BOCA RATON, Fla., April 20, 2020 (GLOBE NEWSWIRE) — Newtek Business Services Corp., (Nasdaq: NEWT), an internally managed business development company (“BDC”), today announced that Newtek Small Business Finance, LLC (“NSBF”), the Company’s nationally licensed lender under the U.S. Small Business Administration (“SBA”) Section 7(a) Program, currently expects to fund upwards of $340 million of PPP loans by the close of business on Tuesday. As of today, NSBF has approved and obtained SBA E-Tran (loan) numbers for $548 million of PPP loans (which includes the $340 million of PPP loans to be funded by the end of the day, and $208 million of PPP loans awaiting funding), since the PPP program commenced. NSBF further estimates that the $548 million of SBA loan numbers received will result in approximately 60,000 employees being retained on the payroll of our borrowers. Finally, NSBF has additional prospective borrowers compiling their information to be processed for PPP loan approval, that could represent an additional $600 million of PPP loans, and presently estimates that, based on its current pipeline, and contingent on further government appropriations to the PPP, it could fund in excess of $1.0 billion in PPP loans. Stifel Financial Corp. and UBS, as well as other existing partners of Newtek, are providing NSBF with referrals and additional financing to originate PPP loans. Barry Sloane, Chairman, President and Chief Executive Officer said, “The continuing operations of small businesses are crucial to the recovery and health of the U.S. economy, as they make up approximately 50% of non-farm GDP. We feel very fortunate to be able to assist our customers, our funding partners’ clients, and members of credit unions and trade associations with whom we have long-standing relationships, as well as the U.S. economy, during these difficult times. We want to thank Stifel Financial Corp. and UBS for working with NSBF by referring clients and financing America’s small businesses, and we appreciate the essential role the SBA plays in supporting the small- and medium-sized business market. We are thrilled to presently estimate that we will provide funds to businesses to maintain or rehire an estimated 60,000 hardworking Americans across the U.S. We applaud our partners in banking, the credit-union community and trade associations for partnering with Newtek, which enables us to get an early jump on moving the funds to this important customer base. Although the current first round of allocation of the $349 billion has been depleted, we are hopeful that Congress will approve additional funding and enable us to continue to fund small businesses to make their payroll to their employees. As our efficiencies in processing these PPP loans and obtaining E-Tran numbers from the SBA continue to improve, we believe that we are positioned to fund in excess of $1.0 billion of PPP loans, given our present pipeline, should Congress approve additional PPP loan funds. We believe with further appropriations and funding this PPP loan funding estimate will continue to grow.”
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 and financial solutions 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 relationships 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, IT Consulting), eCommerce, Accounts Receivable Financing & Inventory Financing, 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.SOURCE: Newtek Business Services Corp.Investor Relations & Public Relations
Contact: Jayne Cavuoto
Telephone: (212) 273-8179 / [email protected]
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