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Newtek Business Lending Closes $100MM Credit Facility with Deutsche Bank AG

March 23, 2021, 07:30 AM
Filed Under: Lender Finance

Newtek Business Services Corp., an internally managed business development company (“BDC”), announced that Newtek Business Lending, LLC (“NBL”), Newtek’s portfolio company that originates and funds SBA 504 loans, closed a $100 million credit facility with Deutsche Bank AG. The facility will be used to fund SBA 504 loans and has an initial two-year term.

Barry Sloane, Chairman, President and Chief Executive Officer said, “We greatly appreciate the opportunity for NBL to close this financing facility with Deutsche Bank. 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.”

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