Newtek Small Business Finance, LLC Increases Capital One Revolving Credit Facility to $100.0 Million
May 15 2017 - 9:00AM
Newtek Business Services Corp. (“Newtek” or the “Company”),
(Nasdaq:NEWT), an internally managed business development company
("BDC"), today announced that Newtek Small Business Finance, LLC,
(“NSBF”) the Company’s nationally licensed SBA lender subsidiary,
increased its existing revolving credit facility through Capital
One, National Association (“Capital One”) by $50.0 million to
$100.0 million. Concurrent with the line increase, NSBF
received a reduction in the interest rate from its present facility
of 1.125% when NSBF utilizes the facility to fund the unguaranteed
portion of SBA loans and 1.25% when NSBF utilizes the facility to
fund the guaranteed portion of SBA loans. The term of this
loan has been extended three years, through May 2020.
Barry Sloane, Chairman, President and Chief Executive Officer
said, “We are appreciative of our nine-year relationship with
Capital One, who has provided us with financing through multiple
credit cycles. We have worked with Capital One through seven
separate Standard and Poor’s rated securitizations, all of which
were rated ‘A’ or better, which have enabled us to replenish our
capital availability. Over time, we have proven that our
credit quality and 14-year track record as an issuer, loan
assembler and underwriter of small business credit can withstand
differing interest rate and credit cycles and have allowed for the
continued improvement in lending terms for our revolving credit
facility. We have now further established ourselves with in-house
pre-closing, post-closing, legal, underwriting and loan assembly
teams that are dedicated to ensuring strong loan credit quality and
embody the desire to continually improve the lending process and
client experience.”
Mr. Sloane continued, “We expect to launch our new mobile
application for financial and business solution referrals within
the next 30 days with the goal to further grow our total loan
referral business. While Newtek employs a FinTech
strategy to acquire its clients, that strategy is supported by a
dedicated, experienced in-house team who handles the entire credit
underwriting process. Newtek uses technology to enhance
client experience and work flow without sacrificing credit
quality or collateral provisions, which are necessary to mitigate
loan losses.”
Mr. Sloane concluded, “I would like to thank Peter Downs, Chief
Lending Officer and President of Newtek Small Business Finance who,
with the dedicated effort of his senior management team, has built
a first-class true retail national lending platform for small- to
medium-sized businesses. I would also like to thank Capital
One for this successful partnership that has withstood the test of
time.”
John Walsh, Managing Director, Capital One said, “Newtek has
been successfully executing its small business strategy for many
years, and Capital One is pleased to be a partner in that
success."
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 services and financial products 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 accounts
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), eCommerce, Accounts Receivable
Financing & Inventory Financing, The Secure Gateway, The Newtek
Advantage™, 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.
Investor Relations & Public Relations
Contact: Jayne Cavuoto
Telephone: (212) 273-8179 / jcavuoto@newtekone.com
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