Newtek Business Services, an internally managed business development company (BDC), announced Newtek Merchant Solutions and Newtek Technology Solutions, two of the company’s wholly owned portfolio companies, closed a $38 million four-year term loan with Goldman Sachs Specialty Lending Group.

The company will use a portion of this loan to repay the outstanding balance on, and retire the company’s $20 million credit facility with Capital One. The remainder of the proceeds will be used to finance future growth as well as for general corporate purposes. Newtek Small Business Finance’s current $50 million revolving line of credit with Capital One, which is used to fund SBA 7(a) loans, remains in place.

Barry Sloane, president, chairman and CEO of Newtek Business Services Corp. said, “We are extremely thrilled to secure this new term loan with Goldman Sachs, which we expect will allow us to leverage the assets in two of our wholly owned portfolio companies. Upon closing, approximately $20.0 million has been drawn, of which approximately $8.87 million will be used to retire The Company’s Capital One, N.A. line, and the balance will be distributed to The Company for lending or other working capital purposes. After the initial draw, an additional $10.0 million will be available based on the current trailing 12-month EBITDA for Managed Technology Solutions and Newtek Merchant Services, leaving us an additional $8.0 million for potential future acquisitions. Overall we believe this financing gives us tremendous flexibility to grow our business, and we anticipate that this new capital will enable us to generate increased free cash flow and be accretive to our dividend.”

Newtek Business Services is an internally managed BDC, which along with its controlled portfolio companies, provides a wide range of business services and financial products under the Newtek brand to the small- and medium-sized business market.