CT 06037
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/12/2039
 
126.8

 
126.8

 
149.8

 
0.05
%
JWB Industries, Inc. dba Carteret Die Casting
(#,^)
74 Veronica Ave, Somerset, NJ 08875
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/11/2024
 
141.9

 
141.9

 
147.3

 
0.05
%
986 Dixwell Avenue Holding Company, LLC and Mughali Foods, LLC
(#,^)
986 Dixwell Ave, Hamden, CT 06510
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/7/2039
 
88.6

 
88.6

 
104.6

 
0.03
%

F-112
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Sarah Sibadan dba Sibadan Agency
(#,^)
102-05 101st Ave, Ozone Park, NY 11416
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/27/2039
 
114.9

 
114.9

 
135.7

 
0.04
%
Icore Enterprises Inc dba Air Flow Filters Inc
(#,^)
151 W 24th St, Hialeah, FL 33010
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/15/2024
 
10.8

 
10.8

 
11.3

 
—
%
Nutmeg North Associates LLC, Steeltech Building Products Inc
(#,^)
636 Nutmeg Rd North, South Windsor, CT 06074
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/31/2038
 
812.1

 
812.1

 
957.6

 
0.30
%
KK International Trading Corporation
(#,^)
219 Lafayette Drive, Syosset, NY 11791
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/23/2028
 
136.4

 
136.4

 
148.7

 
0.05
%
Kurtis Sniezek dba Wolfe's Foreign Auto
(#,^)
712 5th St., New Brighton, PA 15066
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038
 
78.7

 
78.7

 
92.9

 
0.03
%
TAK Properties LLC and Kinderland Inc
(#,^)
1157 Commerce Ave, Longview, WA 98632
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/18/2038
 
359.0

 
359.0

 
422.8

 
0.13
%
TOL LLC dba Wild Birds Unlimited
(#,^)
320 W. Main St., Avon, CT 06001
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/13/2023
 
9.1

 
9.1

 
9.4

 
—
%
920 CHR Realty LLC, V. Garofalo Carting Inc
(#,^)
920 Crooked Hill, Brentwood, NY 11717
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
12/10/2038
 
370.3

 
370.3

 
436.8

 
0.14
%
DKB Transport Corp
(#,^)
555 Water Works Rd, Old Bridge, NJ 08857
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2038
 
123.0

 
123.0

 
145.0

 
0.04
%
Firm Foundations Inc David S Gaitan Jr and Christopher K Daigle
(#,^)
1455 S Richland Creek Rd, Sugar HIll, GA 30518
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/3/2038
 
92.4

 
92.4

 
108.6

 
0.03
%
Spectrum Development LLC and Solvit Inc & Solvit North, Inc
(#,^)
65 Farmington Valley Drive, Plainville, CT 06062
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/2/2023
 
190.0

 
190.0

 
196.9

 
0.06
%
BVIP Limousine Service LTD
(#,^)
887 W Liberty, Medina, OH 44256
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/27/2038
 
67.6

 
67.6

 
79.7

 
0.02
%
AcuCall LLC
(#,^)
824 U.S Hwy 1, Ste 335, North Palm Beach, FL 33408
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2023
 
7.4

 
7.4

 
7.6

 
—
%
Kids in Motion of Springfield LLC dba The Little Gym of Springfield IL
(#,^)
3039-3043 Hedley, Springfield, IL 62704
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/18/2023
 
22.3

 
22.3

 
23.1

 
0.01
%
Yousef Khatib dba Y&M Enterprises
(#,^)
671 E. Cooley Drive, Unit 114, Colton, CA 92324
 
Wholesale Electronic Markets and Agents and Brokers
 
Term Loan
 
Prime plus 2.75%
 
11/15/2023
 
36.0

 
36.0

 
37.3

 
0.01
%
Howell Gun Works LLC
(#,^)
2446 Route 9, Howell, NJ 07731
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
11/14/2023
 
2.2

 
2.2

 
2.3

 
—
%
Polpo Realty, LLC, Polpo Restaurant, LLC
(#,^)
554 Old Post Rd #3, Greenwich, CT 06830
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/6/2038
 
55.6

 
55.6

 
65.6

 
0.02
%
1 North Restaurant Corp dba 1 North Steakhouse
(#,^)
322 W. Montauk Hwy, Hampton Bays, NY 11946
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038
 
187.7

 
187.7

 
221.4

 
0.07
%

F-113
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Master CNC Inc & Master Properties LLC
(#,^)
11825 29 Mile Rd, Washington, MI 48095
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038
 
526.2

 
526.2

 
619.0

 
0.19
%
Janice B. McShan and The Metropolitan Day School, LLC
(#,^)
2817 Lomb Ave, Birmingham, AL 35208
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/31/2023
 
20.5

 
20.5

 
21.3

 
0.01
%
Mid-Land Sheet Metal Inc
(#,^)
125 E Fesler St., Santa Maria, CA 93454
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038
 
121.4

 
121.4

 
143.1

 
0.04
%
Greenbrier Technical Services, Inc
(#,^)
407 E. Edgar Ave, Ronceverte, WV 24970
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/24/2023
 
97.2

 
97.2

 
101.0

 
0.03
%
Clairvoyant Realty Corp. and Napoli Marble & Granite Design, Ltd
(#,^)
77 Mill Rd, Freeport, NY 11520
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/24/2038
 
130.7

 
130.7

 
154.1

 
0.05
%
First Steps Real Estate Company, LLC and First Steps Preschool
(#,^)
104 McCoy St., Milford, DE 19963
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038
 
85.8

 
85.8

 
101.0

 
0.03
%
Cencon Properties LLC and Central Connecticut Warehousing Company
(#,^)
37 Commons Court, Waterbury, CT 06704
 
Warehousing and Storage
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038
 
303.4

 
303.4

 
357.9

 
0.11
%
Discount Wheel and Tire of Broken Bow Inc
(#,^)
1202 S Park Drive, Broken Bow, OK 74728
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038
 
196.7

 
196.7

 
231.7

 
0.07
%
Lenoir Business Partners LLC LP Industries, Inc dba Childforms
(#,^)
2040 Norwood, Lenoir, NC 28645
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038
 
260.1

 
260.1

 
306.6

 
0.10
%
LP Industries, Inc dba Childforms
(#,^)
110 Charleston Dr. Ste 105, Morresville, NC 28117
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038
 
106.0

 
106.0

 
125.0

 
0.04
%
Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC
(#,^)
12150 Annapolis Rd, Ste 301, Glenn Dale, MD 20769
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038
 
294.6

 
294.6

 
347.2

 
0.11
%
Gabrielle Realty, LLC
(#,^)
242 Sheep Davis Rd, Concord, NH 03301
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038
 
666.2

 
666.2

 
784.2

 
0.24
%
Eastside Soccer Dome, Inc .
(#,^)
11919 S Ave O, Chicago, IL 60617
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038
 
407.8

 
407.8

 
481.0

 
0.15
%
Anthony C Dinoto and Susan S P Dinoto and Anthony C Dinoto Funeral
(#,^)
17 Pearl St., Mystic, CT 06355
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038
 
87.9

 
87.9

 
103.7

 
0.03
%
Southeast Chicago Soccer, Inc.
(#,^)
10232 S Ave N, Chicago, IL 60617
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038
 
45.0

 
45.0

 
53.1

 
0.02
%
Kiddie Steps 4 You Inc.
(#,^)
1700 West 63rd St., Chicago, IL 60636
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/25/2038
 
80.0

 
80.0

 
93.9

 
0.03
%
Diamond Memorials Incorporated
(#,^)
800 Broad St., Clifton, NJ 07013
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2023
 
2.7

 
2.7

 
2.8

 
—
%
Serious-Fun in Alpharetta, LLC dba The Little Gym of Alpharetta
(#,^)
11585 Jones Bridge Rd, Ste 4G, Johns Creek, GA 30022
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2023
 
21.5

 
21.5

 
22.2

 
0.01
%

F-114
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Faith Memorial Chapel LLC
(#,^)
600 9th Ave N, Bessemer, AL 35020
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2038
 
236.1

 
236.1

 
277.5

 
0.09
%
Maynard Enterprises Inc dba Fastsigns of Texarkana
(#,^)
3735 Mall Drive, Texarkana, TX 75501
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/18/2023
 
7.5

 
7.5

 
7.8

 
—
%
Grafio Inc dba Omega Learning Center-Acworth
(#,^)
5330 Brookstone Drive, Ste 320, Acworth, GA 30101
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2023
 
76.7

 
76.7

 
79.3

 
0.02
%
The Berlerro Group, LLC dba Sky Zone
(#,^)
111 Rodeo Drive, Edgewood, NY 11717
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/12/2023
 
199.3

 
199.3

 
206.0

 
0.06
%
Sound Manufacturing Inc
(#,^)
51 Donnelley Rd, Old Saybrook, CT 06475
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/12/2028
 
38.4

 
38.4

 
41.7

 
0.01
%
Prospect Kids Academy Inc
(#,^)
532 St Johns Place, Brooklyn, NY 11238
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038
 
109.3

 
109.3

 
128.6

 
0.04
%
Alma J. and William R. Walton and Almas Child Day Care Center
(#,^)
2909 W 63rd St., Chicago, IL 60629
 
Social Assistance
 
Term Loan
 
8%
 
9/11/2038
 
35.1

 
35.1

 
33.6

 
0.01
%
B for Brunette dba Blo
(#,^)
50 Glen Cove Rd, Greenvale, NY 11548
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/10/2023
 
25.0

 
25.0

 
25.8

 
0.01
%
Schmaltz Holdings, LLC and Schmaltz Operations, LLC
(#,^)
3408 Castle Rock Farm Rd, Pittsboro, NC 27312
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/4/2038
 
195.9

 
195.9

 
230.0

 
0.07
%
IlOKA Inc dba Microtech Tel and NewCloud Networks
(#,^)
160 Inverness Dr W Ste 100, Englewood, CO 80112
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023
 
294.8

 
294.8

 
304.8

 
0.09
%
ACI Northwest Inc.
(#,^)
6600 N Government Way, Coeur D Alene, ID 83815
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023
 
245.8

 
245.8

 
254.9

 
0.08
%
Gulfport Academy Child Care and Learning Center, Inc. and Jennifer
(#,^)
15150 Evans St., Gulfport, MS 39503
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023
 
19.6

 
19.6

 
20.3

 
0.01
%
Ramard Inc and Advanced Health Sciences Inc
(#,^)
4561 Ironworks Pike, Ste 161, Lexington, KY 40511
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/28/2023
 
85.1

 
85.1

 
87.7

 
0.03
%
RM Hawkins LLC dba Pure Water Tech West and Robert M Hawkins
(#,^)
1815 De Paul St., Colorado Springs, CO 80909
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/26/2023
 
36.4

 
36.4

 
37.7

 
0.01
%
JSIL LLC dba Blackstones Hairdressing
(#,^)
19 East 7th St., New York, NY 10003
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/16/2023
 
8.7

 
8.7

 
9.0

 
—
%
Caribbean Concepts, Inc. dba Quick Bleach
(#,^)
120 East 56th St., Ste 730, New York, NY 10022
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/12/2023
 
10.1

 
10.1

 
10.5

 
—
%
Daniel W and Erin H Gordon and Silver Lining Stables CT, LLC
(#,^)
38 Carmen Lane, Monroe, CT 06468
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/24/2023
 
5.3

 
5.3

 
5.5

 
—
%
Angkor Restaurant Inc
(#,^)
10 Traverse St., Providence, RI 02903
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/19/2038
 
81.4

 
81.4

 
95.9

 
0.03
%
Tri County Heating and Cooling Inc.
(#,^)
509 East Park St., Livingston, MT 59047
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2023
 
39.1

 
39.1

 
40.5

 
0.01
%

F-115
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Harbor Ventilation Inc and Estes Investment, LLC
(#,^)
509 East Park St., Livingston, MT 59047
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2038
 
2.1

 
2.1

 
2.4

 
—
%
Morning Star Trucking LLC and Morning Star Equipment and Leasing LLC
(#,^)
1 Poppy Ave, Neptune, NJ 07753
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/17/2023
 
23.9

 
23.9

 
24.6

 
0.01
%
Maxiflex LLC
(#,^)
512 Verret St., New Orleans, LA 70114
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2023
 
19.5

 
19.5

 
20.2

 
0.01
%
GIA Realty LLC and VRAJ GIA LLC dba Lakeview Laundromat
(#,^)
411 Sharp St., Millville, NJ 08332
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2038
 
85.0

 
85.0

 
100.5

 
0.03
%
2161 Highway 6 Trail, LLC, R. H. Hummer JR., Inc.
(#,^)
2141 P Ave, Williamsburg, IA 52361
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2026
 
398.3

 
398.3

 
425.4

 
0.13
%
Blakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial Services
(#,^)
200 North Branford Rd, Branford, CT 06405
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/18/2028
 
601.8

 
601.8

 
654.9

 
0.20
%
KDP LLC and KDP Investment Advisors, Inc and KDP Asset Management, Inc
(#,^)
24 Elm St., Montpelier, VT 05602
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/14/2023
 
149.7

 
149.7

 
155.0

 
0.05
%
Elite Structures Inc
(#,^)
401 Old Quitman Rd, Adel, GA 31620
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/12/2038
 
777.1

 
777.1

 
916.8

 
0.28
%
Absolute Desire LLC and Mark H. Szierer Sophisticated Smile
(#,^)
85 Reaville Ave, Flemington, NJ 08822
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038
 
164.7

 
164.7

 
194.3

 
0.06
%
Gregory P Jellenek OD and Associates PC dba Gregory P Jellenek OD
(#,^)
4640 Monticello Ave, Ste 8A, Williamsburg, VA 23188
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/28/2023
 
26.7

 
26.7

 
27.7

 
0.01
%
Ryan D. Thornton and Thornton & Associates LLC
(#,^)
800 Bethel St., Ste 200, Honolulu, HI 96813
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
5/24/2023
 
21.3

 
21.3

 
22.1

 
0.01
%
Peanut Butter & Co., Inc.
(#,^)
250 West 54th St., New York, NY 10019
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/30/2023
 
41.5

 
41.5

 
42.9

 
0.01
%
1258 Hartford TPKE, LLC and Phelps and Sons, Inc
(#,^)
1258 Hartford Turnpike, Vernon, CT 06066
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038
 
108.0

 
108.0

 
127.4

 
0.04
%
A & M Commerce, Inc. dba Cranberry Sunoco
(#,^)
398 Baltimore Blvd, Westminster, MD 21157
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/27/2038
 
286.1

 
286.1

 
337.0

 
0.10
%
Xela Pack, Inc. and Aliseo and Catherine Gentile
(#,^)
8300 Boettner Rd, Saline, MI 48176
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2028
 
187.9

 
187.9

 
204.1

 
0.06
%
American Diagnostic Imaging, Inc. dba St. Joseph Imaging Center
(#,^)
3937 Sherman Ave, Saint Joseph, MO 64506
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2038
 
465.9

 
465.9

 
548.7

 
0.17
%
Michael A.and HeatherR. Welsch dba Art & FrameEtc.
(#,^)
2819 West T C Jester Blvd., Houston, TX 77018
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/22/2038
 
58.5

 
58.5

 
68.9

 
0.02
%
Truth Technologies Inc dba Truth Technologies Inc.
(#,^)
2341 Cheshire Lane, Naples, FL 34109
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023
 
35.2

 
35.2

 
36.3

 
0.01
%

F-116
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Sound Manufacturing, Inc. and Monster Power Equipment Inc.
(#,^)
51 Donnelley Rd, Old Saybrook, CT 06475
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/15/2023
 
199.4

 
199.4

 
206.1

 
0.06
%
Golden Gate Lodging LLC
(#,^)
432 Margaret St.,, Plattsburgh, NY 12901
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2038
 
99.7

 
99.7

 
117.5

 
0.04
%
Bakhtar Group LLC dba Malmaison
(#,^)
3401 K St. NW, Washington, DC 20007
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2023
 
38.2

 
38.2

 
39.4

 
0.01
%
Osceola River Mill, LLC, Ironman Machine, Inc.
(#,^)
27 Hungerford St., Pittsfield, MA 01201
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/20/2038
 
74.6

 
74.6

 
87.8

 
0.03
%
Java Warung, LLC
(#,^)
1915 N Richmond St., Appleton, WI 54911
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/19/2038
 
44.2

 
44.2

 
52.0

 
0.02
%
Retain Loyalty LLC
(#,^)
1250 Sanders Ave SW, Massillon, OH 44647
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/15/2038
 
93.7

 
93.7

 
110.4

 
0.03
%
North Country Transport, LLC
(#,^)
10 LaCrosse St., Ste 14, Hudson Falls, NY 12839
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/6/2023
 
6.1

 
6.1

 
6.3

 
—
%
Sherill Universal City dba Golden Corral LP
(#,^)
2301 Pat Booker Rd, Universal City, TX 78148
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2038
 
381.4

 
381.4

 
449.4

 
0.14
%
Macho LLC, Madelaine Chocolate Novelties Inc
(#,^)
96-03 Beach Channel Drive, Rockaway Beach, NY 11693
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/31/2037
 
432.4

 
432.4

 
509.5

 
0.16
%
Babie Bunnie Enterprises Inc dba Triangle Mothercare
(#,^)
8516 Swarthmore Drive, Raleigh, NC 27615
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2027
 
27.5

 
27.5

 
29.8

 
0.01
%
Polpo Realty LLC & Polpo Restaurant LLC
(#,^)
554 Old Post Rd #3, Greenwich, CT 06830
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/27/2037
 
450.8

 
450.8

 
531.2

 
0.16
%
Martin L Hopp, MD PHD A Medical Corp dba Tower ENT
(#,^)
8631 West Third St, 440 E &, Los Angeles, CA 90048
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2022
 
25.1

 
25.1

 
25.9

 
0.01
%
Cheryle A Baptiste and Cheryle Baptiste DDS PLLC
(#,^)
4839 Wisconsin Ave NW Ste 2, Washington, DC 20016
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2037
 
251.6

 
251.6

 
295.9

 
0.09
%
Daniel Gordon and Erin Gordon and Silver Lining Stables CT, LLC
(#,^)
38 Carmen Lane, Monroe, CT 06468
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
11/28/2037
 
196.5

 
196.5

 
231.1

 
0.07
%
Richmond Hill Mini Market, LLC
(#,^)
101 Richmond Hill Ave, Stamford, CT 06902
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/27/2037
 
158.9

 
158.9

 
186.8

 
0.06
%
D&L Rescources, Inc. dba The UPS Store
(#,^)
8930 State Rd # 84, Davie, FL 33324
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/27/2022
 
3.6

 
3.6

 
3.7

 
—
%
DRV Enterprise, Inc. dba Cici's Pizza # 339
(#,^)
5771 East Fowler Ave, Temple Terrace, FL 33617
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/26/2022
 
22.5

 
22.5

 
23.1

 
0.01
%
U & A Food and Fuel, Inc. dba Express Gas & Food Mart
(#,^)
1345 Wampanoag Trail, East Providence, RI 02915
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/21/2037
 
82.6

 
82.6

 
97.2

 
0.03
%
Pioneer Windows Manufacturing Corp, Pioneer Windows
(#,^)
15 Frederick Place, Hicksville, NY 11801
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/21/2022
 
100.5

 
100.5

 
103.5

 
0.03
%

F-117
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
R & J Petroleum LLC, Manar USA, Inc.
(#,^)
305 Quincy Shore Drive, Quincy, MA 02107
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/20/2037
 
154.4

 
154.4

 
181.6

 
0.06
%
St Judes Physical Therapy P.C.
(#,^)
7712 Fourth Ave, Brooklyn, NY 11209
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2022
 
7.7

 
7.7

 
7.9

 
—
%
Hi-Def Imaging, Inc. dba SpeedPro Imaging
(#,^)
3580 Progress Drive, Unit Q, Bensalem, PA 19020
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/9/2022
 
8.2

 
8.2

 
8.5

 
—
%
Reidville Hydraulics Mfg Inc dba Summit
(#,^)
175 Industrial Lane, Torrington, CT 06790
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/2/2037
 
228.3

 
228.3

 
268.3

 
0.08
%
Big Apple Entertainment Partners, LLC d/b/a Ripley's Believe It or Not
(#,^)
234 West 42nd St., New York, NY 10036
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/26/2022
 
66.6

 
66.6

 
68.6

 
0.02
%
University Park Retreat, LLC dba Massage Heights
(#,^)
5275 University Parkway # 110, Bradenton, FL 34201
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2022
 
26.7

 
26.7

 
27.5

 
0.01
%
O'Rourkes Diner LLC dba O'Rourke's Diner
(#,^)
728 Main St., Middletown, CT 06457
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2037
 
55.9

 
55.9

 
65.6

 
0.02
%
AJK Enterprise LLC dba AJK Enterprise LLC
(#)
1901 Naylor Rd, SE, Washington, DC 20020
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/27/2022
 
5.5

 
5.5

 
5.6

 
—
%
Suncoast Aluminum Furniture, Inc
(#,^)
6291 Thomas Rd, Fort Myers, FL 33912
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/17/2037
 
306.7

 
306.7

 
360.1

 
0.11
%
Hofgard & Co., Inc. dba HofgardBenefits
(#,^)
400 S McCaslin Blvd Ste 201, Louisville, CO 80027
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022
 
35.7

 
35.7

 
36.6

 
0.01
%
Georgia Safe Sidewalks LLC
(#,^)
1740 Wheatstone Drive, Grayson, GA 30017
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022
 
4.9

 
4.9

 
5.1

 
—
%
Central Tire, Inc. dba Cooper Tire & Auto Services
(#,^)
1111 S Tillotson Ave, Muncie, IN 47304
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/29/2037
 
244.1

 
244.1

 
286.9

 
0.09
%
KIND-ER-ZZ Inc dba Kidville
(#,^)
30 Maple St., Summit, NJ 07901
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2022
 
16.0

 
16.0

 
16.4

 
0.01
%
Graphish Studio, Inc. and Scott Fishoff
(#,^)
231 Main St., Stanford, CT 06901
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/14/2022
 
6.4

 
6.4

 
6.6

 
—
%
ALF, LLC, Mulit-Service Eagle Tires
(#,^)
1985 B St., Colorado Springs, CO 80906
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/31/2037
 
53.1

 
53.1

 
62.2

 
0.02
%
Tracey Vita-Morris dba Tracey Vita's School of Dance
(#,^)
4181 9th Ave West, Bradenton, FL 34025
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
5/10/2022
 
7.1

 
7.1

 
7.2

 
—
%
Tanner Optical, Inc. dba Murphy Eye Care
(#,^)
305 Shirley Ave, Douglas, GA 31533
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/27/2022
 
2.4

 
2.4

 
2.5

 
—
%
Access Staffing, LLC
(#,^)
360 Lexington Ave, 8th Fl, New York, NY 10017
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2022
 
59.1

 
59.1

 
60.5

 
0.02
%
Manuel P. Barrera and Accura Electrical Contractor, Inc.
(#,^)
6187 NW 167th St. Unit H3, Miami, FL 33015
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028
 
66.7

 
66.7

 
72.4

 
0.02
%
DC Realty, LLC dba FOGO Data Centers
(#)
340 Tom Reeve Drive, Carrolton, GA 30117
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6.25%
 
3/23/2022
 
449.7

 
449.7

 
445.3

 
0.14
%

F-118
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
DC Realty, LLC dba FOGO Data Centers
(#)
340 Tom Reeve Drive, Carrolton, GA 30117
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
3/23/2037
 
2,623.4

 
2,623.4

 
2,519.4

 
0.78
%
Shweiki Media, Inc. dba Study Breaks Magazine
(#,^)
4954 Space Center Drive, San Antonio, TX 78218
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/22/2027
 
724.9

 
724.9

 
780.1

 
0.24
%
ATI Jet, Inc.
(#)
7007 Boeing Drive, El Paso, TX 79925
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/28/2026
 
532.8

 
532.8

 
572.0

 
0.18
%
J. Kinderman & Sons, Inc. dba Brite Star Manufacturing Company
(#,^)
2900 South 20th St., Philadelphia, PA 19145
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/22/2036
 
343.8

 
343.8

 
401.9

 
0.12
%
K's Salon, LLC d/b/a K's Salon
(#,^)
162 West 84th St., New York, NY 10024
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2021
 
19.5

 
19.5

 
19.9

 
0.01
%
15 Frederick Place LLC & Pioneer Windows Holdings Inc & Subs
(#,^)
15 Frederick Place, Hicksville, NY 11801
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/16/2021
 
63.7

 
63.7

 
65.0

 
0.02
%
Taylor Transport, Inc
(#,^)
1708 HWY 113 SW, CARTERSVILLE, GA 30120
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/8/2021
 
64.2

 
64.2

 
65.6

 
0.02
%
K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc
(#)
325 N. Milwaukee Ave, Ste G1, Wheeling, IL 60090
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
10/26/2021
 
17.1

 
17.1

 
17.5

 
0.01
%
28 Cornelia Street Properties, LLC and Zouk, Ltd.dba Palma
(#,^)
28-28 1/2 Cornelia St., New York, NY 10014
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/25/2021
 
5.3

 
5.3

 
5.4

 
—
%
39581 Garfield, LLC and Tri County Neurological Associates, P.C.
(#,^)
39581 Garfield Rd, Clinton Township, MI 48038
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036
 
68.3

 
68.3

 
79.8

 
0.02
%
Robert E. Caves, Sr. and American Plank dba Caves Enterprises
(#,^)
40515 Pumpkin Center Rd, Hammond, LA 70403
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2021
 
69.0

 
69.0

 
70.5

 
0.02
%
39581 Garfield, LLC and Tricounty Neurological Associates, P.C.
(#,^)
39581 Garfield Rd, Clinton Township, MI 48038
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036
 
23.2

 
23.2

 
27.1

 
0.01
%
Big Apple Entertainment Partners, LLC dba Ripley's Believe it or Not
(#,^)
234 West 42nd St., New York, NY 10036
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2021
 
239.7

 
239.7

 
244.1

 
0.08
%
Michael S. Decker & Janet Decker dba The Hen House Cafe
(#)
401 Caribou St., Simla, CO 80835
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2036
 
13.8

 
13.8

 
16.2

 
0.01
%
Trademark Equipment Company Inc and David A. Daniel
(#,^)
5690 Pine Lane Circle, Bessemer, AL 35022
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/19/2036
 
109.9

 
109.9

 
128.3

 
0.04
%
Valiev Ballet Academy, Inc
(#,^)
635 - 637 Londonderry Lane, Denton, TX 76205
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
8/12/2036
 
34.9

 
34.9

 
40.7

 
0.01
%
LaHoBa, LLC d/b/a Papa John's
(#,^)
3001 Pontchartrain Drive, Slidell, LA 70458
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/3/2036
 
63.3

 
63.3

 
73.9

 
0.02
%

F-119
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Lavertue Properties LLP dba Lavertue Properties
(#,^)
24 Wakefield St., Rochester, NH 13867
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/29/2036
 
36.7

 
36.7

 
42.9

 
0.01
%
Lisle Lincoln II Limited Partnership dba Lisle Lanes LP
(#,^)
4920 Lincoln Ave Rte 53, Lisle, IL 60532
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/29/2036
 
287.3

 
287.3

 
335.4

 
0.10
%
Peanut Butter & Co., Inc. d/b/a Peanut Butter & Co.
(#,^)
1790 Broadway Ste 716, New York, NY 10019
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/3/2021
 
8.9

 
8.9

 
9.0

 
—
%
Modern on the Mile, LLC dba Ligne Roset
(#,^)
162 N. 3rd St., Philadelphia, PA 19106
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
5/25/2021
 
39.0

 
39.0

 
39.7

 
0.01
%
Profile Performance, Inc. and Eidak Real Estate, L.L.C.
(#,^)
44600 Michigan Ave, Canton, MI 48188
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2036
 
103.5

 
103.5

 
120.7

 
0.04
%
Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store
(#,^)
2267 Fernberg Trail, Ely, MN 55731
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/18/2036
 
113.8

 
113.8

 
132.7

 
0.04
%
Michael S. Korfe dba North Valley Auto Repair
(#,^)
7516 B 2nd St., NW, Albuquerque, NM 87107
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/24/2036
 
12.5

 
12.5

 
14.6

 
—
%
Actknowledge,Inc dba Actknowledge
(#,^)
365 Fifth Ave, New York, NY 10016
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2021
 
9.9

 
9.9

 
10.1

 
—
%
Stephen Frank, Patricia Frank and Suds Express LLC
(#,^)
520 E. 8th St., Anderson, IN 46012
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/25/2023
 
20.6

 
20.6

 
21.3

 
0.01
%
SuzyQue’s LLC dba Suzy Que’s
(#,^)
34 South Valley Rd, West Orange, NJ 07052
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/11/2036
 
49.4

 
49.4

 
57.4

 
0.02
%
Little People’s Village, LLC dba Little People’s Village
(#,^)
904 North 66th St., Philadelphia, PA 19151
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2036
 
25.0

 
25.0

 
29.1

 
0.01
%
Seagate Group Holdings, Inc. dba Seagate Logistics, Inc.
(#,^)
64-68 North Central Ave, Valley Stream, NY 11580
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/28/2036
 
91.3

 
91.3

 
106.2

 
0.03
%
Shree OM Lodging, LLC dba Royal Inn
(#,^)
2030 W Northwest Hwy, Dallas, TX 75220
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/17/2035
 
22.2

 
22.2

 
25.8

 
0.01
%
Lodin Medical Imaging, LLC dba Watson Imaging Center
(#,^)
3915 Watson Rd, St. Louis, MO 63109
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/1/2020
 
9.2

 
9.2

 
9.3

 
—
%
Robert F. Schuler and Lori A. Schuler dba Bob’s Service Center
(#,^)
2879 Limekiln Pike, Glenside, PA 19038
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/30/2035
 
27.2

 
27.2

 
31.6

 
0.01
%
Elan Realty, LLC and Albert Basse Asociates, Inc.
(#,^)
175 Campanelli Park Way, Stroughton, MA 02072
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
9/30/2035
 
180.6

 
180.6

 
209.6

 
0.07
%
K9 Bytes, Inc & Epazz, Inc
(#)
325 N. Milwaukee Ave, Ste G1, Wheeling, IL 60090
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
9/30/2020
 
2.8

 
2.8

 
2.8

 
—
%

F-120
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Success Express,Inc. dba Success Express
(#,^)
550 Eighth Ave, New York, NY 10018
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2020
 
8.4

 
8.4

 
8.5

 
—
%
Modern Manhattan, LLC
(#,^)
162 N 3rd St., Philadelphia, PA 19106
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/20/2020
 
22.4

 
22.4

 
22.6

 
0.01
%
Dirk's Trucking, L.L.C. dba Dirk's Trucking
(#)
1041 John D Hebert Rd, Breaux Bridge, LA 70517
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/17/2020
 
2.3

 
2.3

 
2.4

 
—
%
Rudy & Louise Chavez dba Clyde's Auto and Furniture Upholstery
(#,^)
2320 2nd St., Albuquerque, NM 87107
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035
 
39.8

 
39.8

 
46.1

 
0.01
%
Newsome Trucking Inc and Kevin Newsome
(#,^)
2262 HWY 53W, Jasper, GA 30143
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035
 
197.5

 
197.5

 
228.9

 
0.07
%
Members Only Software, Inc
(#,^)
1250 Connecticut Ave NW 200, Washington, DC 20036
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020
 
3.6

 
3.6

 
3.6

 
—
%
ActKnowledge,Inc dba ActKnowledge
(#,^)
365 Fifth Ave, New York, NY 10016
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2020
 
3.9

 
3.9

 
3.9

 
—
%
I-90 RV & Auto Supercenter
(#,^)
4505 South I-90 Service Rd, Rapid City, SD 57703
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/29/2035
 
58.9

 
58.9

 
68.3

 
0.02
%
Zouk, Ltd. dba Palma
(#,^)
28 Cornelia St., New York, NY 10014
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/25/2020
 
2.4

 
2.4

 
2.5

 
—
%
Tanner Optical Inc. dba Murphy Eye Care
(#,^)
305 Shirley Ave, Douglas, GA 31533
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2035
 
74.7

 
74.7

 
86.3

 
0.03
%
ValleyStar, Inc. dba BrightStar Healthcare
(#)
5900 Sepulveda Blvd, Van Nuys, CA 91411
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020
 
0.4

 
0.4

 
0.4

 
—
%
New Economic Methods LLC dba Rita's
(#)
1014 H St. NE, Washington, DC 20002
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2020
 
0.2

 
0.2

 
0.2

 
—
%
Lahoba,LLC dba Papa John's Pizza
(#,^)
620 W. Judge Perez Drive, Chalmette, LA 70163
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/30/2034
 
33.0

 
33.0

 
38.1

 
0.01
%
Animal Intrusion Prevention Systems Holding Company, LLC
(#,^)
3330 North Beach St., Haltom City, TX 76111
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2024
 
20.7

 
20.7

 
21.6

 
0.01
%
KMC RE, LLC & B&B Kennels
(#,^)
6004 City Park Rd, Austin, TX 78730
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2034
 
45.0

 
45.0

 
51.9

 
0.02
%
ROVER REPAIRS
(#,^)
301 Macdade Blvd, COLLINGDALE, PA 19023
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.5%
 
11/28/2029
 
45.5

 
45.5

 
49.7

 
0.02
%
The Alba Financial Group, Inc.
(#,^)
1420 Spring Hill Rd, McLain, VA 22102
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
6%
 
3/10/2021
 
3.8

 
3.8

 
3.8

 
—
%
D & D's Divine Beauty School of Esther, LLC
(#,^)
5524 Germantown Ave, Philadelphia, PA 19144
 
Educational Services
 
Term Loan
 
6%
 
8/1/2031
 
44.0

 
44.0

 
42.6

 
0.01
%
Bliss Coffee and Wine Bar, LLC
(#)
1402-A Handlir Drive, Bel Air, MD 21015
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
11/30/2022
 
64.1

 
64.1

 
63.3

 
0.02
%

F-121
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Zog Inc.
(#,^)
595 Bethlehem Pike #404, Montgomeryville, PA 18936
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2020
 
13.6

 
13.6

 
13.7

 
—
%
Connect Litigation Technology, Inc.
(#,^)
1101 Ivy Hill Rd, #4, Philadelphia, PA 19150
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2%
 
10/18/2025
 
20.0

 
20.0

 
20.8

 
0.01
%
1911 East Main Street Holdings, Corp
(#,^)
1911 East Main St., Endicott, NY 13760
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2032
 
10.9

 
10.9

 
12.3

 
—
%
Water Works Laundromat, LLC
(#)
968-970 Bergen St., Newark, NJ 07104
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.25%
 
9/7/2027
 
146.4

 
146.4

 
155.6

 
0.05
%
Dave Kris, and MDK Ram Corp.
(#,^)
15 Elm Park, Groveland, MA 01930
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/5/2026
 
23.9

 
23.9

 
25.5

 
0.01
%
Gill Express Inc. dba American Eagle Truck Wash
(#,^)
12200 N. Holland, Oklahoma City, OK 73131
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/5/2027
 
145.6

 
145.6

 
156.8

 
0.05
%
Head To Toe Personalized Pampering, Inc.
(#,^)
2331 North State Rd 7, Lauderhill, FL 33313
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/27/2031
 
7.7

 
7.7

 
8.6

 
—
%
Christopher F. Bohon & Pamela D. Bohon
(#,^)
11600 County Rd 71, Lexington, AL 35648
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/28/2026
 
2.5

 
2.5

 
2.7

 
—
%
Mogas Limited
(#,^)
47 Chestnut St., Elmer, NJ 08318
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/31/2030
 
