Newtek Business Services, an internally managed business development company, increased its existing revolving credit facility through Capital One, by $50 million to $150 million.
“As our loan referral volume and loan fundings continue to grow, we made the decision to increase the capacity of our revolving credit facility with Capital One. In addition, we believe the addition of our joint venture non-conforming loan program – Newtek Conventional Lending – will draw more attention to the Newtek lending solutions and business solutions model as the joint venture can fund loans up to $15 million with long-term debt,” said Barry Sloane, chairman, president and chief executive officer.
“We are maintaining our full year 2019 SBA 7(a) loan fundings forecast of between $580 million and $620 million, which would represent a 27.9% increase, at the midpoint of the range, over SBA 7(a) loan fundings for the year ended December 31, 2018. We anticipate continuing to securitize the unguaranteed portions of our SBA 7(a) loans and pay down the revolving credit facility from time to time. Our goal is to issue larger S&P-rated securitization transactions and to obtain more attractive pricing and larger institutional interest. To date, we have completed nine S&P-rated securitization transactions,” he added.
