Majority of Business Owners Do Not Plan On Hiring In The Near Future

NEW YORK, May 3, 2012 /PRNewswire/ -- Newtek Business Services, NASDAQ: NEWT, The Small Business Authority, with a portfolio of over 100,000 business accounts, announced today the findings of its SB Authority Market Sentiment Survey, a monthly window into the concerns of independent business owners. Based on a poll of over 2,600 respondents, one of the key findings from the April survey is 67% of business owners do not plan on hiring in the next 6 to 12 months. Additionally, 58% of business owners do not hire recent graduates. When looking at the current 8.2% unemployment rate, 26% of business owners believe that the rate will be higher on Election Day in November, while 40% think it will be lower and 34% believe it will remain unchanged.

The full April 2012 results showed the following:

Barry Sloane, Chairman, President and CEO of The Small Business Authority commented, "We surveyed over 2,600 independent business owners regarding their plans to hire over the next 6-12 months as well as their propensity to hire college graduates. Our findings solidified our thoughts and convictions that most small businesses are not optimistic about the future business climate and are hesitant to hire. More importantly, for college graduates the environment is still dictating that business owners, when given an opportunity to grow and hire, are not interested in entry level college graduates for fear of the time lag, energy and effort required to train them versus finding experienced personnel in the market that can make an immediate impact to the company's bottom line. The weak economy has also weakened the bid from business owners to hire college graduates that require time, training dollars, energy and effort until they are productive."

About Newtek Business Services, Inc.

Newtek Business Services, The Small Business Authority, provides the following products and services:

• Electronic Payment Processing: eCommerce, electronic solutions to accept non-cash payments, including credit and debit cards, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs.
• Managed Technology Solutions (Cloud Computing): Full-service web host, which offers eCommerce solutions, shared and dedicated web hosting and related services including domain registration and online shopping cart tools.
• eCommerce:  A suite of services that enable small businesses to get up and running on-line quickly and cost effectively, with integrated web design, payment processing and shopping cart services.
• Business Lending: Broad array of lending products including SBA 7(a) and SBA 504 loans through our lending subsidiary, Newtek Small Business Finance, Inc.    
• Insurance Services: Commercial and personal lines of insurance, including health and employee benefits in all 50 states, working with over 40 insurance carriers.
• Web Services: Customized web design and development services.
• Data Backup, Storage and Retrieval: Fast, secure, off-site data backup, storage and retrieval designed to meet the specific regulatory and compliance needs of any business.
• Accounts Receivable Financing: Receivable purchasing and financing services.
• Payroll: Complete payroll management and processing services. 

Newtek Business Services, Inc., The Small Business Authority, is a direct distributor of a wide range of business services and financial products to the small- and medium-sized business market under the Newtek™ brand. Since 1999, Newtek has helped small- and medium-sized business owners realize their potential by providing them with the essential tools needed to manage and grow their businesses and to compete effectively in today's marketplace. Newtek provides its services to over 100,000 business accounts and has positioned the Newtek™ brand as a one-stop-shop provider of such business services. According to the U.S. Small Business Administration, there are over 27.5 million small businesses in the United States, which in total represent 99.7% of all employer firms.

Note Regarding Forward Looking Statements

Statements in this press release including statements regarding Newtek's beliefs, expectations, intentions or strategies for the future, may be "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Such risks and uncertainties include, among others, intensified competition, operating problems and their impact on revenues and profit margins, anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. Risk factors, cautionary statements and other conditions, which could cause Newtek's actual results to differ from management's current expectations, are contained in Newtek's filings with the Securities and Exchange Commission and available through http://www.sec.gov.

SOURCE Newtek Business Services