62.1

 
62.1

 
68.9

 
0.02
%
Shree Om Lodging, LLC dba Royal Inn
(#,^)
2030 W. Northwest Hwy, Dallas, TX 75220
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/2/2030
 
55.1

 
55.1

 
61.1

 
0.02
%
Moonlight Multi Media Production, Inc.
(#,^)
2700 W Cypress Creek Rd, Fort Lauderdale, FL 33309
 
Other Information Services
 
Term Loan
 
5.3%
 
2/1/2025
 
1.6

 
1.6

 
1.6

 
—
%
David M. Goens dba Superior Auto Paint & Body, Inc.
(#)
1912 Manhattan Ave, Harvey, LA 70058
 
Repair and Maintenance
 
Term Loan
 
6%
 
8/26/2024
 
11.9

 
11.9

 
11.7

 
—
%
McCallister Venture Group, LLC and Maw's Vittles, Inc.
(#,^)
511 South Broad St., Brooksville, FL 34601
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/30/2029
 
9.8

 
9.8

 
10.8

 
—
%
Chong Hun Im dba Kim's Market
(#,^)
730 East 28th St., Ogden, UT 84403
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.5%
 
2/27/2024
 
6.0

 
6.0

 
6.2

 
—
%
Whirlwind Car Wash, Inc.
(#)
1370 Le Anne Marie Circle, Columbus, OH 43026
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2%
 
4/9/2029
 
12.9

 
12.9

 
13.7

 
—
%
Shuttle Car Wash, Inc. dba Shuttle Car Wash
(#,^)
745 Cheney Hwy, Ttitusville, FL 32780
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.25%
 
11/10/2028
 
14.1

 
14.1

 
15.1

 
—
%
Min Hui Lin
(#,^)
1916 Broad St., Lanett, AL 36863
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2028
 
14.1

 
14.1

 
15.3

 
—
%
Delta Partners, LLC dba Delta Carwash
(#,^)
5640 Indian Crest Lane, Olympia, WA 98516
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.5%
 
4/5/2029
 
35.2

 
35.2

 
38.3

 
0.01
%
Auto Sales, Inc.
(#,^)
1925 State St., Hamden, CT 06417
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6%
 
8/17/2023
 
4.8

 
4.8

 
4.7

 
—
%
Taste of Inverness, Inc. dba China Garden
(#,^)
1314 US Hwy 41 N, Inverness, FL 34450
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2%
 
6/29/2025
 
6.2

 
6.2

 
6.4

 
—
%

F-122
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Accrual Investments (1) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226
Ralph Werner dba Werner Transmission Inc
(#,^)
259 East Central Ave, Bangor, PA 18013
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/29/2021
 
1.0

 
1.0

 
1.1

 
—
%
Robin C. & Charles E. Taylor & Brigantine Aquatic Center LLC
(#,^)
3118 Bayshore Ave, Brigantine, NJ 08203
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
9/14/2023
 
25.5

 
25.5

 
25.2

 
0.01
%
OrthoQuest, P.C.
(#,^)
2336 Wisteria Drive, Ste 430, Snellville, GA 30078
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2%
 
3/12/2022
 
1.6

 
1.6

 
1.6

 
—
%
Track Side Collision & Tire, Inc.
(#,^)
98-16 160 Ave, Ozone Park, NY 11414
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025
 
3.5

 
3.5

 
3.7

 
—
%
Deesha Corporation, Inc. dba Best Inn & Suites
(#,^)
9225 Parkway East, Birmingham, AL 35206
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
2/14/2025
 
19.0

 
19.0

 
19.8

 
0.01
%
Maruti, Inc
(#,^)
1506 280 By-Pass, Phenix City, AL 36867
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
11/25/2024
 
14.6

 
14.6

 
15.2

 
—
%
Randall D. & Patricia D. Casaburi dba Pat's Pizzazz
(#,^)
386 Winsted Rd, Torrington, CT 06790
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/13/2023
 
4.1

 
4.1

 
4.2

 
—
%
Gain Laxmi, Inc. dba Super 8 Motel
(#,^)
14341 US Hwy 431 S, Gunterville, AL 35976
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
5/31/2023
 
11.9

 
11.9

 
12.2

 
—
%
Naseeb Corporation
(#,^)
1696 North Broad St., Meriden, CT 06450
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
3/31/2024
 
19.2

 
19.2

 
19.9

 
0.01
%
Stillwell Ave Prep School
(#,^)
1990 Stillwell Ave, Brooklyn, NY 11214
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/14/2023
 
3.6

 
3.6

 
3.7

 
—
%
Alyssa Corp dba Knights Inn
(#,^)
1105 Columbus Parkway, Opelika, AL 36801
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/30/2023
 
33.2

 
33.2

 
34.3

 
0.01
%
Bhailal Patel dba New Falls Motel
(#,^)
201 Lincoln Hwy, Fairless Hills, PA 19030
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023
 
$
1.6

 
$
1.6

 
$
1.7

 
—
%
Pegasus Automotive, Inc.
(#,^)
3981 Hylan Blvd., Staten Island, NY 10308
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/23/2022
 
$
4.9

 
$
4.9

 
$
5.1

 
—
%
P. Agrino, Inc. dba Andover Diner
(#,^)
193 Main St., Andover, NJ 07860
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/18/2021
 
$
2.4

 
$
2.4

 
$
2.5

 
—
%
Total SBA Unguaranteed Accrual Investments
 
 
 
$
370,612.2

 
$
370,612.2

 
$
382,986.3

 
118.86
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

SBA Unguaranteed Non-Accrual Investments (3) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322226

200 North 8th Street Associates LLC and Enchanted Acres
(#)
200 North 8th St., Reading, PA 19601
 
Food Manufacturing
 
Term Loan
 
6.25%
 
5/4/2028
 
445.6

 
445.6

 
352.6

 
0.11
%
Amboy Group, LLC dba Tommy Moloney's
(#)
1 Amboy Ave, Woodbridge, NJ 07095
 
Food Manufacturing
 
Term Loan
 
7%
 
6/24/2025
 
364.5

 
364.5

 
355.2

 
0.11
%
CLU Amboy, LLC and Amboy Group, LLC dba Tommy Moloney's
(#)
1 Amboy Ave, Woodbridge, NJ 07095
 
Food Manufacturing
 
Term Loan
 
7%
 
12/27/2023
 
455.7

 
455.7

 
414.2

 
0.13
%

F-123
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Non-Accrual Investments (3) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322226

Custom Software, Inc. a Colorado Corporation dba M-33 Access
(#)
380 E. Borden Rd, Rose City, MI 48654
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6.25%
 
6/17/2021
 
233.3

 
233.3

 
114.4

 
0.04
%
Event Mecca LLC
(#)
141 South Waldron Lane, Wynantskill, NY 12198
 
Other Information Services
 
Term Loan
 
6%
 
4/10/2023
 
11.0

 
11.0

 
1.2

 
—
%
Hartford Cardiology Group LLC and Ideal Nutrition of Connecticut LLC
(#,^)
345 North Main St., West Hartford, CT 06117
 
Ambulatory Health Care Services
 
Term Loan
 
0%
 
5/15/2024
 
452.3

 
452.3

 
71.6

 
0.02
%
Kids at Heart,LLC dba Monster Mini Golf
(#,^)
10 Newbury St., Danvers, MA 01923
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6.75%
 
9/22/2026
 
19.6

 
19.6

 
7.3

 
—
%
Matchless Transportation LLC dba First Class Limo
(#)
31525 Aurora Rd # 5, Solon, OH 44139
 
Transit and Ground Passenger Transportation
 
Term Loan
 
6.25%
 
5/31/2020
 
119.6

 
119.6

 
12.2

 
—
%
Morris Glass and Construction Inc
(#)
40058 Hwy 30, Astoria, OR 97103
 
Specialty Trade Contractors
 
Term Loan
 
15%
 
10/1/2023
 
405.2

 
405.2

 
222.8

 
0.07
%
Sourceco Limited Liability Company
(#,^)
17 Palmer Ave, West Long Branch, NJ 07764
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
6.5%
 
12/17/2025
 
37.0

 
37.0

 
32.5

 
0.01
%
TX Superior Communications, LLC
(#,^)
6223 Krempen Ave, San Antonio, TX 78233
 
Specialty Trade Contractors
 
Term Loan
 
8%
 
3/19/2028
 
85.5

 
85.5

 
47.4

 
0.01
%
6 Price Avenue, LLC and Pauley Tree & Lawn Care, Inc
(*,#)
6 Price Ave, Norwalk, CT 06840
 
Administrative and Support Services
 
Term Loan
 
8%
 
9/24/2039
 
237.3

 
237.3

 
225.1

 
0.07
%
Pauley Tree and Lawn Care Inc
(*,#)
6 Price Ave, Norwalk, CT 06854
 
Administrative and Support Services
 
Term Loan
 
8.25%
 
7/28/2025
 
46.6

 
46.6

 
44.2

 
0.01
%
Acton Hardware LLC & Mark Allgood & Jamie Allgood
(*,#,^)
31814 Crown Valley Rd, Acton, CA 93510
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
8%
 
3/24/2041
 
478.2

 
478.2

 
364.9

 
0.11
%
Advance Case Parts Inc
(*,#,^)
12489 NW 44th St., Coral Springs, FL 33065
 
Repair and Maintenance
 
Term Loan
 
7.75%
 
12/22/2027
 
45.4

 
45.4

 
—

 
—
%
Advance Case Parts RE Holdings LLC and Advance Case Parts Inc
(*,#)
12485-12489 NW 44th St., Coral Springs, FL 33071
 
Repair and Maintenance
 
Term Loan
 
7.75%
 
3/31/2040
 
321.3

 
321.3

 
230.5

 
0.07
%
Alive Design, LLC
(*,#)
234 Middle St., Middletown, CT 06457
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/13/2027
 
15.0

 
15.0

 
11.9

 
—
%
All About Kids and Families Medical Center, Inc.
(*,#,^)
12086 FT Caroline Rd #102/3, 401-403, 501/2, Jacksonville, FL 32225
 
Ambulatory Health Care Services
 
Term Loan
 
8.25%
 
1/13/2029
 
364.9

 
364.9

 
256.6

 
0.08
%
All Printing Solutions, Inc. dba Pryntcomm
(*,#,^)
303 E. Sioux Ave., Pierre, SD 57501
 
Printing and Related Support Activities
 
Term Loan
 
7.75%
 
6/27/2041
 
491.9

 
491.9

 
215.9

 
0.07
%
Allied Welding Inc.
(*,#,^)
1820 N. Santa Fe Ave, Chillicothe, IL 61523
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
8.25%
 
12/15/2041
 
727.3

 
727.3

 
560.8

 
0.17
%
American Pharmaceutical Innovation Company, LLC
(*,#,^)
1425 Centre Circle, Downers Grove, IL 60515
 
Chemical Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2027
 
6.9

 
6.9

 
6.5

 
—
%
American Reclamation LLC
(*,#,^)
3600 Wetzel St., Wheeling, WV 26003
 
Furniture and Related Product Manufacturing
 
Term Loan
 
8%
 
11/1/2027
 
0.8

 
0.8

 
0.7

 
—
%

F-124
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Non-Accrual Investments (3) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322226

Arclay, LLC
(*,#,^)
49 Geyser Rd, Ste 100, Saratoga Springs, NY 12866
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
8%
 
5/5/2030
 
137.1

 
137.1

 
39.5

 
0.01
%
Arrow Freight Inc
(*,#,^)
1000 Jorie Blvd Ste 250, Oak Brook, IL 60523
 
Truck Transportation
 
Term Loan
 
8.25%
 
3/30/2028
 
658.6

 
658.6

 
379.4

 
0.12
%
Auto Shine Carwash Inc and AKM R. Hossain and Jessica F. Masud
(*,#)
2646 South Rd, Poughkeepsie, NY 12601
 
Gasoline Stations
 
Term Loan
 
7.75%
 
9/26/2024
 
15.7

 
15.7

 
15.3

 
—
%
AWA Fabrication & Construction, L.L.C.
(*,#)
811 Country Rd #99, Headland, AL 36345
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
4/30/2025
 
34.4

 
34.4

 
1.4

 
—
%
B and J Catering Inc dba Culinary Solutions
(*,#,^)
2201 S Federal Hwy, Boynton Beach, FL 33435
 
Food Services and Drinking Places
 
Term Loan
 
7%
 
8/27/2040
 
208.9

 
208.9

 
139.2

 
0.04
%
B&B Fitness and Barbell, Inc. dba Elevations Health Club
(*,#)
Route 611 North, Scotrun, PA 18355
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
6/22/2035
 
198.9

 
198.9

 
168.2

 
0.05
%
B4 Fitness LLC dba The Zoo Health Club
(*,#,^)
4 Beehive Dr, Epping, NH 03042
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
8.25%
 
9/23/2026
 
70.1

 
70.1

 
48.5

 
0.02
%
B4 Fitness LLC dba The Zoo Health Club
(*,#,^)
4 Beehive Dr, Epping, NH 03042
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
8.25%
 
11/30/2026
 
18.5

 
18.5

 
—

 
—
%
Baker Sales, Inc. d/b/a Baker Sales, Inc.
(*,#)
60207 Camp Villere Rd, Slidell, LA 70460
 
Nonstore Retailers
 
Term Loan
 
6%
 
3/29/2036
 
177.4

 
177.4

 
59.4

 
0.02
%
Fieldstone Quick Stop LLC, Barber Investments LLC, Thadius M B
(*,#)
190 Route 3, South China, ME 04358
 
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
(*,#)
190 Rt 3, South China, ME 04358
 
Gasoline Stations
 
Term Loan
 
6.25%
 
8/15/2039
 
146.3

 
146.3

 
—

 
—
%
Bear Creek Entertainment LLC dba The Woods at Bear Creek
(*,#,^)
3510 Bear Creek Rd, Franklinville, NY 14737
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
8/12/2041
 
1,608.1

 
1,670.3

 
565.6

 
0.18
%
Bear Creek Entertainment, LLC dba The Woods at Bear Creek
(*,#)
3510 Bear Creek Rd, Franklinville, NY 14737
 
Accommodation
 
Term Loan
 
7.25%
 
12/30/2024
 
85.4

 
85.4

 
81.0

 
0.03
%
Bebos Inc dba Pizza Hut & Sunoco
(*,#)
2003 West 5th St., Clifton, TX 76634
 
Gasoline Stations
 
Term Loan
 
7.75%
 
3/28/2028
 
214.1

 
214.1

 
52.6

 
0.02
%
Bone Bar & Grill LLC
(*,#)
3547&3551 Philipsburg Bigler Hwy, West Decatur, PA 16878
 
Food Services and Drinking Places
 
Term Loan
 
7%
 
6/30/2042
 
73.4

 
73.4

 
54.7

 
0.02
%
Bowl Mor LLC dba Bowl Mor Lanes
(*,#,^)
600 West Manlius St., East Syracuse, NY 13057
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
8.25%
 
7/31/2027
 
6.4

 
6.4

 
—

 
—
%
Bowl Mor, LLC dba Bowl Mor Lanes/Spare Lounge, Inc.
(*,#)
201 Highland Ave, East Syracuse, NY 13057
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/13/2039
 
201.2

 
201.2

 
154.0

 
0.05
%
BQRS, Inc. DBA Gresham Meineke Car Care Center
(*,#,^)
18081 SE Division St., Portland, OR 97236
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027
 
54.2

 
54.2

 
53.5

 
0.02
%

F-125
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Non-Accrual Investments (3) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322226

Brandywine Picnic Park, Inc. and B.Ross Capps & Linda Capps
(*,#)
690 South Creek Rd, West Chester, PA 19382
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
8.25%
 
3/30/2031
 
179.3

 
179.3

 
176.9

 
0.05
%
Cagwin Trucking LLC
(*,#,^)
332 35th Ave, Fairbanks, AK 99701
 
Truck Transportation
 
Term Loan
 
8.25%
 
9/29/2042
 
305.0

 
305.0

 
224.9

 
0.07
%
Calhoun Satellite Communications Inc and Transmission Solutions Group
(*,#)
1914 Tigertail Blvd, Dania, FL 33004
 
Broadcasting (except Internet)
 
Term Loan
 
6.75%
 
2/27/2025
 
724.2

 
724.2

 
—

 
—
%
Calhoun Satellite Communications, Inc.
(*,#)
1914 Tigertail Blvd, Dania Beach, FL 33004
 
Telecommunications
 
Term Loan
 
7%
 
12/2/2026
 
189.1

 
189.1

 
30.9

 
0.01
%
Capstone Pediatrics PLLC and Capstone Healthcare Consulting LLC
(*,#)
310 25th Ave N. St. Ste 201, Nashville, TN 37203
 
Ambulatory Health Care Services
 
Term Loan
 
7.75%
 
5/15/2025
 
556.4

 
556.4

 
322.9

 
0.10
%
Cardinal Homes Inc, Alouette Holdings Inc., Bret Berneche & Dorothy
(*,#,^)
525 Barnsville Hwy, Wylliesburg, VA 23976
 
Wood Product Manufacturing
 
Term Loan
 
8%
 
12/14/2026
 
868.8

 
868.8

 
824.0

 
0.26
%
Cardinal Homes Inc. and Bret A Berneche
(*,#,^)
525 Barnesville Hwy, Wylliesburg, VA 23976
 
Wood Product Manufacturing
 
Term Loan
 
8%
 
12/14/2041
 
116.7

 
116.7

 
110.7

 
0.03
%
Cardinal Homes, Inc
(*,#,^)
525 Barnsville Hwy, Wylliesburg, VA 23976
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/27/2027
 
95.7

 
95.7

 
90.8

 
0.03
%
Carl R. Bieber, Inc. dba Bieber Tourways/Bieber Transportation
(*,#)
320 Fair St., Kutztown, PA 19530
 
Transit and Ground Passenger Transportation
 
Term Loan
 
7.5%
 
9/30/2027
 
572.9

 
572.9

 
546.8

 
0.17
%
Central Medical Clinic, PLLC- Clinica Central
(*,#)
393 N Dunlap St. #LL26,LL34,LL38, St Paul, MN 55104
 
Ambulatory Health Care Services
 
Term Loan
 
8.25%
 
6/7/2029
 
307.2

 
307.2

 
303.2

 
0.09
%
Chickamauga Properties, Inc., MSW Enterprises, LLP
(*,#)
214 Sutherland Way, Rocky Face, GA 30740
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6.25%
 
12/22/2035
 
59.0

 
59.0

 
56.0

 
0.02
%
Chickamauga Properties, Inc. & MSW Enterprises, LLP
(*,#)
214 Sutherland Way, Rocky Face, GA 30740
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6.25%
 
10/19/2022
 
43.5

 
43.5

 
41.2

 
0.01
%
Clark Realty LLC
(*,#,^)
4 Walker Way, Albany, NY 12205
 
Real Estate
 
Term Loan
 
8%
 
8/29/2041
 
73.3

 
73.3

 
18.9

 
0.01
%
Clark Realty LLC
(*,#,^)
15 Old Loudon Rd, Colonie, NY 12110
 
Real Estate
 
Term Loan
 
8%
 
9/15/2027
 
58.6

 
58.6

 
—

 
—
%
CNC Precision Machine, Inc.
(*,#,^)
18360 Industrial Circle, Burton, OH 44021
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/28/2041
 
1,226.4

 
1,226.4

 
651.8

 
0.20
%
CNYP 717 Irondequoit LLC and CNYP 2002 Ontario LLC
(*,#,^)
717 Titus Ave, Rochester, NY 14617
 
Food Services and Drinking Places
 
Term Loan
 
8.25%
 
11/20/2040
 
232.4

 
232.4

 
118.9

 
0.04
%
Colts V LLC and Nowatzke Service Center, Inc dba Nowatzke Truck & Trai
(*,#)
6900 Whitmore Lake Rd, Whitmore Lake, MI 48189
 
Repair and Maintenance
 
Term Loan
 
6.75%
 
9/26/2039
 
553.3

 
553.3

 
484.0

 
0.15
%

F-126
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Non-Accrual Investments (3) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322226

Conference Services International ETC LLC
(*,#,^)
4802 West Van Buren St., Phoenix, AZ 85007
 
Administrative and Support Services
 
Term Loan
 
8%
 
8/14/2028
 
600.7

 
600.7

 
592.9

 
0.18
%
Custom Software, Inc. a Colorado Corporation dba M-33 Access
(*,#)
380 E. Borden Rd, Rose City, MI 48654
 
Broadcasting (except Internet)
 
Term Loan
 
6.25%
 
4/30/2022
 
94.3

 
94.3

 
—

 
—
%
CZAR Industries, Inc.
(*,#,^)
1424 Heath Ave, Ewing, NJ 08638
 
Machinery Manufacturing
 
Term Loan
 
8.25%
 
12/19/2027
 
219.9

 
219.9

 
80.6

 
0.03
%
D&G Capital LLC dba Miami Grill 277
(*,#,^)
2521 N Federal Hwy Unit C, Boca Raton, FL 33431
 
Food Services and Drinking Places
 
Term Loan
 
6.5%
 
12/16/2025
 
45.4

 
45.4

 
23.9

 
0.01
%
Darian L Hampton DDS PA and Darian L. Hampton
(*,#)
3610 N Josey Lane Ste 104, Carrollton, TX 75007
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2028
 
292.6

 
292.6

 
24.0

 
0.01
%
Dixie Transport, Inc. & Johnny D. Brown & Jimmy Brown & Maudain Brown
(*,#,^)
2685 US Hwy 41, Calhoun, GA 30701
 
Support Activities for Transportation
 
Term Loan
 
5.25%
 
12/28/2035
 
1,316.8

 
1,316.8

 
702.5

 
0.22
%
Douglas Printy Motorsports, Inc. dba Blackburn Trike
(*,#)
1410 Medina Rd, Medina, OH 44256
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
8.25%
 
3/9/2040
 
155.9

 
155.9

 
95.1

 
0.03
%
Doxa Deo Inc dba Luv 2 Play
(*,#,^)
1600 Village Market Blvd, Leesburg, VA 20175
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
8.25%
 
2/28/2026
 
81.3

 
81.3

 
80.2

 
0.02
%
Dr. Richard Rolle JR, PLLC dba Rolle Oral & Facial Surgery PLLC
(*,#,^)
1515 Shopton Rd, Charlotte, NC 28217
 
Ambulatory Health Care Services
 
Term Loan
 
7.5%
 
9/29/2042
 
869.9

 
869.9

 
596.4

 
0.19
%
Dr. Richard R. Rolle, Jr., PLLC dba Rolle Oral & Facial Surgery
(*,#,^)
9615 Caldwell Commons Cir, Ste B, Cornelius, NC 28031
 
Ambulatory Health Care Services
 
Term Loan
 
7.5%
 
12/18/2027
 
122.3

 
122.3

 
—

 
—
%
Driven Warehouse/Distribution LLC
(*,#)
271 East North Ave, Glendale, IL 60139
 
Truck Transportation
 
Term Loan
 
8%
 
12/22/2027
 
726.2

 
726.2

 
453.1

 
0.14
%
Driven Warehouse/Distribution LLC
(*,#)
271 East North Ave, Glendale, IL 60139
 
Truck Transportation
 
Term Loan
 
8%
 
1/18/2028
 
129.0

 
129.0

 
—

 
—
%
DTM Parts Supply Inc.
(*,#)
31 Sageman St, Mount Vernon, NY 10550
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
7%
 
6/2/2025
 
53.4

 
53.4

 
38.2

 
0.01
%
DuCharme Realty LLC and DuCharme Enterprises LLC dba Specialty
(*,#)
1717 Hwy 200, Noxon, MT 59853
 
Wood Product Manufacturing
 
Term Loan
 
8%
 
2/2/2040
 
210.1

 
210.1

 
131.2

 
0.04
%
E & I Holdings, LP & PA Farm Products, LLC
(*,#)
1095 Mt Airy Rd, Stevens, PA 17578
 
Food Manufacturing
 
Term Loan
 
6%
 
4/30/2030
 
4,705.2

 
4,815.4

 
2,773.9

 
0.86
%
Earth First Recycling LLC
(*,#,^)
400 Island Park Rd, Easton, PA 18040
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
8%
 
12/6/2027
 
72.8

 
72.8

 
71.9

 
0.02
%
Earth First Recycling, LLC and 191 Clark Road, LLC
(*,#,^)
400 Island Park Rd, Easton, PA 18040
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
8%
 
6/5/2027
 
338.0

 
338.0

 
333.6

 
0.10
%
Elegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels
(*,#,^)
11949 Borden Ave, San Fernando, CA 91340
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2022
 
43.9

 
43.9

 
42.8

 
0.01
%
Ericon Inc. dba Quik Pik
(*,#,^)
740 Davenport Ave, Freemont, NE 68025
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/24/2027
 
54.2

 
54.2

 
—

 
—
%

F-127
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Non-Accrual Investments (3) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322226

Ericon, Inc.
(*,#,^)
740 Davenport Ave, Fremont, NE 68025
 
Gasoline Stations
 
Term Loan
 
8.25%
 
12/1/2041
 
705.6

 
705.6

 
658.6

 
0.20
%
Ericon, Inc. dba Quik Pik
(*,#,^)
740 Davenport Ave, Freemont, NE 68025
 
Gasoline Stations
 
Term Loan
 
8.25%
 
12/15/2041
 
322.8

 
322.8

 
—

 
—
%
Europlast Ltd
(*,#)
100 Industrial Lane, Endeavor, WI 53930
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
6%
 
9/26/2022
 
312.9

 
312.9

 
55.5

 
0.02
%
Europlast Ltd
(*,#)
100 Industrial Lane, Endeavor, WI 53930
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
6%
 
5/31/2023
 
73.4

 
73.4

 
—

 
—
%
Evergreen Pallet LLC and Evergreen Recycle LLC
(*,#,^)
302 W 53rd St N., Wichita, KS 67204
 
Wood Product Manufacturing
 
Term Loan
 
8.25%
 
3/16/2026
 
912.8

 
912.8

 
514.6

 
0.16
%
Evernook Valley Milk LLC
(*,#,^)
7448 Emmerson Rd, Everson, WA 98247
 
Animal Production and Aquaculture
 
Term Loan
 
7.5%
 
8/31/2042
 
637.5

 
637.5

 
468.2

 
0.15
%
Excel RP Inc
(*,#,^)
6531 Park Ave, Allen Park, MI 48101
 
Machinery Manufacturing
 
Term Loan
 
8.25%
 
8/30/2023
 
66.8

 
66.8

 
52.8

 
0.02
%
Excel RP Inc
(*,#,^)
6531 Park Ave, Allen Park, MI 48101
 
Machinery Manufacturing
 
Term Loan
 
8.25%
 
3/25/2026
 
95.2

 
95.2

 
—

 
—
%
Excel RP, Inc./Kevin and Joann Foley
(*,#)
6531 Park Ave, Allen Park, MI 48101
 
Machinery Manufacturing
 
Term Loan
 
8.25%
 
7/8/2028
 
32.4

 
32.4

 
31.0

 
0.01
%
Excel, RP Inc.
(*,#,^)
6531 Park Ave, Allen Park, MI 48101
 
Machinery Manufacturing
 
Term Loan
 
8.25%
 
9/20/2027
 
88.8

 
88.8

 
—

 
—
%
Ezzo Properties, LLC and Great Lakes Cleaning, Inc.
(*,#)
1405 Combermere Dr., Troy, MI 48083
 
Administrative and Support Services
 
Term Loan
 
7.75%
 
12/20/2027
 
286.5

 
286.5

 
40.0

 
0.01
%
New Image Building Services, Inc. dba New Image Repair Services
(*,#)
1405 Combermere Dr., Troy, MI 48083
 
Repair and Maintenance
 
Term Loan
 
7.75%
 
8/23/2037
 
251.5

 
251.5

 
162.3

 
0.05
%
New Image Building Services Inc. dba New Image Repair Services
(*,#)
1405 Combermer Dr., Troy, MI 48083
 
Repair and Maintenance
 
Term Loan
 
7.75%
 
10/29/2023
 
197.1

 
197.1

 
—

 
—
%
New Image Building Services, Inc. dba The Maids serving Oakland
(*,#,^)
320 Church St., Mount Clemens, MI 48043
 
Administrative and Support Services
 
Term Loan
 
7.75%
 
1/19/2026
 
67.8

 
67.8

 
—

 
—
%
New Image Building Services, Inc.dba The Maids Servicing Oakland &Maco
(*,#,^)
1405 Combermere Drive, Troy, MI 48083
 
Administrative and Support Services
 
Term Loan
 
7.75%
 
12/21/2026
 
39.0

 
39.0

 
—

 
—
%
New Image Building Services, Inc.
(*,#,^)
1405 Combermere Drive, Troy, MI 48083
 
Administrative and Support Services
 
Term Loan
 
7.75%
 
5/18/2027
 
138.9

 
138.9

 
—

 
—
%
Flooring Liquidators Inc and Flooring Liquidators of Mt Kisco LLC
(*,#)
267 Saw Mill River Rd, Elmsford, NY 10523
 
Specialty Trade Contractors
 
Term Loan
 
6.75%
 
6/17/2025
 
299.5

 
299.5

 
194.8

 
0.06
%
Flooring Liquidators Inc & Premier Flooring Yonkers Inc & Flooring
(*,#,^)
267 Saw Mill River Rd, Elmsford, NY 10523
 
Specialty Trade Contractors
 
Term Loan
 
8.25%
 
3/24/2026
 
39.1

 
39.1

 
—

 
—
%
Florida Apnea Diagnostics LLC
(*,#,^)
2664 Cypress Rdg Blvd Ste 101&102A, Wesley Chapel, FL 33544
 
Ambulatory Health Care Services
 
Term Loan
 
8.25%
 
10/20/2027
 
145.7

 
145.7

 
73.4

 
0.02
%

F-128
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Non-Accrual Investments (3) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322226

Florida Apnea Diagnostics, LLC
(*,#,^)
2664 Cypress Ridge Blvd Ste 101&102, Wesley Chapel, FL 33624
 
Ambulatory Health Care Services
 
Term Loan
 
8.25%
 
7/24/2028
 
20.1

 
20.1

 
—

 
—
%
Galaforo Construction and Companies LLC
(*,#,^)
1770 Stumpf Boulevard, Terrytown, LA 70056
 
Construction of Buildings
 
Term Loan
 
7.5%
 
12/15/2042
 
33.6

 
33.6

 
31.9

 
0.01
%
Galaforo Construction LLC and Paul M Galaforo, Jr.
(*,#)
1770 Stumpf Boulevard, Terrytown, LA 70056
 
Construction of Buildings
 
Term Loan
 
7.5%
 
12/15/2027
 
329.0

 
329.0

 
23.6

 
0.01
%
GEM2K, LLC
(*,#,^)
4150 E Magnolia ST., Phoeniz, AZ 85034
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
8.25%
 
12/15/2043
 
381.3

 
381.3

 
366.4

 
0.11
%
GEM2K, LLC dba Precision Precast Group
(*,#,^)
4150 E Magnolia St., Phoenix, AZ 85034
 
Miscellaneous Manufacturing
 
Term Loan
 
8.25%
 
5/19/2027
 
140.4

 
140.4

 
42.6

 
0.01
%
Grand Manor Realty, Inc. & Kevin LaRoe
(*,#)
318 S. Halsted St., Chicago, IL 60661
 
Real Estate
 
Term Loan
 
6%
 
2/20/2023
 
19.0

 
19.0

 
18.0

 
0.01
%
Green Country Filter Manufacturing LLC
(*,#,^)
1415 S. 70th E Ave, Tulsa, OK 74112
 
Miscellaneous Manufacturing
 
Term Loan
 
8%
 
4/27/2026
 
59.4

 
59.4

 
13.7

 
—
%
Groundworks Unlimited LLC
(*,#,^)
50 Telfair Place, Garden City, GA 31415
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
12/17/2023
 
8.0

 
8.0

 
7.8

 
—
%
H.M.C, Incorporated
(*,#,^)
7190 Oakland Mills Rd Ste 10, Columbia, MD 21046
 
Furniture and Related Product Manufacturing
 
Term Loan
 
8.25%
 
7/3/2028
 
183.8

 
183.8

 
181.4

 
0.06
%
Hagerstown Muffler, Inc. and JMS Muffler, Inc
(*,#)
1390 Dual Hwy, Hagerstown, MD 21740
 
Repair and Maintenance
 
Term Loan
 
8%
 
9/24/2040
 
311.5

 
311.5

 
270.8

 
0.08
%
Harrelson Materials Management,Inc
(*,#)
1101 Russell Rd, Shreveport, LA 71107
 
Waste Management and Remediation Services
 
Term Loan
 
6%
 
6/24/2021
 
465.2

 
465.2

 
4.6

 
—
%
Hascher Gabelstapler Inc
(*,#)
80 Cole Ave, Akron, OH 44301
 
Repair and Maintenance
 
Term Loan
 
7%
 
3/26/2024
 
49.0

 
49.0

 
—

 
—
%
HDD Solutions, LLC
(*,#)
6550 Progress Parkway, Cedar Hill, MO 63016
 
Heavy and Civil Engineering Construction
 
Term Loan
 
8.25%
 
12/31/2028
 
552.8

 
552.8

 
339.6

 
0.11
%
HG Ventures, Inc.
(*,#,^)
100 Phoenix Drive, Finleyville, PA 15332
 
Truck Transportation
 
Term Loan
 
7.5%
 
3/9/2028
 
120.9

 
120.9

 
34.5

 
0.01
%
HG Ventures, Inc. dba Diamond Head Trucking
(*,#,^)
100 Phoenix Drive, Finleyville, PA 15332
 
Truck Transportation
 
Term Loan
 
7.5%
 
6/29/2030
 
882.7

 
882.7

 
312.5

 
0.10
%
Home Again Restaurant LLC
(*,#)
9524 Camp Lake Rd, Salem, WI 53168
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
6/30/2040
 
0.4

 
0.4

 
0.3

 
—
%
Hurshell Leon Dutton dba High Jump Party Rentals
(*,#,^)
157 East Concho Ave, San Angelo, TX 76903
 
Rental and Leasing Services
 
Term Loan
 
8%
 
11/30/2025
 
13.6

 
13.6

 
13.3

 
—
%
Insight Vision Care, PC, CRMOD Lubbock, P.C.,Vielm Vision Eyecare Inc
(*,#,^)
4899 Griggs Rd, Houston, TX 77021
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2043
 
1,132.3

 
1,132.3

 
643.5

 
0.20
%
J And G Group Services LLC and United Vending of Florida Inc and John
(*,#,^)
14240 Palmetto Frontage Rd, Miami Lakes, FL 33016
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
7.25%
 
7/28/2026
 
29.6

 
29.6

 
29.2

 
0.01
%

F-129
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Non-Accrual Investments (3) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322226

J and K Fitness L.L.C. dba Physiques Womens Fitness Center
(*,#,^)
2505 Verot School RD, Lafayette, LA 70508
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
8.25%
 
2/28/2041
 
90.1

 
90.1

 
—

 
—
%
J&K Fitness, LLC dba Physiques Womens Fitness Center
(*,#)
2505 Verot School Rd, Lafayette, LA 70508
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
8%
 
6/8/2036
 
14.6

 
14.6

 
11.0

 
—
%
J Harris Trucking LLC
(*,#)
2040 5 1/2 Mile Rd, Racine, WI 53402
 
Truck Transportation
 
Term Loan
 
7.25%
 
5/19/2027
 
18.7

 
18.7

 
—

 
—
%
J Harris Trucking, LLC
(*,#,^)
2040 5 1/2 Mile Rd, Racine, WI 53402
 
Truck Transportation
 
Term Loan
 
7.25%
 
5/13/2026
 
29.6

 
29.6

 
4.5

 
—
%
J Olson Enterprises LLC and Olson Trucking Direct, Inc.
(*,#)
311 Ryan St, Holmen, WI 54636
 
