27 December 2010
Small Business Loans
NEW YORK (Source: Newtek) - Newtek Business Services, Inc. (Nasdaq: NEWT), The Small Business Authority has announced that it had sales of approximately $ 23,000,000 of non-guaranteed portions of SBA has small business loan a closed Securitization Trust. The sale of the trust notes was advised by Guggenheim Securities, LLC, Newtek, and provided investment banking services covered.
Newtek subsidiary Newtek Small Business Finance, Inc., is in the production of U.S. Small Business Administration (SBA) 7 (a) loan is active and is one of the few non-bank lenders currently make small business loans. Newtek rule retains the unguaranteed portion of these loans and with the support of the Guggenheim Securities, the parts could securitize, realization approximately $ 16,000,000 in gross proceeds, which is mainly for making new loans and extinguishing agents Newtek Small Business Finance existing loan can be used with Capital One Bank. Guggenheim Securities played a key role in helping to structure and Newtek were to market the securities, the AA-rating from Standard and Poor's.
"NewTek is pleased extremely to be able to structure and market these notes with the help of Guggenheim Securities, LLC," said Barry Sloane, Chairman, President and Chief Executive Officer of Newtek Business Services. "The credit markets are difficult for the simple securitization and sale of assets badly drawn damaged in the past. So we are grateful that we are together a transaction that fill us to the market at a time, power, when liquidity in a well-subscribed Lending to small enterprises is urgently needed were enabled.
"NewTek has previously announced the realignment of the financial relationship with Capital One Bank. This additional line of credit in connection with the securitization, is NewTek's trust and to finance growth in the 7 (a) SBA government to help guarantee loans. In an SBA Loans can currently guaranteed portion of the loan in the secondary market at a premium to be sold for more than 10%. The liquidity through the securitization of the unguaranteed portion created Newtek offers long-term financing of its SBA support lending. This is much better than the internal cash to credit, to support the necessary in the past 12 months. The company anticipates approximately $ 65,000,000 to $ 70million of 7 (a) loan closings of small businesses in 2010, apart from all other loan programs we have. In 2011, the combination of certification, the new Capital One bank financing and other plans that we have on the road and in conjunction with our investor guide described enable us to originate approximately $ 100,000,000 of loans and dramatically improve our lending segment profitability through 2009 and 2010 levels. Under the new accounting standards, this transaction is treated as a financing and the assets and liabilities remain on our financial statements. "
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 small and medium-sized enterprises in the market Newtek (TM) brand. Since 1999, Newtek has helped implement small-and medium-sized businesses reach their potential, providing them with the essential tools for managing and growing their businesses and compete effectively in today's market. Newtek provides one or more of its services to over 100,000 business accounts and has positioned the Newtek (TM) brand as a one-stop-shop provider of such services for businesses. According to the U.S. Small Business Administration has more than 29.6 million small businesses in the United States, representing a total of 99.7% of all employer firms.
Newtek Business Service Lines include:
- Electronic Payment Processing: E-Commerce to accept electronic solutions,
non-cash payments, including credit and debit cards, check conversion
Remote deposit capture, ACH processing and electronic gift and loyalty
Card programs.
- Web Hosting: offers full-service Web host, eCommerce solutions,
Shared and dedicated hosting and related services including domain
Registration and online shopping cart tools.
- ECommerce: a series of services that enable small businesses to get up
Run on-line quickly and cheaply, with integrated Web
Design, payment processing and shopping cart services.
- Business Lending: broad array of products, including loans from SBA 7 (a) and
SBA 504 loans.
- Insurance Services: Commercial and retail business of insurance,
including health and social services in all 50 states, working with
over 40 insurers.
- Web Services: Customized web design and development.
- Data Backup, Storage and Retrieval: Fast, secure, off-site data backup,
Storage and retrieval designed to meet the specific regulatory and
Compliance requirements of any business.
- Accounts Receivable Financing: Receivables Purchasing and financing
Services.
- Wage and Payroll: Complete payroll management and processing services.
For more information, please visit http://www.newtekbusinessservices.com/.
About Guggenheim Partners, LLC
Guggenheim Partners, LLC is a diversified financial services company with more than 100 billion U.S. dollars assets under supervision. The company roster includes asset management, investment consulting, insurance, investment banking and capital markets services. The company is in Chicago and New York with a global network of offices in the United States, Europe and Asia. For more information, please visit http://www.guggenheimpartners.com/.
Note Regarding Forward-Looking Statements
The 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 be 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results could differ materially from the plans, intentions and expectations reflected in or suggested to differ 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, prospects, legislative developments and similar matters. Risk factors, warnings and other conditions that cause Newtek's actual results could differ from current expectations include, Newtek included in filings with the Securities and Exchange Commission and available through http://www.sec.gov/.
Source: Contact: Rubenstein Public Relations
Adam Mazur
(212) 843-8073
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