Concurrent with the line increase, NSBF received a reduction in the interest rate from its present facility of 1.125% when NSBF utilizes the facility to fund the unguaranteed portion of SBA loans and 1.25% when NSBF utilizes the facility to fund the guaranteed portion of SBA loans. The term of this loan has been extended three years, through May 2020.
Barry Sloane, chairman, president and chief executive officer, said, “We are appreciative of our nine-year relationship with Capital One, who has provided us with financing through multiple credit cycles. We have worked with Capital One through seven separate Standard and Poor’s rated securitizations, all of which were rated ‘A’ or better, which have enabled us to replenish our capital availability. Over time, we have proven that our credit quality and 14-year track record as an issuer, loan assembler and underwriter of small business credit can withstand differing interest rate and credit cycles and have allowed for the continued improvement in lending terms for our revolving credit facility.”
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 to the small- and medium-sized business market.