Truck Transportation
 
Term Loan
 
6%
 
6/28/2025
 
628.4

 
628.4

 
47.1

 
0.01
%
Jenny's Wunderland, Inc.
(*,#)
3666 East 116th, Cleveland, OH 44105
 
Social Assistance
 
Term Loan
 
6%
 
6/29/2036
 
98.8

 
98.8

 
1.2

 
—
%
Kantz LLC and Kantz Auto LLC dba Kantz's Hometown Auto
(*,#)
200 West Adams St, Cochranton, PA 16314
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6.25%
 
10/29/2039
 
11.1

 
11.1

 
5.2

 
—
%
Kidtastic LLC dba The Little Gym of Audubon
(*,#,^)
2850 Audubon Drive, Audubon, PA 19403
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
8.25%
 
7/27/2026
 
44.9

 
44.9

 
25.8

 
0.01
%
Kneading Dough LLC dba NY Bagel Cafe & Deli,NY Bagle, New York Bagle
(*,#)
10287 Okeechobee Blvd #13, Royal Palm Beach, FL 33411
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/23/2029
 
18.1

 
18.1

 
11.4

 
—
%
Knowledge First Inc dba Magic Years of Learning and Kimberly Knox
(*,#)
575 North Harris St, Athens, GA 30601
 
Social Assistance
 
Term Loan
 
8%
 
3/21/2039
 
11.4

 
11.4

 
10.7

 
—
%
Kostekos Inc dba New York Style Pizza
(*,#)
10 South King St., Gloucester, NJ 08030
 
Food Services and Drinking Places
 
Term Loan
 
8%
 
2/6/2040
 
61.9

 
61.9

 
14.9

 
—
%
Krishna of Orangeburg, Inc.
(*,#)
826 John C. Calhoun Drive, Orangeburg, SC 29115
 
Accommodation
 
Term Loan
 
6%
 
2/20/2032
 
10.3

 
10.3

 
9.2

 
—
%
Kup's Auto Spa Inc
(*,#)
121 Marktree Rd, Centereach, NY 11720
 
Repair and Maintenance
 
Term Loan
 
6.25%
 
11/15/2038
 
70.5

 
70.5

 
33.3

 
0.01
%
Kup’s Auto Spa, Inc.
(*,#)
121 Marktree Rd, Centereach, NY 11720
 
Repair and Maintenance
 
Term Loan
 
6.25%
 
10/23/2025
 
54.7

 
54.7

 
—

 
—
%
LA Diner Inc dba Loukas L A Diner
(*,#)
3205 Route 22 East, Branchburg, NJ 08876
 
Food Services and Drinking Places
 
Term Loan
 
7.25%
 
9/28/2037
 
92.8

 
92.8

 
90.4

 
0.03
%
LAN Doctors Inc
(*,#)
14 Pierson Court, Mahwah, NJ 07430
 
Professional, Scientific, and Technical Services
 
Term Loan
 
8.25%
 
8/28/2025
 
59.8

 
59.8

 
58.3

 
0.02
%
LAN Doctors Inc
(*,#,^)
14 Pierson Court, Mahwah, NJ 07430
 
Professional, Scientific, and Technical Services
 
Term Loan
 
8.25%
 
3/16/2026
 
43.4

 
43.4

 
42.3

 
0.01
%
Lan Doctors, Inc.
(*,#,^)
14 Pierson Court, Mahwah, NJ 07430
 
Professional, Scientific, and Technical Services
 
Term Loan
 
8.25%
 
12/7/2026
 
203.3

 
203.3

 
197.9

 
0.06
%
Lowgap Grocery & Grill LLC
(*,#,^)
8773 West Pine St., Lowgap, NC 27024
 
General Merchandise Stores
 
Term Loan
 
7.25%
 
3/24/2041
 
48.0

 
48.0

 
26.7

 
0.01
%

F-130
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Non-Accrual Investments (3) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322226

M & H Pine Straw Inc and Harris L. Maloy
(*,#)
526 Perry House Rd, Fitzgerald, GA 31750
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
7.5%
 
3/21/2023
 
197.4

 
197.4

 
59.9

 
0.02
%
M & H Pine Straw, Inc and Harris L. Maloy
(*,#)
526 Perry House Rd, Fitzgerald, GA 31750
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
6%
 
4/30/2020
 
54.2

 
54.2

 
53.5

 
0.02
%
M & H Pine Straw, Inc.and Harris Maloy
(*,#)
526 Perry House Rd, Fitzgerald, GA 31750
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
7.5%
 
7/10/2020
 
27.4

 
27.4

 
20.3

 
0.01
%
M & H Pinestraw, Inc. and Harris L. Maloy
(*,#)
526 Perry House Rd, Fitzgerald, GA 31750
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
7.5%
 
12/15/2021
 
133.8

 
133.8

 
49.9

 
0.02
%
M and C Renovations Inc
(*,#)
3951 Lorna Rd, Birmingham, AL 35244
 
Construction of Buildings
 
Term Loan
 
6.25%
 
10/31/2024
 
11.5

 
11.5

 
9.0

 
—
%
Magill Truck Line LLC and Jeff J. Ralls
(*,#,^)
211 West 53rd St. N., Park City, KS 67204
 
Truck Transportation
 
Term Loan
 
8%
 
3/11/2029
 
186.2

 
186.2

 
85.9

 
0.03
%
Mariam Diner Inc dba Country Kitchen Restaurant
(*,#,^)
17393 Main St., Hesperia, CA 92345
 
Food Services and Drinking Places
 
Term Loan
 
8%
 
3/18/2026
 
42.8

 
42.8

 
18.0

 
0.01
%
MB Xpress Inc
(*,#,^)
159 D'Arcy Parkway, Lathrop, CA 95330
 
Truck Transportation
 
Term Loan
 
8.25%
 
9/19/2028
 
1,168.6

 
1,168.6

 
1,017.8

 
0.32
%
Medeiros Holdings Inc dba Outdoor Lighting Perspectives of the Triad
(*,#,^)
780 S Peace Haven Rd, Winston Salem, NC 27103
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
7%
 
11/25/2025
 
10.5

 
10.5

 
1.8

 
—
%
MIT LLC
(*,#,^)
11 North Peach ST., Medford, OR 97504
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042
 
84.9

 
84.9

 
63.2

 
0.02
%
Mojo Brands Media, LLC
(*,#)
3260 University Blvd., Ste 100, Winter Park, FL 32792
 
Broadcasting (except Internet)
 
Term Loan
 
6%
 
8/28/2023
 
725.0

 
725.0

 
289.7

 
0.09
%
MTV Bowl, Inc. dba Legend Lanes
(*,#)
4190 State Rd, Cuyahoga Falls, OH 44223
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
8.25%
 
6/30/2036
 
197.3

 
197.3

 
208.6

 
0.06
%
Mustafa Inc dba Adiba Grocery
(*,#,^)
5712 Wurzbach Rd, San Antonio, TX 78238
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025
 
78.7

 
78.7

 
74.6

 
0.02
%
Mustafa Inc and Raouf Properties LLC
(*,#,^)
3538 Pin Oak Dr, San Antonio, TX 78229
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/14/2041
 
71.3

 
71.3

 
67.7

 
0.02
%
N Transport LLC
(*,#,^)
5348 W Brown Ave, Fresno, CA 93722
 
Truck Transportation
 
Term Loan
 
8%
 
11/20/2027
 
385.5

 
385.5

 
86.9

 
0.03
%
N Transport LLC
(*,#,^)
294 N. Fruit Ave, Fresno, CA 93706
 
Truck Transportation
 
Term Loan
 
8.25%
 
11/20/2042
 
175.3

 
175.3

 
147.2

 
0.05
%
Neville Galvanizing, Inc
(*,#)
2983 Grand Ave, Pittsburgh, PA 15225
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2042
 
625.0

 
625.0

 
444.2

 
0.14
%
Nowatzke Service Center Inc dba Nowatzke Truck & Trailer
(*,#,^)
6900 Whitmore Lake Rd, Whitmore Lake, MI 48189
 
Repair and Maintenance
 
Term Loan
 
7%
 
1/29/2026
 
96.9

 
96.9

 
—

 
—
%
Olsen Bros. Transportation, Inc. & Golden Spike Leasing, LLC
(*,#,^)
2520 Pennsylvania Ave, Ogden, UT 84401
 
Truck Transportation
 
Term Loan
 
8.25%
 
6/20/2028
 
547.8

 
547.8

 
71.3

 
0.02
%
Paragon Fabricators Inc, Paragon Field Services, Inc and Paragon Global
(*,#)
412 and 500 Main St., La Marque, TX 77568
 
Heavy and Civil Engineering Construction
 
Term Loan
 
7%
 
9/28/2026
 
570.7

 
570.7

 
27.3

 
0.01
%

F-131
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Non-Accrual Investments (3) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322226

Paragon Global, LLC and Paragon Fabricators Inc and Paragon Field
(*,#,^)
412 and 500 Main St., La Marque, TX 77568
 
Heavy and Civil Engineering Construction
 
Term Loan
 
7%
 
9/28/2041
 
110.1

 
110.1

 
77.2

 
0.02
%
Peter K Lee MD, PC dba Atlanta Primary Care
(*,#,^)
211 Roberson Mill Rd, Milledgeville, GA 31061
 
Ambulatory Health Care Services
 
Term Loan
 
8.25%
 
9/13/2043
 
859.6

 
859.6

 
826.1

 
0.26
%
Peter K Lee MD, PC dba Atlanta Primary Care LLC
(*,#,^)
5 Ashford Way, Hawkinsville, GA 31061
 
Ambulatory Health Care Services
 
Term Loan
 
8.25%
 
9/13/2028
 
381.0

 
381.0

 
366.2

 
0.11
%
PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc.
(*,#,^)
2040 Dowdy Ferry, Dallas, TX 75218
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/19/2038
 
499.0

 
499.0

 
367.0

 
0.11
%
Top Cat Ready Mix, LLC & Ples Investments LLC, Pappy's Sand & Gravel
(*,#,^)
2040 Dowdy Ferry Rd, Dallas, TX 75217
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/14/2028
 
147.5

 
147.5

 
—

 
—
%
Top Cat Ready Mix, LLC, Ples Investments LLC, and Pappy's Sand
(*,#,^)
13851 S State HWY 34, Scurry, TX 75158
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/28/2025
 
499.1

 
499.1

 
212.6

 
0.07
%
Pooh's Corner Realty LLC and Pooh's Corner Inc
(*,#)
40 West Avon Rd, Avon, CT 06001
 
Social Assistance
 
Term Loan
 
7%
 
7/23/2040
 
11.2

 
11.2

 
7.3

 
—
%
PS Camping Inc.
(*,#,^)
43595 US Hwy 50, Canon City, CO 81212
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/1/2027
 
18.5

 
18.5

 
17.7

 
0.01
%
PS Camping, Inc. dba Prospectors RV Resort
(*,#,^)
43659&43595 US Hwy 50, Canon City, CO 81212
 
Accommodation
 
Term Loan
 
8.25%
 
5/19/2042
 
250.1

 
250.1

 
240.4

 
0.07
%
Ramjay Inc.
(*,#,^)
85 S. Bragg St. Ste 303, Alexandria, VA 22312
 
Transit and Ground Passenger Transportation
 
Term Loan
 
8.25%
 
1/13/2027
 
381.9

 
381.9

 
83.6

 
0.03
%
Randall Miller Company, Inc and Boyz Transportation Services, LLC
(*,#,^)
256 Blackley Rd, Bristole, TN 37620
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/31/2029
 
921.9

 
921.9

 
611.1

 
0.19
%
RDT Enterprises LLC
(*,#)
2134 Helton Dr, Florence, AL 35630
 
Specialty Trade Contractors
 
Term Loan
 
7%
 
9/15/2027
 
136.9

 
136.9

 
60.8

 
0.02
%
RDT Enterprises, L.L.C.
(*,#)
2134 Helton Drive, Florence, AL 35630
 
Specialty Trade Contractors
 
Term Loan
 
7%
 
11/12/2025
 
19.5

 
19.5

 
—

 
—
%
RDT Enterprises, LLC
(*,#)
2134 Helton Drive, Florence, AL 35630
 
Specialty Trade Contractors
Term Loan
 
7%
 
12/31/2028
 
111.5

 
111.5

 
52.7

 
0.02
%
Recovery Boot Camp, LLC, Rule 62, Inc. and Healing Properties, LLC
(*,#,^)
85 SW 5th Ave, Delray Beach, FL 33444
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2028
 
119.1

 
119.1

 
9.4

 
—
%
Return to Excellence Inc
(*,#,^)
176 Country Club Drive, Waynesville, NC 28786
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
8.25%
 
1/27/2027
 
15.6

 
15.6

 
14.8

 
—
%
Return to Excellence, Inc. dba The Waynesville Inn Golf & Spa
(*,#)
176 Country Club Drive, Waynesville, NC 28786
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
8%
 
10/10/2039
 
1,154.0

 
1,154.0

 
1,094.5

 
0.34
%
Rhone Wolf Vineyard LLC, Goldline Brands Inc. and Myka Cellars, Inc.
(*,#,^)
5245 Bucks Bar Rd, Placerville, CA 95667
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
8.25%
 
1/19/2030
 
230.9

 
230.9

 
219.0

 
0.07
%

F-132
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Non-Accrual Investments (3) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322226

Roundhay Partners LLC and Roundhay Farming LLC
(*,#,^)
6160 Granite Spring Rd, Somerset, CA 95684
 
Crop Production
Term Loan
 
8.25%
 
8/8/2042
 
902.1

 
902.1

 
663.8

 
0.21
%
Rich's Food Stores LLC dba Hwy 55 of Wallace
(*,#,^)
611 East Southerland St., Wallace, NC 28466
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/14/2026
 
121.8

 
121.8

 
25.9

 
0.01
%
Rich's Food Stores LLC dba Hwy 55 of Wallace
(*,#,^)
611 E Southerland St, Wallace, NC 28466
 
Food Services and Drinking Places
 
Term Loan
 
8.25%
 
11/9/2026
 
37.1

 
37.1

 
—

 
—
%
Route 130 SCPI Holdings LLC, Route 130 SCPI Operations LLC
(*,#)
423-429 Route 156, Trenton, NJ 08620
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
9/30/2039
 
279.5

 
279.5

 
34.5

 
0.01
%
Sanabi Investment, LLC dba Oscar's Moving and Storage
(*,#,^)
11421 N W 107th St., #13, Miami, FL 33178
 
Truck Transportation
 
Term Loan
 
7.5%
 
6/20/2027
 
106.2

 
106.2

 
41.3

 
0.01
%
Sand Hill Associates, Ltd. dba Charlie O's Tavern on the Point
(*,#,^)
2 Sand Hill Cove Rd, Narragansett, RI 02882
 
Food Services and Drinking Places
 
Term Loan
 
8.25%
 
12/27/2041
 
413.0

 
413.0

 
242.1

 
0.08
%
SDA Holdings LLC and Les Cheveux Salon Inc
(*,#,^)
306 McClanahan St., Roanoke, VA 24014
 
Personal and Laundry Services
 
Term Loan
 
7.5%
 
12/15/2040
 
108.5

 
108.5

 
67.0

 
0.02
%
Sektor Solutions Inc.
(*,#,^)
9841 Washingtonian Blvd #200, Gaithersberg, MD 20878
 
Professional, Scientific, and Technical Services
 
Term Loan
 
8.25%
 
11/16/2028
 
157.8

 
157.8

 
153.6

 
0.05
%
Select Propane & Fuel Inc. and Select Fuel & Convenience LLC
(*,#)
3822 State Route 3, Red Bud, IL 62278
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
7.5%
 
2/10/2030
 
524.2

 
524.2

 
26.8

 
0.01
%
Shaffer Automotive Repair, LLC
(*,#)
1485 North McQueen Rd #1, Gilbert, AZ 85233
 
Repair and Maintenance
 
Term Loan
 
7%
 
5/24/2030
 
132.8

 
132.8

 
45.2

 
0.01
%
Shane M. Howell and Buck Hardware and Garden Center, LLC
(*,#)
1007 Lancaster Pike, Quarryville, PA 17566
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
7.5%
 
12/27/2038
 
113.4

 
113.4

 
10.5

 
—
%
Siman Trio Trading
(*,#)
2100 Ponce De Leon Blvd #1290, Coral Gables, FL 33134
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
8.25%
 
12/21/2028
 
146.4

 
146.4

 
22.0

 
0.01
%
Simkar LLC, Neo Lights Holding Inc, Kalco Lighting, LLC
(*,#)
700 Ramona Ave, Philadelphia, PA 19120
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/26/2043
 
499.6

 
499.6

 
493.0

 
0.15
%
Soregard Inc
(*,#,^)
605 Birch Drive, Maquoketa, IA 52060
 
Furniture and Related Product Manufacturing
 
Term Loan
 
7.5%
 
6/30/2041
 
152.8

 
152.8

 
41.9

 
0.01
%
Sovereign Communications LLC
(*,#)
26 E 3 Mile Rd, Sault Sainte Marie, MI 49783
 
Broadcasting (except Internet)
 
Term Loan
 
6.75%
 
2/7/2024
 
627.4

 
627.4

 
132.6

 
0.04
%
STK Ventures Inc dba JP Dock Service & Supply
(*,#)
12548 N State Hwy 7, Climax Springs, MO 65324
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
5/9/2037
 
31.6

 
31.6

 
7.0

 
—
%
Stormrider Inc dba Shirley's Stormrider Inc
(*,#)
1335 N. Gable Rd, St. Hedwig, TX 78152
 
Truck Transportation
 
Term Loan
 
7.25%
 
9/23/2025
 
53.1

 
53.1

 
—

 
—
%
Stormrider Inc dba Shirley's Stormrider, Inc
(*,#)
1335 N Gable Rd, St Hedwig, TX 78152
 
Truck Transportation
 
Term Loan
 
7.75%
 
11/25/2024
 
102.9

 
102.9

 
13.1

 
—
%
Street Magic Enterprise LLC
(*,#,^)
1700 E Bridge St., New Lisbon, WI 93950
 
Gasoline Stations
 
Term Loan
 
7.75%
 
12/21/2027
 
86.3

 
86.3

 
—

 
—
%

F-133
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Non-Accrual Investments (3) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322226

Street Magic Enterprise LLC dba New Lisbon Travel Mart
(*,#,^)
1700 East Bridge St., New Lisbon, WI 53950
 
Gasoline Stations
 
Term Loan
 
7.5%
 
11/7/2042
 
419.0

 
419.0

 
239.9

 
0.07
%
Suncrest Stone Products LLC
(*,#,^)
341 County Farm Rd, Ashburn, GA 31714
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
7.25%
 
8/29/2041
 
620.8

 
620.8

 
564.7

 
0.18
%
Suncrest Stone Products LLC
(*,#,^)
341 County Farm Rd, Ashburn, GA 31714
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
7.5%
 
8/29/2026
 
536.6

 
536.6

 
459.9

 
0.14
%
T and B Boots Inc dba Takken's Shoes
(*,#)
670 Marsh St., San Luis Obispo, CA 93401
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
7%
 
3/31/2025
 
23.0

 
23.0

 
—

 
—
%
T and B Boots Inc dba Takken's Shoes
(*,#,^)
72 South Main St., Templeton, CA 93465
 
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
(*,#)
72 South Main St., Templeton, CA 93465
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
7.25%
 
12/7/2026
 
95.2

 
95.2

 
93.9

 
0.03
%
Tarver-Henley Inc. and Tar-Hen LLC
(*,#,^)
2125 College Ave, Jackson, AL 36545
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
7.75%
 
6/21/2042
 
97.8

 
97.8

 
82.5

 
0.03
%
The Jig, LLC
(*,#,^)
3115 Camp Phillips Rd, Wausau, WI 54403
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/24/2042
 
74.8

 
74.8

 
71.0

 
0.02
%
The Lake Shore Hospitality Inc dba Dowagiac Baymont Inn & Suites
(*,#,^)
29291 Amerihost Drive, Dowagiac, MI 49047
 
Accommodation
 
Term Loan
 
8.25%
 
12/5/2041
 
335.1

 
335.1

 
322.1

 
0.10
%
The Woods at Bear Creek LLC and Bear Creek Entertainment LLC
(*,#)
3510 Bear Creek Rd, Franklinville, NY 14737
 
Accommodation
 
Term Loan
 
7%
 
9/29/2039
 
489.6

 
489.6

 
464.4

 
0.14
%
Transmission Solutions Group, Inc. and Calhoun Satellite Communication
(*,#)
1007 &1009 Old Route 119, Hunker, PA 15639
 
Telecommunications
 
Term Loan
 
7%
 
12/2/2041
 
64.7

 
64.7

 
—

 
—
%
Victorian Restaurant and Tavern, LLC
(*,#,^)
226 Maple Ave, Cheshire, CT 06410
 
Food Services and Drinking Places
 
Term Loan
 
8.25%
 
2/22/2042
 
104.4

 
104.4

 
88.5

 
0.03
%
Vision Automotive LLC dba Vision Chrysler Jeep Dodge Ram of Defiance
(*,#,^)
20390 County RD 424, Defiance, OH 43512
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
7.5%
 
9/29/2029
 
289.3

 
289.3

 
125.8

 
0.04
%
Vision Collision Center LLC dba Integrity Auto Body & Vision
(*,#)
20502 County Rd 424, Defiance, OH 43512
 
Repair and Maintenance
 
Term Loan
 
7.5%
 
11/21/2027
 
349.2

 
349.2

 
—

 
—
%
Warner Family Restaurant LLC dba Burgerim
(*,#)
250 North Nova Rd, Ormond Beach, FL 32174
 
Food Services and Drinking Places
 
Term Loan
 
8%
 
5/3/2028
 
20.1

 
20.1

 
2.8

 
—
%
Webb Eye Associates, PA
(*,#,^)
1720 S W W White Rd, San Antonio, TX 78220
 
Ambulatory Health Care Services
 
Term Loan
 
7.25%
 
7/19/2027
 
71.2

 
71.2

 
36.1

 
0.01
%
White Hawk Inc.
(*,#,^)
2101 Dr. Martin Luther King Jr. Blvd, Stockton, CA 95205
 
Truck Transportation
 
Term Loan
 
8.25%
 
12/15/2026
 
937.3

 
937.3

 
912.8

 
0.28
%
Wilban LLC
(*,#,^)
454 US Hwy 22, Whitehouse Station, NJ 08889
 
Food Services and Drinking Places
 
Term Loan
 
7.5%
 
3/11/2026
 
93.2

 
93.2

 
90.8

 
0.03
%
Wilban LLC
(*,#)
454 US Hwy 22, Whitehouse Station, NJ 08889
 
Food Services and Drinking Places
 
Term Loan
 
7.25%
 
3/28/2039
 
402.7

 
402.7

 
265.5

 
0.08
%

F-134
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Unguaranteed Non-Accrual Investments (3) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322226

Work of Heart Inc dba Little Nest Portraits
(*,#)
1000 Merdian Blvd, Ste 112, Franklin, TN 37067
 
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
(*,#,^)
1000 Merdian Blvd, Ste 112, Franklin, TN 37067
 
Professional, Scientific, and Technical Services
 
Term Loan
 
7.5%
 
7/28/2027
 
47.1

 
47.1

 
45.9

 
0.01
%
Zeeba Company, Inc dba Zeeba Rent-A-Van & 5 Star Rent- A-Van
(*,#,^)
3200 Wilshire Blvd Ste 1000, Los Angeles, CA 90010
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/27/2028
 
677.3

 
677.3

 
607.5

 
0.19
%
Zahmel Restaurant Suppliers Corp dba Cash & Carry; Zahners Hardware
(*,#,^)
33-51 11th St., Astoria, NY 11106
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
8.25%
 
4/28/2027
 
75.8

 
75.8

 
65.9

 
0.02
%
Total Unguaranteed Non-Accrual SBA Investments
 
 
 
$
58,912.6

 
$
59,085.0

 
$
34,236.8

 
10.63
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Unguaranteed SBA Investments
 
 
 
$
429,524.8

 
$
429,697.2

 
$
417,223.1

 
129.48
%
SBA Guaranteed Accrual Investments (4a)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226

Matrix Z LLC

800 SW 21st Terrace, Ft Lauderdale, FL 33312
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 6.5%
 
2/27/2029
 
12.0

 
12.0

 
12.0

 
—
%
Rello Inc.

8063 Jericho Turnpike, Woodbury, NY 11797
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 6.5%
 
4/17/2029
 
5.8

 
5.8

 
5.8

 
—
%
2Choice2Friends LLC

901 W Braker Lane, Austin, TX 78758
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 6.5%
 
4/17/2029
 
12.1

 
12.1

 
12.1

 
—
%
Al Russell Moldof's CPA

15105 John J Delaney Dr. #D 170, Charlotte, NC 28277
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
4/25/2029
 
4.8

 
4.8

 
4.8

 
—
%
Disability Resolution

1619 Malon Bay Drive, Orlando, FL 32828
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
4/30/2029
 
4.3

 
4.3

 
4.3

 
—
%
NYM Solutions Inc.

1250 NW 7th St. Ste 201, Miami, FL 33125
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 6.5%
 
5/6/2029
 
12.2

 
12.2

 
12.2

 
—
%
Crystal Cleaning Service

10862 Nichols Blvd, Olive Branch, MS 38654
 
Administrative and Support Services
 
Term Loan
 
Prime plus 6.5%
 
5/9/2029
 
9.9

 
9.9

 
9.9

 
—
%
Clowers Trucking by Faith LLC

705 E Brookwood PL, Valdosta, GA 31601
 
Truck Transportation
 
Term Loan
 
Prime plus 6.5%
 
5/23/2029
 
12.1

 
12.1

 
12.1

 
—
%
MCM Design LLC

5926 Vinings Vintage Way, Mableton, GA 30126
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
5/23/2029
 
9.8

 
9.8

 
9.8

 
—
%
Still Photography

195 Terrace Place, Apt. 2, Brooklyn, NY 11218
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
6/6/2029
 
12.2

 
12.2

 
12.2

 
—
%
Archer Cleaners Inc.

1514 W 33rd St., Chicago, IL 60608
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 6.5%
 
6/10/2029
 
12.2

 
12.2

 
12.2

 
—
%
Law Office of Paula Padilla PLLC

2211 E Highland Ave Ste 130, Phoenix, AZ 85016
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
6/13/2029
 
4.9

 
4.9

 
4.9

 
—
%
Bonadi Inc.

9858 W Sample Rd, Coral Springs, FL 33065
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 6.5%
 
6/17/2029
 
12.2

 
12.2

 
12.2

 
—
%

F-135
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Guaranteed Accrual Investments (4a)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226

AA Horseplay, LLC

34565 Ranch Drive, Brownsville, OR 97327
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 6.5%
 
6/20/2029
 
12.2

 
12.2

 
12.2

 
—
%
Campuscuts LLC

930 Robtrice Ct, Edmond, OK 73430
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 6.5%
 
6/21/2029
 
7.3

 
7.3

 
7.3

 
—
%
Port Diesel LLC

3212 Alex Trask Drive, Castle Hayne, NC 28429
 
Repair and Maintenance
 
Term Loan
 
Prime plus 6.5%
 
6/21/2029
 
12.3

 
12.3

 
12.3

 
—
%
Menshka Inc.

88 High St., Mountclair, NJ 07042
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 6.5%
 
7/10/2029
 
12.3

 
12.3

 
12.3

 
—
%
The Bean Coffee Company, LLC

112 South Main St., Spring Hill, KS 66083
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 6.5%
 
7/17/2029
 
12.3

 
12.3

 
12.3

 
—
%
Lawrence Adeyemo & Co LLC

209-34 112 Ave, Queens Village, NY 11429
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
7/19/2029
 
9.8

 
9.8

 
9.8

 
—
%
Gradstreet LLC

2437 Corinth Ave Apt 130, Los Angeles, CA 90064
 
Nonstore Retailers
 
Term Loan
 
Prime plus 6.5%
 
7/30/2029
 
12.3

 
12.3

 
12.3

 
—
%
A&S Services LLC

3888 Lightner Rd, Vandalia, OH 45377
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 6.5%
 
8/7/2029
 
12.3

 
12.3

 
12.3

 
—
%
Crystal Clear Accounting

34099 Tuscan Creek Way, Temecula, CA 92592
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
8/26/2029
 
3.2

 
3.2

 
3.2

 
—
%
Doghouse Sport Fishing Charters Inc.

83413 Overseas Hwy, Islamorada, FL 33036
 
Scenic and Sightseeing Transportation
 
Term Loan
 
Prime plus 6.5%
 
8/30/2029
 
12.3

 
12.3

 
12.3

 
—
%
No Push Back LLC

2223 Dungan Ave, Bensalem, PA 19020
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 6.5%
 
8/30/2029
 
12.2

 
12.2

 
12.2

 
—
%
Softcare247 LLC

4191 Naco Perrin Blvd, San Antonio, TX 78217
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
9/11/2029
 
12.4

 
12.4

 
12.4

 
—
%
Host Marketing LLC

206 Bell Lane Ste B, West Monroe, LA 71291
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
9/18/2029
 
12.4

 
12.4

 
12.4

 
—
%
Standard Real Estate Services LLC

500 W Silver Spring Dr. #K 200, Glendale, WI 53217
 
Real Estate
 
Term Loan
 
Prime plus 6.5%
 
9/19/2029
 
12.4

 
12.4

 
12.4

 
—
%
Chavero's Auto Mart LLC

1364 E Palma Vista Drive, Palmview, TX 78572
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 6.5%
 
10/11/2029
 
12.5

 
12.5

 
12.5

 
—
%
Bargain Store

107 Tabernacle Church Rd, Candor, NC 27229
 
General Merchandise Stores
 
Term Loan
 
Prime plus 6.5%
 
10/11/2029
 
12.4

 
12.4

 
12.4

 
—
%
Powerlift Dumbwaiters Inc.

2444 Georgia Slide Rd, Georgetown, CA 95634
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 6.5%
 
10/16/2029
 
12.5

 
12.5

 
12.5

 
—
%
Pine Mountain Residential LLC

10240 Cosmopolitan Circle, Parker, CO 80134
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 6.5%
 
10/16/2029
 
12.4

 
12.4

 
12.4

 
—
%
James Clark and Company Inc.

8885 Haven Ave, Ste 120, Rancho Cucamonga, CA 91730
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
10/22/2029
 
12.4

 
12.4

 
12.4

 
—
%
Deer Valley Sport Shop LLC

507 Bamboo Rd, Boone, NC 28607
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 6.5%
 
11/7/2029
 
12.5

 
12.5

 
12.5

 
—
%

F-136
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Guaranteed Accrual Investments (4a)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226

Sean McNamara

5639 Wood Lane, Allentown, PA 18106
 
Nonstore Retailers
 
Term Loan
 
Prime plus 6.5%
 
11/14/2029
 
12.5

 
12.5

 
12.5

 
—
%
Bucklin Sumner & Associates

650 NE Holladay St. Ste 1600, Portland, OR 97232
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 6.5%
 
11/14/2029
 
12.5

 
12.5

 
12.5

 
—
%
The Pinnacle Group

105 Springside Drive, Akron, OH 44333
 
Social Assistance
 
Term Loan
 
Prime plus 6.5%
 
11/14/2029
 
12.5

 
12.5

 
12.5

 
—
%
Pen’s Electric Company, Inc

504 Fairfax Ave, Nashville, TN 37212
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 6.5%
 
11/21/2029
 
12.5

 
12.5

 
12.5

 
—
%
Standard Capital Corp.

2377 Wessington Drive, Virginia Beach, VA 23456
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 6.5%
 
12/5/2029
 
12.5

 
12.5

 
12.5

 
—
%
Scott’s Hardware Inc

200 Tuckerton Rd, Medford, NJ 08055
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 6.5%
 
12/6/2029
 
12.5

 
12.5

 
12.5

 
—
%
HADD Corp

364 Rugby Rd, Cedarhurst, NY 11516
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 6.5%
 
12/17/2029
 
12.5

 
12.5

 
12.5

 
—
%
La Tradicion Cubana Inc.

1336 SW 8th St., Miami, FL 33135
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 6.5%
 
12/20/2029
 
12.5

 
12.5

 
12.5

 
—
%
Moon Group, Inc.

145 Moon Rd, Chesapeake City, MD 21915
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/27/2029
 
3,660.2

 
3,660.2

 
4,057.4

 
1.26
%
Beau & HB Inc. dba Beau’s Billard, Bowling & Arcade

100 Village Rd, Port Lavaca, TX 77979
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/16/2029
 
123.3

 
123.3

 
132.7

 
0.04
%
Hackstaff Restaurants

248 W 1st St. Ste 201, Reno, NV 89501
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2029
 
442.9

 
442.9

 
479.4

 
0.15
%
MVE, Inc.

1117 L St., Modesto, CA 95354
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029
 
3,678.2

 
3,678.2

 
4,082.8

 
1.27
%
American Landscaping Company

6151 A St., Anchorage, AK 99518
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
978.8

 
978.8

 
1,078.7

 
0.33
%
Home Décor Liquidators LLC

4187 Pleasant Hill Rd, Duluth, GA 30096
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/30/2029
 
2,962.5

 
2,962.5

 
3,227.1

 
1.00
%
National Stone Management

804-810 W Shady Grove Rd, Grand Prairie, TX 75050
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
8/31/2044
 
810.1

 
810.1

 
895.2

 
0.28
%
2820 US Hwy 98N LLC

2820 US Hwy 98 N, Lakeland, FL 33805
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/23/2029
 
129.1

 
129.1

 
141.5

 
0.04
%
LuluBelle's Mountain Banana Bread LLC

1063 Carousel Rd, Lake Arrowhead, CA 92352
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/21/2045
 
230.6

 
230.6

 
257.6

 
0.08
%
Shooter's Gun Club LLC

2429 Iowa St. Ste B-D, Lawrence, KS 66046
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/27/2030
 
394.7

 
394.7

 
434.7

 
0.13
%
Love Playing LLC

2200 Eastridge Loop, San Jose, CA 95122
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/9/2030
 
298.8

 
298.8

 
329.2

 
0.10
%
AJN Innocations LLC

6704 Main St., Miami Lakes, FL 33014
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/15/2030
 
73.9

 
73.9

 
81.4

 
0.03
%

F-137
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Guaranteed Accrual Investments (4a)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226

Oak Park Social

14691 W 11 Mile Rd, Oak Park, MI 48237
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/12/2045
 
290.6

 
290.6

 
325.7

 
0.10
%
Natalie Hart LLC

1702 Fawn Gate St, San Antonio, TX 78248
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2029
 
100.1

 
100.1

 
110.4

 
0.03
%
The Cow Harbor Beer Company

19 Scudder Ave, Northport, NY 11768
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/11/2030
 
272.9

 
272.9

 
300.7

 
0.09
%
IV Purpose Inc.

