Business Finance, LLC Increases Capital One Revolving Credit Facility to $100.0
SUCCESS, N.Y., May 15, 2017 (GLOBE NEWSWIRE) -- 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.
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.
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
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.