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Capital One Bolsters Newtek Credit Facility

January 18, 2017, 08:12 AM
Filed Under: Lender Finance

Newtek Business Services Corp., an internally managed business development company (BDC), announced that its subsidiary Newtek Small Business Finance, LLC (NSBF) signed a letter of intent to increase its existing revolving credit facility through Capital One, N.A. by $25 million to $75 million, as well as reduce the borrowing rate. The upsize of the credit facility and rate reduction are subject to final documentation and approval from the U.S. Small Business Administration.

Barry Sloane, Chairman, President and Chief Executive Officer said, “We are pleased to announce entering into the letter of intent to increase our Capital One, N.A. revolving credit facility, which we expect to bring our total available revolving financing for our SBA 7(a) lending business to $75 million.  We are equally as pleased to have negotiated a reduction in our borrowing rate which we expect will result in an approximate 1% reduction in our interest rate.  We anticipate that the increase in our lending facility and rate reduction will provide us with the ability to fund a greater dollar value of loans in a more cost-effective manner and support our goal to issue larger securitizations with more attractive financing terms. Today’s announcement is yet another example of our continued ability to access capital at attractive terms which we believe is a testament to the market’s recognition of our differentiated business model that has continued to demonstrate growth and yield strong results.”

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