1489 Fulton St., Brooklyn, NY 11216
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/25/2029
 
78.2

 
78.2

 
86.2

 
0.03
%
Jbang LLC

125 Westchester Ave, White Plains, NY 10601
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/25/2029
 
60.0

 
60.0

 
66.1

 
0.02
%
NJ Floats

327 Rte 202/206, Bedminster Township, NJ 07921
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/12/2045
 
78.8

 
78.8

 
88.4

 
0.03
%
Coral Springs Family Wellness LLC

2902 North University Drive, Coral Springs, FL 33065
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2030
 
177.4

 
177.4

 
195.5

 
0.06
%
Ohanyan LLC

14006 Riverside Dr. #9270, Sherman Oaks, CA 91423
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/6/2029
 
99.8

 
99.8

 
109.9

 
0.03
%
Kuros LLC dba Alexander Lake Lodge

21221 Baron Lake Drive, Cedaredge, CO 81413
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/19/2045
 
27.9

 
27.9

 
31.4

 
0.01
%
Richwood Enterprises LLC

2564 Branch St., Middleton, WI 53562
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/24/2029
 
402.5

 
402.5

 
443.4

 
0.14
%
Icebox Café

219 NE 3rd St., Hallendale Beach, FL 33009
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/26/2030
 
728.8

 
728.8

 
802.8

 
0.25
%
Total SBA Guaranteed Accrual Investments
 
 
 
$
16,555.0

 
$
16,555.0

 
$
18,213.1

 
5.65
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SBA Guaranteed Non-Accrual Investments (4b)
 
 
 
 
 
 
 
 
 
 
American Pharmaceutical Innovation Company, LLC
(*)
1425 Centre Circle, Downers Grove, IL 60515
 
Chemical Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2027
 
62.1

 
62.1

 
62.1

 
0.02
%
MIT LLC
(*)
11 North Peach ST., Medford, OR 97504
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042
 
254.7

 
254.7

 
254.7

 
0.08
%
Neville Galvanizing, Inc
(*)
2983 Grand Ave, Pittsburgh, PA 15225
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2042
 
1,875.0

 
1,875.0

 
1,875.0

 
0.58
%
Kneading Dough LLC dba NY Bagel Cafe & Deli,NY Bagle
(*)
10287 Okeechobee Blvd #13, Royal Palm Beach, FL 33411
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/23/2029
 
102.5

 
102.5

 
102.5

 
0.03
%
Simkar LLC, Neo Lights Holding Inc, Kalco Lighting, LLC
(*)
700 Ramona Ave, Philadelphia, PA 19120
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/26/2043
 
4,496.2

 
4,496.2

 
4,496.2

 
1.40
%
Total SBA Guaranteed Non-Accrual Investments
 
 
 
$
6,790.5

 
$
6,790.5

 
$
6,790.5

 
2.11
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Guaranteed Investments
 
 
 
 
 
 
 
 
 
$
23,345.5

 
$
23,345.5

 
$
25,003.6

 
7.76
%

F-138
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

SBA Guaranteed Accrual Investments (4a)
 
 
 
 
 
 
 
 
 
 
 
 
 
322,226

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed and Guaranteed Investments
 
 
 
 
 
 
 
$
452,870.3

 
$
453,042.7

 
$
442,226.7

 
137.24
%


F-139
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

Controlled Investments (5) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322225

Advanced Cyber Security Systems, LLC
(*,#) (6) (21)
3880 Veterans Memorial Hwy. Suite 201, Bohemia, NY 11716
 
Data processing, Hosting, and Related Services
 
50% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
 
 
 
 
 
 
Term Loan
 
3%
 
Dec 2014

 
381.0

 
381.0

 
—

 
—
%
Automated Merchant Services, Inc.
(*,#) (7) (21)
12230 Forest Hill Blvd., Wellington, FL 33414
 
Data processing, Hosting, and Related Services
 
100% Common Stock
 
—%
 
—

 
—

 
—

 
—

 
—
%
CDS Business Services, Inc.
(*,#) (8)
1985 Marcus Ave., Lake Success, NY 11042
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—%
 
—

 
—

 
4,428.0

 
3,000.0

 
0.93
%
 
 
 
 
 
 
Line of Credit
 
10%
 
Dec 2020

 
5,000.0

 
5,000.0

 
5,000.0

 
1.55
%
 
 
 
 
 
 
Term Loan
 
10%
 
April 2020

 
—

 
—

 
—

 
—
%
Newtek Technology Solutions, Inc.
(*,#) (11)
1904 W. Parkside Lane Phoenix, AZ 85027
 
Data processing, Hosting, and Related Services
 
100% Common Stock
 
—%
 
—

 
—

 
8,384.0

 
9,000.0

 
2.79
%
 
 
 
 
 
 
Line of Credit
 
10%
 
Nov 2028

 
10,361.0

 
10,361.0

 
10,361.0

 
3.22
%
Newtek Insurance Agency, LLC
(*,#) (13)
1981 Marcus Ave., Lake Success, NY 11042
 
Insurance Carriers and Related Activities
 
100% Membership Interest
 
—%
 
—

 
—

 
135.0

 
2,215.0

 
0.69
%
PMTWorks Payroll, LLC
(*,#) (9)
1981 Marcus Ave., Lake Success, NY 11042
 
Data processing, Hosting, and Related Services
 
100% Membership Interest
 
—%
 
—

 
—

 
1,728.1

 
—

 
—
%
 
 
 
 
 
 
Term Loan
 
10%
 
Oct 2021

 
435.0

 
435.0

 
—

 
—
%
 
 
 
 
 
 
Term Loan
 
10%
 
May 2020

 
750.0

 
750.0

 
—

 
—
%
 
 
 
 
 
 
Term Loan
 
12%
 
May 2020

 
500.0

 
500.0

 
—

 
—
%
 
 
 
 
 
 
Term Loan
 
10%
 
July 2020

 
1,000.0

 
1,000.0

 
—

 
—
%
Small Business Lending, LLC
(*,#) (12) (21)
1981 Marcus Ave., Lake Success, NY 11042
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 
—%
 
—

 
—

 
598.0

 
9,650.4

 
2.99
%
 
 
 
 
 
 
Term Loan
 
10%
 
June 2021

 
400.0

 
400.0

 
400.0

 
0.12
%
ADR Partners, LLC dba banc-serv Partners, LLC
(*,#) (12)
8777 Purdue Rd, Indianapolis, IN 46268
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 
—%
 
—

 
—

 
7,085.2

 
—

 
—
%
International Professional Marketing, Inc.
(#) (16)
151 W. 30th St., New York, NY 10001
 
Professional, Scientific, and Technical Services
 
100% Common Stock
 
—%
 
—

 
—

 
4,000.0

 
4,150.0

 
1.29
%
 
 
 
 
 
 
Line of Credit
 
Prime plus 0.5%
 
April 2021

 
—

 
—

 
—

 
—
%

F-140
See accompanying notes to consolidated financial statements.


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)

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

Controlled Investments (5) (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
322225

SIDCO, LLC
(#) (16)
151 W. 30th St., New York, NY 10001
 
Professional, Scientific, and Technical Services
 
100% Membership Interest
 
—%
 
—

 
—

 
7,119.7

 
6,649.7

 
2.06
%
 
 
 
 
 
 
Line of Credit
 
Prime plus 0.5%
 
July 2020

 
100.0

 
850.0

 
850.0

 
0.26
%
Newtek Merchant Solutions, LLC
(#) (11)
1981 Marcus Ave., Lake Success, NY 11042
 
Data processing, Hosting, and Related Services
 
100% Membership Interest
 
—%
 
—

 
—

 
16,438.0

 
121,250.0

 
37.63
%
Mobil Money, LLC
(#) (17)
1981 Marcus Ave., Lake Success, NY 11042
 
Data processing, Hosting, and Related Services
 
100% Membership Interest
 
—%
 
—

 
—

 
2,980.0

 
3,750.0

 
1.16
%
Newtek Business Lending, LLC
(*,#) (10)
14 East Washington St., Orlando, FL 32801
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 
—%
 
—

 
—

 
18,623.0

 
22,252.7

 
6.91
%
Newtek Conventional Lending, LLC
(#) (18) (25) (26)
1981 Marcus Ave., Lake Success, NY 11042
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
50% Membership Interest
 
—%
 
—

 
—

 
14,270.0

 
16,122.8

 
5.00
%
Titanium Asset Management, LLC
(*,#) (14)
1981 Marcus Ave., Lake Success, NY 11042
 
Administrative and Support Services
 
Term Loan
 
10%
 
March 2021

 
900.0

 
900.0

 
390.4

 
0.12
%
 
 
 
 
 
 
100% Membership Interest
 
—%
 
—

 
—

 
—

 
—

 
—
%
Excel WebSolutions, LLC
(*,#) (15)
888 East Brighton Ave. Syracuse, NY 13205
 
Data processing, Hosting, and Related Services
 
Term Loan
 
10%
 
Sept 2020

 
159.2

 
159.2

 
—

 
—
%
 
 
 
 
 
 
50% Membership Interest
 
—
 
—

 
—

 
—

 
—

 
—
%
POS on Cloud, LLC
(#) (20)
1981 Marcus Ave., Lake Success, NY 11042
 
Data processing, Hosting, and Related Services
 
Term Loan
 
10%
 
Sept 2023

 
775.0

 
775.0

 
775.0

 
0.24
%
 
 
 
 
 
 
50.14% Membership Interest
 
—
 
—

 
—

 
—

 
—

 
—
%
Total Controlled Investments
 
 
 
$
20,761.2

 
$
107,300.2

 
$
215,817.0

 
66.98
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Control/Affiliate Investments (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EMCAP Loan Holdings, LLC
(+,#) (19) (25)
1140 Reservoir Ave., Cranston, RI 02920
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
6.04% Membership Interest
 
—%
 
—

 
$
—

 
$
1,000.0

 
$
1,000.0

 
0.31
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Investments
 
 
 
 
 
 
 
$
473,631.5

 
$
561,342.9

 
$
659,043.7

 
204.53
%
^ Denotes investment has been pledged as collateral under the Securitization Trusts.

F-141
See accompanying notes to consolidated financial statements.



* Denotes non-income producing security.
# Denotes fair value determined using significant unobservable inputs.
+ Denotes restricted security.
(1) Newtek values each unguaranteed portion of SBA 7(a) accrual 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 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) The interest rates in effect on our loans as of December 31, 2019 are based off a Prime Rate equal to 5.00% and 1 month LIBOR equal to 1.76250%.
(3) Newtek values non-accrual 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.
(4a) Newtek values guaranteed accrual SBA 7(a) loans using the secondary SBA 7(a) market as a reference point. Newtek routinely sells accrual 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—FAIR VALUE MEASUREMENTS.
(4b) Newtek values guaranteed non-accrual loans based on the estimated recovery under the SBA guarantee, which is at cost.
(5) Controlled Investments are disclosed above as equity investments (except as otherwise noted) in those companies that are “Controlled Investments” of the Company as defined in the Investment Company Act of 1940. A company is deemed to be a “Controlled Investment” of Newtek Business Services Corp. if Newtek Business Services Corp. or its subsidiaries owns more than 25% of the voting securities of such company. See NOTE 4—TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS in the accompanying notes to the consolidated financial statements for transactions during the year ended December 31, 2019 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.).
(17) 100% owned by Newtek Business Services Holdco 4, Inc. (a subsidiary of Newtek Business Services Corp.).

F-142
See accompanying notes to consolidated financial statements.



(18) On May 20, 2019, the Company and its joint venture partner launched Newtek Conventional Lending, LLC (“NCL”) to provide non-conforming conventional commercial and industrial term loans to U.S. middle-market companies and small businesses. NCL is 50% owned by Newtek Commercial Lending, Inc. (a subsidiary of Newtek Business Services Corp.) and 50% owned by Conventional Lending TCP Holding, LLC (a wholly-owned, indirect subsidiary of BlackRock TCP Capital Corp. (NASDAQ:TCPC)). Deemed an investment company under the 1940 Act.
(20) 50.13% owned by Newtek Business Services Holdco 3, Inc. (a subsidiary of Newtek Business Services Corp.) and 49.87% owned by multiple non-affiliates.
(21) 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.
(22) 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.
(23) The fair value of the investment was determined using significant unobservable inputs.
(24) 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.
(25) Restricted security.
(26) 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, 2019, 7.1% of total assets are non-qualifying assets.

As of December 31, 2019, the federal tax cost of investments was $561,343,000 resulting in estimated gross unrealized gains and losses of $155,414,000 and $49,330,000, respectively.


F-143
See accompanying notes to 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




SBA Unguaranteed Accrual 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

 
1,137.8

 
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
%
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
%

F-144
See accompanying notes to 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.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
%
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

 
—
%
^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
%

F-145
See accompanying notes to 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




^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
%
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
%

F-146
See accompanying notes to 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




^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
%
^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
%
^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
%

F-147
See accompanying notes to 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




^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
%
^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
%

F-148
See accompanying notes to 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




^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
%
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
%
^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
%

F-149
See accompanying notes to 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




^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
%
^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
%
^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

 
1,193.2

 
1,121.1

 
0.39
%

F-150
See accompanying notes to 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




^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

 
1,247.2

 
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
%
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
%

F-151
See accompanying notes to 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




^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
%
^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

 
1,228.9

 
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
%
^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
%

F-152
See accompanying notes to 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




^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
%
^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
%
^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
%

F-153
See accompanying notes to 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




^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
%
^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
%

F-154
See accompanying notes to 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




^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
%
^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
%
^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
%

F-155
See accompanying notes to 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




^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
%
^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

 
1,245.1

 
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
%

F-156
See accompanying notes to 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




^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
%
^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

 
1,242.1

 
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
%
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

 
—
%

F-157
See accompanying notes to 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




^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

 
—
%
^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-158
See accompanying notes to 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

 
1,135.3

 
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

 
1,142.6

 
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
%
^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
%

F-159
See accompanying notes to 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




^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
%
^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
%
^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

 
—
%

F-160
See accompanying notes to 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




^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
%
^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
%

F-161
See accompanying notes to 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 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
%
^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

 
—
%
^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
%

F-162
See accompanying notes to 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




^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
%
^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
%
^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
%

F-163
See accompanying notes to 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




^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
%
^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

 
—
%

F-164
See accompanying notes to 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




^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
%
^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
%
^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

 
—
%

F-165
See accompanying notes to 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




^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
%
^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
%

F-166
See accompanying notes to 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




^Harco Metal Products Inc
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
483.3

 
483.3

 
479.2

 
0.17
%
^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
%
^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

 
—
%

F-167
See accompanying notes to 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




^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

 
—
%
^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
%
^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
%

F-168
See accompanying notes to 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




^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

 
—
%
^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
%

F-169
See accompanying notes to 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




^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

 
—
%
^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
%
^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
%

F-170
See accompanying notes to 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




^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
%
^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
%
^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
%

F-171
See accompanying notes to 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




^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
%
^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
%

F-172
See accompanying notes to 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




^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
%
^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
%
^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
%

F-173
See accompanying notes to 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 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
%
^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
%

F-174
See accompanying notes to 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




^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
%
^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
%
^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

 
—
%

F-175
See accompanying notes to 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




^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
%
^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
%

F-176
See accompanying notes to 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




^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

 
—
%
^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
%
^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
%

F-177
See accompanying notes to 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




^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
%
^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
%
^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
%

F-178
See accompanying notes to 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




^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

 
—
%
^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
%

F-179
See accompanying notes to 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 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
%
^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
%
^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
%

F-180
See accompanying notes to 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 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
%
^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
%

F-181
See accompanying notes to 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 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
%
^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

 
—
%
^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
%

F-182
See accompanying notes to 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




^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
%
^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
%
^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
%

F-183
See accompanying notes to 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




^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
%
^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
%

F-184
See accompanying notes to 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




^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
%
^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
%
^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
%

F-185
See accompanying notes to 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




^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

 
—
%
^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
%

F-186
See accompanying notes to 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




^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
%
^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
%
^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
%

F-187
See accompanying notes to 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




^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
%
^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
%

F-188
See accompanying notes to 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




^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
%
^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
%
^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
%

F-189
See accompanying notes to 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




^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
%
^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
%

F-190
See accompanying notes to 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




^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

 
—
%
^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
%
^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
%

F-191
See accompanying notes to 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




^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
%
^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
%

F-192
See accompanying notes to 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 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
%
^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
%
^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
%

F-193
See accompanying notes to 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




^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
%
^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
%

F-194
See accompanying notes to 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




^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
%
^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
%

F-195
See accompanying notes to 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




^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
%
^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
%
^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
%

F-196
See accompanying notes to 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




^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
%
^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
%

F-197
See accompanying notes to 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 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

 
—
%
^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-198
See accompanying notes to 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
%
^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
%

F-199
See accompanying notes to 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




^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
%
^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
%

F-200
See accompanying notes to 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




^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
%
^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
%
^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
%

F-201
See accompanying notes to 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




^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
%
^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
%

F-202
See accompanying notes to 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




^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
%
^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
%
^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
%

F-203
See accompanying notes to 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




^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
%
^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

 
—
%

F-204
See accompanying notes to 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




^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
%
^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 SBA Unguaranteed Accrual Investments
 
 
 
 
 
 
 
$
318,862.2

 
$
318,862.2

 
$
329,339.7

 
114.57%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SBA Unguaranteed Non-Accrual 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
%
*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

 
—
%

F-205
See accompanying notes to 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 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
%
*^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
%

F-206
See accompanying notes to 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




*^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
%
*^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

 
—
%

F-207
See accompanying notes to 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




*^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
%
*^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
%
*^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

 
—
%

F-208
See accompanying notes to 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




*^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
%
*^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
%

F-209
See accompanying notes to 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




*^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
%
*^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 SBA Unguaranteed Non-Accrual Investments
 
 
 
 
 
 
 
$
36,546.2

 
$
36,726.8

 
$
20,062.3

 
6.98%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Unguaranteed SBA Investments
 
 
 
 
 
 
 
 
 
$
355,408.4

 
$
355,589.0

 
$
349,402.0

 
121.55%

F-210
See accompanying notes to 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




 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SBA Guaranteed Accrual Investments (4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Always Goldie's Florist
 
Miscellaneous Store Retailers
 
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.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
63.8

 
63.8

 
69.9

 
0.02
%
Medworxs Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2028

 
59.5

 
59.5

 
65.2

 
0.02
%
Fave Realty Inc.
 
Real Estate
 
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
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/27/2043

 
384.8

 
384.8

 
431.3

 
0.15
%
Children First Home Health Care Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2028

 
900.0

 
900.0

 
988.2

 
0.34
%
Superior Concepts Acquisition Corp
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2028

 
359.5

 
359.5

 
395.1

 
0.14
%
Superior Concepts Acquisition Corp
 
Professional, Scientific, and Technical Services
 
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,
 
Personal and Laundry Services
 
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
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043

 
106.3

 
106.3

 
119.1

 
0.04
%
Omega Funeral and Cremation Services, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2043

 
1,028.6

 
1,028.6

 
1,152.0

 
0.40
%
Capitol Fitness Shelby Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/28/2028

 
102.9

 
102.9

 
113.0

 
0.04
%
The Chop House Inc.
 
Food Services and Drinking Places
 
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
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028

 
712.5

 
712.5

 
783.0

 
0.27
%
HDD Solutions, LLC
 
Heavy and Civil Engineering Construction
 
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
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
10/14/2043

 
1,225.5

 
1,225.5

 
1,360.4

 
0.47
%
Lou & Choo Enterprises Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2044

 
101.4

 
101.4

 
113.1

 
0.04
%
Metropolitan Solutions Inc.
 
Professional, Scientific, and Technical Services
 
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
 
Food Services and Drinking Places
 
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
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/1/2029

 
564.5

 
564.5

 
617.0

 
0.21
%
Starship, LLC dba Tint World Smyrna
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/25/2043

 
266.3

 
266.3

 
297.1

 
0.10
%
AVM LLC dba Luv 2 Play
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
6/1/2028

 
78.2

 
78.2

 
84.4

 
0.03
%
Surya Hotel LLC dba Hotel Royal
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/21/2028

 
302.6

 
302.6

 
331.1

 
0.12
%
Bio-Haz Solutions, Inc.
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2043

 
906.3

 
906.3

 
1,011.7

 
0.35
%
Bio-Haz Solutions, Inc
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
1/29/2029

 
335.9

 
335.9

 
367.5

 
0.13
%
Geo Tek Alaska, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/17/2044

 
170.3

 
170.3

 
190.5

 
0.07
%
National Stone LTD and NSI Group Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
8/31/2044

 
579.5

 
579.5

 
645.4

 
0.22
%
Blue Seven, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/27/2029

 
149.3

 
149.3

 
164.1

 
0.06
%
Hackstaff Restaurants LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/15/2029

 
172.6

 
172.6

 
189.7

 
0.07
%

F-211
See accompanying notes to 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




UK, LLC dba Pita Pit
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2029

 
97.2

 
97.2

 
106.8

 
0.04
%
JP Dhillon's Foods LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/1/2029

 
77.5

 
77.5

 
85.2

 
0.03
%
Vancole Investments, Inc. dba Smoothie King #913
 
Food Services and Drinking Places
 
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
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/16/2029

 
20.7

 
20.7

 
22.8

 
0.01
%
Thames Aquatic Club, LLC
 
Educational Services
 
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
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/13/2029

 
73.2

 
73.2

 
80.4

 
0.03
%
JejoJesi Corp dba Dukunoo Jamaican Kitchen, Dunkunoo
 
Food Services and Drinking Places
 
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
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/19/2044

 
86.7

 
86.7

 
97.0

 
0.03
%
Healthy and Fresco LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/20/2029

 
75.0

 
75.0

 
82.4

 
0.03
%
Accel Compression Inc., Accel Workover Services Inc
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/21/2044

 
133.6

 
133.6

 
149.7

 
0.05
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Guaranteed Accrual 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
 
—
%
 
—

 
—

 
—

 
—

 
—
%
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
%

F-212
See accompanying notes to 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 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
%
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
 
—
%
 
—

 
—

 
—

 
—

 
—
%

F-213
See accompanying notes to 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




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. Includes 5 loans with a cost basis of $4,663,000 and fair value of $5,258,000 which NSBF owns 100% of the outstanding loan balance that were originated by NSBF, but are no longer deemed SBA 7(a) loans as a result of Newtek repurchasing the guaranteed portions of the loans from the SBA.
(2) Prime Rate is equal to 5.25% and 1 month LIBOR is equal to 2.50269% 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. Includes 3 loans with a cost basis of $6,942,000 and fair value of $3,504,000 which NSBF owns 100% of the outstanding loan balance that were originated by NSBF, but are no longer deemed SBA 7(a) loans as a result of Newtek repurchasing the guaranteed portions of the loans from the SBA.
(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, 2018 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.).

F-214
See accompanying notes to consolidated financial statements.



(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) 50% 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-215
See accompanying notes to 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 on December 31, 2018.
(2) Entity was merged into The Whitestone Group, LLC on December 31, 2017.
Except as otherwise noted, all financial information included in the tables in the following footnotes is stated in thousands, except per share data.


F-216

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 6.
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.

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.

Although the Company owns more than 25% of the voting securities of NCL, the Company does not have sole control over significant actions of NCL for purposes of the 1940 Act or otherwise, and does not consolidate its interest in NCL.

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 exclusively at financial institutions of high credit quality. As of December 31, 2019, cash deposits in excess of insured amounts totaled $15,490,000. The Company has not experienced any losses with respect to cash

F-217

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, 2019.
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, 2019, total restricted cash was $31,445,000.

The following table provides a reconciliation of cash and restricted cash as of December 31, 2019, 2018, 2017, and 2016:

 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Cash
$
1,762

 
$
2,316

 
$
2,464

 
$
2,051

Restricted cash
31,445

 
29,034

 
18,074

 
20,845

Cash and restricted cash
$
33,207

 
$
31,350

 
$
20,538

 
$
22,896


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 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, 2019, 2018 and 2017, 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 $12,405,000 and $9,241,000 at December 31, 2019 and December 31, 2018, 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.


F-218

Investment Income

Management reviews all loans that become 90 days or more past due on principal or interest or when there is reasonable doubt that principal or interest will be collected for possible placement on management’s designation of non-accrual status. Interest receivable is analyzed regularly and may be reserved against when deemed uncollectible. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection.

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 and recorded daily. 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 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 Company adopted ASC 842 on January 1, 2019 using the modified transition method. As part of the transition to ASC 842, the Company elected the package of practical expedients that allowed it to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company recognized the cumulative effect of applying ASC 842 as an opening balance sheet adjustment at January 1, 2019. The comparative information has not been retrospectively adjusted and continues to be reported under the accounting standards in effect for those periods.The adoption of ASC 842 did not have a material impact on the Company’s accompanying consolidated statements of assets and liabilities, statements of operations or statements of cash flows. Due to the adoption of ASC 842, the Company recognized operating lease right-of-use assets and lease liabilities for its operating leases with lease terms greater than one year. The Company expects the adoption of ASC 842 will not materially impact its results of operations, financial condition, or cash flows on an ongoing basis.

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 elected to early adopt ASU 2018-13 on December 31, 2019. No significant changes to our fair value disclosures were necessary in the notes to the consolidated financial statements in order to comply with ASU 2018-13.

F-219


Segments

The Company has determined that it has a single reporting segment and operating unit structure. The Company issues debt and makes equity investments in portfolio companies in various industries. The Company separately evaluates the performance of each of its lending and investment relationships. However, because each of these debt and equity investment relationships have similar business and economic characteristics, they have been aggregated into a single lending and investment segment.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation.

NOTE 3—INVESTMENTS:

Investments, all of which are in portfolio companies in the United States, consisted of the following at:
 
 
December 31, 2019
 
December 31, 2018
 
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Money market funds
 
$
—

 
$
—

 
$
9

 
$
9

Non-affiliate debt investments
 
453,043

 
442,227

 
372,806

 
368,502

Non-control/affiliate equity investments
 
1,000

 
1,000

 
1,000

 
1,000

Controlled investments:
 
 
 
 
 
 
 
 
Equity
 
71,519

 
181,917

 
57,085

 
157,810

Equity interest in NCL (Joint Venture)
 
14,270

 
16,123

 
—

 
—

Debt
 
21,511

 
17,777

 
17,194

 
13,775

Total investments
 
$
561,343

 
$
659,044

 
$
448,094

 
$
541,096


SBA unguaranteed investments, consisted of the following breakdown of accrual and non-accrual loans at:
 
 
December 31, 2019
 
December 31, 2018
 
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Accrual
 
$
370,612

 
$
382,986

 
$
318,862

 
$
329,340

Non-Accrual
 
59,085

 
34,237

 
36,727

 
20,062

Total SBA unguaranteed investments
 
$
429,697

 
$
417,223

 
$
355,589

 
$
349,402


SBA guaranteed investments, consisted of the following breakdown of accrual and non-accrual loans at:
 
 
December 31, 2019
 
December 31, 2018
 
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Accrual
 
$
16,555

 
$
18,213

 
$
17,217

 
$
19,100

Non-Accrual
 
6,790

 
6,791

 
—

 
—

Total SBA guaranteed investments
 
$
23,345

 
$
25,004

 
$
17,217

 
$
19,100





F-220

The following table shows the Company’s portfolio investments by industry at December 31, 2019 and December 31, 2018:
 
 
December 31, 2019
 
December 31, 2018
 
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Data Processing, Hosting, and Related Services
 
$
45,154

 
$
146,320

 
$
38,964

 
$
134,559

Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
37,930

 
42,079

 
24,738

 
24,526

Professional, Scientific, and Technical Services
 
41,514

 
41,330

 
36,575

 
37,116

Food Services and Drinking Places
 
40,331

 
40,516

 
37,919

 
38,293

Amusement, Gambling, and Recreation Industries
 
25,343

 
26,787

 
21,030

 
22,300

Truck Transportation
 
30,172

 
25,920

 
23,040

 
21,145

Repair and Maintenance
 
20,308

 
20,451

 
17,690

 
18,054

Ambulatory Health Care Services
 
22,146

 
20,409

 
21,182

 
20,999

Fabricated Metal Product Manufacturing
 
18,230

 
17,845

 
12,608

 
12,793

Specialty Trade Contractors
 
16,460

 
15,650

 
13,048

 
13,051

Administrative and Support Services
 
13,733

 
12,696

 
8,003

 
7,265

Personal and Laundry Services
 
11,856

 
12,446

 
10,758

 
11,425

Accommodation
 
11,508

 
11,506

 
11,994

 
11,742

Social Assistance
 
9,849

 
10,683

 
8,424

 
9,006

Food Manufacturing
 
11,063

 
9,161

 
9,073

 
7,056

Rental and Leasing Services
 
9,223

 
8,780

 
7,959

 
7,539

Transit and Ground Passenger Transportation
 
7,177

 
6,755

 
6,859

 
6,541

Construction of Buildings
 
5,945

 
6,019

 
5,085

 
5,010

Heavy and Civil Engineering Construction
 
6,037

 
5,326

 
7,553

 
7,210

Electrical Equipment, Appliance, and Component Manufacturing
 
5,192

 
5,164

 
720

 
742

Air Transportation
 
5,373

 
5,159

 
3,432

 
3,371

Printing and Related Support Activities
 
4,803

 
4,992

 
5,042

 
4,868

Support Activities for Mining
 
4,658

 
4,837

 
3,174

 
3,293

Real Estate
 
4,612

 
4,682

 
4,030

 
4,064

NCL (Joint Venture)
 
14,270

 
16,123

 
—

 
—

Other
 
138,456

 
137,408

 
109,194

 
109,128

Total
 
$
561,343

 
$
659,044

 
$
448,094

 
$
541,096


Newtek Conventional Lending, LLC

On May 20, 2019, the Company and its joint venture partner launched Newtek Conventional Lending, LLC (“NCL”) to provide non-conforming conventional commercial and industrial term loans to U.S. middle-market companies and small businesses. NCL is a 50/50 joint venture between Newtek Commercial Lending, Inc. a wholly-owned subsidiary of Newtek, and Conventional Lending TCP Holding, LLC, a wholly-owned, indirect subsidiary of BlackRock TCP Capital Corp. (Nasdaq:TCPC).


F-221

The following table shows NCL’s individual investments as of December 31, 2019:
Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate
 
Maturity
 
Principal
 
Cost
 
Fair Value
10 28th Ave SW Associates LLC (#)
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 3.0%
 
4/1/2045
 
$
2,295.0

 
$
2,295.0

 
$
2,488.0

10 28th Ave SW Associates LLC (#)
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 3.0%
 
4/1/2045
 
1,292.0

 
1,292.0

 
1,400.6

Cocoa Beach Office LLC (#)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
2 Yr Libor plus 5.70%
 
8/1/2044
 
435.0

 
435.0

 
442.9

XL Sports World NJ LLC and XL Soccer World Orlando LLC (#)
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
5 Yr Libor plus 5.50%
 
8/1/2044
 
6,246.3

 
6,246.3

 
6,702.6

XL Sports World NJ LLC and XL Soccer World Orlando LLC (#)
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
5 Yr Libor plus 5.50%
 
8/1/2044
 
4,802.9

 
4,802.9

 
5,093.4

The Emerald Green Group, LLC (#)
 
Food Services and Drinking Places
 
Term Loan
 
2 Yr Libor plus 5.65%
 
8/1/2029
 
6,503.4

 
6,503.4

 
6,462.3

The Camera Division, LLC (#)
 
Electronics and Appliance Stores
 
Term Loan
 
2 Yr Libor plus 7.25%
 
9/1/2029
 
11,318.1

 
11,318.1

 
11,514.9

XL Soccer World Orlando II LLC and XL Soccer World Orlando LLC (#)
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 3.25%
 
11/1/2045
 
770.1

 
770.1

 
845.1

Foxhall Hospitality, LLC (#)
 
Hotels (except Casino Hotels) and Motels
 
Term Loan
 
5 Yr Libor plus 6.0%
 
11/1/2044
 
10,585.7

 
10,585.7

 
11,120.8

Foxhall Hospitality, LLC (#)
 
Hotels (except Casino Hotels) and Motels
 
Term Loan
 
5 Yr Libor plus 6.0%
 
11/1/2044
 
6,191.6

 
6,191.6

 
6,504.6

JW Aviation LLC and 21 Air LLC and AMN Doral LLC (#)
 
Other Nonscheduled Air Transportation
 
Term Loan
 
2 Yr Libor plus 8.25%
 
12/1/2044
 
2,520.0

 
2,520.0

 
3,035.7

Tricare Unlimited LLC and Geron Enterprises LLC (#)
 
Nursing Care Facillities(Skilled Nursing Facilities)
 
Term Loan
 
2 Yr Libor plus 6.51%
 
1/1/2045
 
5,760.0

 
5,760.0

 
6,316.2

E Entities LLC (#)
 
Exterminating & Pest Control Services
 
Term Loan
 
2 Yr Libor plus 7.71%
 
1/1/2030
 
6,000.0

 
6,000.0

 
6,498.7

Total
 
 
 
 
 
 
 
 
 
$
64,720.1

 
$
64,720.1

 
$
68,425.8

# Denotes fair value determined using significant unobservable inputs.

The following tables show certain summarized financial information for NCL as of December 31, 2019 and for the year ended December 31, 2019:

Selected Statement of Assets and Liabilities Information
December 31, 2019
 
(Unaudited)
Cash
1,299

Investments in loans, at fair value
68,426

Other assets
1,094

Total assets
$
70,819

 
 
Bank notes payable
$
36,938

Other liabilities
1,635

Total liabilities
38,573

 
 
Net assets
32,246

Total liabilities and net assets
$
70,819



F-222

 
Year Ended December 31, 2019
Selected Statements of Operations Information
 
Interest and other income
$
3,488

Total expenses
1,525

Net investment income
1,963

Net unrealized appreciation on investments
3,706

Net increase in net assets resulting from operations
5,669


NOTE 4—TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS:

Transactions with Affiliated Companies

An affiliated company is an entity in which the Company has an ownership of 5% or more of its voting securities. A controlled affiliate is an entity in which the Company owns more than 25% of its voting securities. Transactions related to our investments with controlled and non-controlled affiliated companies for the year ended December 31, 2019 were as follows:
Portfolio Company
 
Fair Value at December 31, 2018
 
Purchases (Cost)
 
Principal Received
 
Net Realized Gains/(Losses)
 
Net Unrealized Gains/(Losses)
 
Fair Value at December 31, 2019
 
Interest and Other Income
 
Dividend Income
Controlled Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newtek Merchant Solutions, LLC (NMS)
 
$
116,250

 
$
—

 
$
—

 
$
—

 
$
5,000

 
$
121,250

 
$
—

 
$
11,490

Mobil Money, LLC
 
2,980

 
—

 
—

 
—

 
770

 
3,750

 
—

 
375

Newtek Technology Solutions, Inc. (NTS)
 
15,300

 
3,561

 
—

 
—

 
500

 
19,361

 
522

 
—

International Professional Marketing, Inc.
 
4,100

 
—

 
(800
)
 
—

 
850

 
4,150

 
8

 
900

SIDCO, LLC
 
7,995

 
750

 
(75
)
 
—

 
(1,170
)
 
7,500

 
9

 
700

banc-serv Partners, LLC
 
—

 
286

 
—

 
—

 
(286
)
 
—

 
—

 
—

CDS Business Services, Inc.
 
11,000

 
360

 
(1,360
)
 
—

 
(2,000
)
 
8,000

 
438

 
—

Small Business Lending, LLC
 
3,300

 
748

 
—

 
—

 
6,002

 
10,050

 
23

 
—

Newtek Insurance Agency, LLC
 
2,215

 
—

 
—

 
—

 
—

 
2,215

 
—

 
—

PMTWorks Payroll, LLC
 
—

 
622

 
—

 
—

 
(622
)
 
—

 
—

 
—

Titanium Asset Management LLC
 
—

 
900

 
(194
)
 
—

 
(316
)
 
390

 
—

 
—

POS on Cloud, LLC
 
—

 
775

 
—

 
—

 
—

 
775

 
24

 
—

Excel WebSolutions, LLC
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Newtek Conventional Lending, LLC
 
—

 
14,270

 
—

 
—

 
1,853

 
16,123

 
—

 
822

Newtek Business Lending, LLC
 
8,445

 
17,378

 
(4,200
)
 
—

 
630

 
22,253

 
—

 
—

Total Controlled Investments
 
$
171,585

 
$
39,650

 
$
(6,629
)
 
$
—

 
$
11,211

 
$
215,817

 
$
1,024

 
$
14,287

Non-Control/Affiliate Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EMCAP Loan Holdings, LLC
 
$
1,000

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,000

 
$
—

 
$
111

Total Affiliate Investments
 
$
172,585

 
$
39,650

 
$
(6,629
)
 
$
—

 
$
11,211

 
$
216,817

 
$
1,024

 
$
14,398



 

F-223

Related Party Transactions

Note 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 had an interest rate equal to 1 month LIBOR (with a floor of 0.50%) plus 6.0% or 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 of 1 month LIBOR plus 2.5% or the Prime Rate plus 1.5%.

