Newtek Small Business Finance, LLC Funded a Quarterly Record $183.0 Million in SBA 7(a) Loans in the Fourth Quarter of 2019; ...
January 10 2020 - 8:30AM
Newtek Business Services Corp. (“Newtek”) (NASDAQ: NEWT), an
internally managed business development company (“BDC”), today
announced that for the three months ended December 31, 2019,
Newtek Small Business Finance, LLC (“NSBF”) funded a
quarterly record $183.0 million in SBA 7(a) loans, which represents
a 22.8% increase over SBA 7(a) loans funded for the three months
ended December 31, 2018. For the year ended December 31,
2019, NSBF funded $517.7 million of SBA 7(a) loans; an increase of
10.3% over SBA 7(a) loans funded for the year ended December 31,
2018. In addition, with respect to total loan closings for
the quarter, NSBF, Newtek Business Lending (“NBL”), a wholly
owned portfolio company, and Newtek Conventional Lending (“NCL”),
the joint venture between a Newtek wholly owned subsidiary and
Conventional Lending TCP Holding, LLC, a wholly owned affiliate of
BlackRock TCP Capital Corp, closed a total of $249.1 million of
SBA 7(a), SBA 504 and non-conforming conventional loans.
Barry Sloane, Chairman, President and Chief Executive Officer
said, “We are pleased to announce our fourth quarter and full year
2019 loan fundings across the different lending products we offer
through Newtek and our portfolio companies. Our NSBF SBA 7(a)
loan platform funded a record $183.0 million of loans during the
fourth quarter of 2019, which represents quarterly year-over-year
growth of 22.8%. In addition, our 2019 year-over-year
growth of 10.3% in SBA 7(a) loan fundings is in line with our
previously forecasted funding growth expectations of 10.8%.
Furthermore, total loan closings in 2019 across the full
Newtek small business finance platform (SBA 7(a), SBA 504 and
non-conforming commercial loans), totaled approximately $643
million, which does not include the fundings of Newtek Business
Credit Solutions, a wholly-owned controlled portfolio company that
provides receivables and inventory financing.”
Mr. Sloane continued, “Our system and origination platform is
generating great opportunities for our company and investors within
our expected credit parameters and performance expectations.
The Newtek business finance platform is doing what it has
been designed for and its loan origination volumes are being spread
across four funding platforms, which give us a diverse stream of
income encompassing fee income, servicing income, net
interest margin and gain on sale. Our goal to reduce dependence on
gain-on-sale income and spread our income across multiple different
lending platforms will be evident and discussed in further detail
when we release our full year 2019 financial results and host the
accompanying conference call.”
About Newtek Business Services Corp.
Newtek Business Services Corp., Your Business Solutions
Company®, is an internally managed BDC, which along with its
controlled portfolio companies, provides a wide range of business
and financial solutions under the Newtek® brand to the small- and
medium-sized business (“SMB”) market. Since 1999, Newtek has
provided state-of-the-art, cost-efficient products and services and
efficient business strategies to SMB relationships across all 50
states to help them grow their sales, control their expenses and
reduce their risk.
Newtek’s and its portfolio companies’ products and
services include: Business Lending, SBA Lending Solutions,
Electronic Payment Processing, Technology Solutions (Cloud
Computing, Data Backup, Storage and Retrieval, IT Consulting),
eCommerce, Accounts Receivable Financing & Inventory
Financing, Insurance Solutions, Web Services, and Payroll and
Benefits Solutions.
Newtek® and Your Business Solutions Company®,
are registered trademarks of Newtek Business Services Corp.
Note Regarding Forward Looking
Statements
This press release contains certain
forward-looking statements. Words such as “believes,” “intends,”
“expects,” “projects,” “anticipates,” “forecasts,” “goal” and
“future” or similar expressions are intended to identify
forward-looking statements. All forward-looking statements involve
a number of risks and uncertainties that could cause actual results
to differ materially from the plans, intentions and expectations
reflected in or suggested by the forward-looking statements. Such
risks and uncertainties include, among others, intensified
competition, operating problems and their impact on revenues and
profit margins, anticipated future business strategies and
financial performance, anticipated future number of customers,
business prospects, legislative developments and similar matters.
Risk factors, cautionary statements and other conditions, which
could cause Newtek’s actual results to differ from management’s
current expectations, are contained in Newtek’s filings with the
Securities and Exchange Commission and available through
http://www.sec.gov/. Newtek cautions you that forward-looking
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
or implied in these statements.
SOURCE: Newtek Business Services Corp.
Investor Relations & Public
RelationsContact: Jayne Cavuoto Telephone: (212) 273-8179
/ jcavuoto@newtekone.com
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