NEW YORK, May 21, 2013 /PRNewswire/ -- Newtek Business Services, Inc. (NASDAQ: NEWT) (www.thesba.com) The Small Business Authority®, a provider of business services and financial products to the small- and medium-sized business market, announced today that Standard & Poor's Ratings Services recently reaffirmed its AA rating on the class A notes from Newtek Small Business Loan Trust 2010-1. Standard & Poor's stated that the affirmation reflects their view that the class A notes can withstand their 'AA' stress given their current available credit enhancement.
Barry Sloane, Newtek President, Chairman and Chief Executive Officer said, "We are pleased with S&P's reaffirmation of the AA rating on the 2010 securitization by our lending subsidiary, Newtek Small Business Finance, Inc. This securitization has been on our books for approximately 2.5 years, and this reaffirmation is testament to the quality of the loans we originate and adherence to our stringent underwriting standards."
Newtek Small Business Loan Trust 2010-1 is an asset-backed securities transaction collateralized primarily by a pool of unguaranteed portions of U.S Small Business Administration Section 7(a), loans backed by commercial real estate and other collateral, such as equipment or receivables. Since this issuance in December of 2010, Newtek Small Business Finance has completed two additional asset-backed securities transaction, in 2011 and the first quarter of 2013. Guggenheim Securities acted as the placement agent for all 3 securitizations.
Mr. Sloane concluded, "Our ability to securitize has contributed significantly to the 42% increase in our funded loan volume in the first quarter of 2013 over the first quarter of 2012. We have also seen an improvement in our securitization economics. In our March 2013 securitization, we improved both our long-term cost of interest by more than 150 basis points and increased securitization proceeds by between 8% and 9% compared to our previous two securitizations in 2010 and 2011. As we continue to grow our loan origination volume, we look forward to bringing future quality issuances to the market as early as the fourth quarter of 2013, or in the first quarter of 2014."
About Newtek Business Services, Inc.
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 one or more of its services to over 100,000 business accounts and has positioned the Newtek® and The Small Business Authority brands 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.
Newtek Business Services, The Small Business Authority®, provides the following products and services:
- The Newtek Advantage™: A mobile real-time SMB management platform that puts all of a business's critical transactions and economic, eCommerce and web site traffic data on a smartphone, tablet, laptop or PC. The Newtek Advantage™ provides the intelligence that businesses require and will give them the advantage to succeed. This revolutionary platform will allow owners and operators of small- and medium-sized businesses to manage their businesses from their mobile device anywhere, anytime, all without an IT department.
- 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.
- Web Hosting: 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: A broad array of lending products.
- 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.
The Small Business Authority® is a registered trade mark of Newtek Business Services, Inc., and neither are a part of or endorsed by the U.S. Small Business Administration.
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.
For more information, please visit www.thesba.com.
Newtek Business Services, Inc.
Chairman and CEO
Contact: Jayne Cavuoto
Telephone: (212) 273-8179 / [email protected]
Contact: Brett Maas
Telephone: (646) 536-7331 / [email protected]
Rubenstein Public Relations
Contact: Jonathan Goldberg
Telephone: (212) 843-9335 / [email protected]
SOURCE Newtek Business Services, Inc.