At December 31, 2019, the Related Party RLOC interest rate was 4.71%. The Related Party RLOC has a maturity date of November 8, 2023. Outstanding borrowings from NMS at December 31, 2019 under the Related Party RLOC were $12,163,000.

For the years ended December 31, 2019, 2018 and 2017, interest expense was $911,000, $916,000 and $780,000, respectively.

Expenses Incurred from Controlled Portfolio Companies

The Company incurs expenses from certain controlled portfolio companies including managed technology services from NTS, origination and loan processing fees from various related parties and payroll processing fees from PMT.
 
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
Managed technology services
 
$
1,026

 
$
725

 
$
836

Origination and loan processing
 
9,975

 
41

 
127

Referral fees
 
—

 
104

 
167

Payroll processing fees
 
35

 
42

 
38

Total
 
$
11,036

 
$
912

 
$
1,168


The Company also sub-leases portions of its office space in Lake Success, New York to certain portfolio companies. Amounts charged were as follows:

Portfolio Company
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
Newtek Merchant Solutions, LLC (NMS)
 
$
232

 
$
166

 
$
147

Newtek Technology Solutions, Inc.
 
11

 
11

 
—

Small Business Lending, LLC
 
244

 
75

 
81

Newtek Insurance Agency, LLC
 
61

 
88

 
86

CDS Business Services, Inc.
 
69

 
57

 
63

Premier Payments LLC (1)
 
—

 
38

 
46

PMTWorks Payroll, LLC
 
44

 
32

 
46

Titanium Asset Management
 
—

 
—

 
13

United Capital Source, LLC
 
—

 
—

 
7

Newtek Business Lending, LLC
 
8

 
2

 
—

Total
 
$
669

 
$
469

 
$
489

(1) On December 31, 2018, Premier was merged into NMS.

Amounts due from related parties were $2,972,000 and $3,232,000 at December 31, 2019 and December 31, 2018, respectively. Amounts due to related parties were $131,000 and $4,000 at December 31, 2019 and December 31, 2018, respectively.


F-224

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, and are recorded as a credit to salaries and benefits in the consolidated statements of operations.

Portfolio Company
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
Newtek Merchant Solutions, LLC (NMS)
 
$
373

 
$
385

 
$
407

Newtek Technology Solutions, Inc.
 
476

 
508

 
543

PMTWorks Payroll, LLC
 
185

 
85

 
75

Newtek Insurance Agency, LLC
 
185

 
175

 
204

Summit Systems and Designs, LLC (1)
 
—

 
—

 
10

Secure CyberGateway Services, LLC (1)
 
—

 
—

 
2

banc-serv Partners, LLC
 
87

 
248

 
215

Premier Payments LLC (2) 
 
—

 
172

 
163

CDS Business Services, Inc.
 
88

 
88

 
35

International Professional Marketing, Inc.
 
93

 
89

 
72

SIDCO, LLC
 
111

 
93

 
52

Mobil Money, LLC
 
133

 
67

 
—

Newtek Business Lending, LLC
 
93

 
12

 
—

Small Business Lending, LLC
 
449

 
366

 
364

Total
 
$
2,273

 
$
2,288

 
$
2,142

(1) Entity was dissolved in May 2018.
(2) On December 31, 2018, Premier was merged into NMS.
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. The agreement was terminated in November 2019. During the years ended December 31, 2019, 2018 and 2017 the Company incurred $9,000, $14,000 and $7,000 in fees respectively, from AK Capital.

The nephew of the Chief Executive Officer of the Company is employed by one of the Company’s controlled portfolio companies and earned annual compensation in excess of $125,000 during 2017, 2018, and 2019. The brother of the Chief Executive Officer of the Company was employed by one of the Company’s controlled portfolio companies through 2019 and earned annual compensation less than $125,000; as of January 2020 he is no longer employed by the Company’s controlled portfolio company.

NOTE 5—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, 2019 and December 31, 2018:

F-225
Table of Contents

 
December 31, 2019
 
December 31, 2018
Fair Value
$
24,411

 
$
21,360

Discount factor (1)
13.38
%
 
14.24
%
Cumulative prepayment rate
26.00
%
 
26.00
%
Average cumulative default rate
22.00
%
 
20.00
%
(1) Determined based on risk spreads and observable secondary market transactions.
Servicing fee income earned for the years ended December 31, 2019, 2018, and 2017 was $10,078,000, $8,552,000, and $7,206,000, respectively.
NOTE 6—FAIR VALUE MEASUREMENTS:

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, management uses various valuation approaches, all of which have been approved by the Company’s Board. In accordance with GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.

The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and gives the lowest priority to unobservable inputs (Level 3). 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. There were no transfers to or from Level 3 of the fair value hierarchy for assets and liabilities during the years ended December 31, 2019 or 2018.
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.

For certain investments, the Company generally calculates the fair value of the investment primarily based on the net asset NAV of the entity and adjusts the fair value for other factors that would affect the fair value of the investment. The Company uses this valuation approach for its investment in NCL.


F-226

Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded. 

The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded.

The following tables present fair value measurements of the Company’s assets and liabilities measured at fair value and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values as of December 31, 2019 and December 31, 2018:
 
Fair Value Measurements at December 31, 2019
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
SBA unguaranteed non-affiliate investments
417,223

 
—

 
—

 
417,223

SBA guaranteed non-affiliate investments
25,004

 
—

 
25,004

 
—

Controlled investments
199,694

 
—

 
—

 
199,694

Other real estate owned (1)
2,539

 
—

 
2,539

 
—

Non-control/affiliate investments
1,000

 
—

 
—

 
1,000

Servicing assets
24,411

 
—

 
—

 
24,411

Controlled investments measured at NAV(2)
16,123

 
—

 
—

 
—

Total assets
$
685,993

 
$
—

 
$
27,543

 
$
642,328

Liabilities:
 
 
 
 
 
 
 
Contingent consideration liabilities (3)
$
621

 
$
—

 
$
—

 
$
621

(1) Included in Other Assets on the Consolidated Statements of Assets and Liabilities
(2) The Company’s investment in NCL is measured at fair value using NAV and has not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities.
(3) Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Consolidated Statements of Assets and Liabilities

The change in unrealized appreciation (depreciation) included in the consolidated statements of operations attributable to Level 3 investments held at December 31, 2019 includes $6,291,000 in unrealized depreciation on SBA unguaranteed non-affiliate investments, $9,358,000 in unrealized appreciation on controlled investments and $5,178,000 in unrealized depreciation on servicing assets.


F-227

 
Fair Value Measurements at December 31, 2018
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Investments in money market 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/Non-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

The following tables represents the changes in investments, servicing assets and liabilities measured at fair value using Level 3 inputs for the years ended December 31, 2019 and 2018:

 
Year Ended December 31, 2019
 
SBA Unguaranteed Investments
 
Controlled Investments
 
Servicing Assets
 
Non-Control/Affiliate Investments
 
Contingent Consideration Liabilities (1)
Fair value, December 31, 2018
$
349,402

 
$
171,585

 
$
21,360

 
$
1,000

 
$
1,733

Net change in unrealized appreciation (depreciation)
(6,291
)
 
9,358

 
(5,178
)
 
—

 
—

Realized loss
(3,924
)
 
—

 
—

 
—

 
—

SBA unguaranteed non-affiliate investments, funded
130,214

 
—

 
—

 
—

 
—

Foreclosed real estate acquired
(2,540
)
 
—

 
—

 
—

 
—

Purchase of investments
—

 
25,380

 
—

 
—

 
—

Change in fair value of contingent consideration liabilities
—

 
—

 
—

 
—

 
42

Payment of contingent consideration
—

 
—

 
—

 
—

 
(1,154
)
Net accretion of premium/discount
(8
)
 
—

 
—

 
—

 
—

Return of investment
—

 
(4,200
)
 
—

 
—

 
—

Principal payments received on debt investments
(49,630
)
 
(2,429
)
 
—

 
—

 
—

Additions to servicing assets
—

 
—

 
8,229

 
—

 
—

Fair value, December 31, 2019
$
417,223

 
$
199,694

 
$
24,411

 
$
1,000

 
$
621

(1) Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Consolidated Statements of Assets and Liabilities


F-228

 
Year Ended December 31, 2018
 
SBA Unguaranteed Investments
 
Controlled Investments
 
Servicing Assets
 
Non-Control/Non-Affiliate Investments
 
Contingent Consideration Liabilities (1)
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 gain (loss)
(2,738
)
 
52

 
—

 
—

 
—

SBA unguaranteed non-affiliate investments, funded
113,101

 
—

 
—

 
—

 
—

Foreclosed real estate acquired
(2,367
)
 
—

 
—

 
—

 
—

Purchase of investments
—

 
39,627

 
—

 
1,000

 
—

Sale of investment
1,206

 
(2,502
)
 
—

 
—

 
—

Return of investment
—

 
(8,785
)
 
—

 
—

 
—

Net accretion of premium/discount
(18
)
 
—

 
—

 
—

 
—

Record fair value of contingent consideration liabilities
—

 
—

 
—

 
—

 
1,350

Change in fair value of contingent consideration liabilities
—

 
—

 
—

 
—

 
(51
)
Payment of contingent consideration
—

 
—

 
—

 
—

 
(479
)
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

 
$
21,360

 
$
1,000

 
$
1,733

(1) Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Consolidated Statements of Assets and Liabilities

The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of December 31, 2019 and December 31, 2018. In addition to the 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, 2019 and December 31, 2018.

 
 
 
 
 
 
 
 
Range
 
 
Fair Value as of December 31, 2019
 
Unobservable Input
 
Weighted Average (A)
 
Minimum
 
Maximum
Assets:
 
 
 
 
 
 
 
 
 
 
SBA unguaranteed non-affiliate investments - accrual loans
 
$
382,986

 
Market yields
 
5.20
%
 
5.20
%
 
5.20
%
SBA unguaranteed non-affiliate investments - non-accrual loans
 
$
34,237

 
Market yields
 
5.33
%
 
5.33
%
 
5.33
%
Controlled equity investments (A)
 
$
181,917

 
EBITDA multiples (B)
 
8.20x

 
4.50x

 
9.00x

 
 
 
 
Revenue multiples (B)
 
1.07x

 
0.15x

 
2.30x

 
 
 
 
Weighted average cost of capital (B)
 
11.92
%
 
10.70
%
 
18.50
%
Controlled debt investments
 
$
17,777

 
Market yields
 
9.03
%
 
5.25
%
 
10.00
%
Non-control/affiliate investments
 
$
1,000

 
Asset value
 
N/A

 
N/A

 
N/A

Servicing assets
 
$
24,411

 
Market yields
 
13.38
%
 
13.38
%
 
13.38
%
Liabilities:
 
 
 
 
 
 
 
 
 
 
Contingent consideration liabilities
 
$
621

 
Projected EBITDA and net residual income and probability of achievement
 
N/A

 
N/A

 
N/A

(A) Weighted by relative fair value.
(B) The Company valued $143,265,000 of investments using generally, an equal weighting of EBITDA and revenue multiples in the overall valuation approach which included the use of market comparable companies. The Company valued $38,653,000 of investments using only discounted cash flows.


F-229

 
 
 
 
 
 
 
 
Range
 
 
Fair Value as of December 31, 2018
 
Unobservable Input
 
Weighted Average (A)
 
Minimum
 
Maximum
Assets:
 
 
 
 
 
 
 
 
 
 
SBA unguaranteed non-affiliate investments - accrual loans
 
$
329,340

 
Market yields
 
6.40
%
 
6.40
%
 
6.40
%
SBA unguaranteed non-affiliate investments - non-accrual loans
 
$
20,062

 
Market yields
 
7.89
%
 
7.89
%
 
7.89
%
Controlled equity investments (A)
 
$
157,810

 
EBITDA multiples (B)
 
8.83x

 
3.97x

 
10.00x

 
 
 
 
Revenue multiples (B)
 
1.05x

 
0.15x

 
2.73x

 
 
 
 
Weighted average cost of capital (B)
 
13.46
%
 
11.84
%
 
40.00
%
Controlled debt investments
 
$
13,775

 
Market yields
 
6.34
%
 
4.84
%
 
10.00
%
Non-control/affiliate investments
 
$
1,000

 
Asset value
 
N/A

 
N/A

 
N/A

Servicing assets
 
$
21,360

 
Market yields
 
14.24
%
 
14.24
%
 
14.24
%
Liabilities:
 
 
 
 
 
 
 
 
 
 
Contingent consideration liabilities
 
$
1,733

 
Projected EBITDA and probability of achievement
 
N/A

 
N/A

 
N/A

(A) Weighted by relative fair value.
(B) The Company valued $138,085,000 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 $19,725,000 of investments using only discounted cash flows.
 
NOTE 7—ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITES:
The following table details the components of accounts payable, accrued expenses and other liabilities at December 31, 2019 and December 31, 2018:
 
December 31, 2019
 
December 31, 2018
Due to participants and SBA (1)
$
11,169

 
$
10,682

Accrued payroll and related expenses
2,337

 
3,635

Accrued interest
1,200

 
569

Deferred rent and other lease related liabilities
—

 
2,217

Loan processing, servicing and other loan related expenses
3,023

 
3,083

Contingent consideration liabilities
621

 
1,733

Other
2,474

 
3,102

Total accounts payable, accrued expenses and other liabilities
$
20,824

 
$
25,021

(1) Represents loan related remittances received by NSBF, and due to third parties.


F-230

NOTE 8—BORROWINGS:

At December 31, 2019 and December 31, 2018, the Company had borrowings comprised of the following:
 
December 31, 2019
 
December 31, 2018
 
Commitments
 
Borrowings Outstanding
 
Weighted Average Interest Rate
 
Commitments
 
Borrowings Outstanding
 
Weighted Average Interest Rate
Capital One line of credit - guaranteed (1)
$
150,000

 
$
30,000

 
4.00
%
 
$
100,000

 
$
34,700

 
4.75
%
Capital One line of credit - unguaranteed (1)
—

 
—

 
5.00
%
 
—

 
—

 
—
%
Notes due 2022
—

 
—

 
—
%
 
8,324

 
8,019

 
7.50
%
Notes due 2023
57,500

 
56,035

 
6.25
%
 
57,500

 
55,564

 
6.25
%
Notes due 2024
63,250

 
61,354

 
5.75
%
 
—

 
—

 
—
%
Notes payable - related parties
50,000

 
12,163

 
4.71
%
 
50,000

 
16,840

 
4.84
%
Notes payable - Securitization Trusts
276,637

 
272,376

 
3.97
%
 
220,137

 
216,507

 
4.66
%
Total
$
597,387

 
$
431,928

 
4.61
%
 
$
435,961

 
$
331,630

 
5.02
%

(1) Total combined commitments of the guaranteed and unguaranteed lines of credit were $150,000,000 at December 31, 2019 and $100,000,000 at December 31, 2018.

As of December 31, 2019, our asset coverage was 173%.

Outstanding borrowings under the 2022 Notes, 2023 Notes, 2024 Notes and Notes payable - Securitization Trusts consisted of the following:

 
 
December 31, 2019
 
December 31, 2018
 
 
Notes Due 2023
 
Notes Due 2024
 
Notes Payable- Securitization Trusts
 
Notes Due 2022(1)
 
Notes Due 2023
 
Notes Payable- Securitization Trusts
Principal balance
 
$
57,500

 
$
63,250

 
$
276,637

 
$
8,324

 
$
57,500

 
$
220,137

Unamortized deferred financing costs
 
(1,465
)
 
(1,896
)
 
(4,261
)
 
(305
)
 
(1,936
)
 
(3,630
)
Net carrying amount
 
$
56,035

 
$
61,354

 
$
272,376

 
$
8,019

 
$
55,564

 
$
216,507


(1) On July 29, 2019, the Company issued redemption notices to the holders of the 2022 Notes. The Company redeemed all $8,324,000 in aggregate principal amount of the 2022 Notes on the redemption date of August 29, 2019 at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon from July 1, 2019, through, but excluding, the redemption date.

At December 31, 2019 and December 31, 2018, 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 2023 Notes and 2024 Notes are based on the closing public share price on the date of measurement. On December 31, 2019, the closing price of the 2023 Notes was $25.68 per note, or $59,064,000. On December 31, 2018, the closing price of the 2023 Notes was $25.00 per note, or $57,500,000. On December 31, 2019, the closing price of the 2024 Notes was $25.94 per note, or $65,628,000. On December 31, 2018, the closing price of the 2022 Notes was $25.40 per note, or $8,457,000. These borrowings are not recorded at fair value on a recurring basis.
Total interest expense including unused line fees and amortization of deferred financing costs related to borrowings for the year ended December 31, 2019 and 2018 was $20,415,000 and $16,046,000, 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

F-231

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. In June 2019, the facility was increased from $100,000,000 to $150,000,000.

At December 31, 2019, there was $30,000,000 outstanding under the guaranteed line of credit. No amounts were outstanding under the unguaranteed line of credit. At December 31, 2019 NSBF was in full compliance with all applicable loan covenants.

For the years ended December 31, 2019, 2018 and 2017, interest expense including amortization of related deferred financing costs was $2,122,000, $1,473,000 and $1,188,000, respectively.

Notes Due 2023

On February 21, 2018, the Company closed a public offering of $50,000,000 in aggregate principal amount of its 2023 Notes. The 2023 Notes will mature on March 1, 2023 and may be redeemed in whole or in part at any time or from time to time at Newtek’s option on or after March 1, 2020. 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, beginning June 1, 2018. In February 2018, the underwriters exercised their option to purchase an additional $7,500,000 in aggregate principal amount of the 2023 Notes. Total net proceeds received after deducting underwriters’ discount and expenses was $55,176,000. The 2023 Notes are listed on the Nasdaq Global Market under the trading symbol “NEWTI.” A portion of the proceeds were used to redeem the outstanding 2021 Notes. 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, 2019 and 2018 interest expense including amortization of related deferred financing costs was $4,065,000 and $3,483,000, respectively. No interest expense was incurred during the year ended December 31, 2017.

Notes dues 2024

On July 25, 2019, the Company closed a public offering of $55,000,000 in aggregate principal amount of its 2024 Notes. The 2024 Notes will mature on August 1, 2024 and may be redeemed in whole or in part at any time or from time to time at Newtek’s option on or after August 1, 2021. The 2024 Notes bear interest at a rate of 5.75% per year payable quarterly on August 1, November 1, February 1 and May 1, of each year, beginning November 1, 2019. Total net proceeds received after deducting underwriters’ discount and expenses was $53,313,000. The 2024 Notes are listed on the Nasdaq Global Market under the trading symbol “NEWTL” and were rated “A-“ by Egan-Jones. A portion of the proceeds were used to redeem the outstanding 2022 Notes. In August 2019, the underwriters exercised their option to purchase an additional $8,250,000 in aggregate principal amount of the 2024 Notes resulting in an additional $8,003,000 in net proceeds. As a result of the redemption of the 2022 Notes, the Company recorded a $251,000 loss on extinguishment of debt during the year ended December 31, 2019, equivalent to the balance of unamortized deferred financing costs as of the redemption date.

For the year ended December 31, 2019 interest expense including amortization of related deferred financing costs was $1,701,000. No interest expense was incurred during the years ended December 31, 2018 and 2017.

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 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 2021 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.


F-232

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 and 2017 interest expense including amortization of related deferred financing costs was $718,000 and $3,164,000. No interest expense was incurred during the year ended December 31, 2019.

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 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. On August 29, 2019, the Company redeemed all $8,324,000 in aggregate principal amount of the Notes on the redemption date of August 29, 2019 at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon from July 1, 2019, through, but excluding, the redemption date.

For the years ended December 31, 2019, 2018 and 2017, interest expense including amortization of related deferred financing costs was $469,000, $707,000 and $707,000, 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 on the Consolidated Statements of Assets and Liabilities.

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. The Class A and Class B notes bear interest at a rate of 1 month LIBOR plus 3.0% and 4.25%, respectively.


F-233

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. The Class A and Class B notes bear interest at a rate of 1 month LIBOR plus 2.0% and 3.0%, respectively.

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.

In March 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.

In July 2019, the 2014-1 Trust was terminated as a result of NSBF purchasing the 2014-1 Trust assets, with the 2014-1 Trust’s noteholders receiving the redemption price.

In October 2019, NSBF completed its tenth securitization which resulted in the transfer of $118,920,000 of unguaranteed portions of SBA loans to the 2019-1 Trust, The 2019-1 Trust in turn issued securitization notes for the par amount of $118,920,000, consisting of $93,540,000 of Class A notes and $25,380,000 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 December 2044. The Class A and Class B notes bear interest at a rate of LIBOR plus 1.83% across both classes.

For the years ended December 31, 2019, 2018 and 2017, interest expense including amortization of related deferred financing costs and discount was $11,148,000, $8,748,000 and $5,537,000, respectively.

At December 31, 2019 and 2018, the assets of the consolidated Trusts totaled $375,295,000 and $336,716,000, respectively. The liabilities of the consolidated Trusts totaled $276,637,000 and $220,137,000, respectively.

Note 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 had an interest rate equal to 1 month LIBOR (with a floor of 0.50%) plus 6.0% or 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 of 1 month LIBOR plus 2.5% or the Prime Rate plus 1.5%.

At December 31, 2019, the Related Party RLOC interest rate was 4.71%. The Related Party RLOC has a maturity date of November 8, 2023. Outstanding borrowings from NMS at December 31, 2019 under the Related Party RLOC were $12,163,000.

For the years ended December 31, 2019, 2018 and 2017, interest expense was $911,000, $916,000 and $780,000, respectively.

F-234

Total expected principal repayments on the Company’s borrowings for the next five fiscal years and thereafter are as follows:
December 31,
Borrowings
2020
$
30,000

2021
—

2022
—

2023
69,663

2024
63,250

Thereafter
276,637

 
$
439,550


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, 2019 for future minimum cash payments required under operating lease and employment agreements:
Year
Operating Leases
 
Employment Agreements (1)
 
Total
2020
$
1,662

 
$
384

 
$
2,046

2021
1,563

 
—

 
1,563

2022
1,576

 
—

 
1,576

2023
1,619

 
—

 
1,619

2024
3,281

 
—

 
3,281

Thereafter
3,670

 
—

 
3,670

Total
$
13,371

 
$
384

 
$
13,755

(1) Employment agreements with the Company’s named executive officers
Legal Matters

In the ordinary course of business, the Company and its wholly owned portfolio companies may from time to time be party to lawsuits and claims. The Company evaluates such matters on a case by case basis and its policy is to contest vigorously any claims it believes are without compelling merit. The Company is not currently involved in any litigation matters that are expected to have a material impact on the Company’s financial condition.

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 $35,000,000. The Sterling Receivable and Inventory Facility matures in August 2022 and automatically renews annually. At December 31, 2019, total principal owed by NBC was $25,802,000. In addition, the Company deposited $750,000 to collateralize the guarantee. At December 31, 2019, 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, 2019, total principal owed by NBL was $12,165,000. At December 31, 2019, the Company determined that it is not probable that payments would be required to be made under the guarantee.

F-235


The Company is a guarantor on the Webster Facility, a term loan facility between NMS with Webster Bank with an aggregate principal amount up to $50,000,000. The Webster Facility matures in November 2023. At December 31, 2019, total principal outstanding was $32,375,000. At December 31, 2019, the Company determined that it is not probable that payments would be required to be made under the guarantee.

Unfunded Commitments

At December 31, 2019, the Company had $7,653,000 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—FINANCIAL HIGHLIGHTS:

The financial highlights for the Company are as follows:

 
 
Year Ended
 
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
Per share data ¹
 
 
 
 
 
 
Net asset value at beginning of period
 
$
15.19

 
$
15.08

 
$
14.30

Net investment loss
 
(0.29
)
 
(0.40
)
 
(0.45
)
Net realized gain on investments
 
2.61

 
2.31

 
2.27

Net unrealized appreciation on investments
 
0.24

 
0.36

 
0.75

Net unrealized depreciation on servicing assets
 
(0.27
)
 
(0.30
)
 
(0.20
)
Change in deferred taxes
 
(0.16
)
 
(0.06
)
 
(0.12
)
Net increase in net assets resulting from operations
 
2.13

 
1.91

 
2.25

Distributions to common stockholders
 
(2.15
)
 
(1.80
)
 
(1.64
)
Stock-based compensation expense
 
0.03

 
0.02

 
0.05

Accretive effect of stock offerings (issuing shares above NAV per share)
 
0.51

 
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

 
0.01

 
—

Dilutive effect of restricted stock awards
 
(0.01
)
 
(0.08
)
 
—

Other ⁴
 
(0.01
)
 
0.01

 
0.09

Net asset value at end of period
 
$
15.70

 
$
15.19

 
$
15.08

 
 
 
 
 
 
 
Per share market value at end of period
 
$
22.65

 
$
17.44

 
$
18.49

Total return based on market value ²
 
17.55
 %
 
4.06
 %
 
26.60
 %
Total return based on average net asset value ² ³
 
17.48
 %
 
12.67
 %
 
16.92
 %
Shares outstanding at end of period (in thousands)
 
20,530

 
18,919

 
18,457

 
 
 
 
 
 
 
Ratios/Supplemental Data:
 
 
 
 
 
 
Net assets at end of period
 
$
322,225

 
$
287,445

 
$
278,329

Ratio of expenses to average net assets
 
21.29
 %
 
20.15
 %
 
19.20
 %
Ratio of net investment loss to average net assets
 
(1.84
)%
 
(2.65
)%
 
(3.23
)%
Portfolio turnover
 
130.71
 %
 
130.41
 %
 
116.40
 %
Average debt outstanding
 
$
388,525

 
$
279,254

 
$
193,747

Average debt outstanding per share
 
$
18.92

 
$
14.76

 
$
10.50

Asset coverage ratio ⁵
 
173
 %
 
185
 %
 
229
 %

F-236

(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 $439,550,000, $337,501,000 and $221,007,000 of senior securities outstanding at December 31, 2019, 2018 and 2017, respectively.

NOTE 11—STOCK BASED COMPENSATION:

Stock Plan

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 to three 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, if any, and the remaining shares of restricted stock available for issuance as of December 31, 2019.

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
)
Year ended December 31, 2019
 
(6,285
)
Restricted stock available for issuance as of December 31, 2019
 
1,274,207

(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.

As of December 31, 2019, there was $762,000 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 1.30 years as of December 31, 2019.

For the years ended December 31, 2019, 2018, and 2017, the Company recognized total stock-based compensation expense of $636,000, $585,000, and $963,000, respectively.

NOTE 12—COMMON STOCK:

ATM Program

On August 31, 2018, the Company entered into the 2017 ATM Equity Distribution Agreement which increased the maximum number of shares that the Company may offer and sell under its existing ATM distribution agreement up to 4,400,000 shares of common stock from time to time through the ATM placement agents.


F-237

The following table summarizes the total shares sold and net proceeds received under the Second Amended and Restated 2017 ATM Equity Distribution Agreement:
 
 
Year Ended December 31, 2019
 
Year Ended December 31, 2018
 
Year Ended December 31, 2017
Shares sold
 
187,962

 
291,232

 
1,139,181

Net weighted average price per share
 
$
19.46

 
$
19.14

 
$
17.58

Net proceeds
 
$
3,650

 
$
5,196

 
$
19,620


On July 8, 2019, the Company gave notice to terminate the 2017 ATM Equity Distribution Agreement, with such termination effective as of July 9, 2019. As of July 9, 2019, the Company had sold 1,618,375 shares of its common stock under the 2017 ATM Equity Distribution Agreement, and received net proceeds of $28,466,000. The Company paid the ATM placement agents $586,000 in compensation.

On July 10, 2019, the Company entered into the 2019 ATM Equity Distribution Agreement. The 2019 ATM Equity Distribution Agreement provides that the Company may offer and sell up to 3,000,000 shares of common stock from time to time through the placement agents. The company paid the placement agents $617,000 in compensation.

The following table summarizes the total shares sold and net proceeds received under the 2019 ATM Equity Distribution Agreement:
 
 
Year Ended December 31, 2019
Shares sold
 
1,356,698

Net weighted average price per share
 
$
22.27

Net proceeds
 
$
30,212


The Company used the net proceeds for funding investments in debt and equity securities in accordance with its investment objective and strategies.

As of December 31, 2019, there were 1,353,256 shares of common stock available for sale under the 2019 ATM Equity Distribution Agreement.

Public Offering

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. Total proceeds net of underwriting discounts and offerings costs were $37,042,000.

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.

NOTE 13—EARNINGS PER SHARE:

The following table summarizes the calculations for the net increase in net assets resulting from operations per common share for the years ended December 31, 2019, 2018 and 2017:

F-238
Table of Contents

 
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
Net increase in net assets resulting from operations
 
$
41,135

 
$
35,678

 
$
38,976

Weighted average shares outstanding
 
19,326

 
18,714

 
17,327

Net increase in net assets resulting from operations per common share
 
$
2.13

 
$
1.91

 
$
2.25


NOTE 14—LEASES:

Under ASC 842, operating lease expense is generally recognized on a straight-line basis over the term of the lease. The Company has entered into operating lease agreements for office space with remaining contractual terms up to 8 years, some of which include renewal options that extend the leases for up to 10 years. These renewal options are not considered in the remaining lease term unless it is reasonably certain the Company will exercise such options. The operating lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As the rate implicit in the leases generally is not readily determinable for our operating leases, the discount rates used to determine the present value of our lease liability are based on our incremental borrowing rate at the lease commencement date and commensurate with the remaining lease term. Our incremental borrowing rate for a lease is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

The following table summarizes supplemental cash flow and other information related to our operating leases:
 
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)
 
$
1,609

 
n/a

 
n/a

Weighted-average remaining lease term - operating leases
 
7.03 years
 
n/a

 
n/a

Weighted-average discount rate - operating leases
 
4.76
%
 
n/a

 
n/a

Total lease costs (included in other general and administrative costs on the consolidated statements of operations)
 
$
941

 
$
1,238

 
$
1,094


The following table represents the maturity of the Company’s operating lease liabilities as of December 31, 2019:
Maturity of Lease Liabilities
 
2020
1,646

2021
1,555

2022
1,576

2023
1,619

2024
1,663

Thereafter
3,670

Total future minimum lease payments
$
11,729

Less: Imputed interest
$
(1,832
)
Present value of future minimum lease payments
$
9,897


NOTE 15—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, 2019 and 2018.


F-239

Date Declared
 
Record Date
 
Payment Date
 
Amount Per Share
 
Cash Distribution
 
DRIP Shares Issued
 
DRIP Shares Value
Year ended December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
February 15, 2019
 
March 15, 2019
 
March 29, 2019
 
$
0.40

 
$
7,355

 
12

 
$
220

May 1, 2019
 
June 14, 2019
 
June 28, 2019
 
$
0.46

 
$
8,482

 
12

 
$
260

August 21, 2019
 
September 20, 2019
 
September 30, 2019
 
$
0.58

 
$
10,899

 
14

 
$
300

October 10, 2019
 
December 16, 2019
 
December 30, 2019
 
$
0.71

 
$
14,034

 
16

 
$
347

 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended 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


During the years ended December 31, 2019 and 2018, an additional 12,200 and 11,200 shares valued at $267,000 and $211,000, respectively, were issued related to dividends on unvested restricted stock awards.

NOTE 16—BENEFIT PLANS:
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, 2019, 2018 and 2017, the Company matched 50% of the first 2% of employee contributions, resulting in $131,000, $126,000 and $197,000 in expense, respectively.

NOTE 17—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, 2019, 2018 and 2017.

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, 2019, the Company decreased additional paid in capital by $290,000 and increased accumulated undistributed earnings by $290,000. 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.

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.


F-240

The following table reconciles net increase in net assets resulting from operations to taxable income for the years ended December 31, 2019, 2018 and 2017:
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
Net increase in net assets
$
41,135

 
$
35,678

 
$
38,976

Net change in unrealized depreciation on investments
482

 
(1,069
)
 
(9,619
)
Net change in deferred tax liabilities
3,164

 
1,077

 
2,179

GAAP versus tax basis consolidation of subsidiaries
1,329

 
926

 
1,210

Other income (deductions/losses) for tax, not book
(24
)
 
1,029

 
181

Other differences
(4,500
)
 
(3,844
)
 
(2,593
)
Taxable income before deductions for distributions
$
41,586

 
$
33,797

 
$
30,334


The tax character of distributions paid during the years ended December 31, 2019, 2018 and 2017 were as follows:
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
Ordinary income
$
37,709

 
$
32,499

 
$
24,866

Long-term capital gains
4,187

 
1,034

 
4,068

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 24% 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.
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, 2019, 2018 and 2017 were as follows:
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
Undistributed ordinary income - tax basis
$
3,713

 
$
4,045

 
$
3,782

Undistributed net realized gains - tax basis
—

 
—

 
—

Net change in unrealized appreciation on investments
16,811

 
20,457

 
20,466

GAAP versus tax basis consolidation of subsidiaries
(887
)
 
442

 
1,369

Other temporary differences
12,215

 
7,624

 
4,982

Total accumulated earnings - book basis
$
31,852

 
$
32,568

 
$
30,599


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 18—SUPPLEMENTAL FINANCIAL DATA:

In accordance with the SEC’s Regulation S-X and GAAP, we are not permitted to consolidate any subsidiary or other entity that is not an investment company, including those in which we have a controlling interest. We had one unconsolidated subsidiary that met at least one of the significance conditions under Rule 1-02(w) of Regulation S-X during certain periods presented for which we are required, pursuant to Rule 3-09 of Regulation S-X, to attach separate financial statements as exhibits to the Form 10-K. Accordingly, the audited financial statements of NMS for the years ended December 31, 2019 and 2018 and unaudited financial statements for the year ended December 31, 2017 have been attached as exhibits.


F-241

NOTE 19—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, 2019. 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
2019
March 31
 
June 30
 
September 30
 
December 31
Total investment income
$
13,764

 
$
14,149

 
$
16,021

 
$
15,361

Net investment loss
$
(986
)
 
$
(1,079
)
 
$
(533
)
 
$
(3,021
)
Net gain on investments
$
10,069

 
$
9,757

 
$
11,170

 
$
15,759

Net increase in net assets resulting from operations
$
9,083

 
$
8,678

 
$
10,637

 
$
12,738

Net increase in net assets resulting from operations per share
$
0.48

 
$
0.45

 
$
0.55

 
$
0.64

Net asset value per share at period end
$
15.31

 
$
15.33

 
$
15.41

 
$
15.70

 
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


NOTE 20—SUBSEQUENT EVENTS:

Common Stock

From January 1, 2020 through March 13, 2020 the Company sold 290,046 shares of its common stock at a weighted average price of $21.47 per share under the 2019 ATM Equity Distribution Agreement. Proceeds, net of offering costs and expenses were $6,228,000. As of March 13, 2020, there were 1,353,256 shares of common stock available for sale under the 2019 ATM Equity Distribution Agreement.
 
