Watch Live

Tweet TWEET

Newtek Business Services, Inc. Receives Extension of Warehouse Lines of Credit with Capital One, N.A. from September 30, 2013

Newtek Business Services, Inc. Receives Extension of Warehouse Lines of Credit
      with Capital One, N.A. from September 30, 2013 until May 31, 2015

PR Newswire

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
7(a) loans.

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
    department.
  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
    card programs.
  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
    insurance carriers.
  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
    services.
  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
Business Administration.

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
through http://www.sec.gov.

For more information, please visit www.thesba.com.

Contact:

Newtek Business Services, Inc.
Barry Sloane
Chairman and CEO
212-356-9500
bsloane@thesba.com

Investor Relations
Contact: Jayne Cavuoto
Telephone: (212) 273-8179 / jcavuoto@thesba.com
Contact: Brett Maas
Telephone: (646) 536-7331 / brett@haydenir.com

Rubenstein Public Relations
Contact: Jonathan Goldberg
Telephone: (212) 843-9335 / jgoldberg@rubensteinpr.com

SOURCE Newtek Business Services, Inc.

Website: http://thesba.com
 
Press spacebar to pause and continue. Press esc to stop.