Newtek Business Services signed a letter of intent for a proposed $75 million senior secured revolving credit facility through Capital One. The facility will be available to a newly formed wholly-owned portfolio company, Newtek Business Lending, to originate loans under the SBA 504 loan program to small businesses.
Newtek expects the facility to contain a $75 million accordion feature which would allow NBL to increase the borrowing available under the facility to $150 million, subject to lender approval. The new facility will be separate and distinct from the $100 million SBA 7(a) revolving credit facility that Newtek Small Business Finance has through Capital One.
The revolving facility is subject to final documentation and approvals.
Barry Sloane, Newtek president, chairman and CEO, said, “This new facility, once closed, will be integral to our goal of expanding our portfolio company SBA 504 loan program originations. We are pleased that the market has continued to recognize Newtek’s and our portfolio companies’ proven track record of loan originations and loan performance through multiple interest rate cycles, demonstrated by the growth in available funding and continued improvement of financing terms through Capital One and our other lenders.”
Newtek Business Services is an internally managed BDC, which, along with its controlled portfolio companies, provides a range of business services and financial products, including, among others, business lending, electronic payment processing, technology solutions, accounts receivable financing and inventory financing, web services, and payroll and benefits solutions.