Dividend Declaration

On February 5, 2020, the Company declared a quarterly cash dividend of $0.44 per share payable on March 31, 2020 to shareholders of record as of March 18, 2020. 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.

On February 28, 2020, we amended our 2019 ATM Equity Distribution Agreement to add UBS Securities LLC as a placement agent, effectively immediately.

F-242

Newtek Business Services Corp. and Subsidiaries
Schedule of Investments In and Advances to Affiliates
Year Ended December 31, 2019
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, 2018
 
Gross Additions (4)
 
Gross Reductions (5)
 
Fair Value at December 31, 2019
Advanced Cyber Security Systems, LLC
 
50% Membership Interest (2)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
 
Term Loan (3%) (2)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Automated Merchant Services, Inc.
 
100% Common Stock (2)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CDS Business Services, Inc.
 
100% Common Stock (2)
 
—

 
(2,000
)
 
—

 
5,000

 
—

 
(2,000
)
 
3,000

 
 
Line of Credit (Prime + 2.5%) (6)
 
—

 
—

 
402

 
5,000

 
360

 
(360
)
 
5,000

 
 
Term Loan (10%)
 
 
 
 
 
35

 
1,000

 
—

 
(1,000
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newtek Technology Solutions, Inc.
 
100% Common Stock (2)
 
—

 
500

 
—

 
8,500

 
2,000

 
(1,500
)
 
9,000

 
 
Line of Credit (10%)
 
—

 
—

 
522

 
6,800

 
3,561

 
—

 
10,361

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newtek Insurance Agency, LLC
 
100% Membership Interest(2)
 
—

 
—

 
—

 
2,215

 
—

 
—

 
2,215

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PMTWorks Payroll, LLC
 
100% Membership Interest(2)
 
—

 
(622
)
 
—

 
—

 
622

 
(622
)
 
—

 
 
Term Loans (10%-12%)(2)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Small Business Lending, LLC
 
100% Membership Interest(2)
 
—

 
6,002

 
—

 
3,300

 
6,350

 
—

 
9,650

 
 
Term Loan (10%)
 
—

 
—

 
23

 
—

 
400

 
—

 
400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
banc-serv Partners, LLC
 
100% Membership Interest (2)
 
—

 
(286
)
 
—

 
—

 
286

 
(286
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
International Professional Marketing, Inc.
 
100% Common Stock
 
—

 
850

 
900

 
3,300

 
850

 
—

 
4,150

 
 
Line of Credit (Prime + 0.5%)(6)
 
—

 
—

 
8

 
800

 
—

 
(800
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SIDCO, LLC
 
100% Membership Interest
 
—

 
(1,170
)
 
700

 
7,820

 
—

 
(1,170
)
 
6,650

 
 
Line of Credit (Prime + 0.5%)(6)
 
—

 
—

 
9

 
175

 
750

 
(75
)
 
850

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newtek Merchant Solutions, LLC
 
100% Membership Interest
 
—

 
5,000

 
11,490

 
116,250

 
5,000

 
—

 
121,250

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Titanium Asset Management, LLC
 
100% Membership Interest(2)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
Term Loan (10%)(2)
 
—

 
(316
)
 
—

 
—

 
900

 
(510
)
 
390


F-243

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, 2018
 
Gross Additions (4)
 
Gross Reductions (5)
 
Fair Value at December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newtek Business Lending, LLC
 
100% Membership Interest(2)
 
—

 
630

 
—

 
8,445

 
18,008

 
(4,200
)
 
22,253

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newtek Conventional Lending, LLC
 
50% Membership Interest
 
—

 
1,853

 
822

 
—

 
16,123

 
—

 
16,123

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mobil Money, LLC
 
100% Membership Interest
 
—

 
770

 
375

 
2,980

 
770

 
—

 
3,750

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
POS on Cloud, LLC
 
50.1% Membership Interest
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
Term Loan (10%)
 
—

 
—

 
24

 
 
 
775

 
—

 
775

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excel WebSolutions LLC
 
Term Loans (10%)(2)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
50% Membership Interest(2)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Controlled Investments
 
 
 
$
—

 
$
11,211

 
$
15,310

 
$
171,585

 
$
56,755

 
$
(12,523
)
 
$
215,817

Non-Control/Affiliate Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EMCAP Loan Holdings, LLC
 
6.04% Membership Interest
 
$
—

 
$
—

 
$
111

 
$
1,000

 
$
—

 
$
—

 
$
1,000

Total Affiliate Investments
 
 
 
$
—

 
$
11,211

 
$
15,421

 
$
172,585

 
$
56,755

 
$
(12,523
)
 
$
216,817


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 plus a contractual spread which typically resets monthly. At December 31, 2019, the Prime rate was 5.00%.


F-244
Exhibit
Exhibit 4.2

DESCRIPTION OF SECURITIES

As of December 31, 2019, Newtek Business Services Corp. (the “Company,” “we,” “our,” or “us”) had two classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: (1) our common stock and (2) our debt securities.

Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Annual Report on Form 10-K to which this Description of Securities is attached as an exhibit.

A.
Common Stock, $0.02 par value per share

As of December 31, 2019, the authorized capital stock of Newtek Business Services Corp. consisted of 200,000,000 shares of stock, par value $0.02 per share, all of which are initially designated as common stock. Our common stock is traded on the Nasdaq Global Market under the ticker symbol “NEWT.”
All shares of our common stock have equal rights as to earnings, assets, voting, and distributions and, when they are issued, will be duly authorized, validly issued, fully paid and non-assessable. Distributions may be paid to the holders of our common stock if, as and when authorized by our Board and declared by us out of assets legally available therefor. Shares of our common stock have no preemptive, conversion or redemption rights and are freely transferable, except where their transfer is restricted by federal and state securities laws or by contract. In the event of our liquidation, dissolution or winding up, each share of our common stock would be entitled to share ratably in all of our assets that are legally available for distribution after we pay all debts and other liabilities and subject to any preferential rights of holders of our preferred stock, if any preferred stock is outstanding at such time. Each share of our common stock is entitled to one vote on all matters submitted to a vote of stockholders, including the election of directors. Except as provided with respect to any other class or series of stock, the holders of our common stock will possess exclusive voting power. There is no cumulative voting in the election of directors, which means that holders of a majority of the outstanding shares of common stock can elect all of our directors, and holders of less than a majority of such shares will be unable to elect any director.
Under our charter, our Board is authorized to classify and reclassify any unissued shares of stock into other classes or series of stock without obtaining stockholder approval. Our charter also provides that the Board, without any action by our stockholders, may amend the charter from time to time to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that we have authority to issue.

Options and Restricted Stock
From time to time, at the discretion of the Compensation, Corporate Governance and Nominating Committee, the Company intends to grant stock options to the named executive officers and other employees to create a clear and strong alignment between compensation and stockholder return and to enable the named executive officers and other employees to develop and maintain a stock ownership position in the company that will vest over time and act as an incentive for the employee to remain with the Company. Stock options may be granted pursuant to the Newtek Business Services Corp. 2014 Plan.
On May 10, 2016, the SEC issued order for exemptive relief that, with the stockholders’ 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 business development companies. Specifically, the SEC order permits us to (i) issue restricted stock awards to our officers, employees and directors and (ii) issue stock options to our non-employee directors.
We also may in the future request exemptive relief to permit us to grant dividend equivalent right to our option holders. However, there is no assurance that we will receive any such exemptive relief.
Maryland law permits a Maryland corporation to include in its charter a provision limiting the liability of its directors and officers to the corporation and its stockholders for money damages except for liability resulting from (a) actual receipt of an improper benefit or profit in money, property or services or (b) active and deliberate dishonesty established by a final judgment as being material to the cause of action. Our charter contains such a provision which eliminates directors’ and officers’ liability to the maximum extent permitted by Maryland law, subject to the requirements of the 1940 Act.
Limitation on Liability of Directors and Officers; Indemnification and Advance of Expenses

Our charter authorizes us, to the maximum extent permitted by Maryland law and subject to the requirements of the 1940 Act, to indemnify any present or former director or officer or any individual who, while serving as our director or officer and at our request, serves or has served another corporation, real estate investment trust, partnership, joint venture, trust, employee benefit plan or other enterprise as a director, officer, partner or trustee, from and against any claim or liability to which that person may become subject or which that person may incur by reason of his or her service in such capacity and to pay or reimburse their reasonable expenses in advance of final disposition of a proceeding. Our bylaws obligate us, to the maximum extent permitted by Maryland law and subject to the requirements of the 1940 Act, to indemnify any present or former director or officer or any individual who, while serving as our director or officer and at our request, serves or has served another corporation, real estate investment trust, partnership, joint venture, trust, employee benefit plan or other enterprise as a director, officer, partner or trustee and who is made, or threatened to be made, a party to the proceeding by reason of his or her service in that capacity from and against any claim or liability to which that person may become subject or which that person may incur by reason of his or her service in any such capacity and to pay or reimburse his or her reasonable expenses in advance of final disposition of a proceeding. The charter and bylaws also permit us to indemnify and advance expenses to any person who served a predecessor of us in any of the capacities described above and any of our employees or agents or any employees or agents of our predecessor. In accordance with the 1940 Act, we will not indemnify any person for any liability to which such person would be subject by reason of such person’s willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office.
Maryland law requires a corporation (unless its charter provides otherwise, which our charter does not) to indemnify a director or officer who has been successful in the defense of any proceeding to which he or she is made, or threatened to be made, a party by reason of his or her service in that capacity. Maryland law permits a corporation to indemnify its present and former directors and officers, among others, against judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to which they may be made a party by reason of their service in those or other capacities unless it is established that (a) the act or omission of the director or officer was material to the matter giving rise to the proceeding and (1) was committed in bad faith or (2) was the result of active and deliberate dishonesty, (b) the director or officer actually received an improper personal benefit in money, property or services or (c) in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful. However, under Maryland law, a




Maryland corporation may not indemnify for an adverse judgment in a suit by or in the right of the corporation or for a judgment of liability on the basis that a personal benefit was improperly received unless, in either case, a court orders indemnification, and then only for expenses. In addition, Maryland law permits a corporation to advance reasonable expenses to a director or officer upon the corporation’s receipt of (a) a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard of conduct necessary for indemnification by the corporation and (b) a written undertaking by him or her or on his or her behalf to repay the amount paid or reimbursed by the corporation if it is ultimately determined that the standard of conduct was not met.
Certain Provisions of the Maryland General Corporation Law and Our Charter and Bylaws
The Maryland General Corporation Law and our charter and bylaws contain provisions that could make it more difficult for a potential acquirer to acquire us by means of a tender offer, proxy contest or otherwise. These provisions are expected to discourage certain coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of us to negotiate first with our Board. We believe that the benefits of these provisions outweigh the potential disadvantages of discouraging any such acquisition proposals because, among other things, the negotiation of such proposals may improve their terms.

Classified Board of Directors
Our Board is divided into three classes of directors serving staggered three-year terms. The first expires in 2018, the second class expires in 2019, and the third class expires in 2020. Upon expiration of their current terms, directors of each class will be elected to serve for three-year terms and until their successors are duly elected and qualify and each year one class of directors will be elected by the stockholders. A classified board may render a change in control of us or removal of our incumbent management more difficult. We believe, however, that the longer time required to elect a majority of a classified board of directors will help to ensure the continuity and stability of our management and policies.

Election of Directors
Our charter and bylaws provide that the affirmative vote of the holders of a plurality of the outstanding shares of stock entitled to vote in the election of directors cast at a meeting of stockholders duly called and at which a quorum is present will be required to elect a director. Pursuant to our charter our Board may amend the bylaws to alter the vote required to elect directors.

Number of Directors; Vacancies; Removal
Our charter provides that the number of directors will be set only by the Board in accordance with our bylaws. Our bylaws provide that a majority of our entire Board may at any time increase or decrease the number of directors. However, unless our bylaws are amended, the number of directors may never be less than one nor more than twelve. Our charter provides that, at such time as we have at least three independent directors and our common stock is registered under the Securities Exchange Act of 1934, as amended, we elect to be subject to the provision of Subtitle 8 of Title 3 of the Maryland General Corporation Law regarding the filling of vacancies on the board of directors. Accordingly, at such time, except as may be provided by the Board in setting the terms of any class or series of preferred stock, any and all vacancies on the Board may be filled only by the affirmative vote of a majority of the remaining directors in office, even if the remaining directors do not constitute a quorum, and any director elected to fill a vacancy will serve for the remainder of the full term of the directorship in which the vacancy occurred and until a successor is elected and qualifies, subject to any applicable requirements of the 1940 Act.




Our charter provides that a director may be removed only for cause, as defined in our charter, and then only by the affirmative vote of at least two-thirds of the votes entitled to be cast in the election of directors.

Action by Stockholders
Under the Maryland General Corporation Law, stockholder action can be taken only at an annual or special meeting of stockholders or (unless the charter provides for stockholder action by less than unanimous written consent, which our charter does not) by unanimous written consent in lieu of a meeting. These provisions, combined with the requirements of our bylaws regarding the calling of a stockholder-requested special meeting of stockholders discussed below, may have the effect of delaying consideration of a stockholder proposal until the next annual meeting.

Advance Notice Provisions for Stockholder Nominations and Stockholder Proposals
Our bylaws provide that with respect to an annual meeting of stockholders, nominations of persons for election to the Board and the proposal of business to be considered by stockholders may be made only (a) pursuant to our notice of the meeting, (b) by the Board or (c) by a stockholder who is entitled to vote at the meeting and who has complied with the advance notice procedures of our bylaws. With respect to special meetings of stockholders, only the business specified in our notice of the meeting may be brought before the meeting. Nominations of persons for election to the Board at a special meeting may be made only (1) pursuant to our notice of the meeting, (2) by the Board or (3) provided that the Board has determined that directors will be elected at the meeting, by a stockholder who is entitled to vote at the meeting and who has complied with the advance notice provisions of the bylaws.
The purpose of requiring stockholders to give us advance notice of nominations and other business is to afford our Board a meaningful opportunity to consider the qualifications of the proposed nominees and the advisability of any other proposed business and, to the extent deemed necessary or desirable by our Board, to inform stockholders and make recommendations about such qualifications or business, as well as to provide a more orderly procedure for conducting meetings of stockholders. Although our bylaws do not give our Board any power to disapprove stockholder nominations for the election of directors or proposals recommending certain action, they may have the effect of precluding a contest for the election of directors or the consideration of stockholder proposals if proper procedures are not followed and of discouraging or deterring a third party from conducting a solicitation of proxies to elect its own slate of directors or to approve its own proposal without regard to whether consideration of such nominees or proposals might be harmful or beneficial to us and our stockholders.

Calling of Special Meetings of Stockholders
Our bylaws provide that special meetings of stockholders may be called by our Board and certain of our officers. Additionally, our bylaws provide that, subject to the satisfaction of certain procedural and informational requirements by the stockholders requesting the meeting, a special meeting of stockholders will be called by the secretary of the corporation upon the written request of stockholders entitled to cast not less than a majority of all the votes entitled to be cast at such meeting.

Approval of Extraordinary Corporate Action; Amendment of Charter and Bylaws
Under Maryland law, a Maryland corporation generally cannot dissolve, amend its charter, merge, sell all or substantially all of its assets, engage in a share exchange or engage in similar transactions outside the ordinary course of business, unless approved by the affirmative vote of stockholders entitled to cast at least two-thirds of the votes entitled to be cast on the matter. However, a Maryland corporation may provide in its charter for approval of




these matters by a lesser percentage, but not less than a majority of all of the votes entitled to be cast on the matter. Our charter generally provides for approval of charter amendments and extraordinary transactions by the stockholders entitled to cast at least a majority of the votes entitled to be cast on the matter. Our charter also provides that certain charter amendments, any proposal for our conversion, whether by charter amendment, merger or otherwise, from a closed-end company to an open-end company and any proposal for our liquidation or dissolution requires the approval of the stockholders entitled to cast at least a majority of the votes entitled to be cast on such matter. However, if such amendment or proposal is approved by a majority of our continuing directors (in addition to approval by our Board), such amendment or proposal may be approved by a majority of the votes entitled to be cast on such a matter. The “continuing directors” are defined in our charter as (1) our current directors, (2) those directors whose nomination for election by the stockholders or whose election by the directors to fill vacancies is approved by a majority of our current directors then on the Board or (3) any successor directors whose nomination for election by the stockholders or whose election by the directors to fill vacancies is approved by a majority of continuing directors or the successor continuing directors then in office. In any event, in accordance with the requirements of the 1940 Act, any amendment or proposal that would have the effect of changing the nature of our business so as to cause us to cease to be, or to withdraw our election as, a BDC would be required to be approved by a majority of our outstanding voting securities, as defined under the 1940 Act.
Our charter and bylaws provide that the Board will have the exclusive power to make, alter, amend or repeal any provision of our bylaws. In a Special Meeting of Stockholders held on July 26, 2018, our stockholders rejected a proposal that would have allowed our stockholders to amend our bylaws.
No Appraisal Rights
Except with respect to appraisal rights arising in connection with the Control Share Act discussed below, as permitted by the Maryland General Corporation Law, our charter provides that stockholders will not be entitled to exercise appraisal rights unless a majority of the Board shall determine such rights apply.

Control Share Acquisitions
The Maryland General Corporation Law provides that control shares of a Maryland corporation acquired in a control share acquisition have no voting rights except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter (the “Control Share Act”). Shares owned by the acquirer, by officers or by directors who are employees of the corporation are excluded from shares entitled to vote on the matter. Control shares are voting shares of stock which, if aggregated with all other shares of stock owned by the acquirer or in respect of which the acquirer is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquirer to exercise voting power in electing directors within one of the following ranges of voting power:
•
one-tenth or more but less than one-third;
•
one-third or more but less than a majority; or
•
a majority or more of all voting power.
The requisite stockholder approval must be obtained each time an acquirer crosses one of the thresholds of voting power set forth above. Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval. A control share acquisition means the acquisition of control shares, subject to certain exceptions.




A person who has made or proposes to make a control share acquisition may compel the Board of the corporation to call a special meeting of stockholders to be held within 50 days of demand to consider the voting rights of the shares. The right to compel the calling of a special meeting is subject to the satisfaction of certain conditions, including an undertaking to pay the expenses of the meeting. If no request for a meeting is made, the corporation may itself present the question at any stockholders meeting.
If voting rights are not approved at the meeting or if the acquiring person does not deliver an acquiring person statement as required by the statute, then the corporation may redeem for fair value any or all of the control shares, except those for which voting rights have previously been approved. The right of the corporation to redeem control shares is subject to certain conditions and limitations, including compliance with the 1940 Act. Fair value is determined, without regard to the absence of voting rights for the control shares, as of the date of the last control share acquisition by the acquirer or of any meeting of stockholders at which the voting rights of the shares are considered and not approved. If voting rights for control shares are approved at a stockholders meeting and the acquirer becomes entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of appraisal rights may not be less than the highest price per share paid by the acquirer in the control share acquisition.
The Control Share Act does not apply (a) to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or (b) to acquisitions approved or exempted by the charter or bylaws of the corporation. Our bylaws contain a provision exempting from the Control Share Act any and all acquisitions by any person of our shares of stock. There can be no assurance that such provision will not be amended or eliminated at any time in the future. However, 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.
Business Combinations
Under Maryland law, “business combinations” between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder (the “Business Combination Act”). These business combinations include a merger, consolidation, share exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as:
•
any person who beneficially owns 10% or more of the voting power of the corporation’s outstanding voting stock; or
•
an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then outstanding voting stock of the corporation.
A person is not an interested stockholder under this statute if the board of directors approved in advance the transaction by which the stockholder otherwise would have become an interested stockholder. However, in approving a transaction, the board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the board.
After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least:




•
80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and
•
two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder.
These super-majority vote requirements do not apply if the corporation’s common stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares.
The statute permits various exemptions from its provisions, including business combinations that are exempted by the board of directors before the time that the interested stockholder becomes an interested stockholder. Our Board has adopted a resolution that any business combination between us and any other person is exempted from the provisions of the Business Combination Act, provided that the business combination is first approved by Board, including a majority of the directors who are not interested persons as defined in the 1940 Act. This resolution may be altered or repealed in whole or in part at any time; however, our Board will adopt resolutions so as to make us subject to the provisions of the Business Combination Act only if the Board determines that it would be in our best interests and if the SEC staff does not object to our determination that our being subject to the Business Combination Act does not conflict with the 1940 Act. If this resolution is repealed, or the Board does not otherwise approve a business combination, the statute may discourage others from trying to acquire control of us and increase the difficulty of consummating any offer.

Conflict with 1940 Act
Our bylaws provide that, if and to the extent that any provision of the Maryland General Corporation Law, including the Control Share Act (if we amend our bylaws to be subject to such Act) and the Business Combination Act, or any provision of our charter or bylaws conflicts with any provision of the 1940 Act, the applicable provision of the 1940 Act will control.




B.
Debt Securities

•
6.25% Notes due 2023 (the “2023 Notes”); and
•
5.75% Notes due 2024 (the “2024 Notes,” and together with the 2023 Notes, the “Notes”).

The 2023 Notes

In February 2018, we issued $50,000,000 in aggregate principal amount of 6.25% Notes due 2023 (the “2023 Notes”). In February 2018, we closed on an additional $7.5 million in aggregate principal amount of the 2023 Notes pursuant to a fully-exercised overallotment option granted to the underwriters. The total net proceeds to us, after deducting underwriting discounts and offering expenses, were approximately $55.17 million. As of December 31, 2019, the outstanding principal balance of the 2023 Notes was $57.5 million
The 2023 Notes were issued under a base indenture (the “Base Indenture”), dated September 23, 2015, by and between the Company and U.S. Bank National Association (the “Trustee”), as supplemented by the third supplemental indenture, dated as of February 21, 2018 (the “Third Supplemental Indenture”). 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. The 2023 Notes will mature on March 1, 2023. The 2023 Notes may be redeemed in whole or in part at any time or from time to time at our option on or after March 1, 2020. We have listed the 2023 Notes on The Nasdaq Global Select Market under the trading symbol “NEWTI.”
The 2024 Notes
In July 2019, we issued $55,000,000 in aggregate principal amount of 5.75% notes due 2024 (the “2024 Notes,” and together with the 2023 Notes, the “Notes”). In August 2019, we closed on an additional $8.25 million in aggregate principal amount of the 2024 Notes pursuant to a fully-exercised overallotment option granted to the underwriters. The total net proceeds to us, after deducting underwriting discounts and offering expenses, were approximately $61.3 million. As of December 31, 2019, the outstanding principal balance of the 2024 Notes was $63.25 million.
The 2024 Notes were issued under a base indenture (the “Base Indenture”), dated September 23, 2015, by and between the Company and U.S. Bank National Association (the “Trustee”), as supplemented by the fourth supplemental indenture, dated as of July 29, 2019 (the “Fourth Supplemental Indenture”, and together with the Base Indenture and the Third Supplemental Indenture, the “Indenture”). The 2024 Notes bear interest at a rate of 6.25% per year payable quarterly on February 1, May 1, August 1, and November 1 of each year, beginning on November 1, 2019. The 2024 Notes will mature on August 1, 2024. The 2024 Notes may be redeemed in whole or in part at any time or from time to time at our option on or after August 1, 2021. We have listed the 2024 Notes on The Nasdaq Global Select Market under the trading symbol “NEWTL.”
General
The Indenture provides that any debt securities proposed to be sold may be issued under the Indenture in one or more series.
The Indenture does not limit the amount of debt securities that may be issued thereunder from time to time. Debt securities issued under the Indenture, when a single trustee is acting for all debt securities issued under the Indenture, are called the “indenture securities.” The Indenture also provides that there may be more than one trustee thereunder, each with respect to one or more different series of indenture securities. See “— Resignation of Trustee” below. At a time when two or more trustees are acting under the Indenture, each with respect to only certain series, the term “indenture securities” means the one or more series of debt securities with respect to which each respective trustee is acting. In the event that there is more than one trustee under the Indenture, the powers and trust obligations of each trustee will extend only to the one or more series of indenture securities for which it is trustee. If two or more trustees are acting under the Indenture, then the indenture securities for which each trustee is acting would be treated as if issued under separate indentures.




Except as described under “— Events of Default” and “— Merger or Consolidation” below, the Indenture does not contain any provisions that give you protection in the event we issue a large amount of debt or we are acquired by another entity.
We refer you to the applicable prospectus supplement for information with respect to any deletions from, modifications of or additions to the Events of Default or our covenants, as applicable, that are described below, including any addition of a covenant or other provision providing event risk protection or similar protection.
We have the ability to issue indenture securities with terms different from those of indenture securities previously issued and, without the consent of the holders thereof, to reopen a previous issue of a series of indenture securities and issue additional indenture securities of that series unless the reopening was restricted when that series was created.

Optional Redemption

The 2023 Notes and the 2024 may be redeemed in whole or in part at any time or from time to time at our option on or after March 1, 2020 and August 1, 2021, respectively, upon not less than 30 days nor more than 60 days written notice by mail prior to the date fixed for redemption thereof, at a redemption price of 100% of the outstanding principal amount of the Notes to be redeemed plus accrued and unpaid interest payments otherwise payable thereon for the then-current quarterly interest period accrued to the date fixed for redemption.

You may be prevented from exchanging or transferring the Notes when they are subject to redemption. In case any Notes are to be redeemed in part only, the redemption notice will provide that, upon surrender of such Note, you will receive, without a charge, a new Note or Notes of authorized denominations representing the principal amount of your remaining unredeemed Notes. Any exercise of our option to redeem the Notes will be done in compliance with the 1940 Act.

If we redeem only some of the Notes, the trustee or, with respect to global securities, DTC will determine the method for selection of the particular Notes to be redeemed, in accordance with the Indenture and in accordance with the rules of any national securities exchange or quotation system on which the Notes are listed. Unless we default in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on the Notes called for redemption.

Global Securities

Each Note will be issued in book-entry form and represented by a global security that we deposit with and register in the name of The Depository Trust Company, New York, New York, known as DTC, or its nominee. A global security may not be transferred to or registered in the name of anyone other than the depositary or its nominee, unless special termination situations arise. As a result of these arrangements, the depositary, or its nominee, will be the sole registered owner and holder of all the Notes represented by a global security, and investors will be permitted to own only beneficial interests in a global security. For more information about these arrangements, see “Description of Notes — Book-Entry Procedures” below.

Termination of a Global Security

If a global security is terminated for any reason, interests in it will be exchanged for certificates in non-book-entry form (certificated securities). After that exchange, the choice of whether to hold the certificated Notes directly or in street name will be up to the investor. Investors must consult their own banks or brokers to find out how to have their interests in a global security transferred on termination to their own names, so that they will be holders.

Payment

We will pay interest to the person listed in the trustee’s records as the owner of the Notes at the close of business on a particular day in advance of each due date for interest, even if that person no longer owns the Note on the




interest due date. That day, usually about two weeks in advance of the interest due date, is called the “record date.” Because we will pay all the interest for an interest period to the holders on the record date, holders buying and selling the Notes must work out between themselves the appropriate purchase price. The most common manner is to adjust the sales price of the Notes to prorate interest fairly between buyer and seller based on their respective ownership periods within the particular interest period. This prorated interest amount is called “accrued interest.”

Payments on Global Securities

We will make payments on the Notes so long as they are represented by a global security in accordance with the applicable policies of the depositary as in effect from time to time. Under those policies, we will make payments directly to the depositary, or its nominee, and not to any indirect holders who own beneficial interests in the global security. An indirect holder’s right to those payments will be governed by the rules and practices of the depositary and its participants, as described under “Description of Notes — Book-Entry Procedures.”

Payments on Certificated Securities

In the event the Notes become represented by certificated securities, we will make payments on the Notes as follows. We will pay interest that is due on an interest payment date to the holder of the Notes as shown on the trustee’s records as of the close of business on the regular record date. We will make all payments of principal and premium, if any, by check at the office of the applicable trustee in New York, New York and/or at other offices that may be specified in the Indenture or a notice to holders against surrender of the Note.

Alternatively, at our option, we may pay any cash interest that becomes due on the Notes by mailing a check to the holder at his, her or its address shown on the trustee’s records as of the close of business on the regular record date or by transfer to an account at a bank in the United States, in either case, on the due date.

Payment When Offices Are Closed

If any payment is due on the Notes on a day that is not a business day, we will make the payment on the next day that is a business day. Payments made on the next business day in this situation will be treated under the Indenture as if they were made on the original due date. Such payment will not result in a default under the Notes or the Indenture, and no interest will accrue on the payment amount from the original due date to the next day that is a business day.

Book-entry and other indirect holders should consult their banks or brokers for information on how they will receive payments on the Notes.

Events of Default
You will have rights if an Event of Default occurs in respect of the Notes, as described later in this subsection. The term “Event of Default” in respect of the Notes means any of the following:
 
•
We do not pay the principal of (or premium, if any, on) any Note on its due date and such default is not cured within 5 days of its due date.
An Event of Default for the Notes does not necessarily constitute an Event of Default for any other series of debt securities issued under the same or any other Indenture. The trustee may withhold notice to the holders of the Notes of any default, except in the payment of principal or interest, if it in good faith considers the withholding of notice to be in the best interests of the holders.
 
•
We do not pay interest on any Note when due, and such default is not cured within 30 days of its due date.
 
•
We remain in breach of any other covenant with respect to the Notes for 60 days after we receive a written notice of default stating we are in breach. The notice must be sent by either the trustee or holders of at least 25.0% of the principal amount of the Notes.




 
•
We file for bankruptcy, or certain other events of bankruptcy, insolvency, or reorganization occur and, in the case of certain orders or decrees entered against us under any bankruptcy law, such order or decree remains undischarged or unstayed for a period of 90 days.
 
•
On the last business day of each of twenty-four consecutive calendar months, the Notes have an asset coverage, as defined in the 1940 Act, of less than 100% after giving effect to any exemptive relief granted to us by the SEC.
Remedies if an Event of Default Occurs
If an Event of Default has occurred and is continuing, the trustee or the holders of not less than 25% in principal amount of the Notes may declare the entire principal amount of all the Notes to be due and immediately payable. This is called a declaration of acceleration of maturity. In certain circumstances, a declaration of acceleration of maturity may be canceled by the holders of a majority in principal amount of the Notes if (1) we have deposited with the trustee all amounts due and owing with respect to the Notes (other than principal that has become due solely by reason of such acceleration) and certain other amounts, (2) any other Events of Default have been cured or waived, and (3) we have deposited with the trustee a sum sufficient to pay all sums paid or advanced by the trustee and the reasonable compensation, expenses, disbursements, and advances of the trustee, its agents, and counsel as required under the Indenture in connection with the rescinded Event of Default.

The trustee is not required to take any action under the Indenture at the request of any holders unless the holders offer the trustee protection from expenses and liability reasonably satisfactory to it (called an “indemnity”). If indemnity reasonably satisfactory to the trustee is provided, the holders of a majority in principal amount of the Notes may direct the time, method and place of conducting any lawsuit or other formal legal action seeking any remedy available to the trustee. The trustee may refuse to follow those directions in certain circumstances. No delay or omission in exercising any right or remedy will be treated as a waiver of that right, remedy or Event of Default.

Before you are allowed to bypass the trustee and bring your own lawsuit or other formal legal action or take other steps to enforce your rights or protect your interests relating to the Notes, the following must occur:
 
•
you must give the trustee written notice that an Event of Default has occurred and remains uncured;
However, you are entitled at any time to bring a lawsuit for the payment of money due on your Notes on or after the due date.
 
•
the holders of at least 25% in principal amount of all the Notes must make a written request that the trustee take action because of the default and must offer the trustee indemnity, security or both reasonably satisfactory to it against the cost and other liabilities of taking that action;
 
•
the trustee must not have taken action for 60 days after receipt of the above notice and offer of indemnity and/or security; and
 
•
the holders of a majority in principal amount of the Notes must not have given the trustee a direction inconsistent with the above notice during that 60-day period.

Book-entry and other indirect holders should consult their banks or brokers for information on how to give notice or direction to or make a request of the trustee and how to declare or cancel an acceleration of maturity.

Each year, we will furnish to the trustee a written statement of certain of our officers certifying that to their knowledge we are in compliance with the Indenture and the Notes, or else specifying any default.

Waiver of Default
The holders of a majority in principal amount of the Notes may waive any past defaults other than a default:
 
•
in the payment of principal (or premium, if any) or interest; or





Merger or Consolidation
 
•
in respect of a covenant that cannot be modified or amended without the consent of each holder.
Under the terms of the Indenture, we are generally permitted to consolidate or merge with another entity. We are also permitted to sell all or substantially all of our assets to another entity. However, we may not take any of these actions unless all the following conditions are met:
 
•
where we merge out of existence or convey or transfer our assets substantially as an entirety, the resulting entity must agree, in a supplemental indenture, to be legally responsible for our obligations under the Notes and the Indenture;

Modification or Waiver
 
•
the merger or sale of assets must not cause a default on the Notes and we must not already be in default (unless the merger or sale would cure the default). For purposes of this no-default test, a default would include an Event of Default that has occurred and has not been cured, as described under “Events of Default” above. A default for this purpose would also include any event that would be an Event of Default if the requirements for giving us a notice of default or our default having to exist for a specific period of time were disregarded; and
 
•
we must deliver to the trustee certain certificates and documents and an opinion of counsel.
There are three types of changes we can make to the Indenture and the Notes issued thereunder.
Changes Requiring Your Approval
First, there are changes that we cannot make to your Notes without your specific approval. The following is a list of those types of changes:
 
•
change the stated maturity of the principal of or interest on the Notes;
Changes Not Requiring Approval
 
•
reduce any amounts due on the Notes;
 
•
reduce the amount of principal payable upon acceleration of the maturity of a Note following a default;
 
•
change the place or currency of payment on a Note;
 
•
impair your right to sue for payment;
 
•
reduce the percentage of holders of Notes whose consent is needed to modify or amend the Indenture; and
 
•
reduce the percentage of holders of Notes whose consent is needed to waive compliance with certain provisions of the Indenture or to waive certain defaults.
The second type of change does not require any vote by the holders of the Notes. This type is limited to clarifications and certain other changes that would not adversely affect holders of the Notes in any material respect.
Changes Requiring Majority Approval
Any other change to the Indenture and the Notes would require the following approval:
 
•
if the change affects only the Notes, it must be approved by the holders of a majority in principal amount of the Notes; and
In each case, the required approval must be given by written consent.
 
•
if the change affects more than one series of debt securities issued under the same indenture, it must be approved by the holders of a majority in principal amount of all of the series affected by the change, with all affected series voting together as one class for this purpose.

The holders of a majority in principal amount of any series of debt securities issued under an indenture, voting together as one class for this purpose, may waive our compliance with some of our covenants in that indenture.




However, we cannot obtain a waiver of a payment default or of any of the matters covered by the bullet points included above under “Description of Notes — Modification or Waiver — Changes Requiring Your Approval.”

Further Details Concerning Voting

When taking a vote, we will use the following rules to decide how much principal to attribute to the Notes:
The Notes will not be considered outstanding, and therefore not eligible to vote, if we have deposited or set aside in trust money for their payment or redemption. The Notes will also not be eligible to vote if they have been fully defeased as described later under “Description of Notes — Defeasance — Full Defeasance.”

We will generally be entitled to set any day as a record date for the purpose of determining the holders of the Notes that are entitled to vote or take other action under the Indenture. However, the record date may not be more than 30 days before the date of the first solicitation of holders to vote on or take such action. If we set a record date for a vote or other action to be taken by holders of the Notes, that vote or action may be taken only by persons who are holders of the Notes on the record date and must be taken within eleven months following the record date.

