Newtek Business Services, Inc. Receives Extension of Warehouse Lines of Credit
with Capital One, N.A. from September 30, 2013 until May 31, 2015
NEW YORK, July 18, 2013
NEW YORK, July 18, 2013 /PRNewswire/ -- Newtek Business Services, Inc.
(NASDAQ: NEWT) (www.thesba.com) The Small Business Authority^®, today
announced that its subsidiary, Newtek Small Business Finance Inc. (NSBF),
received an extension on the availability of its warehouse lines, totaling $27
million, with Capital One, N.A. from September 30, 2013 to May 31, 2015.
These revolving facilities enable the Company to finance both the
government-guaranteed and non-guaranteed portions of U.S. Small Business
Administration (SBA) 7(a) loans. Capital One N.A. also enhanced the terms of
the credit facilities by removing the $15 million funding sublimit for the
non-guaranteed portions of the SBA 7(a) loans NSBF originates, and increasing
the advance rate to 55% from 50% for the non-guaranteed portions of the SBA
Barry Sloane, Chairman, President and Chief Executive Officer said, "We
appreciate the extension through May 2015 and the enhancement of terms on our
warehouse lines, specifically the 10% increase in the advance rate to 55% and
elimination of the funding sublimit for the non-guaranteed portions of our SBA
loans, all of which illustrate the confidence Capital One has in our lending
business. This warehouse facility coupled with our ability to securitize the
unguaranteed portions of our SBA loans gives us the liquidity to grow our
funded loans, projected to increase by approximately 63%, to $175 million, for
2013, and to continue this strong loan growth in 2014 and beyond."
About Newtek Business Services, Inc.
Newtek Business Services, Inc., The Small Business Authority^®, is a direct
distributor of a wide range of business services and financial products to the
small- and medium-sized business market under the Newtek^® brand. Since 1999,
Newtek has helped small- and medium-sized business owners realize their
potential by providing them with the essential tools needed to manage and grow
their businesses and to compete effectively in today's marketplace. Newtek
provides one or more of its services to over 100,000 business accounts and has
positioned the Newtek^® and The Small Business Authority brands as a
one-stop-shop provider of such business services. According to the U.S. Small
Business Administration, there are over 27.5 million small businesses in the
United States, which in total represent 99.7% of all employer firms.
Newtek Business Services, The Small Business Authority ^®, provides the
following products and services:
oThe Newtek Advantage™: A mobile real-time SMB management platform that
puts all of a business's critical transactions and economic, eCommerce and
web site traffic data on a smartphone, tablet, laptop or PC. The Newtek
Advantage™ provides the intelligence that businesses require and will give
them the advantage to succeed. This revolutionary platform will allow
owners and operators of small- and medium-sized businesses to manage their
businesses from their mobile device anywhere, anytime, all without an IT
oElectronic Payment Processing: eCommerce, electronic solutions to accept
non-cash payments, including credit and debit cards, check conversion,
remote deposit capture, ACH processing, and electronic gift and loyalty
oWeb Hosting: Full-service web host which offers eCommerce solutions,
shared and dedicated web hosting and related services including domain
registration and online shopping cart tools.
oeCommerce: A suite of services that enable small businesses to get up and
running on-line quickly and cost effectively, with integrated web design,
payment processing and shopping cart services.
oBusiness Lending: A broad array of lending products.
oInsurance Services: Commercial and personal lines of insurance, including
health and employee benefits in all 50 states, working with over 40
oWeb Services: Customized web design and development services.
oData Backup, Storage and Retrieval: Fast, secure, off-site data backup,
storage and retrieval designed to meet the specific regulatory and
compliance needs of any business.
oAccounts Receivable Financing: Receivable purchasing and financing
oPayroll: Complete payroll management and processing services.
The Small Business Authority^® is a registered trade mark of Newtek Business
Services, Inc., and neither are a part of or endorsed by the U.S. Small
Note Regarding Forward-Looking Statements
Statements in this press release including statements regarding Newtek's
beliefs, expectations, intentions or strategies for the future, may be
"forward-looking statements" under the Private Securities Litigation Reform
Act of 1995. 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
For more information, please visit www.thesba.com.
Newtek Business Services, Inc.
Chairman and CEO
Contact: Jayne Cavuoto
Telephone: (212) 273-8179 / firstname.lastname@example.org
Contact: Brett Maas
Telephone: (646) 536-7331 / email@example.com
Rubenstein Public Relations
Contact: Jonathan Goldberg
Telephone: (212) 843-9335 / firstname.lastname@example.org
SOURCE Newtek Business Services, Inc.
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