Newtek Business Lending, a portfolio company of Newtek Business Services that originates and funds SBA 504 loans, closed a $100 million credit facility with Deutsche Bank. The facility will be used to fund SBA 504 loans and has an initial two-year term.
“We greatly appreciate the opportunity for NBL to close this financing facility with Deutsche Bank,” Barry Sloane, chairman, president and CEO of Newtek Business Services, said. “Combining this facility with NBL’s existing $75 million credit facility with Capital One Bank will leave NBL well positioned to grow its SBA 504 business. NBL’s SBA 504 lending opportunities are attractive in that NBL is able to sell the 504 loan and book gain-on-sale income. Specifically, NBL is able to sell the conventional first senior-secured lien, as well have the second lien taken out and financed by government debentures, with a goal of generating a gain-on-sale income and leaving nothing on the balance sheet. The financing facilities provide for seasoning of the loans and the warehouse to sell the loans. We anticipate that NBL can be a material contributor to the BDC’s dividend on a regular basis.”
Newtek Business Services is an internally managed business development company, which, along with its controlled portfolio companies, provides business and financial solutions under the Newtek brand to small- and medium-sized businesses.