The trustee shall not be deemed to have notice of any default or Event of Default unless (i) written notice of any event which is in fact such a default is received by the trustee at the corporate trust office of the trustee and such notice references the Notes and the Indenture or (ii), in the case of a Default or Event of Default in the payment of the principal of (or premium, if any) or interest, if any, on any Notes, a responsible officer of the trustee has actual knowledge thereof.

Book-entry and other indirect holders should consult their banks or brokers for information on how approval may be granted or denied if we seek to change the Indenture or the Notes or request a waiver.

Defeasance

The following defeasance provisions will be applicable to the Notes. “Defeasance” means that, by depositing with a trustee an amount of cash and/or government securities sufficient to pay all principal and interest, if any, on the Notes when due and satisfying any additional conditions noted below, we will be deemed to have been discharged from our obligations under the Notes. In the event of a “covenant defeasance,” upon depositing such funds and satisfying similar conditions discussed below we would be released from certain covenants under the Indenture relating to the Notes. The consequences to the holders of the Notes would be that, while they would no longer benefit from certain covenants under the Indenture, and while the Notes could not be accelerated for any reason, the holders of Notes nonetheless would be guaranteed to receive the principal and interest owed to them.
Covenant Defeasance
Under current U.S. federal income tax law and the Indenture, we can make the deposit described below and be released from some of the restrictive covenants in the Indenture under which the Notes were issued. This is called “covenant defeasance.” In that event, you would lose the protection of those restrictive covenants but would gain the protection of having money and government securities set aside in trust to repay your Notes. In order to achieve covenant defeasance, the following must occur:
 
•
Since the Notes are denominated in U.S. dollars, we must deposit in trust for the benefit of all holders of the Notes a combination of cash and U.S. government or U.S. government agency notes or bonds that will, in the written opinion of a nationally recognized accounting firm, generate enough cash to make interest, principal and any other payments on the Notes on their various due dates;
If we accomplish covenant defeasance, you can still look to us for repayment of the Notes if there were a shortfall in the trust deposit or the trustee is prevented from making payment. In fact, if one of the remaining Events of Default occurred (such as our bankruptcy) and the Notes became immediately due and payable, there might be a shortfall. Depending on the event causing the default, you may not be able to obtain payment of the shortfall.
 
•
we must deliver to the trustee a legal opinion of our counsel confirming that, under current U.S. federal income tax law, we may make the above deposit without causing you to be taxed on the Notes any differently than if we did not make the deposit;




 
•
we must deliver to the trustee a legal opinion of our counsel stating that the above deposit does not require registration by us under the 1940 Act, and a legal opinion and officers’ certificate stating that all conditions precedent to covenant defeasance have been complied with;
 
•
defeasance must not result in a breach or violation of, or result in a default under, the Indenture or any of our other material agreements or instruments;
 
•
no default or event of default with respect to the Notes shall have occurred and be continuing and no defaults or events of default related to bankruptcy, insolvency, or reorganization shall occur during the next 90 days.

Full Defeasance

If there is a change in U.S. federal income tax law, as described below, we can legally release ourselves from all payment and other obligations on the Notes (called “full defeasance”) if we put in place the following other arrangements for you to be repaid:
 
•
Since the Notes are denominated in U.S. dollars, we must deposit in trust for the benefit of all holders of the Notes a combination of money and U.S. government or U.S. government agency notes or bonds that will, in the written opinion of a nationally recognized accounting firm, generate enough cash to make interest, principal and any other payments on the Notes on their various due dates;
If we ever did accomplish full defeasance, as described above, you would have to rely solely on the trust deposit for repayment of the Notes. You could not look to us for repayment in the unlikely event of any shortfall. Conversely, the trust deposit would most likely be protected from claims of our lenders and other creditors if we ever became bankrupt or insolvent. If your Notes were subordinated as described later under “Description of Notes — Indenture Provisions — Ranking,” such subordination would not prevent the trustee under the Indenture from applying the funds available to it from the deposit referred to in the first bullet of the preceding paragraph to the payment of amounts due in respect of such Notes for the benefit of the subordinated debtholders.
 
•
we must deliver to the trustee a legal opinion confirming that there has been a change in current U.S. federal income tax law or an IRS ruling that allows us to make the above deposit without causing you to be taxed on the Notes any differently than if we did not make the deposit. Under current U.S. federal income tax law the deposit and our legal release from the Notes would be treated as though we paid you your share of the cash and notes or bonds at the time the cash and notes or bonds were deposited in trust in exchange for your Notes and you would recognize gain or loss on the Notes at the time of the deposit;
 
•
we must deliver to the trustee a legal opinion of our counsel stating that the above deposit does not require registration by us under the 1940 Act, and a legal opinion and officers’ certificate stating that all conditions precedent to defeasance have been complied with;
 
•
defeasance must not result in a breach or violation of, or constitute a default under, the Indenture or any of our other material agreements or instruments; and
 
•
no default or event of default with respect to the Notes shall have occurred and be continuing and no defaults or events of default related to bankruptcy, insolvency, or reorganization shall occur during the next 90 days.

Other Covenants

In addition to any other covenants described in applicable prospectus supplement or accompanying prospectus, as well as standard covenants relating to payment of principal and interest, maintaining an office where payments may be made or securities can be surrendered for payment, payment of taxes by the Company and related matters, the following covenants will apply to the Notes:




 
•
We agree that for the period of time during which the Notes are outstanding, we will not violate Section 18(a)(1)(A) as modified by Section 61(a) 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 incurring additional borrowings, including through the issuance of additional debt securities, unless our asset coverage, as defined in the 1940 Act, equals at least 150% after such borrowings. See “Risk Factors — Because we have received the approval of our stockholders, we are subject to 150% asset coverage beginning after July 26, 2018” in this Form 10-K.
Form, Exchange and Transfer of Certificated Registered Securities
 
•
We agree that for the period of time during which Notes are Outstanding, pursuant to Section 18(a)(1)(B) as modified by Section 61(a) of the Investment Company Act or any successor provisions thereto of the Investment Company Act, the Company will not declare any dividend (except a dividend payable in stock of the issuer), or declare any other distribution, upon a class of the capital stock of the Company, or purchase any such capital stock, unless, in every such case, at the time of the declaration of any such dividend or distribution, or at the time of any such purchase, the Company has an asset coverage (as defined in the Investment Company Act) of at least the threshold specified in Section 18(a)(1)(B) as modified by Section 61(a) of the Investment Company Act or any successor provisions thereto of the Investment Company Act, as such obligation may be amended or superseded, after deducting the amount of such dividend, distribution or purchase price, as the case may be, and in each case giving effect to (i) any exemptive relief granted to the Company by the Commission, and (ii) any SEC no-action relief granted by the Commission to another business development company (or to the Company if it determines to seek such similar no-action or other relief) permitting the business development company to declare any cash dividend or distribution notwithstanding the prohibition contained in Section 18(a)(1)(B) as modified by Section 61(a) of the Investment Company Act, as such obligation may be amended or superseded, in order to maintain such business development company’s status as a regulated investment company under Subchapter M of the Code.
 
•
If, at any time, we are not subject to the reporting requirements of Sections 13 or 15(d) of the Exchange Act to file any periodic reports with the SEC, we agree to furnish to holders of the Notes and the trustee, for the period of time during which the Notes are outstanding, our audited annual consolidated financial statements, within 90 days of our fiscal year end, and unaudited interim consolidated financial statements, within 45 days of our fiscal quarter end (other than our fourth fiscal quarter). All such financial statements will be prepared, in all material respects, in accordance with applicable U.S. GAAP.
If registered Notes cease to be issued in book-entry form, they will be issued:
 
•
only in fully registered certificated form;
Holders may exchange their certificated securities for Notes of smaller denominations or combined into fewer Notes of larger denominations, as long as the total principal amount is not changed and as long as the denomination is equal to or greater than $25.
 
•
without interest coupons; and
 
•
unless we indicate otherwise, in denominations of $25 and amounts that are multiples of $25.

Holders may exchange or transfer their certificated securities at the office of the trustee. We have appointed the trustee to act as our agent for registering Notes in the names of holders transferring Notes. We may appoint another entity to perform these functions or perform them ourselves.

Holders will not be required to pay a service charge to transfer or exchange their certificated securities, but they may be required to pay any tax or other governmental charge associated with the transfer or exchange. The transfer or exchange will be made only if our transfer agent is satisfied with the holder’s proof of legal ownership.

We may appoint additional transfer agents or cancel the appointment of any particular transfer agent. We may also approve a change in the office through which any transfer agent acts.

If we redeem any of the Notes, we may block the transfer or exchange of those Notes selected for redemption during the period beginning 15 days before the day we mail the notice of redemption and ending on the day of that mailing, in order to determine and fix the list of holders to prepare the mailing. We may also refuse to register




transfers or exchanges of any certificated Notes selected for redemption, except that we will continue to permit transfers and exchanges of the unredeemed portion of any Note that will be partially redeemed.

If registered Notes are issued in book-entry form, only the depositary will be entitled to transfer and exchange the Notes as described in this subsection, since it will be the sole holder of the Notes.

Resignation of Trustee
The trustee may resign or be removed with respect to the Notes provided that a successor trustee is appointed to act with respect to the Notes. In the event that two or more persons are acting as trustee with respect to different series of Indenture securities under the Indenture, each of the trustees will be a trustee of a trust separate and apart from the trust administered by any other trustee.

Indenture Provisions — Ranking

The Notes will be designated as Senior Securities and, therefore, Senior Indebtedness under the Indenture. Senior Indebtedness is defined in the Indenture as the principal of (and premium, if any) and unpaid interest on:
 
•
our indebtedness (including indebtedness of others guaranteed by us), whenever created, incurred, assumed or guaranteed, for money borrowed, that we have designated as “Senior Indebtedness” for purposes of the Indenture and in accordance with the terms of the Indenture (including any Indenture securities designated as Senior Indebtedness), and
As unsecured obligations of the Company designated as Senior Indebtedness under the Indenture, the Notes will rank:
 
•
renewals, extensions, modifications and refinancings of any of this indebtedness.
 
•
pari passu, or equal, with any of our existing and future unsecured indebtedness;

 
•
senior to any of our future indebtedness that expressly provides it is subordinated to the Notes;
 
•
effectively subordinated, or junior, to all of our existing and future secured indebtedness (including indebtedness that is initially unsecured to which we subsequently grant security), to the extent of the value of the assets securing such indebtedness; and
 
•
structurally subordinated, or junior, to all existing and future indebtedness and other obligations of any of our subsidiaries or financing vehicles, if any.


Exhibit

NEWTEK BUSINESS SERVICES CORP.
_____________________________

EMPLOYMENT AGREEMENT WITH
BARRY SLOANE
_____________________________

PREAMBLE. This Employment Agreement (the “Agreement”) is entered into as of the 15th day of March 2020 (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 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.
(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 15, 2021 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.
(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.
(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.
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.
(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.
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, Chairman
Compensation, Corporate Governance and
Nominating Committee

EXECUTIVE

By:     /s                
    Barry Sloane, CEO & President

116238/2
Exhibit


NEWTEK BUSINESS SERVICES CORP.
_____________________________

EMPLOYMENT AGREEMENT WITH
MICHAEL A. SCHWARTZ
_____________________________

PREAMBLE. This EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of the 15th day of March 2020 (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 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 $360,000 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 15, 2021 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.
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 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 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.
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, Chief Executive Officer

EXECUTIVE
                
By:    /s                    
Michael A. Schwartz

1
Exhibit


NEWTEK SMALL BUSINESS FINANCE, LLC
_____________________________

EMPLOYMENT AGREEMENT WITH
PETER DOWNS
_____________________________

PREAMBLE. This EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of the 15th day of March 2020 (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 $550,000 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 15, 2021 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, Chief Executive Officer



NEWTEK BUSINESS SERVICES CORP.


By:    /s                    
Barry Sloane, Chief Executive Officer


EXECUTIVE
                
By:    /s                    
Peter Downs

1
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 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



 


Report of Independent Registered Public Accounting Firm on Supplemental Information


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


Our audits of Newtek Business Services Corp. and Subsidiaries’ (the Company) consolidated financial statements and internal control over financial reporting referred to in our reports dated March 16, 2020 (appearing herein), and our audits of the consolidated financial statements referred to in our reports dated March 18, 2019, March 16, 2018, March 13, 2017, March 15, 2016 and March 31, 2015 (not appearing herein), expressed unqualified opinions.

The senior securities table as of December 31, 2019, 2018, 2017, 2016, 2015, 2014, and 2013 included in Part II, Item 5 of the December 31, 2019 Annual Report on Form 10-K of the Company, under the caption “Senior Securities” (Senior Securities Table) has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The Senior Securities Table is the responsibility of the Company's management. Our audit procedures included determining whether the Senior Securities Table reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the Senior Securities Table. In forming our opinion on the Senior Securities Table, we evaluated whether the Senior Securities Table, including its form and content, is presented in conformity with instructions to Form N-2.

In our opinion, the Senior Securities Table for the years ended December 31, 2019, 2018, 2017, 2016, 2015, 2014 and 2013, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.
 
/s/ RSM US LLP

New York, New York
March 16, 2020



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 report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date: March 16, 2020
/S/    BARRY SLOANE        
 
Barry Sloane
 
Principal Executive Officer



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, Christopher Towers, 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 report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date: March 16, 2020
/S/    CHRISTOPHER TOWERS        
 
Christopher Towers
 
Principal Financial Officer




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 for the year ended December 31, 2019 (the “Report”) of Newtek Business Services Corp. (the “Company”), as filed with the Securities and Exchange Commission on the date hereof, I, Barry Sloane, as Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of my 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.
 
Date: March 16, 2020
/S/    BARRY SLOANE        
 
Barry Sloane,
 
Principal Executive Officer



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 for the year ended December 31, 2019 (the “Report”) of Newtek Business Services Corp. (the “Company”), as filed with the Securities and Exchange Commission on the date hereof, I, Christopher Towers, as Principal Financial Officer of the Company, hereby certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of my 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.
 
Date: March 16, 2020
/S/    CHRISTOPHER TOWERS        
 
Christopher Towers,
 
Principal Financial Officer




newtekmerchantsolutionsl
Newtek Merchant Solutions, LLC and Subsidiary (A Wholly-owned Subsidiary of NBSH Holdings, LLC) Consolidated Financial Statements and Independent Auditor’s Report December 31, 2019

 
Newtek Merchant Solutions, LLC and Subsidiaries Index Years Ended December 31, 2019 Pages Independent Auditor’s Report ................................................................................................................... 1 Consolidated Financial Statements Consolidated Balance Sheet .......................................................................................................................... 2 Consolidated Statement of Income ............................................................................................................... 3 Consolidated Statement of Changes in Member’s Equity ............................................................................ 4 Consolidated Statement of Cash Flows ........................................................................................................ 5 Notes to Consolidated Financial Statements ............................................................................................ 6-14

 
INDEPENDENT AUDITOR’S REPORT To the Board of Directors and Stockholder of Newtek Merchant Solutions, LLC and Subsidiaries We have audited the accompanying consolidated financial statements of Newtek Merchant Solutions, LLC and Subsidiaries (“NMS”), a wholly-owned subsidiary of NBSH Holdings LLC, which comprise the consolidated balance sheets as of December 31, 2019, and the related consolidated statements of income, changes in member’s equity, and cash flows for the year then ended, and the related notes to the consolidated financial statements. Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Newtek Merchant Solutions, LLC and Subsidiaries as of December 31, 2019, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Melville, New York March 5, 2020 1

 
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Balance Sheet December 31, 2019 Assets Current assets: Cash$ 11,315,071 Accounts receivable 3,050,996 Prepaid expenses and other current assets 206,970 Inventory 134,271 Total current assets 14,707,308 Fixed assets, net 489,434 Restricted cash 645,678 Customer merchant accounts, net 2,426,669 Due from related parties 170,750 Notes receivable - related party 12,162,501 Goodwill 13,813,812 Total assets $ 44,416,152 Liabilities and Member's Equity Current liabilities: Accounts payable and accrued expenses$ 2,934,732 Residuals payable 1,036,716 Chargeback reserves 1,501,856 Due to related parties 513,563 Bank notes payable, current 3,500,000 Total current liabilities 9,486,867 Bank notes payable, long-term, net (Note 6) 28,303,968 Total liabilities 37,790,835 Member's equity 6,625,317 Total liabilities and member's equity $ 44,416,152 See notes to consolidated financial statements. 2

 
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statement of Income Year Ended December 31, 2019 Revenues Electronic payment processing$ 35,167,736 Expenses Electronic payment processing costs 13,338,482 Salaries and benefits 6,087,635 Professional fees 771,450 Depreciation and amortization 1,874,519 Other general and administrative costs 1,419,858 Total expenses 23,491,944 Income from operations 11,675,792 Interest expense, net (1,802,585) Interest income - related parties 910,595 Gain on sale of merchant portfolio 500,000 Total other expenses (391,990) Net income $ 11,283,802 See notes to consolidated financial statements. 3

 
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statement of Changes in Member’s Equity Year Ended December 31, 2019 Member's Equity Balance, January 1, 2019 $ 12,861,813 Net income 11,283,802 Distributions (17,520,298) Balance, December 31, 2019 $ 6,625,317 See notes to consolidated financial statements. 4

 
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statement of Cash Flows Year Ended December 31, 2019 Cash flows from operating activities: Net income $ 11,283,802 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,874,519 Amortization of deferred financing costs 150,413 Changes in operating assets and liabilities: Accounts receivable (289,054) Prepaid expenses and other current assets (34,468) Inventory (51,763) Accounts payable and accrued expenses 1,210,780 Due to/from related parties 37,071 Net cash provided by operating activities 14,181,300 Cash flows from investing activities: Purchase of customer merchant accounts (217,252) Net repayments received from related party note 4,677,499 Purchase of fixed assets (140,698) Net cash provided by investing activities 4,319,549 Cash flows used in financing activities: Dividends paid to shareholder (17,520,298) Principal payments to Webster Bank (2,625,000) Deferred financing costs paid (6,000) Net cash used in financing activities (20,151,298) Net decrease in cash and restricted cash (1,650,449) Cash and restricted cash, beginning of year 13,611,198 Cash and restricted cash, end of year $ 11,960,749 Supplemental disclosure of cash flow activities Interest paid $ 1,469,486 See notes to consolidated financial statements. 5

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 1. Organization, Basis of Presentation and Description of Business Newtek Merchant Solutions, LLC (“NMS”) was organized as a limited liability company (“LLC”) under the laws of the State of Wisconsin and is a wholly-owned subsidiary of NBSH Holdings, LLC (“NBSH”). NBSH was organized on November 1, 2018 under the laws of the State of New York and is a wholly-owned subsidiary of Newtek Business Services Holdco 1, Inc. (“Holdco”) which was incorporated on June 5, 2015 under the laws of the State of New York and is a wholly- owned subsidiary of Newtek Business Services Corp. (“Newtek”). The accompanying consolidated financial statements include the accounts of NMS and its wholly- owned subsidiary, UPSWI Sales (“UPS Sales”), which are collectively hereinafter referred to as the “Company”. All significant intercompany accounts and transactions have been eliminated in these consolidated financial statements. The Company 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 noncash forms of payment. 2. Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates, by their nature, are based on judgment and available information. Actual results could differ from those estimates. Estimates that are particularly susceptible to significant changes in the near term relate to the determination of the reserve for chargeback losses. Recently Adopted Accounting Pronouncements The Company adopted ASU 2014-09, "Revenues from Contracts with Customers (“Topic 606”)" as well as other clarifications and technical guidance issued by the FASB related to this new revenue standard ("ASC 606") and ASC Subtopic 340-40: "Other Assets and Deferred Costs - Contracts with Customers" on January 1, 2019. The Company elected the modified retrospective transition method. The cumulative impact of adopting Topic 606 was immaterial and no adjustments to the opening balance of member’s equity were recorded. Prior to the adoption of ASC 606, the Company presented payments made to certain third parties, including interchange fees and fees paid to payment networks, as a component of operating expenses. For periods beginning on and after January 1, 2019, the Company presents revenue net of these third-party payments. This change in presentation had the effect of reducing the Company’s revenues and operating expenses by the same amounts. The adoption of ASC 606 had no effect on any other line items in the Company’s consolidated financial statements. 6

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 Financial Instruments The Company’s financial instruments include cash, accounts receivable, notes receivable from related party, accounts payable, residuals payable and bank notes payable. The carrying amount of cash, accounts receivable, accounts payable and residuals payable approximate fair value due to their short-term maturities. The carrying amounts of notes receivable from related party and bank notes payable approximate fair value due to the variable interest rate they carry. Cash Invested cash is held exclusively at financial institutions of high credit quality. As of December 31, 2019, cash deposits in excess of insured amounts totaled approximately $11,162,000. Restricted Cash Under the terms of the processing agreements between NMS and its processing banks, NMS maintains cash accounts as reserves against chargeback losses. As the Company receives fees from the processing bank, a certain percentage is allocated to the cash reserve account. The following table provides a reconciliation of cash and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows. 2019 2018 Cash$ 11,315,071 $ 13,026,644 Restricted cash 645,678 584,554 Total cash and restricted cash$ 11,960,749 $ 13,611,198 Accounts Receivable Accounts receivable represent amounts owed to the Company by third parties for electronic payment processing and related residuals. The Company estimates losses on accounts receivable based on known troubled accounts and historical experience of losses incurred. The Company determined no reserve for uncollectible accounts was necessary at December 31, 2019. Inventory Inventory consists primarily of equipment to be installed in merchant locations to enable the merchants to process electronic transactions. Inventory is stated at the lower of cost or net realizable value, which is determined on a FIFO (first in-first out) basis. Fixed Assets Fixed assets, which are comprised of terminals, software, telephone systems, computer equipment, leasehold improvements, automobile and website, are stated at cost less accumulated depreciation and amortization. Depreciation of fixed assets is provided on a straight-line basis using estimated useful lives of the related assets ranging from three to seven years. Amortization of leasehold improvements is provided on a straight-line basis using the lesser of the useful life of the asset, which is generally three to five years, or lease term. 7

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 Software Development Costs The Company capitalizes certain software development costs for internal use. Costs incurred during the preliminary project stage are expensed as incurred, while application stage projects are capitalized. The latter costs are typically employee and/or consulting services directly associated with the development of the internal use software. Software and website costs are included in fixed assets in the accompanying consolidated balance sheets. Amortization commences once the software and website costs are ready for their intended use and are amortized using the straight-line method over the estimated useful life, typically three years. Goodwill and Customer Merchant Accounts Goodwill is an indefinite lived asset, which is not amortized and is instead subject to impairment testing, at least annually. Customer merchant accounts with finite lives are amortized over an estimated useful life of 30 or 66 months (See Note 5). The Company considers the following to be some examples of indicators that may trigger an impairment review outside of its annual impairment review: (i) significant under-performance or loss of key contracts acquired in an acquisition relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of the acquired assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s fair value for a sustained period of time; and (vi) regulatory changes. In assessing the recoverability of the Company’s goodwill and customer merchant accounts, the Company must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets. These include estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company, the period over which cash flows will occur, and determination of the Company’s cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and conclusions on impairment. Revenue Recognition Effective January 1, 2019, revenues are recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To achieve this core principle, the Company applies the following five steps: 1. Identify the contract 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 5. Recognize revenue when or as the Company satisfies a performance obligation Revenue is recognized net of taxes collected from customers, which are subsequently remitted to governmental authorities. Revenue is primarily derived from electronic payment processing and related fee income. 8

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 Electronic payment processing and fee income Electronic payment processing and fee income is derived from the electronic processing of credit and debit card transactions that are authorized and captured through third-party networks. Typically, merchants are charged for these processing services by applying a percentage to the dollar amount of each transaction plus a flat fee per transaction. Certain merchant customers are charged miscellaneous fees, including fees for handling charge-backs or returns, monthly minimum fees, statement fees and fees for other miscellaneous services. Revenues derived from the electronic processing of MasterCard®, Visa®, American Express® and Discover® sourced credit and debit card transactions are reported gross of amounts paid to sponsor banks. The Company's performance obligations are to stand ready to provide holistic electronic payment processing services consisting of a series of distinct elements that are substantially the same and have the same pattern of transfer over time. The Company’s promise to its customers is to perform an unknown or unspecified quantity of tasks and the consideration received is contingent upon the customers’ use (i.e., number of payment transactions processed, number of cards on file, etc.); as such, the total transaction price is variable. The Company allocates the variable fees charged to the day in which it has the contractual right to bill under the contract. Revenues and electronic payment processing costs were lower than the amounts that would have been presented if not for the effect of the new revenue accounting standard by approximately $88,179,000 each, respectively, for the year ended December 31, 2019. ASC 606 requires that the Company determine for each customer arrangement whether revenue should be recognized at a point in time or over time. For the year ended December 31, 2019 substantially all of the Company’s revenues were recognized over time. ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations; however, as permitted by ASC 606, the Company has elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. As described above, the Company’s most significant performance obligations consist of variable consideration under a stand-ready series of distinct days of service. Such variable consideration meets the specified criteria for the disclosure exclusion; therefore, the majority of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied is variable consideration that is not required for this disclosure. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one year is not material. Interest Income Interest income from a related party is recorded on an accrual basis, when earned, based on the current lending rate in place. Reserve for Losses on Merchant Accounts Disputes between a cardholder and a merchant periodically arise as a result of, among other things, cardholder dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer through the merchant’s acquiring bank and charged to the merchant. If the merchant has inadequate funds, the Company or, under limited circumstances, the Company and the acquiring bank, must bear the credit risk for the full amount of the transaction. The Company evaluates its risk for such transactions and estimates its potential loss for charge-backs based primarily on historical experience and other relevant factors. 9

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 The Company records reserves for charge-backs and contingent liabilities when such amounts are deemed to be probable and estimable. The required reserves may change in the future due to new developments, including, but not limited to, changes in litigation or increased charge-back exposure as the result of merchant insolvency, liquidation, or other reasons. The required reserves are reviewed periodically to determine if adjustments are required. Electronic Payment Processing Costs Electronic payment processing costs consist principally of costs directly related to the processing of merchant sales volume, bank processing fees and costs paid to third-party processing networks. Such costs are recognized at the time the merchant transactions are processed or when the services are performed. In addition to costs directly related to the processing of merchant sales volume, electronic payment processing costs also include residual expenses. Residual expenses represent fees paid to third- party sales referral sources. Residual expenses are paid in accordance with contracted terms. These are generally linked to revenues derived from merchants successfully referred to the Company and that begin using the Company for merchant processing services. Such residual expenses are recognized in the Company’s consolidated statements of income. During the year ended December 31, 2019, the Company partnered with two sponsor banks for substantially all merchant transactions. Substantially all merchant transactions were processed by one merchant processor. Income Taxes The Company and its subsidiaries are treated as flow-through entities for federal and state income tax purposes. Under present income tax laws, the Company is not subject to federal or state income taxes. The member is responsible for taxes on their respective share of the Company’s net income or losses. The Company reviews uncertain tax positions taken, or expected to be taken, in the course of preparing the Company’s consolidated financial statements to determine whether the tax positions are “more likely than not” of being sustained by the applicable tax authority. Management of the Company is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. The Company has no examinations in progress and none are expected at this time. The Company has reviewed the open tax years in major jurisdictions and concluded there is no tax liability, interest, or penalties resulting from unrecognized tax benefits relating to uncertain income tax positions taken, or expected to be taken, in future tax returns. Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through March 5, 2020, the date these consolidated financial statements were available to be issued. 10

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 3. Fixed Assets The Company’s fixed assets are comprised of the following at December 31, 2019: 2019 Terminals$ 1,280,974 Software 870,713 Telephone systems 152,049 Computer equipment 120,849 Leasehold improvements 97,150 Automobile 24,576 Website 14,705 2,561,016 Less: accumulated depreciation and amortization (2,071,582) $ 489,434 Depreciation and amortization expense related to fixed assets for the year ended December 31, 2019 was approximately $213,000. 4. Goodwill The carrying value of goodwill at December 31, 2019 is approximately $13,814,000. The Company performed a qualitative assessment on goodwill to determine if it is more likely than not that the Company’s fair value is less than its carrying amount. Based on its qualitative assessment, the Company determined that goodwill was not impaired at December 31, 2019 and that no further assessment was required. There were no changes to the carrying value of goodwill during the year ended December 31, 2019. 5. Customer Merchant Accounts The net carrying value of customer merchant accounts was approximately $2,427,000 at December 31, 2019. Customer merchant accounts are amortized over an estimated useful life of 30 to 66 months, as appropriate. Total amortization expense of customer merchant accounts using the straight-line method is included in depreciation and amortization in the accompanying consolidated statements of income and was approximately $1,661,000 for the year ended December 31, 2019. 11

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 Total expected amortization expense for the next five fiscal years and thereafter is as follows: Years Ending December 31, 2020 1,361,986 2021 567,796 2022 333,690 2023 150,343 2024 12,853 $ 2,426,669 In November 2018, the Company sold a portion of its merchant portfolio to Elavon Inc. (“Elavon”). The Company sold substantially all of its merchants processing on the Elavon platform for $7,500,000 with an additional $500,000 contingent payment to be made in November 2019 if the sold portfolio achieves certain volume requirements and the Company boards 200 new merchants on the Elavon platform. During 2018, as a result of the sale, the Company recorded a gain on sale of approximately $5,581,000 broken down as follows: Sale price$ 7,500,000 Payments to agents (1,480,561) Carrying value of Elavon portfolio (438,107) Gain on sale$ 5,581,332 During 2019, the Company recorded a gain on sale of $500,000 as a result of the satisfying the requirements for the contingent payment. 6. Bank Notes Payable, Net In November 2018, the Company entered into a Credit and Guarantee Agreement (the “Webster Agreement”), which extended a term loan for $35,000,000 (the “Webster Term Loan”) and a revolving line of credit (the “Webster RLOC” combined with the Webster Term Loan, the “Webster Facility”) with maximum borrowings of $15,000,000 for a total commitment of $50,000,000. All assets of the Company are pledged as collateral under the Webster Agreement and is guaranteed by Newtek. The Webster Facility provides for monthly interest payments and quarterly principal payments beginning April 2019, with total remaining principal due at maturity. The Webster Facility matures in November 2023. Borrowings under the Webster Facility are classified either as a “Base Rate Loan” or a “LIBOR Rate Loan” at the Company’s election. Each LIBOR Rate Loan shall bear interest on the outstanding balance at a rate equal to LIBOR plus 2.5%, and each Base Rate Loan shall bear interest on the outstanding balance at a rate equal to the Prime Rate plus 1.5%. The effective interest rate at December 31, 2019 was 4.71%. 12

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 The Webster Agreement requires certain restrictive covenants for which the Company was in compliance as of December 31, 2019. Total interest expense, excluding amortization of deferred financing costs, for the year ended December 31, 2019 was approximately $1,714,000. Amortization of deferred financing costs for the year ended December 31, 2019 was approximately $150,000 and is included in interest expense on the consolidated statements of income. The remaining amount of unamortized deferred financing costs incurred by the Company related to the Webster Facility was approximately $571,000 at December 31, 2019. Outstanding borrowings under the Bank note payable consisted of the following at December 31, 2019: 2019 Principal$ 32,375,000 Unamortized deferred financing costs (571,032) Net carrying amount$ 31,803,968 Debt principal payments are as follows: Years Ending December 31, 2020$ 3,500,000 2021 3,500,000 2022 4,812,500 2023 20,562,500 $ 32,375,000 7. Notes Receivable – Related Party The Company has extended a line of credit to Newtek. The Company had approximately $12,163,000 outstanding on its revolving line of credit with Newtek, at December 31, 2019. The line, which matures in November 2023, allows for maximum borrowings of $50,000,000 (subject to availability) and bears interest at a rate equal to that in effect under the Company’s Webster Facility, at any given time. The Company recorded related party interest income of approximately $911,000 during the year ended December 31, 2019. At December 31, 2019 there was approximately $64,000, in accrued interest income included in prepaid expenses and other current assets on the consolidated balance sheet. 8. Related Party Transactions The Company has related party transactions with Newtek and various portfolio companies of Newtek, including Automated Merchant Services, Inc. (“AMS”), Newtek Technology Solutions, Inc. (“NTS”) and PMTWorks Payroll, LLC (“PMT”). During the year ended December 31, 2019, the Company incurred residual expenses totaling approximately $145,000 from AMS and NTS, managed technology services costs of approximately $398,000 from NTS, and payroll processing costs of approximately $22,000 from PMT. 13

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 Included in salaries and benefits are charges from Newtek related to salaries for management and certain other employees that perform services for the Company. Total amounts allocated to the Company for the year ended December 31, 2019 were approximately $373,000. The Company subleases office space from Newtek in Lake Success, NY. The rent payment is based upon an allocation of headcount in the Lake Success office space. Rent expense for the years ended December 31, 2019 was approximately $232,000. 9. Commitments and Contingencies Operating Commitments The Company leases office spaces under non-cancelable operating leases. The following summarizes the Company’s obligations and commitments, as of December 31, 2019 for future minimum cash payments required under operating leases: Years Ending December 31, Operating Leases 2020$ 52,978 $ 52,978 Total rent expense for the year ended December 31, 2019 was approximately $288,000. The Company has a Merchant ISO Agreement with a sponsor bank. Under the terms of the Merchant ISO Agreement, NMS is required to pay monthly minimum fees of $15,000 during the term of the agreement. The agreement renews automatically annually. Litigation As a result of prior litigation with the Federal Trade Commission, NMS voluntarily entered into, and is presently operating under, a permanent injunction with respect to certain of its business practices. 14

 
a2018newtekmerchantsolut
Newtek Merchant Solutions, LLC and Subsidiaries (A Wholly-owned Subsidiary of NBSH Holdings, LLC) Consolidated Financial Statements and Independent Auditor’s Report December 31, 2018

 
Newtek Merchant Solutions, LLC and Subsidiaries Index Years Ended December 31, 2018 Pages Independent Auditor’s Report ................................................................................................................ 1-2 Consolidated Financial Statements Consolidated Balance Sheets ........................................................................................................................ 3 Consolidated Statements of Income .............................................................................................................. 4 Consolidated Statements of Changes in Member’s Equity ........................................................................... 5 Consolidated Statements of Cash Flows ....................................................................................................... 6 Notes to Consolidated Financial Statements ............................................................................................ 7-14

 
INDEPENDENT AUDITOR’S REPORT To the Board of Directors and Stockholder of Newtek Merchant Solutions, LLC and Subsidiaries We have audited the accompanying consolidated financial statements of Newtek Merchant Solutions, LLC and Subsidiaries (“NMS”), a wholly-owned subsidiary of Newtek Business Services Corporation, which comprise the consolidated balance sheets as of December 31, 2018, and the related consolidated statements of income, c hanges in member’s equity, and cash flows for the year then ended, and the related notes to the consolidated financial statements. Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1

 
Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Newtek Merchant Solutions, LLC and Subsidiaries as of December 31, 2018, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. New York, New York March 26, 2019 2

 
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Balance Sheets December 31, 2018 Assets Current assets: Cash $ 13,026,644 Accounts receivable 2,761,942 Prepaid expenses and other current assets 172,502 Inventory 82,508 Total current assets 16,043,596 Fixed assets, net 562,140 Restricted cash 584,554 Customer merchant accounts, net 3,884,484 Due from related parties 264,145 Notes receivable - related party 16,840,000 Goodwill 13,813,812 Total assets $ 51,992,731 Liabilities and Member's Equity Current liabilities: Accounts payable and accrued expenses $ 2,274,793 Residuals payable 951,331 Chargeback reserves 1,050,352 Due to related parties 569,887 Bank notes payable, current 2,625,000 Total current liabilities 7,471,363 Bank notes payable, long-term, net (Note 6) 31,659,555 Total liabilities 39,130,918 Member's equity 12,861,813 Total liabilities and member's equity $ 51,992,731 See notes to consolidated financial statements. 3

