Blog & Company News
Jul 18, 2013
Newtek Business Services, Inc. Receives Warehouse Credit Line Extensions
Newtek Business Services, Inc. (NASDAQ: NEWT) (www.newtekone.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."