Blog & Company News
Nov 5, 2013
NewtekOne Enters into $75 M Letter of Commitment for Revolving Credit with Goldman Sachs
NewtekOne today announced that its subsidiary SBA-licensed 7(a) non-bank lender, Newtek Small Business Finance, Inc. ("NSBF"), has entered into a letter of commitment for a new revolving financing facility, totaling $75 million, with Goldman Sachs Bank USA. This revolving facility has a four-year term and will enable the Company to continue to grow its SBA 7(a) lending business. The facility will be set up using a special purpose entity to hold collateral, with only a limited guarantee from NSBF. The majority of the proceeds will be used to retire the current line of credit from Capital One Bank, N.A.
Barry Sloane, President and Chief Executive Officer commented, "We are pleased to announce this addition of $75 million to our financing capability, which will support the strategic direction of our lender, enabling us to grow our loan originations and potentially issue larger securitizations going forward. We continue to expect to grow our 2013 funded loans by approximately 63 percent, to $175 million, and anticipate strong loan growth in 2014 and beyond."
Mr. Sloane continued, "This facility is extremely attractive because it recognizes that our lender (without holding company or affiliate guarantees) originates and services high-quality SBA 7(a) loans. This facility gives us the flexibility to leverage significant amounts of additional collateral and reduces our cost of capital in the event that Newtek Business Services needs to borrow additional funds for other opportunities. We greatly appreciate the long-standing relationship that we have had with Capital One Bank and seek to maintain that relationship through other business endeavors."