 
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statements of Income Year Ended December 31, 2018 Revenues Electronic payment processing $ 121,578,712 Expenses Electronic payment processing costs 99,390,347 Salaries and benefits 6,157,199 Professional fees 704,449 Depreciation and amortization 1,655,109 Loss on debt extinguishment 1,286,111 Other general and administrative costs 1,166,354 Total expenses 110,359,569 Income from operations 11,219,143 Interest expense, net (2,524,228) Interest income - related parties 835,543 Gain on sale of merchant portfolio 5,581,332 Net income $ 15,111,790 See notes to consolidated financial statements. 4

 
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statements of Changes in Member’s Equity Year Ended December 31, 2018 Member's Equity Balance, January 1, 2018 $ 9,178,479 Net income 15,111,790 Distributions (11,428,456) Balance, December 31, 2018 $ 12,861,813 See notes to consolidated financial statements. 5

 
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statements of Cash Flows Year Ended December 31, 2018 Cash flows from operating activities: Net income $ 15,111,790 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,655,109 Amortization of deferred financing costs 177,409 Loss on debt extinguishment 1,286,111 Gain on sale of merchant portfolio (5,581,332) Changes in operating assets and liabilities: Restricted cash (86,334) Accounts receivable 375,263 Prepaid expenses and other current assets 18,064 Inventory (10,728) Accounts payable and accrued expenses 282,686 Due to/from related parties 114,049 Net cash provided by operating activities 13,342,087 Cash flows from investing activities: Purchase of customer merchant accounts (2,494,907) Net proceed from sale of Elavon portfolio 6,019,439 Net advances under related party note (10,729,999) Purchase of fixed assets (275,606) Net cash used in investing activities (7,481,073) Cash flows used in financing activities: Dividends paid to shareholder (11,428,456) Proceeds from bank debt 35,000,000 Principal payments to Goldman Sachs (30,498,694) Prepayment penalty paid to Goldman Sachs (800,000) Deferred financing costs paid (737,150) Net cash used in financing activities (8,464,300) Net decrease in cash (2,603,286) Cash, beginning of year 15,629,930 Cash, end of year $ 13,026,644 Supplemental disclosure of cash flow activities Interest paid $ 2,250,498 See notes to consolidated financial statements. 6

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 1. Organization, Basis of Presentation and Description of Business NBSH Holdings, LLC (“NBSH”), was organized on November 1, 2018 under the laws of the State of New York and is a wholly-owned subsidiary of Newtek Business Services Holdco 1, Inc. (“Holdco”) which was incorporated on June 5, 2015 under the laws of the State of New York and is a wholly-owned subsidiary of Newtek Business Services Corp. (“Newtek”). NBSH, along with its wholly-owned subsidiaries, Newtek Merchant Solutions, LLC (“NMS”) (formerly Universal Processing Services of Wisconsin, LLC), and Premier Payments LLC (“Premier”), are hereinafter referred to as the “Company”. On December 31, 2018, Premier was merged with and into NMS. Prior to November 1, 2018, NMS and Premier were wholly-owned subsidiaries of Holdco. The consolidated statements of income, member’s equity and cash flows include the results of NMS and Premier for the whole year as they were under common ownership. NMS and Premier market 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 noncash forms of payment. The accompanying consolidated financial statements include the accounts of NBSH and its wholly- owned subsidiaries, NMS and Premier as of and for the year ended December 31, 2018 as if the ownership structure was in place on January 1, 2018 due to common ownership. All significant intercompany accounts and transactions have been eliminated in these consolidated financial statements. 2. Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates, by their nature, are based on judgment and available information. Actual results could differ from those estimates. Estimates that are particularly susceptible to significant changes in the near term relate to the determination of the reserve for chargeback losses. Financial Instruments The Company’s financial instruments include cash, accounts receivable, notes receivable from related party, accounts payable, residuals payable and bank notes payable. The carrying amount of cash, accounts receivable, accounts payable and residuals payable approximate fair value due to their short-term maturities. The carrying amounts of notes receivable from related party and bank notes payable approximate fair value due to the variable interest rate they carry. Cash Invested cash is held exclusively at financial institutions of high credit quality. As of December 31, 2018, cash deposits in excess of insured amounts totaled approximately $12,542,000. 7

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 Restricted Cash Under the terms of the processing agreement between NMS and its processing banks, NMS maintains cash accounts as reserves against chargeback losses. As the Company receives fees from the processing bank, a certain percentage is allocated to the cash reserve account. Accounts Receivable Accounts receivable represent amounts owed to the Company by third parties for electronic payment processing and related residuals. The Company estimates losses on accounts receivable based on known troubled accounts and historical experience of losses incurred. The Company determined no reserve for uncollectible accounts was necessary at December 31, 2018. Inventory Inventory consists primarily of equipment to be installed in merchant locations to enable the merchants to process electronic transactions. Inventory is stated at the lower of cost or net realizable value, which is determined on a FIFO (first in-first out) basis. Fixed Assets Fixed assets, which are comprised of terminals, telephone systems, furniture and fixtures, software, computer equipment, internally developed software, automobile, website and leasehold improvements, are stated at cost less accumulated depreciation and amortization. Depreciation of fixed assets is provided on a straight-line basis using estimated useful lives of the related assets ranging from three to seven years. Amortization of leasehold improvements is provided on a straight-line basis using the lesser of the useful life of the asset, which is generally three to five years, or lease term. Software Development Costs The Company capitalizes certain software development costs for internal use. Costs incurred during the preliminary project stage are expensed as incurred, while application stage projects are capitalized. The latter costs are typically employee and/or consulting services directly associated with the development of the internal use software. Software and website costs are included in fixed assets in the accompanying consolidated balance sheets. Amortization commences once the software and website costs are ready for their intended use and are amortized using the straight-line method over the estimated useful life, typically three years. Goodwill and Customer Merchant Accounts Goodwill is an indefinite lived asset, which is not amortized and is instead subject to impairment testing, at least annually. Customer merchant accounts with finite lives are amortized over an estimated useful life of 30 or 66 months (See Note 5). The Company considers the following to be some examples of indicators that may trigger an impairment review outside of its annual impairment review: (i) significant under-performance or loss of key contracts acquired in an acquisition relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of the acquired assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s fair value for a sustained period of time; and (vi) regulatory changes. In assessing the recoverability of the 8

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 Company’s goodwill and customer merchant accounts, the Company must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets. These include estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company, the period over which cash flows will occur, and determination of the Company’s cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and conclusions on impairment. Revenue Recognition Revenue is primarily derived from electronic payment processing and related fee income. Electronic payment processing and fee income Electronic payment processing and fee income is derived from the electronic processing of credit and debit card transactions that are authorized and captured through third-party networks. Typically, merchants are charged for these processing services by applying a percentage to the dollar amount of each transaction plus a flat fee per transaction. Certain merchant customers are charged miscellaneous fees, including fees for handling charge-backs or returns, monthly minimum fees, statement fees and fees for other miscellaneous services. Revenues derived from the electronic processing of MasterCard®, Visa® and Discover® sourced credit and debit card transactions are reported gross of amounts paid to sponsor banks. Interest Income Interest income from a related party is recorded on an accrual basis, when earned, based on the current lending rate in place. Reserve for Losses on Merchant Accounts Disputes between a cardholder and a merchant periodically arise as a result of, among other things, cardholder dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer through the merchant’s acquiring bank and charged to the merchant. If the merchant has inadequate funds, the Company or, under limited circumstances, the Company and the acquiring bank, must bear the credit risk for the full amount of the transaction. The Company evaluates its risk for such transactions and estimates its potential loss for charge-backs based primarily on historical experience and other relevant factors. The Company records reserves for charge-backs and contingent liabilities when such amounts are deemed to be probable and estimable. The required reserves may change in the future due to new developments, including, but not limited to, changes in litigation or increased charge-back exposure as the result of merchant insolvency, liquidation, or other reasons. The required reserves are reviewed periodically to determine if adjustments are required. Electronic Payment Processing Costs Electronic payment processing costs consist principally of costs directly related to the processing of merchant sales volume, including interchange fees, Visa®, MasterCard® and Discover® dues and assessments, bank processing fees and costs paid to third-party processing networks. Such costs are recognized at the time the merchant transactions are processed or when the services are performed. Two of the most significant components of electronic payment processing costs include interchange and assessment costs, which are set by the credit card associations. Interchange costs are passed on to the entity issuing the credit card used in the transaction and assessment costs are retained by the credit card associations. Interchange and assessment fees are billed primarily as 9

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 a percentage of dollar volume processed and, to a lesser extent, as a per transaction fee. In addition to costs directly related to the processing of merchant sales volume, electronic payment processing costs also include residual expenses. Residual expenses represent fees paid to third-party sales referral sources. Residual expenses are paid in accordance with contracted terms. These are generally linked to revenues derived from merchants successfully referred to the Company and that begin using the Company for merchant processing services. Such residual expenses are recognized in the Company’s consolidated statements of income. During the year ended December 31, 2018, the Company partnered with two sponsor banks for substantially all merchant transactions. Substantially all merchant transactions were processed by one merchant processor. Income Taxes The Company and its subsidiaries are treated as flow-through entities for federal and state income tax purposes. Under present income tax laws, the Company is not subject to federal or state income taxes. The member is responsible for taxes on their respective share of the Company’s net income or losses. The Company reviews uncertain tax positions taken, or expected to be taken, in the course of preparing the Company’s consolidated financial statements to determine whether the tax positions are “more likely than not” of being sustained by the applicable tax authority. Management of the Company is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. The Company has no examinations in progress and none are expected at this time. The Company has reviewed the open tax years in major jurisdictions and concluded there is no tax liability, interest, or penalties resulting from unrecognized tax benefits relating to uncertain income tax positions taken, or expected to be taken, in future tax returns. Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through March 26, 2019, the date these consolidated financial statements were available to be issued. 10

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 3. Fixed Assets The Company’s fixed assets are comprised of the following at December 31, 2018: Terminals $ 1,217,267 Telephone systems 62,828 Computer equipment 116,171 Leasehold improvements 97,150 Software 807,621 Automobile 24,576 Furniture and fixtures 80,000 Website 14,705 2,420,318 Less: accumulated depreciation and amortization (1,858,178) $ 562,140 Depreciation and amortization expense related to fixed assets for the year ended December 31, 2018 was approximately $374,000. 4. Goodwill The carrying value of goodwill at December 31, 2018 is approximately $13,814,000. The Company performed a qualitative assessment on goodwill to determine if it is more likely than not that the Company’s fair value is less than its carrying amount. Based on its qualitative assessment, the Company determined that goodwill was not impaired at December 31, 2018 and that no further assessment was required. There were no changes to the carrying value of goodwill during the year ended December 31, 2018. 5. Customer Merchant Accounts The net carrying value of customer merchant accounts was approximately $3,884,000 at December 31, 2018. Customer merchant accounts are amortized over an estimated useful life of 30 to 66 months, as appropriate. Total amortization expense of customer merchant accounts using the straight-line method is included in depreciation and amortization in the accompanying consolidated statements of income and was approximately $1,281,000 for the year ended December 31, 2018. In 2018, the Company purchased approximately $2,495,000 of customer accounts from its outside sales agents and certain employees. Total purchases from employees were approximately $129,000. The purchase prices were based on contractual or agreed multiples of average monthly residuals. These merchant accounts are being amortized over 66 months. Total expected amortization expense for the next five fiscal years and thereafter is as follows: 11

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 Years Ending December 31, 2019 $ 1,593,606 2020 1,306,648 2021 525,699 2022 304,833 2023 134,746 Thereafter 18,952 $ 3,884,484 In November 2018, the Company sold a portion of its merchant portfolio to Elavon Inc. (“Elavon”). The Company sold substantially all of its merchants processing on the Elavon platform for $7,500,000 with an additional $500,000 contingent payment to be made in November 2019 if the sold portfolio achieves certain volume requirements and the Company boards 200 new merchants on the Elavon platform. As a result of the sale, the Company recorded a gain on sale of approximately $5,581,000 broken down as follows: Sale price $ 7,500,000 Payments to agents (1,480,561) Carrying value of Elavon portfolio (438,107) Gain on sale $ 5,581,332 6. Bank Notes Payable, Net In June 2015, the Company entered into a Credit and Guarantee Agreement (the “Goldman Agreement”) with Goldman Sachs Bank USA which extended a multi draw term loan facility (the “Goldman Facility”) up to an aggregate principal amount of $38,000,000. In June 2017, the Company amended the terms of the Agreement to extend the term of the Facility to June 2021 as well as increase the aggregate principal amount of the Goldman Agreement to $50,000,000. In November 2018, the Company entered into a Credit and Guarantee Agreement (the “Webster Agreement”), which extended a term loan for $35,000,000 (the “Webster Term Loan”) and a revolving line of credit (the “Webster RLOC” combined with the Webster Term Loan, the “Webster Facility”) with maximum borrowings of $15,000,000 for a total commitment of $50,000,000. The proceeds from the Webster Term Loan were used to pay all outstanding principal under the Goldman Facility. As a result, the Company recognized a loss on debt extinguishment of approximately $1,286,000 consisting of $800,000 of prepayment penalties and $486,000 of unamortized deferred financing costs in connection with the extinguishment of the Goldman Agreement. All assets of the Company are pledged as collateral under the Webster Agreement and is guaranteed by Newtek. The Webster Facility provides for monthly interest payments and quarterly principal payments beginning April 2019, with total remaining principal due at maturity. The Webster Facility matures in November 2023. Borrowings under the Webster Facility are classified either as a “Base Rate Loan” or a “LIBOR Rate Loan” at the Company’s election. Each LIBOR Rate Loan shall bear interest on the outstanding balance at a rate equal to LIBOR plus 2.5%, and 12

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 each Base Rate Loan shall bear interest on the outstanding balance at a rate equal to the Prime Rate plus 1.5%. The effective interest rate at December 31, 2018 was 4.84%. The Webster Agreement requires certain restrictive covenants for which the Company was in compliance as of December 31, 2018. Total Interest expense, excluding amortization of deferred financing costs, for the year ended December 31, 2018 was approximately $2,380,000. Deferred financing costs incurred by the Company related to the Webster Facility were approximately $737,000 during the year ended December 31, 2018. Amortization of deferred financing costs for the year ended December 31, 2018 was approximately $177,000 and is included in interest expense on the consolidated statements of income. Outstanding borrowings under the Bank note payable consisted of the following at December 31, 2018: Principal $ 35,000,000 Unamortized deferred financing costs (715,445) Net carrying amount $ 34,284,555 Debt principal payments for the next five fiscal years and thereafter is as follows: Years Ending December 31, 2019 $ 2,625,000 2020 3,500,000 2021 3,500,000 2022 4,812,500 2023 20,562,500 $ 35,000,000 7. Notes Receivable – Related Party The Company has extended a line of credit to Newtek. The Company had approximately $16,840,000 outstanding on its revolving line of credit with Newtek, at December 31, 2018. The line, which matures in November 2023, allows for maximum borrowings of $50,000,000 (subject to availability) and bears interest at a rate equal to that in effect under the Company’s Webster Facility, at any given time. The Company recorded related party interest income of approximately $836,000 during the year ended December 31, 2018. At December 31, 2018 there was approximately $48,000, in accrued interest income included in prepaid expenses and other current assets on the consolidated balance sheet. 8. Related Party Transactions During the year ended December 31, 2018, the Company incurred residual expenses totaling approximately $153,000 from several related parties. During the year ended December 31, 2018, the Company incurred costs for managed technology services of approximately $246,000 from Newtek Technology Solutions, Inc. 13

 
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 During the year ended December 31, 2018, the Company incurred payroll processing costs of approximately $25,000 from PMTWorks Payroll, LLC. Included in salaries and benefits are charges from Newtek related to salaries for management and certain other employees that perform services for the Company. Total amounts allocated to the Company for the year ended December 31, 2018 were approximately $558,000. The Company subleases office space from Newtek in Lake Success, NY. The rent payment is based upon an allocation of headcount in the Lake Success office space. Rent expense for the years ended December 31, 2018 was approximately $204,000. In 2018, the Company purchased approximately $129,000 of customer accounts from certain employees. The purchase prices were based on contractual or agreed multiples of average monthly residuals. These merchant accounts are being amortized over 66 months. 9. Commitments and Contingencies Operating Commitments The Company leases office spaces under non-cancelable operating leases. The following summarizes the Company’s obligations and commitments, as of December 31, 2018 for future minimum cash payments required under operating leases: Years Ending December 31, Operating Leases 2019 $ 56,239 2020 52,978 $ 109,217 Total rent expense for the year ended December 31, 2018 was approximately $262,000. In August 2018, the Company entered into a new Merchant ISO Agreement with a new sponsor bank. Under the terms of the Merchant ISO Agreement, NMS is required to pay monthly minimum fees of $15,000 during the term of the agreement. The Company exceeded the required monthly minimum amount under the agreement for the year ended December 31, 2018. The agreement renews automatically annually. Litigation As a result of prior litigation with the Federal Trade Commission, NMS voluntarily entered into, and is presently operating under, a permanent injunction with respect to certain of its business practices. 14

 

 
a2017upsofwillcandsubfs
Universal Processing Services of Wisconsin, LLC (A Limited Liability Company) and Subsidiary Financial Statements Year Ended December 31, 2017

 
Universal Processing Services of Wisconsin, LLC and Subsidiary Index Year Ended December 31, 2017 Pages Financial Statements Balance Sheet ................................................................................................................................................ 1 Statement of Income ..................................................................................................................................... 2 Statement of Changes in Member’s Deficit .................................................................................................. 3 Statement of Cash Flows .............................................................................................................................. 4 Notes to Financial Statements .................................................................................................................. 5-12

 
Universal Processing Services of Wisconsin, LLC and Subsidiary Balance Sheet December 31, 2017 Assets Current Assets: Cash $ 14,066,253 Accounts receivable 2,695,154 Prepaid expenses and other current assets 172,236 Inventory 71,780 Total current assets 17,005,423 Fixed assets, net 425,621 Customer merchant accounts, net 760,011 Restricted cash 498,220 Due from related parties 103,460 Notes receivable - related party 6,110,001 Goodwill 1,908,495 Total assets $ 26,811,231 Liabilities and Member's Deficit Liabilities: Current Liabilities: Accounts payable and accrued expenses $ 1,834,704 Residuals payable 903,690 Due to related parties 585,939 Chargeback reserves 782,908 Total current liabilities 4,107,241 Bank note payable, net of deferred financing costs 29,856,879 Total liabilities 33,964,120 Commitments and contingencies (Note 9) Member's deficit (7,152,889) Total liabilities and member's deficit $ 26,811,231 See notes to financial statements. 1

 
Universal Processing Services of Wisconsin, LLC and Subsidiary Statement of Income Year Ended December 31, 2017 Revenue: Electronic payment processing $ 111,271,839 Expenses: Electronic payment processing costs 91,087,057 Electronic payment processing costs - related parties 4,374,094 Salaries and benefits 4,964,662 Professional fees 441,012 Depreciation and amortization 707,883 Other general and administrative costs 1,099,876 Total expenses 102,674,584 Income from operations 8,597,255 Interest expense (2,065,729) Interest income - related party 588,922 Interest expense, net (1,476,807) Net income $ 7,120,448 See notes to financial statements. 2

 
Universal Processing Services of Wisconsin, LLC and Subsidiary Statement of Changes in Member’s Deficit Year Ended December 31, 2017 Member's Deficit Balance, January 1, 2017 $ (5,621,394) Net income 7,120,448 Distributions to member (8,651,943) Balance, December 31, 2017 $ (7,152,889) See notes to financial statements. 3

 
Universal Processing Services of Wisconsin, LLC and Subsidiary Statement of Cash Flows Year Ended December 31, 2017 Cash flows from operating activities: Net income $ 7,120,448 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 707,883 Amortization of deferred financing costs 193,743 Changes in operating assets and liabilities: Restricted cash 89,487 Accounts receivable 419,900 Prepaid expenses and other current assets 90,830 Inventory 173,720 Accounts payable, accrued expenses and other current liabilities (1,633,711) Due to/from related parties 335,537 Net cash provided by operating activities 7,497,837 Cash flows used in investing activities: Purchase of customer merchant accounts (62,029) Net advances under notes receivable - related party (5,610,001) Purchase of fixed assets (237,846) Net cash used in investing activities (5,909,876) Cash flows from financing activities: Distributions to member (8,651,943) Proceeds from bank note payable 13,500,000 Deferred financing costs paid (268,393) Net cash provided by financing activities 4,579,664 Net increase in cash 6,167,625 Cash, beginning of year 7,898,628 Cash, end of year $ 14,066,253 Supplemental disclosure of cash flow information Interest paid $ 1,701,199 See notes to financial statements. 4

 
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 1. Organization, Description of Business, and Basis of Presentation Universal Processing Services of Wisconsin, LLC (“UPS-WI”), was organized as a limited liability company (“LLC”) under the laws of the State of Wisconsin and is a wholly-owned subsidiary of Newtek Business Services Holdco 1, Inc. (“Holdco”). As UPS-WI is a limited liability company, the liability of Holdco is limited to its capital account. UPS-WI and its wholly-owned subsidiary, UPSWI Sales, LLC (“UPS Sales”) are collectively hereinafter referred to as the “Company”. The Company 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. 2. Significant Accounting Policies Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates, by their nature, are based on judgment and available information. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the reserve for chargeback losses. Financial Instruments The Company’s financial instruments include cash, accounts receivable, accounts payable and accrued expenses, residuals payable, notes receivable from a related party and a bank note payable. The carrying amounts of cash, accounts receivable, accounts payable and accrued expenses and residuals payable approximate fair value due to their short term maturities. The carrying amounts of notes receivable from a related party and bank note payable approximate fair value due to the variable interest rate they carry. Cash The Company maintains cash balances at financial institutions of high credit quality. As of December 31, 2017, cash deposits in excess of insured amounts totaled approximately $13,555,000. Restricted Cash Under the terms of the processing agreement between UPS-WI and its processing banks, UPS-WI maintains cash accounts as reserves against chargeback losses. As the Company receives fees from the processing bank, a certain percentage is allocated to the cash reserve account for certain merchants. 5

 
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 Inventory Inventory consists primarily of equipment to be installed in merchant locations to enable them to process electronic transactions. Inventory is stated at the lower of cost or market, which is determined on a FIFO (first in-first out) basis. Fixed Assets Fixed assets, which are comprised of telephone systems, software, website, computer equipment, credit card terminals, trucks and leasehold improvements, are stated at cost less accumulated depreciation and amortization. Depreciation of fixed assets is provided on a straight-line basis using estimated useful lives of the related assets. Amortization of leasehold improvements is provided on a straight-line basis using the lesser of the useful life of the asset, which generally is three to five years, or lease term. Goodwill and Customer Merchant Accounts Goodwill is not amortized but is instead subject to impairment testing, at least annually. Customer merchant accounts with finite lives are amortized over 66 months as discussed in Note 5. The Company considers the following to be some examples of indicators that may trigger an impairment review: (i) significant under-performance or loss of key contracts acquired in an acquisition relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of the acquired assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s fair market value for a sustained period of time; and (vi) regulatory changes. In assessing the recoverability of the Company’s goodwill and customer merchant accounts, the Company must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets. These include estimation of future cash flows, which is dependent on internal forecasts, estimation of the long- term rate of growth for the Company, the period over which cash flows will occur, and determination of the Company’s cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and conclusion on impairment. Revenue Recognition Electronic Payment Processing Electronic payment processing and fee income is derived from the electronic processing of credit and debit card transactions that are authorized and captured through third-party networks. Typically, merchants are charged for these processing services as a percentage of each transaction dollar plus a flat fee per transaction. Certain merchant customers are charged miscellaneous fees, including fees for handling charge-backs or returns, monthly minimum fees, statement fees and fees for other miscellaneous services. Revenues derived from the electronic processing of MasterCard®, Visa® and Discover® sourced credit and debit card transactions are reported gross of amounts paid to sponsor banks. Interest Income Interest income is recorded on an accrual basis, when earned, based on the current lending rate in place. 6

 
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 Reserve for Losses on Merchant Accounts Disputes between a cardholder and a merchant periodically arise as a result of, among other things, cardholder dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer through the merchant’s acquiring bank and charged to the merchant. If the merchant has inadequate funds, the Company or, under limited circumstances, the Company and the acquiring bank, must bear the credit risk for the full amount of the transaction. The Company evaluates its risk for such transactions and estimates its potential loss for charge-backs based primarily on historical experience and other relevant factors. The Company records reserves for charge-backs and contingent liabilities when such amounts are deemed to be probable and estimable. The required reserves may change in the future due to new developments, including, but not limited to, changes in litigation or increased charge-back exposure as the result of merchant insolvency, liquidation, or other reasons. The required reserves are reviewed periodically to determine if adjustments are required. Electronic Payment Processing Costs Electronic payment processing costs consist principally of costs directly related to the processing of merchant sales volume, including interchange fees, Visa®, MasterCard® and Discover® dues and assessments, bank processing fees and costs paid to third-party processing networks. Such costs are recognized at the time the merchant transactions are processed or when the services are performed. Two of the most significant components of electronic processing expenses include interchange and assessment costs, which are set by the credit card associations. Interchange costs are passed on to the entity issuing the credit card used in the transaction and assessment costs are retained by the credit card associations. Interchange and assessment fees are billed primarily as a percentage of dollar volume processed and, to a lesser extent, as a per transaction fee. In addition to costs directly related to the processing of merchant sales volume, electronic payment processing costs also include residual expenses. Residual expenses represent fees paid to third-party sales referral sources. Residual expenses are paid in accordance with contracted terms. These are generally linked to revenues derived from merchants successfully referred to the Company and that begin using the Company for merchant processing services. Such residual expenses are recognized in the Company’s statement of income. During the year ended December 31, 2017, the Company partnered with two sponsor banks for substantially all merchant transactions. Substantially all merchant transactions were processed by one merchant processor. Income Taxes The Company is a limited liability company (“LLC”) and therefore pays no corporate taxes. The Company’s income, instead, passes through to its member. Accordingly, no liability for Federal, State and/or local income taxes has been recorded in the accompanying financial statements. As a wholly-owned subsidiary of Holdco, the Company evaluated its tax positions at year end, and based on its analysis, determined that there were no uncertain tax positions. The Company’s U.S. Federal and State income tax returns prior to fiscal 2014 are closed and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. 7

 
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through March 13, 2018, the date these financial statements were available to be issued. 3. Fixed Assets The Company’s fixed assets are comprised of the following at December 31, 2017: Accumulated Depreciation Net Book Cost and Amortization Value Telephone systems $ 62,828 $ 51,110 $ 11,718 Software 651,156 441,975 209,181 Leasehold improvements 97,150 65,804 31,346 Computer equipment 96,796 87,796 9,000 Terminals 285,214 142,137 143,077 Trucks 24,576 3,277 21,299 Website 5,205 5,205 - Totals $ 1,222,925 $ 797,304 $ 425,621 Depreciation and amortization expense related to fixed assets for the year ended December 31, 2017 was approximately $214,000. 4. Goodwill The carrying value of goodwill at December 31, 2017 is approximately $1,908,000. The Company performed a qualitative assessment to determine if it is more likely than not that the Company’s fair value is less than its carrying amount. Based on its qualitative assessment, the Company determined that goodwill was not impaired at December 31, 2017 and no further assessment was required. 5. Customer Merchant Accounts The net carrying value of customer merchant accounts is approximately $760,000 which consists of approximately $2,806,000 of gross costs, net of accumulated amortization of approximately $2,046,000 at December 31, 2017. Customer merchant accounts are being amortized over 66 months. Total amortization expense of customer merchant accounts using the sum of the year’s digits was approximately $494,000. Total expected amortization expense for the next five fiscal years and thereafter is as follows: 8

 
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 Year Ending December 31, 2018 $ 371,530 2019 242,330 2020 121,287 2021 22,884 2022 1,980 Thereafter - $ 760,011 6. Bank Note Payable, Net of Deferred Financing Costs In June 2015, the Company, Newtek Technology Solutions, Inc. (“NTS”) and Premier Payments LLC (“Premier”), all subsidiaries of Holdco, collectively as “Borrowers” entered into a Credit and Guarantee Agreement (the “Agreement”) with Goldman Sachs Bank USA which extended a multi draw term loan facility (the “Facility”) up to an aggregate principal amount of $38,000,000. In June 2017, the Company amended the terms of the Agreement to extend the term of the Facility to June 2021 as well as increase the aggregate principal amount of the Facility to $50,000,000. Furthermore, the amendment of the Agreement added banc-serv Partners, LLC (“banc-serv”) and Small Business Lending, LLC (“SBL”), which are both owned by Holdco’s parent, Newtek Business Services Corp. (“Newtek”), as Borrowers. Concurrent with the increase in the aggregate principal balance, the Company borrowed an additional $18,000,000 under the Facility. The total outstanding balance under the Facility as of December 31, 2017 was $40,000,000. The Borrowers are collectively liable for the outstanding balance under the Facility. All assets of the Borrowers are pledged as collateral under the Agreement and the Facility is guaranteed by Newtek. The Facility provides for monthly/quarterly interest only payments with total principal due at maturity. The Facility matures in June 2021. Borrowings under the facility are classified either as a “Base Rate Loan” or a “LIBOR Rate Loan” at the Company’s election. Each LIBOR Rate Loan shall bear interest on the outstanding balance at a rate equal to (a) the greater of LIBOR or 50 basis points plus (b) 6%, and each Base Rate Loan shall bear interest on the outstanding balance at a rate equal to (y) the greater of the Prime Rate or 350 basis points, plus (z) 5%. The effective interest rate at December 31, 2017 was 7.69%. The Company may make principal payments within 24 months of the closing date and pay a prepayment premium based on a percentage of the principal outstanding as defined in the Agreement. After 24 months, principal may be repaid under no penalty. The Agreement requires certain restrictive covenants for which the Company is in compliance with as of December 31, 2017. At December 31, 2017, the Company had approximately $30,499,000 of total borrowings outstanding under the Facility. Interest expense and amortization of deferred financing costs for the year ended December 31, 2017 was approximately $2,085,000. Outstanding borrowings under the Bank note payable consisted of the following at December 31, 2017: Principal $ 30,498,694 Unamortized deferred financing costs (641,815) Net carrying amount $ 29,856,879 9

 
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 7. Notes Receivable – Related Party The Company had $6,110,000 outstanding on its revolving line of credit with Newtek, at December 31, 2017. The line, which matures in June 2021, allows for maximum borrowings of $50,000,000 and bears interest at a rate equal to that in effect under the Company’s Facility, at any given time. The Company recorded related party interest income of approximately $589,000 during the year ended December 31, 2017. At December 31, 2017 there was approximately $85,000 in accrued interest income under the line. 8. Related Party Transactions The Company earned electronic payment processing revenue of approximately $91,000 from Premier. The Company incurred residual expenses totaling approximately $3,922,000 from several related parties. In addition, the Company incurred gateway fees of approximately $121,000 from Secure Cyber Gateway Services, LLC, and breach insurance costs of approximately $332,000 from Newtek Insurance Agency, LLC, which are included in electronic payment processing costs – related parties on the statement of income. Salaries and overhead costs of approximately $147,000 charged from NTS are included in salaries and benefits. Payroll processing costs of approximately $21,000 from PMTWorks Payroll, LLC and managed technology services of approximately $161,000 from NTS are included in other general and administrative costs. At December 31, 2017, total amounts due to and due from related parties are approximately $586,000 and $103,000, respectively. Included in salaries and benefits are charges from Newtek related to salaries for management and certain other employees that perform services for the Company. Total amounts allocated to the Company for the year ended December 31, 2017, were approximately $407,000. During the year ended December 31, 2017, the Company purchased approximately $66,000 of customer merchant accounts from a related party. The Company’s parent, Holdco, and Newtek are both guarantors of the Facility with Goldman Sachs Bank USA. 9. Commitments and Contingencies Operating Commitments The Company entered into noncancellable operating leases for office facilities with future rentals as follows: Year Ending December 31, 2018 $ 54,543 2019 56,239 2020 52,978 $ 163,760 10

 
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 Total rent expense for the year ended December 31, 2017 was approximately $288,000. Under the amended terms of a Service Agreement, amended terms of a Merchant Program Processing Agreement, amended terms of a Preferred Card Agreement, and amended terms of a Marketing Agreement, UPS-WI is required to pay minimum fees of $4,200,000 in total under these agreements during the period January 1, 2017 through December 31, 2017. The term of the Service agreement was extended to December 31, 2018. The Merchant Program Processing Agreement initial term was extended to November 30, 2018 and renews automatically each year. The Marketing Agreement initial term was extended to May 31, 2018 and renews automatically each two years for two year terms. The Preferred Card Agreement initial term was extended to April 30, 2018 and renews automatically for six-month terms. Under the terms of an Independent Sales Organization Agreement and Member Services Provider Agreement between UPS-WI and one of their sponsoring banks, UPS-WI is required to pay monthly minimum fees of $10,000 during the term of the agreement. The Company exceeded the monthly minimum required amount under the agreement for the year ended December 31, 2017. The agreement renews automatically annually. Under the amended terms of a Processing Services Agreement between UPS-WI and one of their front-end processors, UPS-WI is required to pay a quarterly minimum of $68,000 during the term of the amended agreement. The Company’s fee payments for the 12-month period ended December 31, 2017, exceeded the minimum required amount under these agreements. The agreement expires July 2018. Litigation In 2013, the Federal Trade Commission (the “FTC”) amended an existing complaint in the matter Federal Trade Commission v. WV Universal Management, LLC et al., in the United States District Court for the Middle District of Florida (the “Court”), to add UPS-WI as an additional defendant on one count of providing substantial assistance in violation of the Telemarketing Sales Rule. On November 18, 2014, the Court issued an Order granting the FTC’s motion for summary judgment against UPS-WI on the single count. Subsequently, the FTC filed motions for a permanent injunction and equitable monetary relief against UPS-WI and the other remaining defendants. Prior to the Court hearing on the motions, UPS-WI and the FTC reached a settlement on the FTC’s motion for a permanent injunction. On May 19, 2015, the Court entered an equitable monetary judgment against UPS-WI for $1,735,000. The $1,735,000 was fully expensed in 2014 by UPS-WI. On June 14, 2016, the United States Court of Appeals for the Eleventh Circuit vacated the Court’s order awarding joint and several liability for equitable monetary relief in the amount of $1,735,000 against UPS-WI, and remanded the case to the Court for findings of fact and conclusions of law as to whether and why UPS-WI should be jointly and severally liable for restitution, and in what amount, if any. On October 26, 2016, the Court entered an equitable monetary judgment against UPS-WI for $1,735,000. On December 13, 2017, the United States Court of Appeals for the Eleventh Circuit affirmed the Court’s order awarding joint and several liability for equitable monetary relief against UPS-WI. UPS-WI intends to file a petition for a writ of certiorari requesting that the United States Supreme Court review the judgment. In September 2014, UPS-WI instituted an action against a former independent sales agent in Wisconsin state court for, among other things, breach of contract. The former sales agent answered 11

 
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 the complaint and filed counterclaims against UPS-WI. Following UPS-WI’s successful appeal of several of the court’s rulings, the action has been assigned to a new judge for further proceedings. UPS-WI intends to vigorously pursue its claims against the former sales agent and defend the counterclaims asserted. 12